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Alaska native status gave tiny, inexperienced firm a $250 million Army contract
WaPo ^ | 11/25/2010 | Robert O'Harrow, Jr

Posted on 11/25/2010 5:52:34 PM PST by markomalley

In summer 2008, the U.S. military had a major problem. More than 2,400 service members had reported being sexually assaulted the previous year, and that number was rising. Congress wanted immediate action.

The Army responded by reaching out to a tiny firm in Delaware.

It was an unlikely choice for such a sensitive task. The year before, United Solutions and Services, known as US2, had just three employees and several small contracts for janitorial services and other work. It was based in a four-bedroom Colonial, where the founder worked out of his living room.

But the firm had one quality the Army prized: It was co-owned by an Alaska native corporation (ANC) and therefore could receive federal contracts of any size without competition, under special set-aside exemptions granted by Congress to help poor Alaska natives.

On Sept. 2, 2008, US2 was granted a deal worth up to $250 million - 3,000 times the $73,000 in revenue the firm claimed the year before. The contract enabled the Army to quickly fund a wide array of projects without seeking outside bids, including a global campaign to prevent sexual assault and harassment.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Extended News; Government
KEYWORDS: anc; us2
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This was a gimme from the Ted Stevens era in the Senate. ANCs are a complete scam.

What the article doesn't mention is that the ANC often will act as a storefront for another firm that would otherwise not be able to even gain entry into the contracting system, much less to be able to win a full-and-open competition.

Socioeconomic contracting, particularly ANC setasides, are a scam.

1 posted on 11/25/2010 5:52:37 PM PST by markomalley
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To: markomalley

If you are competing for a government contract you can’t compete against an Alaska Native. It is the crane technique of government contracting, “when done properly, no can defend.”


2 posted on 11/25/2010 5:55:05 PM PST by USNBandit (sarcasm engaged at all times)
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To: markomalley

We will never rid ourselves of this type of thing if we keep electing crooks.


3 posted on 11/25/2010 5:55:14 PM PST by screaminsunshine (Americanism vs Communism)
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To: markomalley

“Socioeconomic contracting, particularly ANC setasides, are a scam.”

I’m a service disabled veteran owned business. hasn’t done crap for me. Have had the Dir of Small Business for the Air Force tell a bunch of us they don’t like using disabled veteran owned firms.


4 posted on 11/25/2010 5:58:02 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: screaminsunshine

WHAT BS!


5 posted on 11/25/2010 5:58:26 PM PST by troy McClure
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To: screaminsunshine

Its nearly impossible to get a govt contract on merit or capability. Its all about who you know.


6 posted on 11/25/2010 6:00:10 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: screaminsunshine

Federal funds should not be allowed in this manner. Alaska can not dictact that. I’m sick and tired of these loop holes.


7 posted on 11/25/2010 6:00:11 PM PST by ONEBYEONE
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To: driftdiver
I’m a service disabled veteran owned business. hasn’t done crap for me. Have had the Dir of Small Business for the Air Force tell a bunch of us they don’t like using disabled veteran owned firms.

And the funny thing is that I have to meet certain subcontracting goals each year with giving so much business to SB, VOB, SDVOB, WOB, HUBZone, etc.

And I know projects that I've worked on have definite targets for socioeconomic contracting. Regardless of whether the work can be effectively done or not.

(nothing personal...I've run into a couple of good ones, but have also run into my share who offer nothing but the appropriate number of credits for the right socioeconomic category)

8 posted on 11/25/2010 6:05:07 PM PST by markomalley (Extra Ecclesiam nulla salus)
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To: ONEBYEONE

I agree the loopholes are abused. However, the lazy contractor officer will NEVER look at a small business without these. Not unless its run by their brother.

CO’s always choose the easy way. If its someone they’ve done business with before they’ll find a reason why that company is the only company qualified. Heck many times these companies help write the RFP.

They’ll pay 3x more money to do business with Gen Dynamics rather than do business with a small company.


9 posted on 11/25/2010 6:05:07 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: ONEBYEONE

Eliminate every government contract or activity which gives any preference to any one based on race, creed, color, political persuasion or any other socialist malarkey. I think this is part of the tea party agenda. Let’s get on with it.


