Small Business Administration 8(a) Business Development

Doyon, Limited joined Arctic Slope Regional Corporation and Cook Inlet Region Inc. in proposing reforms to the Small Business Administration (SBA) 8(a) program in 2010.

The SBA’s 8(a) business development program helps qualified small and disadvantaged businesses pursue certain federal contracts. Alaska Native corporations are certified as minority-owned, disadvantaged SBA 8(a) businesses under laws enacted by Congress.

In February 2011, the SBA released new rules, many of which included changes supported by Doyon, ASRC and CIRI’s reform package. The reforms increase accountability and decrease the potential for abuse, while maintaining the program’s goal to encourage the growth of sustainable businesses that directly improve the livelihood of socially and economically disadvantaged populations.

Some of the changes include:

• Prohibiting non-competitive contracts from being rolled over between affiliated entities.
• Strengthening enforcement and sanctions against Alaska Native corporations that repeatedly violate program requirements.
• Requiring Native 8(a) companies to track and report benefits received by the Native communities and shareholders.

Doyon also believes 8(a) can be improved by promoting competition for large government contracts, with a cap of $100 million on 8(a) sole source awards. This issue remains to be addressed by Congress.

Cover Letter Sent to SBA by Doyon, Limited, ASRC and CIRI

Reforms Submitted

Opinion Piece