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Olgoonik’s subsidiaries are 100% Alaska Native owned for-profit small disadvantaged companies eligible to participate in several federal preference programs that particularly benefit Alaska Native Corporations (ANCs) and their shareholders.

Small Business Administration 8(a) Business Development Program Many Olgoonik companies are members in good standing with the SBA’s 8(a) Business Development Program, and as such are certified as Small Disadvantaged Businesses. Under the SBA BD Program, Federal agencies can sole source large contracts with qualified firms. Under FAR 19.805-1(b)(2) and 13 CFR 124.506(b), Indian Tribal 8(a)’s are exempt from the competitive threshold of $3 million for services and $5 million for manufacturing. The result of this rule is that ANC 8(a) companies can sole source any sized contract. The 8(a) program allows Olgoonik companies to offer the government a team approach to concurrently develop the scope of work, price scope, and implementation plan via sole source negotiations.

Small Disadvantaged Businesses
Minority businesses in federal procurement are called disadvantaged businesses. A small disadvantaged business is a small business that also meets the following criteria:

  • At least 51% owned by one or more individuals who are both socially and economically disadvantaged;
  • A publicly owned business with at least 51% of its stock owned by one or more socially and economically disadvantaged individuals with its management and daily business controlled by such individuals;
  • Socially disadvantaged individuals mean individuals who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group without regard to their qualities as individuals'
  • Economically disadvantaged individuals mean socially disadvantaged individuals whose ability to compete in the free enterprise system is impaired due to diminished opportunities to obtain capital and credit as compared to others in the same line of business who are not socially and economically disadvantaged.
  • Individuals who certify that they are members of the following groups are considered to be socially and economically disadvantaged:
    • Black Americans
    • Hispanic Americans
    • Native Americans
    • Asian-Pacific Americans
    • Subcontinent-Asian Americans

HUBZone
The HUBZone Empowerment Contracting Program is included in the Small Business Reauthorization Act of 1997. The act is intended to stimulate economic development and create jobs in urban and rural communities by providing contracting preferences to small business that are located in a HUBZone and that hire employees who live in a HUBZone.

Olgoonik Corporation is based in the village of Wainwright, Alaska, which is designated as a federal HUBZone.

Indian Incentive Program
Originating from the Buy Indian Act, the Indian Incentive Program (FAR 52.226-1) provides incentives to prime contractors that use Indian organizations and Indian owned economic enterprises as subcontractors. The program is funded by the Department of Defense and provides a payment equal to 5% of the amount subcontracted to an Indian organization or Indian owned economic enterprise.

Contracting Incentives
When an agency contracts to a joint venture that is at least 50% owned by a Native owned firm, the agency may count the Indian owned portion of the joint venture towards their small business contracting goals (10 USC 2323(a)).

Direct Conversion (Commercial Activities)
Under Section 8014 of the FY 2002 Defense Appropriations Act, P.L.
107-117, DoD agencies are allowed to convert commercial activities not inherently performed by military personnel to ANCs that have at least 51% ownership of a joint venture or are the prime contractor performing at least 51% of the work. The direct conversion eliminates the costly and timely OMB A-76 requirement of a cost comparison study by contracting directly with qualified ANCs.

 

       
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