Alaska Native Corporations suffer devastating loss of billions in federal contracts

As I predicted in 2010, federal money to Alaska Native Corporations (ANC’s) has begun to dry up.  This year, the drop has been dramatic, falling from $4.4 billion in fiscal year 2011 to $1.8 billion for the first three quarters of 2012.

The gravy train for the ANC’s, sole source contracts over $20 million, took even a bigger hit.  These no bid contracts, illegal in the European Union and widely criticized in the US  due to suspicions that “illegal or immoral means [are used] to exclude competitors (usually by cronyism or bribery),” cratered from $2.5 billion in 2011 to $587 million in the first three quarters of 2012.

Why has this happened?  Because of limitations imposed after Senate investigations revealed that ANC’s “passed much of their work to large, non-Native companies, failed to employ Alaska Natives to work on the contracts and returned only minimal benefits from the businesses to Alaska Natives.” Sound familiar?

To make matters worse for Alaska’s native corporations in coming years, Senator Claire McCaskill, chairwoman of the contracting oversight subcommittee, is working to ensure that even fewer of these sole source contracts are awarded to the ANC’s in 2013.  Her objective is to “eliminate ANCs’ ability to receive sole-source contracts larger than what other companies get in the Small Business Administration’s 8(a) Business Development program.”

All of this has led to additional workloads for procurement officials as many contracts, formerly sole source, are now open to competition.  But it has also brought significant federal cost savings, the objective of the budget hawks who have pushed for the contracting reforms.

Given the impending loss of even more federal dollars and the fact that their current contracts “fail to employ Alaska Natives,” what should the ANC’s do?  My perspective is that ANC’s need to abandon crony capitalism and join forces with Constitutionalists who seek to regain state control over natural resources.  Removal of federal regulatory restraints on resource development within the State of Alaska would spur explosive economic growth.  The ANC’s could then leave the federal handouts behind and focus on creating real, productive jobs for shareholders and other Alaskans.

The true power of self determination that so many Alaska Natives fought for at ANCSA’s inception is getting back more control over our lands here in Alaska, so that all those who live here can chart their own course, together, as Alaskans.


  • Alaska Native corporation leaders showered the fake independent candidate, Lisa M., with money, publicity and (many fraudulent) votes in 2010 for what? So her dad’s and Steven’s non-Alaskan native friends could reap the benefits of non-bidding on federal contracts? Time for Alaskan Natives to stand up to their leaders just like it is past time for “we, the people” to stand up to our leaders. Restore liberty. Elect Dr. Ron Paul president in a “true vote”. Peace,

  • marineh2ominer

    I wwould blame most of this on a certain female Alaskan ” rhino ” that got elected by nefarious means with help from the Rhinos beholden to her dad .

    • Tell It Like It Is

      You are wrong on this…the fault lies with a particular rent-a-cop who handcuffed a journalist at a Joe Miller event and it went viral in the media. This discredited the Miller campaign enough to tilt the election to the liberal woman.

  • Alaska needs to determine its own fate . . .

  • Tell It Like It Is

    Lets save time and money…. just have the Fed Gvt cut a $5000 check to each Alaska Native every month for life. It would be far cheaper for the taxpayer than utilizing the trickle down through the 8(a) contracting program. By the way whitey, get back to work.

  • guamjeff

    Looking back on the votes of 2010 and 2014 I’m going to have to say that the people of Alaska are going to reap what they vote for. I have never seen a people, known for their rugged independence, courage and audacity, take to being manipulated and turned into sycophantic liberal handout monkeys in my life! They voted for the known corrupt politician thinking they, personally, would benefit. They then did it again in 2014, voting for the establishment candidate and ignoring the one candidate that was willing to tell them the truth and to move forward with honesty and forcefulness against the corruption in Washington.
    The People of Alaska have chosen corruption and chosen Pablum and lies and the soft road to servitude and Federal take over of their state eventually all for Political Correctness and the hope that they, individually, might benefit financially or in some other way, from a certain corrupt politician and unfair situation.
    Poor sick Alaska.
    Good Bye.