Accessing the Resources and Capital to Support Economic Development - Part 3 (Virtual Training Session)
Cultivating Investor-Lender-Borrower Relationships
As tribes and Native communities seek to develop a strong foundation for economic development activities and strategies, they must identify the array of available sources of funding and financing as well as customers/clients that will support the enterprises and projects that are developed.
The third installment in this 3-part training series explored the use of federal contracting to grow tribal enterprises and 8(a) businesses, including training on various types of federal contracts and some important considerations that tribal entities should be aware of as they seek out federal contracts.
Training Summary
Session Slides:
Subject Matter Experts:
Explore part one of this series on Economic Development Resources and Funding Sources and part two on Cultivating Investor-Lender-Borrower Relationships.
Foundations of Cultivating Relationships
In the clip to the right, Kevin Klingbeil introduces federal contracting in Native communities.
What is Federal Contracting? (Slide 7)
Federal contracting refers to the process by which the U.S. federal government purchases goods and services from private businesses, nonprofits, and other organizations. These contracts are legally binding agreements between a federal agency and a contractor.
Certain contracts are limited to small businesses, called “small business set-asides.”
Small Business Act (15 U.S.C. § 631 et seq.): provides small businesses access to government contracts through programs like the 8(a) Business Development Program and mandates percentages of set-aside contracts for small businesses.
Rules and Regulations? (Slide 8)
There is existing legislation that supports tribal and Native communities entering into federal contracting.
Most contracts are awarded through a competitive bidding process in the form of fixed-price, cost-reimbursement, and/or time and materials/labor contracts.
The Federal Acquisition Regulation is a primary set of rules that govern how the U.S. government purchases goods and services, aiming for a fair and transparent procurement processes.
Overview of The Native Communities and Federal Contracting Landscape (Slides 9-11)
In FY24, the federal government awarded $773.68 billion to 108,899 companies
76.7% awarded as Other Than Small Business (OTSB) contracts while 23.3% was awarded as small business contracts
Federal contracting can build economic resilience through growing diverse revenue streams. Its necessity became clear when tribally owned casinos were shut down to mitigate COVID-19 transmission, and gaming-dependent tribes were left with little incoming revenue.
Federal contracting revenue is growing for Native entities over time. Native entities’ share of federal contracts: 0.4% in 2001 vs. 2.6% in 2021
Pros and Cons of Federal Contracting (13)
Federal contracting unlocks economic opportunities for Native entities.
Contracting has become one of Indian Country’s largest and fastest-growing income sources and expands economic diversification (Tribal Business News)
Revenue from federal contracting funds community economic development in Native communities.
Communities have used this revenue for scholarships, eldercare, restoring fishing ponds, housing, and poverty-reduction programs (CICD's research).
Native entities face hurdles securing their first federal contracts.
Contract consolidation (a popular method of bundling federal contracts) could be a barrier for Native entities that do not have an already established federal relationship or newer, fewer, or smaller businesses that lack the resources to compete for larger, more complex opportunities.
Federal contracting is demanding.
Federal contracts often involve complex requirements and Native organizations need have substantial administrative capacity and a skilled workforce to manage large, intricate projects successfully.
Initial Considerations for Engaging in Federal Contracting (Slides 13-16)
To win government contracts, your business must identify whether there is a market for your product or service, the size of the market, and who the potential buyers are in the federal contracting ecosystem.
View the Federal Procurement Data System – Next Generation to see which agencies have contracts and with who, what agencies buy, and which contractors have contracts.
Explore USASpending.gov to help identify government purchasing trends.
Access the Agency Recurring Procurement Forecasts to find out if there are agencies that are buying what you sell.
Certain approaches or actions can enhance your ability to win and fulfill contracts (subject to various restrictions on control, material benefit, etc.). Consider making strategic new hires, serving as a subcontractor, or taking on subcontractors.) View the Developing Successful Grant Applications: Best Practices and Lessons from a Tribal Grantee by the Urban Institute for strategic best practices in Indigenous economic development.
