Unlocking Opportunities with Native and Alaska Native Contractors: Key Takeaways from Catalyst Conversations

At Catalyst Consulting Group, we are always looking for ways to help manufacturers navigate and succeed in the public sector landscape. In a recent edition of Catalyst Conversations, host Michelle Warren was joined by industry veteran Karl Schrumpf to discuss the power of tribally owned 8(a) and Alaska Native Corporation (ANC) set-asides—often informally referred to as "Super 8(a)s."

With over 43 years in federal sales across the commercial office furniture industry—including 23 years at Herman Miller, 16 years with Kimball, and 3 years with Flatwater Solutions (a tribal 8(a))—Karl brought invaluable insights on how manufacturers and dealers can leverage these unique partnerships.

Here are the key takeaways from their discussion.

1. What Makes a Tribal 8(a) Different?

While standard 8(a) small business programs have strict timelines and lower award limits, tribally owned and Alaska Native organizations operate under unique federal rules and exemptions:

• No Expiration Date via Tribal Structure: Standard 8(a) businesses face graduation deadlines. As Michelle Warren clarified: "So you graduate after 9 years, regardless of how well you do it's over, it's got a time limit on it." In contrast, tribally owned organizations can continuously launch new entities under the same tribal governance structure to maintain participation across various NAICS codes.

• Higher Sole-Source Thresholds: Standard 8(a) sole-source thresholds are capped at lower amounts (typically around $5 million). Tribally owned or ANC entities have significantly higher sole-source limits—around $25 million for civilian agencies and up to $100 million for the Department of Defense (DoD).

• Exemption from Competition and Protest: Sole-source awards to tribally owned 8(a)s can be awarded without competition and are exempt from protests. As Michelle Warren emphasized:

"There's no protest. So, if you've ever been awarded something that's been protested, whether you've been able to keep the award or not, you understand what a big deal this is. So, if it is awarded to a tribally owned 8A, it cannot be protested."

2. Shift to "Consultative Selling" and Problem Solving

Partnering with a tribal 8(a) allows sales teams to pivot away from competing purely on product specifications and move toward solving systemic procurement issues for government clients.

Karl Schrumpf highlighted the core mindset needed:

"And to change the conversation, it becomes an old term for some of us more experienced than others. It's truly consultative selling."

Karl elaborated on how traditional procurement routes (such as GSA schedules or complex design solicitations) often carry heavy administrative costs and delays, whereas leveraging a tribal 8(a) protects the customer's desired outcome:

"What we are able to do is change that conversation. You're not talking about product, you're talking about process, you're talking about making sure that the agency receives what they need to support their task."

3. Beyond Furniture: The "Turn Building Upside Down" Scope

Tribal 8(a) entities often offer multi-disciplinary solutions beyond furniture, fixtures, and equipment (FF&E). They can handle services, IT, janitorial, flooring, AV, and medical supplies.

Michelle Warren shared a memorable analogy to capture this flexibility:

"I think a friend of ours that works for a different tribal, described it to me once as, if you take the building and you turn it upside down and you shake it, anything that falls out is on the table for a tribal."

Karl Schrumpf agreed and cautioned sales teams against limiting their scope:

"Don't just look at the furniture. Don't just look at demountable walls, or raised floor, or carpet. Understand that a tribal 8A or Alaskan Native organization can bring a multitude of solutions to your end user. Don't have tunnel vision when you go into an opportunity."

4. Community and Social Impact

Working with Native contractors generates a meaningful social return on investment. Revenue generated through these contracts goes directly back into supporting vital tribal infrastructure and programs.

Karl noted how this transformed local communities during his time with Flatwater Group / Ho-Chunk Inc.:

"At Ho Chunk Inc, we developed housing on the reservations. We've developed jobs on the reservation. I mean, Lance Morgan did a phenomenal job in creating Ho-Chunk Inc. The graduation rates rose to almost 95% out of the Winnebago tribe. The unemployment went from 30 to 40 or 50% down to below the national average. They do a lot, especially when you're tribally owned. It really is about the tribe, and about the community, and that's one of the critical components, because you're improving their quality of life."

5. What NOT to Do When Working with Tribal 8(a)s

Karl outlined critical mistakes to avoid when approaching tribal partners or federal customers:

1. Don't treat them as a pass-through: Tribal 8(a)s must perform required percentages of work (such as project management) based on NAICS codes. As Karl stressed: "It is not a pass-through."

2. Don't try to replace the dealer: Tribal 8(a)s rely heavily on established dealer networks for design and installation. Karl pointed out: "Assume they want to replace your dealer. Nope. They can't. They don't have the capabilities to be able to be successful in the FF&E world."

3. Don't dictate to contracting officers: Avoid showing up only when someone "needs an 8(a)" or telling agency personnel how to do their jobs. As Karl cautioned:

"Never. Never go in and try to tell them how to do their job. Because that is a very, very big no-no."

6. The Indian Incentive Program (DoD Advantage)

A lesser-known advantage Karl highlighted is the Indian Incentive Program (under federal acquisition regulations). This policy offers a direct financial incentive to prime contractors working on Department of Defense projects.

Karl explained the mechanics:

"If you've got a dealer or a manufacturer that has a great relationship with a general contractor who's doing business at a DoD facility, and they have reference in their boilerplate around the Indian Incentive Act, then it behooves whoever owns the relationship to maximize the spend for the GC, because the GC gets a 5% rebate from the federal government at the end of the project for the dollars spent with a Indian organization."

Action Plan for Manufacturers

To incorporate tribal 8(a) partnerships into your public sector strategy, follow this action plan:

1. Identify Active Tribal Organizations: Map out active tribal/ANC entities operating within your specific industry or category (e.g., SciATS, Heritage Interiors, Flatwater Group).

2. Leverage Set-Aside Expertise: Ensure you have internal experts or external consultants who thoroughly understand federal set-aside rules and pecking orders.

3. Engage Early: Build relationships with tribal partners and federal-focused dealers before specific procurement opportunities arise.

4. Educate Your Sales Network: Train internal sales teams and dealer networks on how tribal set-aside agreements operate so they can pitch these solutions seamlessly.

5. Bring Value: Focus on how you can co-create opportunities and solve customer pain points collaboratively rather than simply looking for a quick transaction. As Karl noted: "Doing federal business, it's not the size of each project, it's the size of the annual income."

Next Steps with Catalyst

• Pathfinder Assessment: If you're a manufacturer looking to evaluate your public sector readiness, take Catalyst's free Pathfinder Assessment to map your federal and SLED strategy.

• Past Sessions: Access recordings of all past Catalyst Conversations on the Catalyst Consulting Group website.