FAIRBANKS — In a setback for Alaska Native corporations, Alaska’s congressional delegation has been unable to delay a new rule limiting sole-source contracts worth more than

$20 million.

Instead, the Defense Appropriations Act approved by the U.S. House on Wednesday calls for a study on what the change means for federal contracting. Action on the $636 billion bill is pending in the Senate.

In letters to the leaders of the House and Senate appropriations committees last week, Sens. Lisa Murkowski and Mark Begich and Rep. Don Young defended the sole-source system as consistent with federal Indian policies to promote “self-determination, self-sufficiency and economic development.”

The rules changed when Congress inserted language “at the 11th hour in a conference agreement” in October, Murkowski said.

The language slipped into the measure two months ago said a sole-source contract cannot be issued for more than $20 million unless officials certify it is “in the best interest of the agency concerned” and that the cost is reasonable.

Murkowski said the requirement will have “destructive implications” for the system under which Alaska Native corporations have gained billions of dollars worth of sole-source contracts.

“It is language that history will judge as one of those ill-conceived federal Indian policies,” she said last month.

Last week, the Alaska delegation said even when a no-bid contract of more than $20 million makes sense, federal agencies will be reluctant to go that route because of the “paperwork burdens and time delays in seeking and obtaining the requisite agency head approval.”

Alaska Native corporations enjoy special privileges under the 8(a) program for small disadvantaged businesses because of provisions put into law by former Sen. Ted Stevens in the 1980s. From 2000 to 2008, Alaska Native firms received  $6.6 billion in 8(a) sole-source contracts, according to a congressional study. 

For most U.S. enterprises that qualify as “disadvantaged,” sole-source contracts are limited to $5.5 million for products or

$3.5 million for services, but for more than two decades there have been no limits on the size or number of contracts for the Native Alaska firms. In addition, the Alaska companies can stay in the program indefinitely, while others are limited to nine years of eligibility.

The defense bill awaiting approval in the Senate calls for a report on the new rules, but instead of looking at such things as the “needs of the affected program participants,” meaning the Native corporations, it will have a broader focus.

“This report shall detail the impact of the provision on the selection of Native American companies for large dollar contracts; discuss how the provision is affecting the contracting process, whether an excessive administrative burden has been placed on contracting personnel; and provide recommendations for how the provision can be amended to mitigate any unintended negative consequences,” the language in the conference report states.

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GOLDEN GALA: Looking for a way to celebrate the shortest day of the year?

Fairbanksans Isaiah Mangum, Sheri Olesen and Michael Casias are planning a “Golden Gala” Monday evening at the Morris Thompson Cultural and Visitors Center.

Mangum said it will be a 1950s-inspired event to celebrate the winter solstice and mark the 50th anniversary of statehood.

The doors will open at 8 p.m. Monday. It will be catered by Bobby’s, the River City Cafe and Red Couch with a cash bar by Lavelle’s Bistro and entertainment.

The UAF Swing Club and the Lathrop Ballroom Dance Team will perform, while there will be dancing for those who are so inclined and live music by Barney McClure and others.

Tickets are $49 and available at Bobby’s Restaurant, Lavelle’s Bistro, River City Cafe, Alaska House art gallery, In My Element, Red Couch and Chartreuse.

Mangum said the goal is to sell 200-250 tickets, but they are reserving 50 tickets for special guests.

“We would like to invite 50 people who have lived in Alaska since or before 1959 to be our special VIPs,” Mangum said. “These tickets are free but are limited.”

The three planners are interested in doing what they can to improve downtown, and they are innovators in their own ways.

Mangum, who lives and works downtown, was recently named volunteer of the year by the Downtown Association and owns the 907 Group, a new media company. He is on the board of the Fairbanks Community Museum.

He enjoys downtown Fairbanks about as much as anyone and has lots of ideas about its potential to re-emerge as a community center.

“I’m passionate about the downtown we have and the downtown that can be,” Mangum said.

Olesen is an entrepreneur who recently started Chartreuse, a vintage clothing shop on First Avenue near Wickersham Street. She likes to put on benefits and recently did a haunted house to raise funds to fight breast cancer.

Casias is an interior designer who helped create the look for the Golden Gala, down to Sputnik-inspired lighting.

“All the proceeds from this event will go into a seed fund for art and entertainment projects in the downtown area,” Mangum said.

The dress for the evening in “semi-formal,” or to put it another way, “Just don’t show up in ripped jeans and a T-shirt and you’ll be fine.”

There is more information on the event Web site at www.GoldenGala.com.

If you want to know more about this, call Mangum at 978-6128.