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Really interesting math for ANC 8(a) sole source contract

Sunday, November 04, 2012   (3 Comments)
Posted by: Guy Timberlake (theasbc.org/visionary)
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Another entry about the ANC program that I'm certain will prompt more fan mail for me from the ANC community.

Once again I preface my comments by saying I agree there should be some preference in government contracting that helps Alaska Native Corporations provide developmental support to Native Alaskans, our fellow Americans.

That program, however, should absolutely not outweigh the benefits provided to the men and women who wear the uniform of our Nation's military, risking life, limb and time away from their friends and family to protect our freedoms.

Just my humble opinion.

That said, this is one I learned about from my friend Steve Koprince in a recent entry to his SmallGovCon blog where he described a recent report by the SBA OIG related to a $7.78 million dollar 8(a) sole source contract awarded to TKC Global Solutions by the Department of Labor.

Here's the skinny.

Because, TKC was not bound by the typical 8(a) sole source limits and because DOL issued a waiver under the non-manufacturer rule, Spin Doctors Do Your Thing!TKC received only $153,000 of the total contract. The rest of it went to subcontractor World Wide Technologies and presumably Dell, the manufacturer of the equipment provided to the government through the contract.

I think you too will see this is just another black eye to the ANC program and its supporters. Unfortunately, the effects of this and other situations like it, cause ongoing harm to other small federal contractors.

Anyone else wonder how much of the "loot" not realized by TKC will go to support developmental programs for Native Alaskans?

To the ANC lobby I have just one question. How are you going to spin this one?

Peace.

The Chief Visionary

www.theasbc.org/visionary

 

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Comments...

Guy Timberlake, The American Small Business Coalition, LLC says...
Posted Monday, November 05, 2012
Great points Carey! My only comment would be about the spirit of the small business program. There was effectively not benefit to small business or the folks who are to be supported by the ANC program. But your scenario is definitely something we've seen before. Thanks! Guy
Carey Bandler says...
Posted Monday, November 05, 2012
Please forgive my typos above, as I hastily posted without spell check/review.
Carey Bandler says...
Posted Monday, November 05, 2012
My only comment is that what if we approach this specific deal with a different lense? I'm not familair with the details, so please understand this is simply a hypothetical based on experience. What if World Wide Technology (WWT) was working a solution with the DOL all along. DOL wanted to make the purchase from their industry partner who assisted with the solution development. Pressure from contracting and others to achieve small business goals drove a conversation for WWT to partner with an 8(a)/ANC. Assuming the price wasn't gouged, this would result in a win/win where TKC would achieve some top line revenue and cash flow (albeit a relatively low direct labor percentage for handling the hardware deal). Is this really much different than other subK pass throughs but invokes a wrath because of the stigma some associate with the ANC program (some of which is very deserved)? My .02...without it you can't have change ;-)

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