By Margaret Bauman
Alaska Journal of Commerce

Legislation that would have limited government defense contract awards to Native American contractors was removed from the 2009 Defense Authorization Act was approved by Congress.

That action in the legislation was one of several key provisions championed by Sen. Ted Stevens, R-Alaska. The act now awaits President Bush's signature. The new fiscal year began Oct. 1.

The original version of the House Defense Authorization bill contained language requiring some government agencies to minimize awarding of contracts to Alaska Native corporations, Native Hawaiian organizations, and Indian tribes participating in the U.S. Small Business Administration's 8(a) program. While some small businesses would have been exempt from this reduction in awarding of contracts, Alaska Native corporations would have received no such exemption.

The 8(a) section of the Small Business Act was devised to help small firms owned and operated by socially and economically disadvantaged persons to develop their businesses. A number of Alaska Native corporations have utilized this advantage in past years to access millions of dollars in federal contracts.

Alma Upicksoun, a board member of the Native American Contractors Association and shareholder of the Arctic Slope Regional Corp., said removing provisions limited contract awards to Alaska Native corporations represented a big victory for Alaska Native small businesses. Six of 10 board members of the Washington, D.C.-based contractors association represent Alaska Native firms.

During the 1980s and 1990s, Stevens helped to craft a number of legislative initiatives that have allowed Alaska Native firms to successfully participate in the SBA 8(a) program. He has also successfully defended special provisions in the act designed to assist Native American firms and their communities.

The 2009 Defense Authorization Act also benefits Alaska in other ways, including a $16 million authorization to construct a new National Guard Readiness Center in Bethel, to replace an outdated 1962 facility. The new center will serve as home for the Battlefield Surveillance Brigade and elements of the 207th Aviation Brigade of the Alaska Army National Guard throughout Northwestern and Western Alaska.

The state has already spent $2.4 million on site inspection, preparation and facility design. The additional federal funding will allow for completion of the project.

The federal bill also includes across-the-board 3.9 percent pay raises for all service members. This would reduce the gap in pay increases between the uniformed services and the private sector to 2.9 percent overall, Stevens said.

Margaret Bauman can be reached at margie.bauman@alaskajournal.com">margie.bauman@alaskajournal.com.