Senators Seek Data on DoD Contracting with Alaska Native Corporations

October 17, 2011

Sens. Claire McCaskill, D-Mo., and John McCain, R-Ariz., have asked the Defense Department to review all sole-source contracts to Alaska Native corporations in the wake of an alleged fraud scheme that cost the government $20 million.

Both senators have previously accused Alaska Native corporations (ANC) of exploiting their ability to get lucrative sole-source contracts by subcontracting with non-ANC companies to perform most of the work. McCaskill and McCain were among lawmakers who pushed for language in the 2010 National Defense Authorization Act that requires a contracting officer to justify and get approval for a sole-source contract worth more than $20 million that has been set aside for small and disadvantaged businesses, which includes ANCs.

The additional oversight is meant to prevent fraud and abuse, such as the alleged scheme that led to the Oct. 4 arrest of two Army Corps of Engineers employees and an official with EyakTek, a subsidiary of an ANC. 

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