Not Quite Tribally Owned: A Lesson on Tribally-Owned Entities and the 8(a) Program

Not every participant in the 8(a) Business Development Program is owned by socially and economically disadvantaged individuals. There are also a sizable number of entities that are owned by Native American tribes, Native Alaskan entities, Native Hawaiian organizations, either directly or through other entities (collectively, we’ll call them Tribally-Owned Entities). While the presumption of social disadvantage for 8(a) eligibility for members of certain ethnic and racial minorities was found unconstitutional (and is formally being removed), Tribally-Owned Entities go by a different set of rules that makes admission into the 8(a) Program easier. That does not, however, mean that these rules apply to any and all entities owned by a Native American or even where actions are supposedly taken on behalf of a Native American tribe. A company learned this the hard way in a recent SBA Office of Hearings and Appeals (OHA) decision that we’ll explore today.

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DOD: Sole-Source Contracts up to $100 Million Don’t Need Justification

Effective March 17, DOD contracting officers won’t have to issue a justification or obtain approval for award of a sole-source contract under the Small Business Administration’s 8(a) program for awards up to $100 million, up from the prior $22 million limit. This Department of Defense class deviation implements the higher dollar amount that Congress set in the 2020 National Defense Authorization Act.

This change will likely matter most for 8(a) concerns owned by an Indian Tribe, Alaska Native Corporation (ANC) or Native Hawaiian Organization (NHO), as other 8(a) firms are limited to a smaller dollar amount for sole source awards unless only one 8(a) firm can perform the work.

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