Proposed Changes to Native 8(a) No-Bid Contracts

A top administrator with the Small Business Administration, which runs the program, says they have made a number of changes to discourage both fraud and waste.

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By Lauren Maxwell
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Story Created: Jun 23, 2011 at 9:16 AM AKDT

Story Updated: Jun 23, 2011 at 9:16 AM AKDT

There may be some changes in store for Alaska Native Corporations who get no-bid contracts from the federal government. The program offers no-bid contracts to qualifying small businesses including ANCs but some have questioned whether shareholders are reaping enough of the benefits.

Supporters say the program provides jobs and needed cash for poor villages, but critics point out that some of the contracts are for millions of dollars and benefits to shareholders seem questionable.

A top administrator with the Small Business Administration, which runs the program, says they have made a number of changes to discourage both fraud and waste.

That includes a new requirement that ANCs that participate in the program will have to report exactly what benefits their shareholders receive.

“We have just taken the most comprehensive review of 8(a) regulations that's been done in the last 15 years and so the entire program has been improved,” says SBA administrator Maria Johns.

Johns says the SBA is holding participants in the program more accountable including a rule change that will allow the federal government to prosecute companies who don’t follow the rules

Johns says in her view, the program has far more benefits than problems, and if anything, she would like to see it strengthen and grow.

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Kent R. said on Thursday, Jun 23 at 12:29 PM

No-Bid Contratcs is another welfare program. The Program has been in place for years. The Fed's still subsidize fuel in the villages. If the program is working them why does the Fed still subsidize? Why don't the Native Co's poor money into the villages? The waste is and fraud is a huge problem and making the rich richer and the villages left out....still? Why now is the waste and frau being delt

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