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Scenario: ANC aquires non-ANC 8(a) about to graduate. Seller still small and will be set up as stand-alone subsidiary by the ANC. Can ANC re-apply for another 9 years in the 8(a) program for its new subsidiary?

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This is the second time on the WIFCON Forum that I've seen the phrase "stand-alone subsidiary" used to (seemingly) try to get around the affiliation rules. I'm excited to learn about how that would work, because a lot of companies would love to implement similar strategies.

I'm not saying it wouldn't work; I'm saying that I don't know how to make it work. I'm not smart enough. I would hope that somebody with that issue and that proposed solution would be in deep conversations with a savvy government contracts attorney, preferably one with expertise in SBA statutes and regs.

Please, follow-up and let us all know how this can be done!

H2H

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the Alaska Native Claims Settlement Act of 1971, 43 U.S.C. 1601 et sec., set up a dozen or so ANC Regionals and about 200 ANC villages. It conveyed some land to them, and abrogated all their other claims. It was done in part so that the pipeline could be built.

I don't know if it was fair to the natives or not.

Sometime between then and 1990 the Small Business Act of 1965 was amended to benefit these ANC's - I think all 200+ of them, though the Regionals are the most active in the 8(a) program. In effect, an ANC could form a daughter corporation and that daughter automatically would meet most of the qualifications for 8(a) participation. IIRC, they could only be disqualified if their income was too high to qualify as small. That would be per SIC or NAICS Code.

There was no limit on the number of daughter corporations, so some ANC's would have a half dozen or more of them going after various 8(a) opportunities.

Sometime in the 1990's this was expanded to include businesses owned by American Indians or Native Hawaiians.

I think this was to address wrongs these groups suffered in the past. My impression, the 8(a) program was originally intended to address wrongs suffered by African-Americans in the past.

......................

Under the scenario presented, I think the newly acquired firm could be designated an ANC daughter corp and get a whole new 9 years to participate in the 8(a) program.

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