A little village with big dreams: Olgoonik Corp: from Wainwright to worldwide.

• Author: McCorkle, Vern
• Position: Company Profile

Thanks to communications technology, a perceptive business plan and skillful management, the small village corporation of Wainwright, located 180 miles above the Arctic Circle and 72 miles southwest of Barrow, is now doing big business worldwide.

In 1973, the Olgoonik Corp. was established by the Alaska Native Claims Settlement Act and exists within the Arctic Slope Regional Corp.'s geographic region. In 1999, the village corporation of Wainwright organized itself into a holding company, Olgoonik Development LLC, and four subsidiaries: O.E.S. Inc., Kuk Construction, Olgoonik Logistics and Olgoonik Management Services. Olgoonik Development has the overall management responsibility of the subsidiaries.

GOOD GUIDANCE

Today Olgoonik has some 300 employees working not only in the contiguous Lower 48 states, but also in Europe, South America and Asia. Closer to home on the North Slope, Olgoonik Corp. is rubbing shoulders with the giants.

Except for a small amount of village money, Olgoonik Corp. started off in 1999 with empty pockets, but that infant corporation had the gumption to succeed and to raise the quality of life for the people of its village.

According to corporate documentation, Wainwright is now the third largest village in Arctic Alaska. And from a financial standpoint, last year Olgoonik earned revenues of $13 million. This year, there are plans to double that figure, according to Mike Sandstrom, general manager.

"We've had good, stable management and guidance from Olgoonik Corp., which provides us with direction and stability," said Sandstrom.

"Another key reason why we've been able to achieve the level of success we have, in the time period we have, is our ability to take advantage of the small-business programs that the federal government has provided."

Sandstrom refers to the Small Business Administration; there are several programs available to those companies that need help in their search for success. Olgoonik has been in a strong SBA 8(a) mentor-protege program that has provided good business opportunities.

GOOD MENTORSHIP

Under this program, the SBA certifies small, disadvantaged businesses as being in good standing and screens those eligible to participate in the program. The 8(a) program allows federal agencies to sole-source large contracts to qualified firms. It typically has limits of $3 million for service contracts and $5 million for manufacturing contracts. An exemption to these limits exists for Alaska Native...