Enhance your contracting capability by partnering with other entities, creating a joint venture, or purchasing another operating business.
Getting Started with Federal Contracting (Slides 18-23)
Tribally owned businesses can apply for 8(a) certification through the SBA, which helps them compete for federal contracts that are set aside for small businesses owned by disadvantaged individuals.
Benefits of 8(a) Certification for tribally owned businesses include:
Access to sole-source contracts to avoid competitive bidding for certain types of work
One-on-one business development assistance
Qualify to receive federal surplus property on a priority basis
Visit the SBA’s 8(a) Business Development Program webpage to learn more about the program, eligibility, and to apply.
To register as a Federal Contractor:
Get a UEI (Unique Entity Identifier) number and a CAGE number if required.
You will receive your UEI number and have the opportunity to create a CAGE number when you register your business with SAM.gov (System for Award Management).
Match your products and services to NAICS codes (which classify your business based on the products and services you provide).
Meet small business size standards to legally qualify as a small business.
Finish your SAM profile to showcase what you can offer to federal contractors
Maintain compliance with the federal government's purchasing process, governed by the Federal Acquisition Regulation
GSA eBuy and FedConnect are databases that neatly compile federal contracting opportunities in searchable and filterable formats.
Timothy “TJ” J. Hansell - Chief Visionary, Hansell Group
TJ Hansell (Turtle Mountain Chippewa) is an experienced professional having experience in both the business development and program management sides of the business. He is currently the Chief Growth Officer for the Redding Rancheria Contracting Services Corporation (RRCSCO), a Tribal 8(a) and Chief Visionary for the Hansell Companies, LLC.
TJ shared key insights during the discussion on tribal entry and success in federal contracting:
Tribal, Alaska Native Corps. (ANC), and Native Hawaiian Organizations (AHO)-owned firms benefit from elevated direct award thresholds (e.g., $100M for DoD, increasing to $150M in 2026).
Growth can be accelerated through acquisitions (e.g., Cayuse’s acquisition of Native Hawaiian Veterans) and joint ventures that provide past performance and technical capability to win contracts.
TJ highlights that Native communities must hire experienced, often non-tribal, personnel; establish a presence in key federal contracting hubs (e.g., D.C., Denver, Huntsville); and invest in business development and relationship-building with agencies.
Internal tribal strengths in sectors like healthcare, housing, construction, or utilities can be pivoted into federal contracting opportunities (e.g., VA, IHS, Homeland Security), establishing credibility and core competencies.
Pursuing smaller contracts under the simplified acquisition threshold (<$250K) helps build performance assessment (CPARS) ratings. Strong compliance, understanding of Federal Acquisition Regulation (FAR) clauses, and back-end execution are critical for long-term viability.
Financing & Startup Capital Options:
Tribes can use SSBCI (State Small Business Credit Initiative) funds to support startup costs or acquisitions.
Venture capital or equity partners may be leveraged (while retaining 51% tribal ownership) to boost capacity.
Financial diligence is essential—partners may require clearance for classified work.
Bridge Loans & Working Capital:
For reimbursable contracts with delayed payments, bridge loans or lines of credit are viable tools.
Specialized banks (e.g., Live Oak Bank, Native-owned banks like Native American Bank) are familiar with 8(a) and federal contracting and can issue credit quickly against signed contracts.
This financing covers early costs (e.g., salaries, travel, mobilization) during the initial 90–120 days before government reimbursement begins.
Ongoing coordination with tribal leadership is vital to balance reinvestment needs with dividend expectations. Growth stages require careful planning to manage cash flow and operational demands.
Jeffrey Ellis – Seneca Holdings
Jeff serves as Chief Executive Officer of Seneca Holdings. He joined in 2013 and is now responsible for the overall growth and direction of the organization. Jeff has a background in business strategy, law, and strategic business consulting. He previously consulted for firms including Gartner and Deloitte, and practiced law at Skadden, Arps, Slate, Meagher & Flom LLP.
