The other aspect is that companies like Xerox and the small companies abuse the practice.  They find a company that does a deal with a tribe or a some members of a tribe so that it technically meets the definition for the carve out.  At one point my company was looking at an arrangement like this, but we declined the offer from a third party that specialized in making this sort of thing happen.  What typically happens when the company is able to do the job is that it then gets bought up by the large company and they, the Xerox or whoever, can keep the designation while using their own staff; it sounds like the pretenders either wrote the contract poorly or were incapable of the work in this case.