Authors
Abstract
This paper assesses the impact of surety bonding on American Indian contractors and tribally owned contracting firms. We identify common barriers to acquiring bonding, including both non-American Indian-specific (e.g., challenges in accessing capital) and American Indian-specific barriers (e.g., issues resulting from trust land and sovereign immunity). We also include case studies of successful American Indian-owned contracting firms to identify techniques for bonding acquisition. We then estimate a series of simple proportionality models, which suggest that American Indian contractors living off reservations receive a disproportionately large share of federal construction contracts relative to their population, while American Indian contractors based on reservations receive a disproportionately small share of federal construction contracts. We conclude with a discussion of the Small Business Administration’s Surety Bond Guarantee Program, including a presentation of policy options to improve access to surety bonds for American Indian contractors and tribally owned contracting firms.