During the session, Jeff shared insights on the organization's journey in federal government contracting and how strategic pivots and diversification have fueled both business growth and tribal benefit:
Seneca Holdings, created by the Seneca Nation to pursue non-gaming ventures, initially struggled in construction before shifting focus to other areas of federal contracting.
The pivot led to significant growth, with over 15 small businesses now in the portfolio and increasing financial and non-financial returns to the Nation.
Lessons learned emphasized the importance of choosing areas where the organization can excel rather than opportunistically taking on unfamiliar work.
Success in federal contracting enabled diversification, including the creation of Seneca Environmental, a homegrown business aligned with tribal values and focused on renewable energy.
Seneca Environmental supports other tribes and benefits from federal programs, though it has faced challenges such as delays in DOE tribal funding.
The integration of environmental expertise and federal contracting know-how allowed them to win innovative contracts, such as selling renewable energy certificates to the federal government.
Questions, Answers, and Discussion
Question: How do tribes decide when and how to diversify into new industries like travel or environmental services, and what factors shape those decisions?
Seneca Holdings shared a four-pronged approach to diversification: expanding within federal contracting beyond 8(a), creating offshoot businesses, launching entirely new ventures like Seneca Environmental, and acquiring established companies such as a major travel agency — all guided by strategy, capacity, and expertise.
Tribes like Redding Rancheria demonstrate how external factors (e.g., COVID, energy goals) and local resources (e.g., biomass, geography) can drive strategic diversification, with decisions shaped by economic impact, job creation, and community needs.
Summary of Discussion:
The conversation between Kevin, Jeff, and TJ centers on how tribal enterprises and aspiring 8(a) participants should approach federal contracting, even amid market turbulence.
Start Early: Jeff emphasizes that entering federal contracting takes time, so tribes should begin now to be ready when opportunities arise. Waiting could delay readiness due to the built-in ramp-up time required to understand and implement necessary processes.
Be Prepared and Compliant: TJ highlights the need to be ready with updated profiles, a clear business plan, and compliance with systems like SAM and DSBS. He stresses the importance of being able to respond quickly to government inquiries to capitalize on short-turnaround opportunities.
Tell Your Story Effectively: It's vital for tribes to articulate their capabilities and value proposition in a way that resonates with government buyers.
Diversification Is Key: Federal contracting is one part of a broader economic strategy to add onto a community’s efforts. Multiple revenue streams builds reslience and self-determination.
Utilize your unique classification: Tribal, Alaska Native, and Native Hawaiian organizations (e.g., Tribal 8(a)s) can use the experience, expertise, or past performance of their other businesses to strengthen their federal contracting efforts, without being penalized by Small Business Administration (SBA) affiliation rules that would normally apply to non-tribal entities.
Leveraging Off-Reservation Talent: Both speakers stress the importance of involving tribal members living off-reservation, particularly those with relevant expertise, on boards or as employees, to strengthen enterprise capacity and community ties.
Building Internal Capacity: Some tribes, like Navajo's DDC, have formal mentorship and succession programs where non-Native experts help train tribal members to eventually take leadership roles. Others, like Jeff’s and TJ’s groups, are informally but actively moving toward tribal leadership in federal enterprises.
Support for Individual Native Entrepreneurs: While not widespread, there is a willingness among some tribal entities to support individual tribal members interested in launching their own 8(a) businesses.
Closing Thoughts
Questions, with answers from the Resource Group and fellow participants, will continue to be posted in the Knowledge Bank on the CoP website. If you have questions that you want answered, please ask in the LinkedIn group or share it with the administrators.
Upcoming CoP Events:
Previous Events:
Learn about the CoP Resource Roadmap which links the sectors of Community Economic Development.