Benefits of Alaska Native Corporations and the SBA 8(a) Program to Alaska Natives and Alaska

Senator Begich’s office asked ISER for assistance assembling information to document the social and economic status of Alaska Natives and the benefits of the 8(a) program. His purpose is to brief Missouri Senator McCaskill and her committee which is reviewing the status of ANC contracts awarded under SBA’s 8(a) program. This review was triggered by a 2006 GAO report recommending increased SBA oversight to 8(a) contracting activity. Highlights of the GAO report are provided in Tab A.1; a letter dated May 15, 2009, from Senators Begich and Murkowski to Sentaor McCaskill, outlining their concerns is provided in Tab A.2. As the Congressional Research Service report (Tab A.3) explains, the Small Business Administration’s 8(a) program targeting socially and economically disadvantaged individuals was operating under executive authority from about 1970, and under statutory authority starting in 1978. A series of amendments from 1986 to 1992 recognized Alaska Native Corporations (ANCs) as socially and economically disadvantaged for purposes of program eligibility, exempted them from limitations on the number of qualifying subsidiaries, from some restrictions on size and minimum time in business, and from the ceiling on amounts for sole-source contracts. Between 1988 and 2005, the number of 8(a) qualified ANC subsidiaries grew from one to 154 subsidiaries owned by 49 ANCs. The dollar amount of 8(a) contracts to ANCs grew from $265 million in FY 2000 to$1.1 billion in 2004, approximately 80 percent of which was in sole-source contracts. (GAO Highlights, Tab A.1) The remainder of this briefing book is divided in three sections. Section 2 addresses changes in the social and economic status of Alaska Natives from 1970--the year before the enactment of the Alaska Native Claims Settlement Act and the subsequent creation of the ANCs--to the present. ISER’s report on the “Status of Alaska Natives 2004” (Tab B.1) finds that despite really significant improvements in social and economic conditions among Alaska Natives, they still lag well behind other Alaskans in employment, income, education, health status and living conditions. A collection of more recent analyses updates the social and economic indicators to 2008. There were many concurrent changes throughout this dynamic period of Alaska’s history and we cannot attribute all the improvements to the ANCs, though it is clear that they play an important catalyst role. In the final part of section 2 we attempt to provide some historical context for understanding the role ANCs have played in improving the well-being of Alaska Natives. Section C. documents the growth in ANCs and their contributions to Alaska Native employment, income, social and cultural programs and wellbeing, and their major contributions to the Alaska economy and society overall. Section D. Looks specifically at the 8(a) program. Although there are a handful of 8(a) firms with large federal contracts, the majority are small, village-based corporations engaged in enterprise development in very challenging conditions. A collection of six case studies illustrate the barriers to business development these small firms face and the critical leverage that 8(a) contracting offers them.Mark BegichIntroduction / Status of Alaska Natives 1970 to 2000 / Benefits from Alaska Native Corporations / Benefits from the 8(a) progra

The Status of Alaska Natives Report 2004 Volumes I - III

The Alaska Federation of Natives asked ISER to report on social and economic conditions among Alaska Natives. We found that Natives have more jobs, higher incomes, and better living conditions, health care, and education than ever. But they remain several times more likely than other Alaskans to be poor and out of work. Alcohol continues to fuel widespread social problems. Native students continue to do poorly on standard tests, and they’re dropping out in growing numbers. Rates of heart disease and diabetes are rising. In the face of all these challenges, subsistence remains critical for cultural and economic reasons. And there are more challenges to come. In the coming decade, when economic growth is likely to be slower than in the past, thousands more young Alaska Natives will be moving into the job market. Volume II and Volume III of the Status of Alaska Natives Report contain data tables generated from the 2000 U.S. census describing the Alaska Native American population by the 12 Alaska Native Regional Corporation boundaries. Volume II shows data for the population in Alaska reporting Native American as their only race (Alaska Native or American Indian Alone) and Volume III shows data for the population reporting Native American in combination with some other race (Alaska Native or American Indian Alone or in Combination). At the time of the 2000 Census, there were 98,043 single-race Native Americans in Alaska and 119,241 people who identified themselves as Native American in combination with some other race. The tables in these volumes have been generated from a special file prepared by the U.S. Census Bureau that contains detailed information on the Native American population for the entire United States. The AIANSF (American Indian and Alaska Native Summary File) is accessible on the internet at http://factfinder.census.gov/servlet/DatasetMainPageServlet"Alaskan Federation of Native

Understanding Alaska Research Summary No. 7

Nearly $1.5 billion a year flows into Alaska from a source that doesn’t depend on oil or fish or gold, isn’t influenced by world markets, and isn’t seasonal. That cash flow roughly equals what fishermen were paid in 2005 for their Alaska seafood harvests, or the value of zinc, gold, and other metals mined in Alaska in 2004. It’s close to what tourists spend here every summer. What’s the source? Retired Alaskans. The 52,000 retirees age 60 or older brought an estimated$1.46 billion into the state in 2004. About 75% is from Social Security and pensions. Most of the rest is spending by governments and private insurers for health-care costs of retired Alaskans. ISER estimates that spending by retirees supports about 11,700 jobs—or nearly 4% of Alaska’s wage and salary jobs. This summary reports ISER’s findings about the economic contributions of older Alaskans, describes who they are, and estimates how their numbers are likely to grow.Understanding Alaska (UA) is a special series of ISER research studies examining Alaska economic development issues. The studies are funded by the University of Alaska Foundation

Viability of Business Enterprises for Rural Alaska Volume II: Business Case Studies

Prepared under an award from the U.S. Department of Commerce Economic Development Administration, with additional support from Rasmuson Foundation and the University of Alaska Foundation.Ye

Viable Business Enterprises for Rural Alaska: What Works?

This summary is based on Viable Business Enterprises for Rural Alaska, Final Report, by the same authors.With support from the Rasmuson Foundation, BP Exploration (Alaska), Wells Fargo Bank, the U.S. Development Administration, and the University of Alaska Foundation.Ye

Viability of Business Enterprises for Rural Alaska: Community Factors and Entrepreneurial Strategies

Prepared with financial support from: U.S. Department of Commerce, Economic Development Administration; Rasmuson Foundation; British Petroleum Foundation; Wells Fargo; and the University of Alaska FoundationYe

Executive Summary: The Status of Alaska Natives Report 2004

Ye