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Congressional probe an attack on economic future
 

 

 

 

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On the surface, the recent attacks on Alaska Native Corporations (ANCs) for receiving large no-bid federal contracts appears to be only directed at Native Alaskan 8(a) contracting. However, tribal federal contracting, in the lower 48, could be harmed if Congress decides to change the tribal 8(a) program that was created, in the first place, to remove institutional barriers to tribal economic development.

This is not just about Indians: All minority 8(a) contracting could suffer if drastic changes are made to the 8(a) set-aside program. Today we are witnessing increasing calls to end all types of affirmative action programs: minority 8(a) set-asides could be added to that doomed list. I hope our friends from the various minority groups will stand beside us and let Congress know that we are holding them accountable for a fair and equitable investigation of ANC's federal contracting.

From the news coverage, it appears that the ANCs are the focus of this investigation although they were awarded these contracts by federal agencies imbued with the power to award such contracts. A March 5 Washington Post article stated that federal lawmakers Rep. Thomas M. Davis (Republican from Annandale, Va.), Chairman of the House Government Reform Committee, and the panel's ranking Democrat, Rep. Henry A. Waxman of Los Angeles, Calif., called for a congressional investigation of 8(a) contracts awarded to ANCs.

The National Indian Business Association has learned from other minority groups that there are a lot of factions we do not know about, including hidden agendas, and the real who and what is behind why they are calling for this investigation. If so, ANCs and tribal governments and potentially the whole 8(a) program could become a causality of a political battle.

Recent studies indicate the American Indian economy is at least 20 years behind the mainstream economy. Even with the advent of tribal gaming, only a handful of tribes have realized a substantial financial turn of fortune. These tribes are now diversifying their financial portfolios and creating joint-ventures that will help them build sustainable economic futures beyond gaming.

The issue of any ''special'' federal contracting incentives for American Indian and Alaska Natives continues to be one of a lack of education for the general public, non-Native business owners and, to a large extent, Congress. Tribes are not a minority group, but sovereign nations that have a unique relationship with the federal government that is defined and protected by constitutional law; the legal basis for federal programs for Indians.

Despite the United States' treaty obligations and trust responsibility, Indian country continues to struggle with cuts in federal funding needed to meet the basic day-to-day needs of their tribal communities. As a people, we continue to be the poorest in this land of plenty. Some tribes and ANCs see government contracting as a way out of poverty and have created strong, qualified and proven businesses that provide the taxpayer with value received for services rendered.

The issue of ANCs 8(a) set-aside contracts may be a case of business jealously. There was applause when federal contracting began increasing opportunities for Hispanic, women and African-American business owners - people believed that it was about time the federal government opened its doors for these often disenfranchised Americans.

It appears that when American Indians begin catching up people feel threatened and attack our rights to an equal share of the American dream. It is frustrating that the very minority groups that once were left out of the process are now hopping mad that tribes and Alaska Natives are finally getting a chance to be real business players with the federal government.

The education needs to begin now. The treatment of tribes by the federal government has crafted many shameful pages in America's history. Most Americans don't know the truth or, to borrow a line from the movie ''A Few Good Men,'' ''can't handle the truth.''

Many of the more than 200 Alaska Native villages that the corporations represent are in very remote regions and have limited access to resources that the rest of us take for granted. The Alaska Native story can be described as a ''they pulled themselves up by their boot straps'' story; one that should make every American feel good knowing that if you have business savvy, work hard and are receptive to all the opportunities for which you are entitled, you can be successful.

Federal contracting is to Alaska Natives what tribal gaming is to the tribes in the lower 48: vital to the economic welfare of these communities. In most cases, these federal contracts provide the necessary funding for village community programs including health, education and child and elder care. Unlike the tribes in the lower 48, Alaska does not have gaming. Without the revenues from federal contracting many programs would disappear and the people would suffer.

Imagine if tomorrow Congress decided to make tribal gaming illegal and they shut down all our casinos and bingo halls. Not only would there be tens of thousands of people out of work, most of whom are non-Native, but many tribal programs that have become dependent on gaming revenues would have to be cut. And again our people would suffer.

This nightmare scenario could become a reality if we don't stand guard against it. Indian country must stay alert to any threats (like this current ANC situation) to our sovereignty and our well-being no matter how it is disguised. If Congress takes steps to change or perhaps end tribal 8(a) contracting, it establishes a precedent that could be used against Indian country to attack tribal gaming and any number of other tribal rights and programs.

To share a holistic view, the ANCs might have avoided this attack had they been more generous in sub-contracting with minority-owned businesses. But it has become an issue of money. If the money had been dispersed more readily through the minority and small business community maybe they wouldn't have cried foul.

Now all Native 8(a) contracting could be in danger, and the decades of hard work we have devoted to opening these doors of business opportunity may be for naught. In the future we may find the doors shut in our faces.

Government no-bid contracting is not something new. This has been a federal government practice since 1953 to equalize the playing field for small disadvantaged and minority- and woman-owned businesses. It wasn't until the recent past, 1992, that the federal government included tribes in their contracting set-aside program. I joined the Small Business Administration's (SBA) Office of Native American Programs in January of 1992 and began implementing the tribal 8(a) contracting program. Before that, tribes were pretty much left out of the process.

It is unfortunate that this cry of ''you got a bigger piece of the contracting pie than me'' could turn into an attack on 8(a) contracting for all Native-owned 8(a) firms. The potential impact of this type of congressional investigation is daunting. Indian country's economic development future and perhaps that of our minority brothers and sisters has a lot at stake and a lot to lose.

Pete Homer, Mojave, is president and CEO of the National Indian Business Association. He is an enrolled member of the Colorado River Indian Tribes of Arizona.