By THE ALASKA STORY
March 12, 2026 – New undercover footage released by the O’Keefe Media Group claims to show executives connected to companies affiliated with Alaska Native corporations describing how federal contracts are obtained through the U.S. Small Business Administration’s 8(a) Business Development Program and then largely performed by subcontractors.
The recordings focus on companies linked to Chenega Corporation and Cherokee Federal. The 8(a) program was created to help “socially and economically disadvantaged” businesses compete for federal contracts by allowing them access to set-aside and sole-source opportunities.
According to the footage, executives described a system in which companies with qualifying ownership structures secure large government contracts while subcontractors carry out much of the actual work.
In earlier footage released by the media group, a contract manager at ATI Government Solutions described how some firms operate after contracts are awarded.
“We only do 20%… the rest goes to subs,” contract manager Melayne Cromwell said in the recording.
The latest undercover video includes comments from Mike Montgomery, identified as president of Chenega Architecture & Design, who explained that firms often hire executives familiar with federal procurement while relying heavily on subcontractors for project execution.
“They hire business executives that understand the federal marketplace… they don’t do the work,” Montgomery said in the recording released by O’Keefe Media Group.
In a separate recording, Ricky Longhurst, identified as a senior account executive at Cherokee Federal, discussed how contract revenue is divided between the operating company and the tribal entity connected to the business.
According to the conversation, Longhurst said roughly 63% of contract revenue stays with the company while about 3% is returned to the tribe. He also described how Native ownership status can make federal procurement easier to navigate.
During one exchange about the contracting structure, Longhurst commented, “It’s cheating really,” according to the footage released by the group.
The recordings also describe how companies may satisfy participation requirements by placing project managers on site while subcontractors perform much of the operational work.
Following the organization’s earlier reporting on ATI Government Solutions, Kelly Loeffler, administrator of the Small Business Administration, announced enforcement actions connected to the program.
The agency later confirmed that ATI had been suspended from the 8(a) program and that a broad review had been launched.
According to the SBA, more than 1,000 firms have now been suspended as part of what the agency described as the first comprehensive audit of the 8(a) program in nearly 50 years.
Chenega Architecture & Design Solutions describes itself as an 8(a) Alaska Native Small Disadvantaged Business and a wholly owned subsidiary of Chenega Corporation.
On its website, the company says it provides consulting, planning, and operational support services for federal clients and has served government customers for more than three decades.
The company states that its business model includes leveraging shared administrative services, technical expertise, and an ISO-certified quality management system across Chenega subsidiaries to compete for and execute federal contracts. It also notes that joint ventures allow the firm to combine expertise and expand capabilities when pursuing federal work.
The undercover recordings have renewed scrutiny of how federal contracting programs intended to assist disadvantaged businesses are implemented in practice.
The 8(a) program has long been a significant source of federal contracting opportunities for companies owned by Alaska Native corporations and federally recognized tribes. Those entities are permitted under federal law to receive certain sole-source contracts without the same dollar limits applied to other 8(a) participants.
The O’Keefe footage raises questions about whether the work performed under taxpayer-funded contracts aligns with the program’s actual intent.
5 thoughts on “Undercover recording raises red flag on federal 8(a) contracting involving Native-owned Chenega”
The original intent of the 8(a) program was for Native companies to be mentored by the government contractors so that they could do the work. The contract under 8(a) mentoring only lasts 8-9 years. However, instead of “teaching” the Native corporations how to do the work the contract ends and a new 8(a) corporation owned by a Native corporation is formed and the business continues. Native corporations have been doing this since 8(a) was made into law. Therefore, the expertise is never transferred to the Native corporations.
there is too much Government dependency from people in America. It’s not so much the public assistance recipient who is taking more from the taxpayer nor the low income single parent and low income married couple with three children taking the child-tax credit worth a few thousand per tax refund. It’s you. the employee whose paychecks and benefits are dependent on the taxpayer. You combined with one hundred million other Americans couldn’t continue your lifestyle without the taxpayer paying coming through government.
This is why I point out currently AKRepublicans GOP can’t right size our own state government and reduce spending while many of its own leaders and members wealth is dependent continuing government spending.
Those two me I bet you anything they vote Republican. Not to just say Republicans are only taking advantage of the government. Because Democrats are also heavily dependent on government too. I recognize characteristics in those two men unique characteristics developed in what makes a voter lean right or left. Especially in the second one he is fighting against his conscience admitting what he is doing is Cheating.
Just as much as I recognized no parent who is low income is entitled to receive a child-tax credit worth 5000 or more (as much as it can help a working parent who is struggling while Americans who are single or making more don’t receive a tax refund because their refunds are going to the low income single parent or low income married couple in wealth distribution scheme.
The Native tribal members grieved at what they call a loss to themselves. What they are failing to understand is they are no more entitled to taxpayer money as the contractor has been scheming from the taxpayer. One thing I really hate about ANCSA, IHS, and state and federal programs supposedly for Native people it has kept Native people waiting for help instead of themselves going out, working, and making their own way to help their families out.
That woman in video saying her grandmother needs new installed insulation for her house. Then why didn’t the idea come to the granddaughter to first work and improve her own job so she herself can save up or utilize bank home equity loan or learn out Credit lines work so she can pay for her grandmothers home remodels. Why do Natives wait on others to do what family can do themselves. Why they don’t make their adult children living with them work to help take care of the family home. I seen one parent working while their three adult children over 18 still don’t work. That family is missing out on that 5000 every two weeks can be brought into one home between four working adults. i We don’t need tribal employments to reach the American Dream. We can work for another employer and even teach ourselves how to start a small business of our own using a talent one has.
Hate to say we told you so, but we told you so.
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Have a look at “thealaskastory.com/murkowski-eyes-gavel-for-defense-appropriations-subcommittee/”.
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The “Daily Wire” piece, with pictures, appears at: “How A Top Pentagon Contractor Enriches DC Insiders Using Law Intended To Help Eskimos”.