What is an ANC?

Alaska Native Corporations

In 1971, Congress enacted the Alaska Native Claims Settlement Act (ANCSA) to settle the aboriginal claims of Alaska Natives to the land and resources of Alaska and to introduce Alaska Natives to capitalism and capitalism to Alaska natives. The goal of ANCSA was Native American self-determination through building a capital base so as to enable full scale participation in our capitalist society. In the years following the unilateral treaty Alaska Natives set up 13 regional corporations and more than 200 Village Corporations to administer the 44 million acres of land and the $962.5 Million that congress paid to extinguish Native Claims.

As the ANCSA Settlement unfolded it became increasingly evident that Alaska Natives were not receiving all the benefits of their bargain as intended by the U.S. Government and to which the Alaska Natives were entitled. Congress began remedying settlement defects through ANCSA Amendments of 1988 and 1992 which designated ANC’s where natives hold majority ownership to be minority businesses and economically disadvantaged. Thus congress made it clear that favoring ANC’s for government contracts was an integral part of the ANCSA economic settlement and that their eligibility for government contracting preferences is bargained-for consideration in exchange for the extinguishment and settlement of the aboriginal claims.

ANC’s have the dual mission of succeeding in business so as to enable their 140,000 shareholders to begin a path to economic and social self determination and self –sufficiency. Corporations undertake and underwrite comprehensive cultural, societal and community activities on behalf of their people, their culture and their communities as well as providing economic benefit to shareholders and their families.

Chenega Corporation

Chenega Corporation is currently the most successful Village Corporation. It was founded in 1974 to represent the interest of the Chenega people, an Alutiiq people with ancient roots in the Prince William sound area of south central Alaska. The Chenega people continue to reside in that general area with many still maintaining a subsistence way of life. The Chenega people who are still reeling from the devastation of their way of life and their livehood are still a long way from achieving the goals of the ANC program. The Chenega Corporation began to participate in the vast government Services Market place in 1997. Today it performs on over 70 federal contracts through a combination of sole source and full and open competition vehicles. The corporation leads the way among native Alaska corporations in providing consistent dividends and in supporting comprehensive cultural, societal, religious and community activities, programs and projects.

Promoting Self-Sufficiency and Self-Determination

The contracting status offered by the 8(a) Program is based on the trust and statutory relationship between Native Americans and the Federal Government. The Federal Government has an obligation to foster self-sufficiency and economic development in Native communities. Congress amended the Alaska Native Claims Settlement Act (ANCSA) to help Alaska Natives overcome barriers to economic development in rural Alaska by making Alaska Native Corporations eligible to participate in the 8(a) Program – making it clear that the Government had an obligation to promote a long-term revenue stream – this is an integral part of the original ANCSA economic settlement.

In fiscal year 2007, the Federal Government spent $439.5 billion on procurement contracts, of which Native Americans received only 1.2% of all contracts awarded and 26.2% of all 8(a) awards