WASHINGTON — The debate over the sole source contracting privileges that Alaska Native corporations have used to make billions of dollars is flaring in Congress with a new government audit that found lax oversight of the program.

The General Accountability Office said there's scant government monitoring of how much of the work is actually done by Alaska Native corporations that are supposed to benefit from the program and how much is subcontracted to big Lower 48 companies.

"We found no evidence of regular and systematic monitoring of the limitations on subcontracting," said the report from the GAO, the auditing and investigative arm of Congress.

The report, released on Tuesday, also suggested that some Alaska Native corporations "effectively operate as large firms" in what is meant as a small business program.

Massachusetts Democratic Rep. Ed Markey called for congressional hearings on the GAO's findings.

"Alaska Native corporations are provided advantages in federal contracting because of the unique history of native peoples and the U.S. government's obligations to them," said Markey, among the members of Congress who requested the audit. "However, we must ensure that these advantages are not wrongly exploited and that taxpayers are receiving fair value for contracted work. GAO's report finds that federal agencies are currently unable to provide the necessary protections.

Firms owned by tribal entities have special advantages in the Small Business Administration's 8(a) federal contracting program and can receive sole source contracts for any amount. The audit found most of the federal contracting dollars for tribal 8(a) firms go to Alaska Native corporations, whose take rose from $1.9 billion in 2005 to $4.7 billion in 2010.

Alaska's congressional delegation defended the Native corporations Tuesday.

Alaska's Democratic Sen. Mark Begich said the GAO report does not target the corporations and is mainly about how government agencies can better manage the program.

"What we do know is Alaska Native corporations are good corporate citizens, providing jobs and economic stimulus in Alaska and across the country," Begich said. "It's unfortunate that a handful of bad actors have tarnished the reputation of thousands of reputable small businesses who are in ethical compliance ... I've always said we need better training and oversight, and this report just confirms that."

'THIS REPORT IS INNOCUOUS'

The audit release follows the recent bribery and kickback scandal involving an executive at a subsidiary of the Eyak Corporation, the village corporation for Native shareholders in Cordova.

The $20 million scheme allegedly involved corrupt Army Corps of Engineers officers working with the EyakTek executive to pocket kickbacks from a federal contract.

The audit also comes as longtime critics of the program like Missouri Democratic Sen. Claire McCaskill continue to argue that Alaska Native corporation privileges lead to waste as the money is funneled to Washington D.C. subcontractors. McCaskill and Markey are among the six members of Congress who requested the audit. Begich and Alaska Republican Rep. Don Young, who say they want to ensure the program is working properly, are also on the list of the audit requesters.

Young said Tuesday that Alaska Native corporations have become an unjustified target for criticism. The corporations receive just a tiny fraction of sole source federal government contracts and oversight is being improved in the program, he said.