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ANC 8(a) Benefits
Additional benefits to utilizing Suulutaaq, Inc. are the unique privileges awarded to ANC 8(a) firms. These privileges include the following with the applicable Federal Acquisition Regulation citation:
ANC 8(a) firms may receive sole source contracts regardless of dollar amount. “SBA may award a sole source 8(a) contract to a Participant concern owned and controlled by an Indian tribe or an ANC where the anticipated value of the procurement exceeds the applicable competitive threshold if SBA has not accepted the requirement into the 8(a) BD program as a competitive procurement. There is no requirement that a procurement must be competed whenever possible before it can be accepted on a sole source basis for a tribally-owned or ANC-owned concern, but a procurement may not be removed from competition to award it to a tribally-owned or ANC-owned concern on a sole source basis.” 13 CFR 124.506(b)
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Sole-source procurements to tribes and ANC 8(a)s may not be protested, because there is no injured party. “The size status of a nominated Participant for sole source procurement may not be protested by another Participant or any other party.” 13 CFR 124.517(b)
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No cap on the total contract values available to ANC 8(a)s. “A Participant (other than one owned by an Indian tribe or an ANC) may not receive sole source 8(a) contract awards where it has received a combined total of competitive and sole source 8(a) contracts in excess of the dollar amount set forth in this section during its participation in the 8(a) BD program.” 13 CFR 124.519(a)
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SURSA is awarded same status as stand-alone ANC 8(a). “A mentor and protégé may joint venture as a small business for any government procurement, including procurements with a dollar value less than half the size standard corresponding to the assigned NAICS code and 8(a) sole source contracts, provided the protégé qualifies as small for the procurement and, for purposes of 8(a) sole source requirements, the protégé has not reached the dollar limit set forth in Sec. 124.519.” 13 CFR 124.520(d)(1)
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SURSA can have strong financial backing and still be considered a Small Disadvantaged Business (SDB). “(1) Alaska Natives and descendants of Natives must own a majority of both the total equity of the ANC and the total voting powers to elect directors of the ANC through their holdings of settlement common stock. Settlement common stock means stock of an ANC issued pursuant to 43 U.S.C. 1606(g)(1), which is subject to the rights and restrictions listed in 43 U.S.C. 1606(h)(1). (2) An ANC that meets the requirements set forth in paragraph (a)(1) of this section is deemed economically disadvantaged under 43 U.S.C. 1626(e), and need not establish economic disadvantage as required by paragraph (b)(2) of this section. 13 CFR 124.109(a)(1) and 13 CFR 24.109(a)(2)
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The size of an ANC-owned firm is determined independently of any affiliations with other companies and subsidiaries. “In determining the size of a small business concern owned by a socially and economically disadvantaged Indian tribe (or a wholly owned business entity of such tribe) for either 8(a) BD program entry or contract award, the firm's size shall be determined independently without regard to its affiliation with the tribe, any entity of the tribal government, or any other business enterprise owned by the tribe, unless the Administrator determines that one or more such tribally-owned business concerns have obtained, or are likely to obtain, a substantial unfair competitive advantage within an industry category.” 13 CFR 124.109(c)(2)(iii)
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An individual responsible for the control and management of an ANC-owned firm does not need be part of the ANC. “Management may be provided by non-tribal members if SBA determines that such management is required to assist the concern's development, that the tribe will retain control of all management decisions common to boards of directors, including strategic planning, budget approval, and the employment and compensation of officers, and that a written management development plan exists which shows how disadvantaged tribal members will develop managerial skills sufficient to manage the concern or similar tribally-owned concerns in the future.” 13 CFR 124.109(c)(4)(B)
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The Indian Incentive Program that allows prime and sub-tier contractors to receive a rebate for 5% of the total amount paid to Indian-owned firms, such as Suulutaaq, LLC. “Indian organizations and Indian-owned economic enterprises shall have the maximum practicable opportunity to participate in performing contracts awarded by Federal agencies. In fulfilling this requirement, the Indian Incentive Program allows an incentive payment equal to 5 percent of the amount paid to a subcontractor in performing the contract, if the contract so authorizes and the subcontractor is an Indian organization or Indian-owned economic enterprise.” 48 CFR 26.102
- ANC 8(a)’s also have special rights under the OMB Circular A-76 program for competitive outsourcing. A DOD command or office does not have to go through the A-76 process but may do a direct conversion of that function to a tribal 8(a) contractor. “This section and subsections (a), (b), and (c) of section 2461 of title 10, United States Code, shall not apply to a commercial or industrial type function of the Department of Defense that is planned to be converted to performance by a qualified firm under at least 51 percent ownership by an Indian tribe, as defined in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)), or a Native Hawaiian Organization, as defined in section 8(a)(15) of the Small Business Act (15 U.S.C. 637(a)(15)).” Defense Appropriations Act, Section 8014(b)(1)(C), PL 105-56.
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Additional benefits to utilizing Suulutaaq, Inc are the unique privileges awarded to ANC 8(a) firms. These privileges include the following with the applicable Federal Acquisition Regulation citation:
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