IN THE NEWS
Letter of Support for NHO's on PMRF Recompete
NHOA sent a letter of support on behalf of NHO's that are members of the association to advocate proposals on the re-compete of the contract to provide services for Range Operations Support (ROS) and Base Operations Support (BOS) for the Pacific Missile Range Facility (PMRF) on Kaua'i, Hawai'i in 2018 pursuant to Navy Solicitation N0060417R3005.
Requests for Information: Reducing Unnecessary Regulatory Burden Docket Number: SBA-2017-0005
On November 1, 2017, NHOA submitted to the SBA input and comments on reducing unnecessary regulatory burden docket number SBA-2017-005. NHOA's Board feels it is important to provide input and comments -- to leverage and maximize the potential for feedback to the SBA from as many Native enterprises as possible.
As stated in the letter, NHOA appreciates the opportunity to work with SBA to advance President Trump's objectives of regulatory reform. NHOA accepts that challenge, and supports the effort to identify regulations that impose unnecessary burdens or costs on small businesses, have exceeded their benefits, eliminated jobs, or inhibited job creation, or are ineffective or outdated. An additional supplement will also be sent along side the first letter by November 15, 2017. Copies of the letters will be provided momentarily.
As stated in the letter, NHOA appreciates the opportunity to work with SBA to advance President Trump's objectives of regulatory reform. NHOA accepts that challenge, and supports the effort to identify regulations that impose unnecessary burdens or costs on small businesses, have exceeded their benefits, eliminated jobs, or inhibited job creation, or are ineffective or outdated. An additional supplement will also be sent along side the first letter by November 15, 2017. Copies of the letters will be provided momentarily.
Rothe's Decision-
Most have known that the US Court of Appeals released their decision on the Rothe Appeal early September, six months to the day after the oral arguments were presented. NACA has been kind enough to share this with the NHOA based on our Memorandum of Understanding (MOU) with NACA and the Native Hawaiian Chamber of Commerce. We are grateful for NACA’s support, consideration and partnership. Inserted is a summation of the decision with upholds the original decision that was rendered in District Court. We are pleased to pass on the good news:
“Because the statute lacks a racial classification, and because Rothe has not alleged that the statute is otherwise subject to strict scrutiny, we apply rational-basis review, which the statute readily survives. Rothe’s evidentiary and nondelegation challenges to the decision below also fail. We therefore affirm the judgment of the district court granting summary judgment to the SBA and Department of Defense…”
Attached is a copy of the decision as well as the summary prepared by Amicus author Christine Williams (NACA Legal Counsel for the Brief).
| legal_memorandum_rothe_decision_summary_-_c._williams_09-10-2016.pdf |
| u.s._court_of_appeals_-_rothe_decision_09-09-2016.pdf |
Formal Government-to-Government Relationship; DOI
U.S. Department of the Interior finalizes pathway to reestablish a formal government to government relationship with Native Hawaiian Community. The final rule sets out an administrative procedure and criteria that the U.S. Secretary of the Interior would use if the Native Hawaiian community forms a unified government that then seeks a formal government-to-government relationship with the United States.
“This final rule provides the Native Hawaiian community with the opportunity to exercise self determination by reestablishing a formal government-to-government relationship with the United States,” said U.S. Secretary of the Interior Sally Jewell. “Throughout this two-year rule making process, thousands of voices from the Native Hawaiian community and the public testified passionately about the proposal. Today is a major step forward in the reconciliation process between Native Hawaiians and the United States that began over 20 years ago. We are proud to announce this final rule that respects and supports self-governance for Native Hawaiians, one of our nation’s largest indigenous communities.”
For more information go to:
https://www.doi.gov/sites/doi.gov/files/uploads/press_release_gov_2_gov_pathway_part_50.pdf or click the PDF below.
“This final rule provides the Native Hawaiian community with the opportunity to exercise self determination by reestablishing a formal government-to-government relationship with the United States,” said U.S. Secretary of the Interior Sally Jewell. “Throughout this two-year rule making process, thousands of voices from the Native Hawaiian community and the public testified passionately about the proposal. Today is a major step forward in the reconciliation process between Native Hawaiians and the United States that began over 20 years ago. We are proud to announce this final rule that respects and supports self-governance for Native Hawaiians, one of our nation’s largest indigenous communities.”
For more information go to:
https://www.doi.gov/sites/doi.gov/files/uploads/press_release_gov_2_gov_pathway_part_50.pdf or click the PDF below.
| press_release_gov_2_gov_pathway_part_50__1_.pdf |
Regulatory Changes For Native Hawaiian Organizations (NHO) and Their For-Profit Subsidiaries
In July 2016, there have been several significant regulatory changes that will have a positive impact on Native Hawaiian Organization (NHO)-owned firms. In addition, we had the privilege of hearing from and meeting with SBA Officials to discuss and further clarify some of these regulatory changes. This information post provides a summary of these regulatory changes and their impact on NHOs.
