Outstanding research article from the Center for Indian Country Development showing the extensive partnerships in prime and subcontracting between Native entity owned SBA 8(a) participants and other small businesses, including other 8(a) participants. Tribally owned businesses, Alaska Native Corporations, and Native Hawaiian Organizations utilize federal contracting to support their communities while also partnering with other small businesses to meet the needs of the US Government. As pointed out in the article, Native-entity enterprises contract in many different locations, but these entities often hire small business subcontractors local to the contract’s place of performance, an industry term for the geographic location where the contracted work is performed. Out of all Native-entity-enterprise-owned prime contracts with at least one small business subcontractor, 56.3 percent have at least one small business subcontractor located in the same state as the place of performance, and 68.0 percent have at least one small business subcontractor 250 miles or less from the city where the subcontracted work is performed. Additionally, 92.9% of subcontracts were awarded to non-native small businesses showing the cooperation between 8(a) participants in the program.
Native entities provide billions of dollars in services to the government annually through federal contracts. Some of that revenue flows to small businesses—both inside and outside reservations—through subcontracting. To better understand the role of these subcontracting relationships, CICD examined nearly a decade’s worth of federal spending data on prime and subprime contracts. The findings suggest that Native-entity-owned businesses’ prime contracts may provide subcontracting opportunities for non-Native-owned small businesses. Learn more in our latest feature: https://bit.ly/46djmZ5 #IndianCountry #FederalContracting #SmallBusiness