Native Hawaiian Organizations Association
3375 KOAPAK A STREET, SUITE B200
HONOLULU, HAWAII 96819
POINTS OF CONTACT:
Raymond Jardine, Jr., President. (808) 792-7526
Matthew Teho, Vice President. (808) 544-1211
Ethan Cooper, Secretary. (808) 522-7278
Vaugn Vasconcellos, Treasurer. (808) 943-9545
Christopher Dawson, Director
Ron Jarrett, Directory
Aimoku McClellan, Director
Senator Daniel K. Inouye, Senator Daniel K. Akaka, Representative Neil Abercrombie,
Representative Mazie Hirono.
NHOs/the 8(a) Firm(s) They Control (to 12/08)
1. Na Oiwi Kane/JTSI, Inc. and Total Network Solutions, LLC
2. Hui o Hana Pono/The Hana Group, Inc. and HBC Management Services,
3. Hawaiian Native Corporation/DawsonTechnical, LLC
4. Pacific Center for Economic Development/ Pelatron, Inc.
5. Mana‘o Nui, Inc./Honolulu Marine, LLC
6. Alaka‘ina Foundation/Akimeka Technologies, LLC
7. Royal Hawaiian Foundation/Omega Global Solutions, Inc.
8. Native Hawaiian Legal Defense & Education Fund/Kukulu, LLC,
and Kuhana Associates, LLC
9. Honu‘apo/Honu‘apo Facilities Services, LLC
10. Menehune Foundation/Hawai‘i 5-0 Technology Services, Inc.
11. Native Hawaiian Economic Alliance NHEA /NUVUK Construction,
12. Alu Like, Inc./Alu Like Enterprises, Inc.
THE VISION, OBJECTIVE/S AND PURPOSES OF THE ASSOCIATION ARE:
(a) To unify, for mutually beneficial purposes, the efforts of those organizations
which qualify under federal small business law as Native Hawaiian Organizations
and are members (Hui ‘ia).
(b) To facilitate the development of the community services programs that each member
Native Hawaiian Organization is required to establish, fund and maintain (LaweIawe).
(c) To assist member Native Hawaiian Organizations in their business dealings so
that they operate with excellence (Maika'i loa) and adhere to the highest standards
of business ethics (Küpono),
(d) To instruct and mentor member Native Hawaiian Organizations who are new to the
business so that they may be successful (A ‘o).
(e) To educate and inform the general public of the benefits and good works that
such Native Hawaiian Organizations are doing (Hõ‘ike).
THE NATIVE HAWAIIAN ORGANIZATION SECTION 8(a) PROGRAM
In 1952, to continue the important functions of earlier agencies that had been established
during the Great Depression and during World War II, President Dwight Eisenhower
proposed the creation of a new small business agency -- the Small Business Administration.
In the Small Business Act of July 30, 1953, Congress created the Small Business Administration,
whose function was to “aid, counsel, assist and protect, insofar as is possible,
the interests of small business concerns.” The charter also stipulated that the
SBA would ensure small businesses a “fair proportion” of government contracts and
sales of surplus property. By 1954, the SBA already was making direct business loans
and guaranteeing bank loans to small businesses, as well as making loans to victims
of natural disasters, working to get government procurement contracts for small
businesses and helping business owners with management and technical assistance
and business training. However, for nearly 15 years there was something lacking.
The opportunity for full participation in our free enterprise system by socially
and economically disadvantaged persons is essential if we are to obtain social and
economic justice for such persons and improve the functioning of our national economy.
This philosophy expresses the foundation for federal programs encouraging minority
business enterprise started in 1969. At that time, federal legislation granted preferential
status in federal contracting under section 8(a) of the U.S. Small Business Act
to qualified for-profit businesses owned by members of minorities. These so-called
“8(a) firms” were allowed to receive federal contracts on a “sole source, non-bid”
basis so long as the contracts did not exceed certain “thresholds”. This program
still exists. The contract size thresholds today are $5.5 million, in the case of
contracts involving manufacturing, or $3.5 million for all other contracts.
In 1990, qualified 8(a) firms in which a controlling interest is owned by a recognized
Indian tribal organization or an Alaska Native Corporation ("ANC") were given a
special status. These firms are not restricted by the thresholds but can receive
sole source, non-bid contracts of any
size. These firms are dubbed "Super 8(a) firms".
Later, Sen. Daniel K. Inouye (D -Hawai'i) introduced legislation that added firms
in which a controlling interest was owned by a Native Hawaiian Organization ("NHO")
to the program. An NHO must be a non-profit organization incorporated in the State
of Hawai'i by Native Hawaiians (of no specific blood quantum). The NHO in each case
operates as an "umbrella" organization for its
for-profit subsidiaries and, as long
as it owns a controlling (51%) interest in each of those subsidiaries (i.e., corporations
or limited liability companies), the latter can qualify as an 8(a) contractor, receive
contract awards on federal jobs, and so forth.
A very important difference separates NHOs from the Indian tribe-controlled firms
and the ANC-controlled firms. By law, appropriate portions of the profits generated
by the NHOcontrolled 8(a) firms must
be used to fund social programs benefiting
Native Hawaiians (again of no specific blood quantum). ANCs have the option of paying
out their profits to their stockholders or funding social programs benefiting their
members. Similarly, an Indian tribal organization which owns an 8(a) firm has the
option of distributing profits to the members of its tribe or funding social programs
benefiting tribal members.
At the outset, another very important difference separated the Indian tribe-controlled
and ANC-controlled firms from the NHO-controlled firms. An exemption from the contract
thresholds was not given to NHO-owned firms. On September 30, 2003, that exemption
was extended to NHO controlled firms seeking Department of Defense ("DoD") contracts.
By legislation passed in 2006 (P.L. 109-148), the exemption was made permanent.
However, the exemption
only pertains to DoD contracts. NHO-controlled firms dealing
with other federal departments and agencies are controlled by the thresholds just
as regular 8(a) firms are.
Two things must be stressed in any discussion of the 8(a) or NHO programs. Firstly,
don't go away thinking that either program assures that the participants will win
federal contracts. It is still up to the qualified 8(a) firm to get out and sell
its products or services to federal contracting officers. Some of these contracting
officers understand and support the 8(a) program while others simply do not care
or can't be bothered. In one case we know of, it took three years of hard sales
work (and then retaining a person with already-developed relationships with key
contracting officers) before a certified 8(a) firm got its first contract under
the program. Secondly, please do not look at these programs as a way to generate
funds for your already existing non-profit organization. If you are thinking that
way, you have it absolutely backwards. You
must start with a viable business plan
which involves the selling of products or services to the federal government. After
you've come up with that plan and execute it in a business-like manner with success
(and profits), that's when you can start thinking about your non-profit organization.
* Executive Order 11625, October 13, 1971, page