Under previous regulations, NHOs established economic disadvantage through their board members. That is, a majority of an NHO's board had to be Native Hawaiian AND economically disadvantaged (personal net worth under $250,000 for new NHOs and under $750,000 for continuing eligibility). This presented challenges for NHOs, especially the new NHOs because it has been difficult to find individuals that have the capabilities, experience and qualifications to manage/operate an NHO, but who also are economically disadvantaged in the eyes of SBA. Specifically, if you have substantial management experience and qualifications, then presumably you have achieved financial success over the life of your career.
Change In How NHOs Establish Economic Disadvantage
On July 25, 2016, the SBA published a Final Rule which changed the manner in which NHOs establish economic disadvantage. Economic disadvantage will no longer be based on the board; instead, in order to establish that an NHO is economically disadvantaged, it must demonstrate that it will principally benefit economically disadvantaged Native Hawaiians. To do this, the NHO must provide data on the Native Hawaiian community it intends to serve, including:
As contained in the rule and as explained by SBA Associate General Counsel for Procurement, once the first NHO establishes the Native Hawaiian Community and that it is economically disadvantaged, all subsequent NHOs will not have to establish economic disadvantage. This rule took effect on August 24, 2016. While this new rule should provide significant streamlining of NHO applications and annual reviews in the future, we likely will not see that until the SBA field offices and application processing centers have received training on the new rule. In addition, existing NHOs are advised to continue submitting annual reviews in the manner that you have always done so until you are told otherwise by your BOS.
NHOs Are Now Eligible For HubZone Certification
On August 4, 2016, the SBA issued a Final Rule implementing provisions of the 2016 National Defense Authorization Act which authorized NHOs to own HUBZone small business concerns. Previously, NHOs were not able to have their for-profit companies pursue HUBZone certification. Assuming that an NHO-owned firm is otherwise able to meet theHUBZone eligibility requirements, this new rule provides NHO-owned firms with significant opportunities, because many agencies and prime contractors generally have difficulty meeting their HUBZone goals.
This was any issue that many in the NHO community fought hard to have changed given that the other entity-owned firms (i.e., Tribes and ANCs) were able to pursue HUBZone certification. Thanks to the hard work of the NHOs and the Hawaii Congressional Delegation, particularly the late Congressman Mark Takai, NHO-owned firms are now on equal footing with the other entity-owned firms with respect to HUBZone certification.
Currently, not all areas of Oahu are considered HUBZone; rather, there are pockets and in order to determine whether a specific address is located in a HUBZone, you would need to enter the address into the SBA's HUBZone map. However, with respect to the neighbor islands, each island in its entirety is considered a HUBZone. We learned last week at an event held at SBA's Hawaii District Office, that much of the island of Maui will be losing its HUBZone status in 2018, so for those of you with principal offices/employees located on Maui, this is something you need to consider and possibly adjust for with respect to HUBZone certification.
NHOs are Now Eligible for SBIR Awards
SBIR stands for Small Business Innovation Research and STTR stands for Small Business Technology Transfer. Both programs provide federal funds to qualified awardees. In a nutshell, the SBIR program encourages domestic companies to engage in research and development that has the potential for commercialization. The STTR program expands funding opportunities in the federal innovation arena and focuses on expansion of public/private sector partnerships between small businesses and nonprofit research institutions.
Both programs have different phases and funding opportunities associated with each phase. The SBIR program is highly competitive but provides small businesses with many funding opportunities. In Hawaii, the High Technology Development Corporation provides matching funds to Hawaii's SBIR/STTR awardees. For more information, please clickHERE.
Previously, NHO-owned firms were not eligible for SBIR/STTR awards due to the way the SBA's regulations defined eligibility. Effective August 24, 2016, NHO-owned firms are now eligible to receive SBIR/STTR awards due to the new regulation (see 13 CFR 121.702 (a)(1)(i)). This is significant and exciting news for those NHO-owned firms that are already doing or are interested in doing more R&D.
Under previous regulations, NHOs established economic disadvantage through their board members. That is, a majority of an NHO's board had to be Native Hawaiian AND economically disadvantaged (personal net worth under $250,000 for new NHOs and under $750,000 for continuing eligibility). This presented challenges for NHOs, especially the new NHOs because it has been difficult to find individuals that have the capabilities, experience and qualifications to manage/operate an NHO, but who also are economically disadvantaged in the eyes of SBA. Specifically, if you have substantial management experience and qualifications, then presumably you have achieved financial success over the life of your career.
