Tribal Advantages

There are many strong incentives to contract with Tribally-owned firms like Keta Group and its wholly-owned subsidiary companies.  Keta Group is 100% owned by the Chitimacha Tribe of Louisiana, a federally recognized North American Indian Tribe of approximately 1,000 members.  Because of the unique government to government relationship with the United States, Native American Tribes are granted special procurement rights which recognize that proceeds from Tribally-owned companies are used for the benefit of the entire Tribal membership, rather than individual owners.  Unlike individual owners, Tribes use these proceeds to build, sustain, and operate their communities for things such as education, law enforcement, health care, public works, etc.  Below are some advantages of doing business with Keta Group and its subsidiary companies.   

1) The SBA 8(a) Program

Tribal-owned firms are eligible to receive sole source 8(a) contracts regardless of dollar size.  Congress has also permitted tribes to have as many 8(a) firms as they wish, so long as each is in a different primary NAICS Code.  Additionally, certain exceptions to affiliation rules exist for Tribally-owned companies.  Keta Group is a recent graduate of the 8(a) program; however, all of Keta Group's subsidiary companies are in the process of obtaining 8(a) certification.  

2)    The 5% Subcontracting Bonus for DoD contracts.

Section 504 of the Indian Finance Act (25 U.S.C. 1544) provides that a contractor subcontracting with a firm that is 51% or more owned by a Native American individual, Native American tribe, or Alaskan Native Corporation may receive an additional amount of compensation, above the amount of the prime contract, equal to 5% of the amount of the subcontract with the Native American entity.  Since FY 1997, the Defense Appropriations Act has contained at least $8 million for DoD to implement this program. 

The DoD procedure for tapping the bonus is relatively simple.  After a DoD contractor awards a subcontract to a 51% or more Native American-owned firm, it submits an invoice (calculation of 5% bonus) to its contracting officer, along with a copy of the subcontract, and proof that the subcontractor is 51% or more Native American-owned.  The invoice is routed through the DoD Office of Small and Disadvantaged Business Utilization and then to the Comptroller. 

Appropriations for FY 2014 for the Indian Incentive Program is $15 million.  In the event the entire budget is expended, all complete and eligible requests not yet funded are rolled over into the next fiscal year.  

Keta Group and its subsidiary companies are 100% owned by the Chitimacha Indian Tribe of Louisiana and are fully eligible for this incentive program.  Pursuant to statutory language and implementing regulations, a DoD prime or subcontractor at any tier that subcontracts to Keta Group or its subsidiary companies is entitled to receive a bonus equal to 5% of the amount of the subcontract award.

3)    The A-76 Program

The A-76 program imposes a lengthy and cumbersome procedure for outsourcing or privatizing any activity that employs 10 or more civilian government employees.  The average A-76 "study" takes 23 months.  One option to avoid this arduous A-76 process is to award the contract to a Native American Tribally-owned company.  The Defense Appropriations Act includes a provision which allows a direct, cost effective conversion of a non-inherently government function to a Tribally-owned company without an A-76 study regardless of the number of civilian government employees.  A significant amount of time, effort, and money can be saved by outsourcing directly to a Tribally-owned company like Keta Group.