Working With Bakinaw

The Small Business Administration’s (SBA) Small Disadvantaged Business (SDB) 8(a) program provides the federal government with unique, FAR compliant, approaches to contract with small Disadvantaged Businesses. Those businesses who are owned by a Tribe, such as Bakinaw, and qualify for 8(a) status, are entitled to additional unique privileges and benefits. Under the FAR, these businesses provide government customers a timely, FAR-compliant alternative to securing solutions through direct, sole-sourced contracts that can be processed. These include awarding sole-source contracts up to $20M; the ability to directly negotiate contracts with a firm prior to award; and having competition limited to a smaller pool of contractors. Other companies can team/subcontract with Bakinaw to jointly pursue work within these rules.

Additional FAR compliant special contracting opportunities for Tribally-owned companies include unique 8(a) rights, expedited A-76 authority, and bonuses for DOD contractors that subcontract with Native American-owned firms.

• Special Rights Under the SBA 8(a) Program. - Tribal and ANC 8(a) firms are eligible to receive sole-source 8(a) contracts up to $100 million dollars with the Department of Defense and up to $25 million dollars with all other federal agencies without a justification (there is no upper limit with a written justification) while all other 8(a) firms may not receive sole-source contracts in excess of $4 million for services and $5 million for manufacturing.
• Federal agencies can hold direct negotiations with Tribal and ANC 8(a) firms during sole source procurement development.
• Special Rights Under the A-76 Program - The A-76 program (“A-76” refers to the number of the implementing Office of Management and Budget (OMB) Circular) imposes a long and cumbersome procedure for any government facility that wishes to contract out (i.e., outsource) an activity that employs ten or more civilian government employees. (The average A-76 study takes 23 months.) Language in the Defense Appropriations Act3 provides that a command does not have to go through the A-76 process but may do a direct conversion of that function to a private contractor, regardless of the number of civilian employees, if the command contracts with a firm that is 51% or more Native American owned, so long as the conversion is cost-effective.
• The 5% Subcontracting Bonus - Pursuant to statutory language and implementing regulations, a DOD contractor that subcontracts with a firm that is 51% or more Native American owned is entitled to receive a bonus equal to 5% of the amount of the subcontract award.