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8(a) conference offers regulation update, business opportunity

June 27th 9:21 pm | Margaret Bauman Print this article   Email this article   Create a Shortlink for this article

As a teen-ager in high school at McGrath, Trudy Sobocienski listened attentively to leaders of the Tanana Chiefs Conference and Doyon Limited speaking about what they were doing and what it would mean to her.

Now as chief executive officer for Deloycheet Inc., the Alaska Native village corporation for Holy Cross, Sobocienski has found what Will Mayo, Georgianna Lincoln and the late Mitch Demientieff told her was true.

"I did grow up and have the opportunities for education and a career that spans throughout a host of Native organizations where I do fit in," Sobocienski told dozens of participants in the National 8(a) Association summer conference in Anchorage June 23.

"I am grateful that these opportunities were afforded to me by Native leaders with the full intent of benefiting the then to be next generation," she said. "I now have the honor to serve as a chief executive officer, and as such, work diligently to continue to pave the way for the benefit of the upcoming generation."

Sobocienski then introduced Blanche Demientieff, a Deloycheet shareholder and office manager for Deloycheet, who will be attending the Native American Contractors Association's first annual emerging leaders summit in Washington D.C. in July.

Demientieff's trip is being sponsored by Deloycheet Inc.

"This is not a new concept for Alaska Native people," Sobocienski said.

"Our ancestors have passed down through generations innovative ideas discussed in solution-oriented venues that resulted in to plans that were strategic, negotiated, laid out roles and responsibility of community members, and then executed diligently so that the community could survive in this harsh climate. This practice has existed for thousands of years in our culture before there were any outside influences introduced into our societies."

Sobocienski's comments went to the heart of concerns that have prompted revisions in the U.S. Small Business Administration's 8(a) business development program, concerns over reducing potential fraud, waste and abuse of the program and getting benefits to shareholders of the Alaska Native corporation shareholders.

The revised rules require firms owned by tribes, Alaska Native corporations, Native Hawaiian organizations and community development corporations to report benefits flowing back to their respective communities.

Firms owned by a tribe, Alaska Native corporation, Native Hawaiian organization or community development corporation may not receive a sole source 8(a) contract that is a follow-on contract to an 8(a) contract performed immediately previously by another participant or former participant owned by the same tribe/ANC/.NHO or CDC.

The revised rules for joint ventures aim to ensure that non-disadvantaged firms do not unduly benefit from the 8(A) program.

They call for the 8(a) participant in a mentor-protégé agreement to perform 40 percent of the work of each 8(a) joint venture contract that is awarded.

A joint venture awarded an 8(a) contract cannot subcontract work to any non-8(a) joint venture partner, including a large business mentor

Each 8(a) firm that performs an 8(a) contract through a joint venture must report to the SBA how the performance of work requirements was met on the contract.

Sobocienski said Deloycheet's goal of federal contracting utilizing the resources of the village corporation had several objectives.

One is to increase the corporation's revenue and profit base, with a portion of those resources reallocated to activities such as fostering job and educational opportunities as well as other programs the corporation identifies as "as a shareholder benefit on our own terms," she said.

The second is for the federal government to continue to maintain its responsibility and that responsibility not be shifted to the Alaska Native corporations under the guise of a shareholder benefits program.

For example, she said, an Alaska Native corporation can choose to allocate funds and donate to an entity so that entity can meet its match requirements in a grant application for a water and sewer project for the community. However, the Alaska Native corporation should not be expected to assume the federal responsibility to ensure that the community water and sewer infrastructure for its American citizens, she said.

The third objective is economic development, Sobocienski said. "We have responsibility to create job opportunities and economic development through business," she said.

"However, we can assist other entities, non-profit, governmental, tribal, etc. in their missions to address the other pieces of that puzzle, which include lowering the cost of living, education and healthy communities."

The three day gathering in Anchorage brought together representatives from a number of Alaska Native 8(a) firms, including some just getting started, along with other individuals and companies wanting to do business with them, and a number of SBA officials and attorneys offering information on the guidelines, benefits and pitfalls to be aware of in developing successful 8(a) ventures.

 

Margaret Bauman can be reached at mbauman@alaskanewspapers.com, or by phone at 907-348-2438

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