Rep. Markey calls for hearing on Alaska Native corporations

Tuesday, February 7, 2012  

Rep. Ed Markey (D-Massachusetts) is calling on the House Natural Resources Committee to hold a hearing on Alaska Native corporations.

Markey, the top Democrat on the committee, said the Government Accountability Office is urging reforms in the way Alaska Native corporations receive federal contracts. He also said a recent criminal indictment involving an Alaska Native subsidiary points to the need for change.

"Alaska Native Corporations are provided advantages in federal contracting because of the unique history of native peoples and the U.S. government’s obligations to them,” Markey said in a press release. “However, we must ensure that these advantages are not wrongly exploited and that taxpayers are receiving fair value for contracted work. GAO’s report finds that federal agencies are currently unable to provide the necessary protections. The House Natural Resources Committee should immediately hold a hearing to make sure this problem is fixed.”

In a report released today, Monitoring and Oversight of Tribal 8(a) Firms Need Attention, the GAO said 8(a) program awards to tribal, Alaska Native and Native Hawaiian firms grew to $5.5 billion in 2010. Alaska Native corporations received the majority of those federal contracting dollars, according to the GAO.

The 8(a) program limits the amount of work that can be passed onto subcontractors. But the GAO found that federal agencies weren't doing enough to monitor whether Alaska Native corporations were following the rule.