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MONDAY, JULY 30, 2001

The American Federation of Government Employees is waging a war in the courts and in Congress against the federal government's contracting preferences for Native American-owned firms.

Under federal rules, government agencies can award contracts to Native firms without soliciting other bids. The practice is known as "sole-source" contracting.

But the labor union and some Democrats question the practice, which is supposed to increase opportunities for firms who might not otherwise have them, as unconstutional and race-based. The union has launched a lawsuit against the policy and is pushing a bill to increase oversight of federal contracting.

A joint venture of Arctic Slope Regional Development Corp. and Chenega Corp. has been awarded a $2 billion sole-source contract with the National Imagery and Mapping Agency. The contract is the largest ever awarded to a Native-owned firm.

Get the Story:
Drawing the line: Native firms' sole-source contract faces challenges (The Anchorage Daily News 7/29)

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Alaska Native deal criticized (6/14)