206/16/2014 The beginning… The discovery and development of oil & gas leads to the establishment of ANCs… Doyon Limited Confidential & Proprietary Information

ANCSA History  In the Alaska Native Claims Settlement Act (ANCSA) of 1971, Congress divided the State of Alaska into 12 regions based on common Native ancestry 306/16/2014 Doyon Limited Confidential & Proprietary Information  The Act awarded a percentage of the land and a portion of a cash settlement, based on population, to the Alaska Native Corporation (ANC) formed in each region

ANCSA History  The effort was a new hope to end the cycle of lower 48 Indian Reservation poverty and economic dependence on the federal government  It was hoped that ANCs would become economic engines for their regions with local Natives as shareholders and managers 406/16/2014 Doyon Limited Confidential & Proprietary Information  ANCs now own the land and use settlement resources to create jobs, educational opportunities, and empower Native shareholders

ANCSA Settlement Structure  One Regional Corporation and many village corporations were subsequently formed in each designated region  Each Regional Corporation selected a name, began the process of establishing the legal entity, enrolled shareholders and planned for the future 506/16/2014 Doyon Limited Confidential & Proprietary Information  The Doyon Region is the largest in land area and takes up most of the Interior of the State  Congress also mandated that the Regions “share” 70% of their annual income from subsurface and timber development with the other regions

Origins of ANC 8(a) Entities  The late Senator Ted Stevens of Alaska advocated for changes to SBA rules for minority-owned socially and economically disadvantaged businesses under the 8(a) Program  ANCs were authorized to form and develop small companies to engage in government contracting in existing markets – providing income and job opportunities for their Native shareholders 606/16/2014 Doyon Limited Confidential & Proprietary Information

ANCs & 8(a) Program Participation  The SBA’s 8(a) Business Development Program is designed to assist socially and economically disadvantaged small businesses, including ANC owned subsidiary companies  The SBA helps ANC subsidiaries build a strong foundational base for economic development and long term viability 706/16/2014 Doyon Limited Confidential & Proprietary Information  ANC subsidiaries continue to build capacity to identify, select, and manage opportunities that help achieve the shareholder’s long term vision

Key ANC Responsibilities  The relationship between the Federal Government and an ANC is complex. ANCs have dual missions of generating corporate profits and providing social benefits, including employment opportunities, to shareholders 806/16/2014 Doyon Limited Confidential & Proprietary Information  ANCs are able to exercise a preference for American Indian and Alaska Native applicants. As a result, Native companies dedicate a substantial amount of time and expense to recruiting, training, developing, and supporting Native employees  For the 8(a) program, ANCs consider themselves stewards of the trust relationship between the SBA and the Native community. Outstanding performance is essential  Adherence to the program rules, as well as the spirit and intent of the 8(a) program, must be maintained at all times

Current 8(a) Program Activity  The 8(a) program continues to be a strong business development tool for ANCs subsidiary companies. ANCs companies are actively pursuing and executing contract work  ANCs and tribes continue to maintain certain unique procurement privileges – an important consideration, since proceeds from tribally or ANC owned companies are used to benefit the entire tribal membership, rather than individual owners  Federal agencies continue to have strong incentives to set aside work in the 8(a) program. Agencies continue to contract with tribal concerns and ANC owned businesses via competitive procurements and directed contracts 906/16/2014 Doyon Limited Confidential & Proprietary Information

Specific ANC 8(a) Advantages  ANCs can own many small companies that participate in the 8(a) Program – rather than just one – because ANCs provide benefits to thousands of Native shareholders, not to just one owner or family.  ANCs are largely exempt from $100 million overall federal cap for 8(a) competitive and directed awards – allowing ANCs to obtain larger procurements  ANCs are exempt from the requirement of being managed by socially and economically disadvantaged owners, so Non-Natives can operate ANC- owned 8(a)s. 1006/16/2014 Doyon Limited Confidential & Proprietary Information

ANC 8(a) Compliance Requirements  ANC 8(a) companies must meet SBA size requirements for small businesses (measured by a three year rolling average of gross revenues or average number of employees)  ANCs need to meet competitive mix and business activity targets as required by the SBA. The long term viability of the subsidiary is essential.  ANCs must meet specific NAICS code requirements concerning ownership of subsidiary entities  ANCs must perform required percentages of government contract work with their own forces  ANCs must win procurements with proven performance and excellent work records  ANCs must comply with 8(a) Program reporting requirements 1106/16/2014 Doyon Limited Confidential & Proprietary Information

Subcontracting to ANCs 1206/16/2014 Doyon Limited Confidential & Proprietary Information  Teaming with or Subcontracting to ANC entities can provide significant benefits to other 8(a) or Small Business entities  ANCs offer greater financial resources…enhancing a team's financial capability to perform and thus enabling the pursuit of larger federal procurement opportunities  8(a)s usually have a singular or limited geographical presence, ANCs 8(a)s generally have a wider geographical presence and thus offer partners opportunities nationwide  ANCs have a wider range of core competencies and can offer subcontracting opportunities across several entities  ANCs usually have a mature support organization capable of supporting larger contracts activities

Getting ready to work with ANCs  Develop a Value Proposition that is specific to your company – What makes you great  Recruit and retain a seasoned and proven management team 1306/16/2014 Doyon Limited Confidential & Proprietary Information  Ensure you’ve got all your certifications, licenses and business qualifications in order  Put financial resources in place. Get your cost structure aligned with the competitiveness of the current marketplace  Generate proven past performance on completed projects

Ensuring the ANC relationship  Develop relationships with key ANC subsidiary business development and operations personnel  Look for specific opportunities to team on upcoming projects – know how you can add value and help the team win  Be willing to take smaller roles on initial projects to prove your ability to perform  Perform the work in an outstanding fashion and be a key reason for the project’s success 1406/16/2014 Doyon Limited Confidential & Proprietary Information

Questions? 1506/16/2014 Doyon Limited Confidential & Proprietary Information