10 posted on 11/25/2010 6:06:04 PM PST by mathurine
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To: markomalley

“(nothing personal...I’ve run into a couple of good ones, but have also run into my share who offer nothing but the appropriate number of credits for the right socioeconomic category) “

Oh I’ve run into many business owners who use the “gimme the contract cause I’m __________.” I’ve resisted that and struggled.

Face it, a small business cannot compete with the big companies in most cases. We don’t have the lobbyists or the ability to have a 50 man team putting the proposals together.

Of course our prices are lower but that doesn’t matter much when the big companies get allowances for the management overhead they carry.


11 posted on 11/25/2010 6:08:00 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: markomalley

There are so-called Alaskan native companies contracted to run federal government libraries. They will only accept applicants for jobs in these libraries who are Alaskan natives or own stock in the company. These are library jobs in the lower forty-eight. How many Alaska natives are first of all librarians, and, secondly, living in the lower forty-eight states? You’re right that it’s a scam. How is this equal opportunity employment? Why can’t we elect some Republicans who will get rid of this corruption? The only Senator I’ve heard who has objected to Affirmative Action is James Webb and he’s a Democrat. Palin? DeMint? Huckabee? Romney? Daniels? McConnell? Boehner? Silence from all of them.


12 posted on 11/25/2010 6:09:54 PM PST by WestSylvanian
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To: markomalley

This is absolutely true. I’ve seen it happen.

Fact: The Federal Government gives top priority in contracting to Eskimo owned companies, followed by all other Native Americans, and then the garden variety minorities (blacks and Hispanics). In this context, women are considered third-tier minorities. At the back of the line are white-owned businesses.

Fact: Eskimo-owned shell companies are routinely scooping up government contracts, and subcontracting the work to real companies that can actually do the work or supply the product.

I’m surprised blacks and Hispanics don’t raise hell over this, as they are being discriminated against.


13 posted on 11/25/2010 6:13:04 PM PST by Fresh Wind
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To: markomalley

This crap has to end.


14 posted on 11/25/2010 6:14:41 PM PST by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: markomalley

Oh and small businesses hire the same people the big companies do for these contracts. So unless it involves development of something there really isn’t a difference.

Many big companies will bid on a contract but only price doing 80% of the work. With their lawyers they get away with this.

Another tactic is to grossly underbid the contract. Once awarded they contact the govt and tell them they cannot do it. Of course they got good lawyers and the govt doesn’t want to recompete so the company gets a big change approved.


15 posted on 11/25/2010 6:14:41 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: mathurine

Good luck with that. The manuals that have been written on this take up huge rooms.


16 posted on 11/25/2010 6:15:10 PM PST by republicangel
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To: markomalley

What exactly was the company to do ???

Theres been sexual assaults in the military for decades...

Throwing money at the problem too late is not going to stop the crimes...

If they ever listened to the victims instead of punishing them and rewarding the perps they cpould have done it for free,,,

When I was in the military during the early 1970s, girls who reported rapes, molestations etc were discharged and discredited to hush it up...

The girl was discharged immediately as “unfit”

Especially if the victim was white and the rapist was black...

The criminals went free...and knew they had immunity to do it again..

Thats how the Air Force took care of business...

Thats how years later they could smugly say there was little rape etc in the Air Force...

There were no records of any crimes...


17 posted on 11/25/2010 6:17:21 PM PST by Tennessee Nana
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To: Cheetahcat

Govt contracting in general is FUBAR.


18 posted on 11/25/2010 6:20:50 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Tennessee Nana

Theres another side where woman charge rape in order to get back at someone. Today the men are mostly considered guilty


19 posted on 11/25/2010 6:23:10 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: markomalley

This almost Standard Operating Procedure for Government Contracting now.

If you REALLY want to be outraged, take a look at who was awarded those Porkulus paving contracts, at outrageous rates, which were promptly subbed to big companies like Milestone, with the connected Democrat pocketing the difference.


20 posted on 11/25/2010 6:27:55 PM PST by tcrlaf (Obama White House=Tammany Hall on the National Mall)
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