As of my last update in December 2023, the sole-source award ceiling values for tribally-owned 8(a) companies, including those owned by Alaska Native Corporations (ANCs), Native Hawaiian Organizations (NHOs) and American Indians, are different from other 8(a) participants in terms of their thresholds. These entities do not have the same statutory dollar limits on sole-source contracts that apply to individual or non-tribally owned 8(a) firms.

For tribally-owned 8(a) firms, including ANCs, NHOs, and American Indian, there is no cap on the dollar amount for sole-source contracts. This means that federal agencies can award contracts of any size to these entities without the need for a competitive bidding process, provided the contract can be justified as per the Federal Acquisition Regulation (FAR). The unlimited ceiling is true but it requires a Justification and Authorization (J&A) letter which must be approved by a very senior acquisition official. However, without a J&A, a tribally-owned 8(a) can still receive a sole source award up to $100M.

This specific provision is designed to promote economic development and employment in Native American communities and to afford these communities more expansive opportunities in federal contracting.

Contact SDB Growth at https://sdbgrowth.com/contact/ for more information.