Subcontracting with an ANC: Question about Workshare Regulations

[Sarita]

Hello all,

My company is a small business who has performed as a major subcontractor on a contract that was a direct award to a tribal company. Our understanding was that the work share had to be a minimum of 51% for the tribal company holding the 8(a) status, and up to 49% for the subcontractor. However, I am curious as to whether that's defined as revenue share or work share. For example, if the contract has 10 positions, they will say they can only give us 4 spots, not 5 because of the 51% rule. As we look to partner with a new ANC, I'd love some guidance to the FAR regulations that cover this topic. In addition, if we establish a Joint Venture with an ANC, and use their status to receive a direct award, does this % breakdown still apply? Thanks in advance!

[Neil Roberts]

@Sarita, Alaskan Native Corporation (ANC)/joint venture/8(a) awards are a relatively small specialty area. Generally speaking, one would like to know the terms and conditions included in the ANC contract, such as FAR/DOD clauses and Small Business Administration regulations that may be applicable. Sometimes, details that you seem to be looking for are clarified during the "legislative history" process that established the clause or regulation. There is no way to research that either without knowing the applicable clause/regulation number. If you any any such information, please share it.     

[formerfed]

Hopefully this helps.  Joint venture

Your ANC should know the answer.  If not they need to ask their SBA rep

[Sarita]

@Neil Roberts and @formerfed Thanks for the responses! Our ANC tells us the rules restrict them to workshare, (if there are 11 positions, they get 6 and we get 5) but I'd like to know that for sure. I'm hoping someone can point me to the FAR clause or SBA regulation to read for myself in regards to this. 

[joel hoffman]

Did the ANC share “the work rules” with you?  Can you contact the SBA directly for questions concerning the rules on future JV opportunities? 
 

Edit: Oops I overlooked the link formerfed posted above. 

Edited February 16, 2024 by joel hoffman

[Retreadfed]

1 hour ago, Sarita said:

I'm hoping someone can point me to the FAR clause or SBA regulation to read for myself in regards to this. 

Read what is in the link formerfed sent.  This is based on 13 CFR 125.6.  That reg. clearly states that the LOS is determined by the dollars received from the government for the contract.  Your ANC is blowing smoke in what it is telling you.

[Sarita]

4 minutes ago, Retreadfed said:

Read what is in the link formerfed sent.  This is based on 13 CFR 125.6.  That reg. clearly states that the LOS is determined by the dollars received from the government for the contract.  Your ANC is blowing smoke in what it is telling you.

I missed the link, thank you! This is just what I was looking for.

[AllGray]

On 2/15/2024 at 12:53 PM, Sarita said:

I missed the link, thank you! This is just what I was looking for.

In our experience, an ANC will only deal with you to get in at a customer, and then you will never get the work again. You can't compete with a fake small business with billions backing them who put on each prop/rfi/statement that they have a 250M war chest to handle any contract issues, on top of an extremely difficult-to-touch benefit/compensation structure. 

They have already completely cooked the game their direction, if they need you it wont be for long.