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Read More: Contracting, No Bid Contracts, Regulation, Alaska
New regulations proposed by the Small Business Administration this week are aimed at closing a loophole that has been exploited by large government contractors in how they partner with 8(a) small and disadvantaged businesses. The state of Alaska has been the epicenter of the contracting dance, as "Alaska native corporations" hold permanent disadvantaged status to win sole-source contracts of unlimited value.
These ANC firms make for very tempting "partners" for larger contractors looking for an end-around the normal contracting process. But much of the money stemming from contracts ends up flowing to the large (sometimes multi-billion dollar) corporations acting as "subcontractors" to the disadvantaged "prime" contractors. Not what the Small Business Administration intended.
"When these large contracts are awarded on a sole-source basis to joint ventures, the contracts are not available for competition among other 8(a) firms," the rule said.
almar October 29, 2009 10:18 PM
Best. Decision. Ever.
Hot October 31, 2009 6:39 PM
Federal contract are for the most competent low bidder. To target small-business owners or any other group is to relax competency requirments.
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