Tribal Contract Preference
“[T]he preference [in federal government contracting] promoting the economic development of federally recognized Indian tribes (and thus their members), is rationally tied to a legitimate legislative purpose and thus constitutional.” American Federation of Gov’t Employees v. United States, 330 F. 3d 513 (D.C. Cir. 2003) citing Kimel v. Fl. Bd. of Regents, 528 U.S. 62, 83 (2000).
In 1982, Congress first authorized the Native 8(a) Program provides a means for Tribal enterprises to enter the government’s business development program as a path toward economic success and self-sufficiency. Later, in 1986, Congress expanded opportunities to Alaska Native Corporations. The Native 8(a) program permits tribal corporations certified under Section 8(a) of the Act to contract with the federal government without a cap on the amount of a negotiated sole-source contract. Other individual small businesses certified by Section 8(a) are limited by the dollar amount of the contract. These provisions were created to acknowledge the benefit Native 8(a) enterprises provide to entire communities, not just individual business owners. As defined by SBA’s regulations, native-owned businesses are presumed to be socially and economically disadvantaged. These businesses can apply for the nine-year, 8(a) Business Development Program certification.
Over 100 Federal programs of significance soon followed, some of the major program initiatives include:
Native American Preferred Access to Government Grants, Financing, Incentives, licensing and diversity set-asides
From affordable housing to energy production there are over $100 billion dollars is available to Native American Tribes with a majority of t
Native American “Super” SBA 8(a) SBA Special Privileges
Tribally owned 8(a) firms are entitled to receive sole source any contracts of any value, which removes the $3M size standard limitations applied to other 8(a). In addition, the award cannot challenge the award of a sole source contract (S. 124.517(a)).
Native American 8(a) Government / Diversity Sole Source Preference and Limit Exclusion
A firm having employee based primary SIC/ NAICS code at time of program entry, the limit above which it can no longer receive sole source 8(a) contracts is $100,000,000. However, this is per 8(a), whereas tribes may have multiple 8(a) designation.
Preferred governmental contracting via HUBZone’s that are “Historically Underutilized Business Zones, which the Government provides a 3% contract set-asides to HUBZone-certified companies with Native American tribes having preference.
Private Sector Preference Contracting
Corporations that do business with the government or have instituted diversity contracting, which is a majority of the Fortune 500, have required Native American Contract Set-asides. In 2014, minority suppliers exceed $100 billion, with less than 1% being contracted by Native American partnerships or corporations.
Manufacturing & Assembly Tax Incentives
Up to a 30% savings delta for manufacturing facilities on tribal lands channeled to non-Native American business partners/investors may reduce investment costs in facilities on tribal lands through a multitude of identified tax credits and employment incentives.
The Native American Venture Fund’s portfolio, along with projects from its management company, Native American Partners, will be leveraging its expertise in leveraging combined Native American and general Federal programs in which our Native American Tribal Partners will receive contracting preference. This will provide the basis for the funds anticipated returns for both our investors and tribal partners.