"Longtime Alaska Republican Sen. Ted Stevens' loss in the November 2008 election could create an opportunity for lawmakers to scale back the contracting preferences afforded to Alaska native corporations.

The political godfather of the ANC program, Stevens pushed through a number of competitive advantages for his home state corporations.

"Nobody wanted to take on Uncle Ted, because he was such a powerful senator," said Guy Timberlake, chief executive officer of the American Small Business Coalition in Columbia, Md. "Now, with him out of the way, I think there is going to be much more activity."

Timberlake and others argue that the preferences granted ANCs, including the ability to win unlimited and uncapped sole-source contracts, have given them an unfair advantage over other participants in the Small Business Administration's 8(a) Business Development program.

A House Oversight and Government Reform Committee staffer said the panel's new chairman, Rep. Edolphus Towns, D-N.Y., has heard from constituents upset about ANC advantages and is exploring legislative remedies.

Possibilities include requiring ANCs to abide by the same sole-source cap as other 8(a) companies -- $3 million for most types of contracts and $5 million for manufacturing deals, the aide said. Another option would be legislation to limit ANCs' ability to form teaming or subcontracting agreements with large corporations. The corporations are allowed to subcontract work to non-8(a) firms as long as they perform no more than half the work."

Get the Story:
Stevens' departure opens window to overhaul Alaska native contracting (Government Executive March 2009)

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