Chugach President Katherine Carlton represented the corporation and shared recommendations to strengthen and protect the 8(a) Business Development Program and the Mentor-Protégé Program—two essential tools that support the growth and self-determination of Native organizations in the federal contracting space.
“Chugach’s success in the federal contracting space is directly tied to our responsible and strategic use of SBA programs like 8(a), HUBZone, and Mentor-Protégé Joint Ventures,” said Carlton during her testimony. “These tools have helped us build capacity, create opportunity, and deliver real benefits to our shareholders and communities.”
Representing more than 2,800 Alaska Native shareholders and thousands of descendants from the Chugach region, Carlton underscored the critical role the SBA’s programs play in promoting economic self-determination and community development. Chugach currently supports over 4,500 employees across 172 government contracts in more than 40 states and overseas.
During the consultation, Chugach highlighted several key issues:
- mySBA System Failures: Chugach voiced serious concerns about technical and administrative failures in the new mySBA online certification system, citing data loss and extended delays in certification processing.
- FAR Rewrite and Rule of Two: Carlton warned that eliminating the “Rule of Two” in the Federal Acquisition Regulation (FAR) would undermine small business participation in federal contracting, contrary to SBA’s core mission.
- Bona Fide Place of Business Requirement: Chugach advocated for greater agency discretion and requested either rescission or continued moratorium on this burdensome rule, particularly for defense-related construction contracts.
- Mentor-Protégé Program Integrity: While Chugach has not experienced mentor dominance in its own ventures, the company urged the SBA not to adopt new regulations without data-driven justification.
- Marketing and Affiliation Concerns: Chugach disputed the suggestion that shared capabilities among subsidiaries or centralized marketing creates affiliation, emphasizing that each entity maintains unique qualifications and points of contact.
- Community Benefits Reporting: Carlton reaffirmed Chugach’s longstanding commitment to community reinvestment, noting millions of dollars returned annually to shareholders, and cautioned against additional reporting burdens that lack clear utility.
Chugach concluded its testimony by reaffirming its dedication to working in partnership with the SBA to ensure the long-term success of Native enterprises. “We appreciate the opportunity to speak on these topics and urge SBA to take seriously the real concerns of the ANC community,” Carlton said. “These programs are not just technical mechanisms—they are lifelines that connect our communities to opportunity, purpose, and prosperity.”
“For more information about Chugach Alaska Corporation, please visit www.chugach.com or www.chugachgov.com.