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Every few years, Washington rolls out yet another program that is supposed to help disadvantaged folks, level the playing field, and make government spending more palpable.

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And every few years, everybody starts digging into the fine print and discovers that it’s yet another scam, designed to fleece the American taxpayer. And we’re all left wondering: who’s actually benefiting from all that cash?

A new thread making the rounds is putting a spotlight on yet another one of these delightful federal programs. This one is a government minority contracting system that’s supposedly designed to give special help to Alaska Native Corporations.

Of course, that doesn’t appear to be what’s actually happening.

The thread, from a Daily Wire investigative reporter, alleges that billions in defense contracts are flowing to companies headquartered far away from Alaska. Meanwhile, these DC executives are living the high life, yet the program continues to be pushed as helping disadvantaged Native communities.

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Supporters of the system say it lawfully returns profits to Native shareholders and fulfills its intended mission. Critics argue the structure has drifted so incredibly far from its original purpose, it’s not even recognizable and is now basically a contracting pipeline for rich guys.

Here is the first claim from Luke Rosiak:

Minority-contracting laws have enriched a class of white D.C. insiders who helm defense contractors who get billions by being “Alaskan native.” ASRC Federal announced $153 billion in contracts last month alone! Its CEO is a Dem donor in a Virginia mansion. Natives live in huts.

This is the core allegation driving the entire debate. The minority contracting framework was supposed to give disadvantaged communities a leg up. But now, it appears that it’s enriching a class of very well-connected, elite defense contractors.

The thread then shifts from the big picture to the people running one of the major firms involved.

CEO Jennifer Felix, a donor to Elect Dems Now and Pro-Choice Majority, lives in a 14,000sf home in Loudoun with its own private movie theater. This is the theater in Alaska’s North Slope, the “disadvantage” of whose minorities gives Felix’s company no-bid contracts.

When executives who are tied to these firms are living in fancy burbs thousands of miles from Alaska, it’s fair to wonder if the program has strayed off course.

The next claim focuses on where the actual contract work is being performed.

The Pentagon paid Alaska native firms $45 billion over the last 5 years, for work that was most commonly done in Virginia, not Alaska. The Alaskan scam has been evident for decades.

The geography matters a heck of a lot in this debate. If most of the work is being performed in places like Northern Virginia rather than Alaska’s North Slope, how helpful is this program to needy Natives and their communities? Supporters, of course, come back and say corporate structure and subcontracting in modern defense work often span multiple states.

Nobody buys this nonsense, do they?

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The thread then turns toward the political protection these programs have historically enjoyed on Capitol Hill.

But Alaska has had powerful senators who have blocked reform. Now, Lisa Murkowski is being floated to chair the Appropriations Committee or its defense subcommittee, even as the Trump administration seeks to rein in minority contracting.

Here’s the private wine cellar of Joseph Winthrop, ASRC Federal’s chief financial officer, vs. the largest village in the native area whose “disadvantage” leads to no-bid contracts for ASRC:

Image

Ahh, yes, the all-too-familiar Swamp dynamic. Once a federal contracting structure is in place and billions begin flowing through it, the power systems form very quickly. And that means the mission drifts further from the shore, and reform is out the window.

Finally, Luke’s thread raises an even broader legal question in light of recent Supreme Court rulings.

Post SCOTUS Fair Admissions, much of minority contracting is likely illegal. Conservatives say it’s wasteful because competitive bidding keeps costs down and quality up. But it also may not have even met the liberal goal of helping minorities.

You can read Luke’s entire article here.

Luke’s thread is making a much bigger point about incentives, oversight, and whether programs that were designed eons ago are still operating the way policymakers originally intended.

Spoiler alert: probably not.

This mess is not likely to be resolved by a viral thread. And also, keep in mind, this strange setup has powerful supporters behind it who continue to lobby to keep everything as-is.

The real truth of the matter is that this program shouldn’t exist at all. We should be focused on ending these minority handouts, because they’re a catch-all for fraud and totally unfair.

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