Change In How NHOs Establish Economic Disadvantage
On July 25, 2016, the SBA published a Final Rule which changed the manner in which NHOs establish economic disadvantage. Economic disadvantage will no longer be based on the board; instead, in order to establish that an NHO is economically disadvantaged, it must demonstrate that it will principally benefit economically disadvantaged Native Hawaiians. To do this, the NHO must provide data on the Native Hawaiian community it intends to serve, including:
- The number of Native Hawaiians in the community that the NHO intends to serve;
- The present Native Hawaiian unemployment rate of those individuals;
- The per capita income of those Native Hawaiians, excluding judgment awards;
- The percentage of those Native Hawaiians below the poverty level; and
- The access to capital of those Native Hawaiians.
As contained in the rule and as explained by SBA Associate General Counsel for Procurement, once the first NHO establishes the Native Hawaiian Community and that it is economically disadvantaged, all subsequent NHOs will not have to establish economic disadvantage. This rule took effect on August 24, 2016. While this new rule should provide significant streamlining of NHO applications and annual reviews in the future, we likely will not see that until the SBA field offices and application processing centers have received training on the new rule. In addition, existing NHOs are advised to continue submitting annual reviews in the manner that you have always done so until you are told otherwise by your BOS.
NHOs Are Now Eligible For HubZone Certification
On August 4, 2016, the SBA issued a Final Rule implementing provisions of the 2016 National Defense Authorization Act which authorized NHOs to own HUBZone small business concerns. Previously, NHOs were not able to have their for-profit companies pursue HUBZone certification. Assuming that an NHO-owned firm is otherwise able to meet theHUBZone eligibility requirements, this new rule provides NHO-owned firms with significant opportunities, because many agencies and prime contractors generally have difficulty meeting their HUBZone goals.
This was any issue that many in the NHO community fought hard to have changed given that the other entity-owned firms (i.e., Tribes and ANCs) were able to pursue HUBZone certification. Thanks to the hard work of the NHOs and the Hawaii Congressional Delegation, particularly the late Congressman Mark Takai, NHO-owned firms are now on equal footing with the other entity-owned firms with respect to HUBZone certification.
Currently, not all areas of Oahu are considered HUBZone; rather, there are pockets and in order to determine whether a specific address is located in a HUBZone, you would need to enter the address into the SBA's HUBZone map. However, with respect to the neighbor islands, each island in its entirety is considered a HUBZone. We learned last week at an event held at SBA's Hawaii District Office, that much of the island of Maui will be losing its HUBZone status in 2018, so for those of you with principal offices/employees located on Maui, this is something you need to consider and possibly adjust for with respect to HUBZone certification.
NHOs are Now Eligible for SBIR Awards
SBIR stands for Small Business Innovation Research and STTR stands for Small Business Technology Transfer. Both programs provide federal funds to qualified awardees. In a nutshell, the SBIR program encourages domestic companies to engage in research and development that has the potential for commercialization. The STTR program expands funding opportunities in the federal innovation arena and focuses on expansion of public/private sector partnerships between small businesses and nonprofit research institutions.
Both programs have different phases and funding opportunities associated with each phase. The SBIR program is highly competitive but provides small businesses with many funding opportunities. In Hawaii, the High Technology Development Corporation provides matching funds to Hawaii's SBIR/STTR awardees. For more information, please clickHERE.
Previously, NHO-owned firms were not eligible for SBIR/STTR awards due to the way the SBA's regulations defined eligibility. Effective August 24, 2016, NHO-owned firms are now eligible to receive SBIR/STTR awards due to the new regulation (see 13 CFR 121.702 (a)(1)(i)). This is significant and exciting news for those NHO-owned firms that are already doing or are interested in doing more R&D.
Partnership with NACA and NHCC-
NHOA is pleased to announce a continued effort to build business relationships between NACA; Native American Contractors Association and the NHCC; Native Hawaiian Chamber of Commerce in a Memorandum of Understanding or MOU.
The focus of initial discussion centered on harnessing the collective strengths and influence of each organization, and then blending that power to address economic needs within each community. As a result, NACA, NHCC and NHOA have agreed to establish a working relationship that will be governed by this MOU. The MOU outlines how the organizations will interact with each other and the benefits that should be realized by each organization.
The ultimate goal of this collaboration is to build financial capacity, raise brand awareness and assist our respective memberships in becoming better positioned to win federal procurements and/or establish strong partnering relationships; this aim will create jobs and build capacity and economic development in our communities. For more information; a copy of the MOU will be posted on this website.
