hope this message finds you well. As we step into a new year, it is important to reflect on the challenges we faced in 2024 and how they have impacted our subsidiaries and projects. Additionally, we must understand and navigate the potential impacts of the recent executive orders issued by President Trump, which have created a whirlwind of change for government contractors like us.
One of the recent executive orders revokes the 1965 civil rights executive order, which protected against employment discrimination by federal contractors. This change requires ending diversity, equity, and inclusion (DEI) programs within 90 days and certifying that we will not engage in DEI practices for new contracts or grants.
The termination of DEI practices could impact government set-aside contracts for minority-owned businesses, potentially reducing opportunities for companies like ours. This change might affect the progress made in diversifying and growing our federal contracting business.
Additionally, the hiring freeze in executive agencies and the directive for a return to in-person work could disrupt our workforce planning and project timelines. It is crucial to stay informed and agile, ensuring compliance with the evolving regulatory landscape while continuing to deliver high-quality services to our government clients.
The recent executive orders also affect our interactions with the Small Business Administration (SBA), emphasizing stricter compliance and reporting requirements. As a government contractor, we must reassess our compliance reporting to align with the updated SBA priorities and regulations. This proactive approach will help us maintain our competitive edge and continue leveraging SBA resources effectively.
In February, I plan to attend the National 8(a) Conference in New Orleans to gain a better understanding of the potential effects of the Trump administration’s directives on the SBA 8(a) program, particularly how these changes could impact our unique rights as Alaska Native Corporations.
Despite these challenges, President Trump’s administration also presents numerous opportunities that we plan to follow closely. His commitment to modernizing the military by investing in advanced technologies, increasing the defense budget, and enhancing troop pay aligns with our strategic interests. Additionally, his focus on reviving the domestic industrial base to create jobs and enhance defense production, along with his prioritization of protecting critical infrastructure from cyber threats, opens avenues for us to engage in defense-related projects.
In terms of environmental policy, the administration’s expected rollback of regulations could impact federal contractors involved in environmental remediation. It may increase competition and shift focus toward cost-cutting over environmental stewardship. Overall, President Trump’s second term could bring significant changes for federal contractors across various sectors, including construction, military training, security, and janitorial services. We will be closely following these opportunities to align our strategies and capitalize on the evolving landscape of federal policies.
I am pleased to report that our company is profitable and remains flexible and prepared for potential changes in federal government funding for contracts. We are in a favorable position, with a substantial backlog heading into the first and second quarters of 2025. This should enhance staff utilization during these periods and allow us to adapt swiftly to any funding fluctuations.
We remain focused on staff training and development with an emphasis on safety. Ahtna Construction and Primary Products Company will host its annual First Line Supervisor Training in Fairbanks in February for about 30 project managers. Topics will include the supervisor’s role in preventing incidents, mitigating hazards, and addressing responsibilities related to production, cost, and injury/illness loss.
Notably, Ahtna Infrastructure & Technologies received the 2024 Excellence in Construction award from the Association of General Contractors of Alaska for the Akiuk School Fire Clean-up & Repairs project. This award recognized our success in abating extensive fire damage in a remote, logistically challenging village and completing the project with creative methods to meet tight deadlines.
As we navigate the evolving landscape shaped by the recent executive orders and the challenges faced in 2024, it is imperative that we remain agile and proactive. Our strategic positioning, with a substantial backlog heading into 2025, places us in a strong position to mitigate potential impacts and capitalize on emerging opportunities. By staying informed and adaptable, we can continue to deliver high-quality services to our clients while aligning our strategies with the new regulatory environment. Our commitment to excellence and resilience will be key to overcoming the hurdles ahead and achieving sustained growth and success in the coming year.
Thank you for your continued support,
Roy Tansy Jr., Chief Executive Officer
Ahtna Netiye’, LLC