Good Times for ANCs

Bloomberg BNA reported last week that ANCs (Alaska Native Corporations) received $7.3B in federal contract awards in FY 2014 (of this amount, $4.5B was DoD). This total amount is up from $5.8 in the prior year.

This is impressive considering a $20M 8(a) sole-source award threshold was imposed in 2009 due to provisions of the NDIA for FY 2010. In response to the imposed 8(a) sole-source threshold, other federal contracting vehicles and opportunities were a logical alternative. Since this threshold was put in place, there has been a significant increase in obligations for ANCs related to Total Small Business Set-Asides (1,600% increase), large new 8(a) competitive awards (900% increase) and smaller or older small business set-asides (100% increase). Competitive awards also contributed to the overall growth (16% increase).

In addition, in an attempt to increase small business subcontracting opportunities, recent changes in small business subcontracting rules have been proposed – including allowing agencies to receive credit against their small business utilization goals for the award of overseas contracts.

The overall market appears very favorable for ANCs continued success.

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