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CSSB 129(STA): "An Act relating to state procurement."

00CS FOR SENATE BILL NO. 129(STA) 01 "An Act relating to state procurement." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 36.30.010(a) is amended to read: 04  (a) The commissioner shall appoint to the partially exempt service the chief 05 procurement officer of the state. The chief procurement officer must have at least five 06 years of prior experience in public procurement, including large scale procurement of 07 supplies, services, or professional services, and must be a person with demonstrated 08 executive and organizational ability. The chief procurement officer may be removed 09 by the commissioner only for cause. The term of office of the chief procurement 10 officer is six [FOUR] years. 11 * Sec. 2. AS 36.30.010 is amended by adding new subsections to read: 12  (c) While a person performs the duties of the chief procurement officer under 13 this chapter, the person may not be employed in or appointed to another position with 14 the state.

01  (d) The annual salary of the chief procurement officer is range 23 of the salary 02 schedule established in AS 39.27.011. 03 * Sec. 3. AS 36.30.300(a) is amended to read: 04  (a) A contract may be awarded for supplies, services, professional services, or 05 construction without competitive sealed bidding, competitive sealed proposals, or other 06 competition in accordance with regulations adopted by the commissioner. A contract 07 may be awarded under this section only when the chief procurement officer or, for 08 construction contracts or procurements for the state equipment fleet, the commissioner 09 of transportation and public facilities determines in writing that there is only one 10 source for the required procurement or construction. A sole source procurement may 11 not be awarded if a reasonable alternative source exists. The written determination 12 must include findings of fact that support by clear and convincing evidence the 13 determination that only one source exists. Except for procurements of supplies, 14 services, professional services, or construction that do not exceed the amount for 15 small procurements under AS 36.30.320(a) or (b), as applicable [AS 36.30.320(a)], 16 the authority to make the determination required by this subsection may not be 17 delegated. 18 * Sec. 4. AS 36.30.305(a) is amended to read: 19  (a) A contract for supplies, services, professional services, or a construction 20 contract under $100,000, may be awarded without competitive sealed bidding or 21 competitive sealed proposals, in accordance with regulations adopted by the 22 commissioner. A contract may be awarded under this section only when the chief 23 procurement officer [COMMISSIONER], or, for construction contracts under 24 $100,000 or procurements for the state equipment fleet, the commissioner of 25 transportation and public facilities, determines in writing that a situation exists that 26 makes competitive sealed bidding or competitive sealed proposals impractical or 27 contrary to the public interest. Procurements under this section shall be made with 28 competition that is practicable under the circumstance. Except for procurements of 29 supplies, services, professional services, or construction that do not exceed the amount 30 for small procurements under AS 36.30.320(a) or (b), as applicable 31 [AS 36.30.320(a)], the authority to make a determination required by this section may

01 not be delegated. 02 * Sec. 5. AS 36.30.310 is amended to read: 03  Sec. 36.30.310. EMERGENCY PROCUREMENTS. Procurements may be 04 made under emergency conditions as defined in regulations adopted by the 05 commissioner when there exists a threat to public health, welfare, or safety, when a 06 situation exists that makes a procurement through competitive sealed bidding or 07 competitive sealed proposals impracticable or contrary to the public interest, or to 08 protect public or private property. An emergency procurement need not be made 09 through competitive sealed bidding or competitive sealed proposals but shall be made 10 with competition that is practicable under the circumstances. A written determination 11 by the chief procurement officer of the basis for the emergency and for the selection 12 of the particular contractor shall be included in the contract file. The written 13 determination must include findings of fact that support the determination. Except 14 when there is insufficient time for the chief procurement officer to make the 15 written determination required by this section, the chief procurement officer may 16 not delegate the authority to make the determination. 17 * Sec. 6. AS 36.30 is amended by adding a new section to read: 18  Sec. 36.30.315. DETERMINATIONS BY CHIEF PROCUREMENT 19 OFFICER; CRIMINAL PENALTY. (a) In a determination made by the chief 20 procurement officer under AS 36.30.300 - 36.30.310, the chief procurement officer 21 shall independently examine the material facts of the procurement and independently 22 determine whether the procurement is eligible for the procurement method requested. 23  (b) If the chief procurement officer knowingly makes a false statement in a 24 determination made by the chief procurement officer under AS 36.30.300 - 36.30.310, 25 the chief procurement officer is guilty of a class A misdemeanor. 26 * Sec. 7. AS 36.30.370 is amended to read: 27  Sec. 36.30.370. TYPES OF CONTRACTS. Any [SUBJECT TO 28 LIMITATIONS OF THIS SECTION, ANY] type of contract that will promote the best 29 interests of the state may be used, except that the use of a 30 cost-plus-a-percentage-of-cost contract is prohibited. [A COST-REIMBURSEMENT 31 CONTRACT MAY BE USED ONLY WHEN A DETERMINATION IS MADE IN

01 WRITING BY THE PROCUREMENT OFFICER THAT A 02 COST-REIMBURSEMENT CONTRACT IS LIKELY TO BE LESS COSTLY TO 03 THE STATE THAN ANY OTHER TYPE OR THAT IT IS IMPRACTICABLE TO 04 OBTAIN THE SUPPLIES, SERVICES, PROFESSIONAL SERVICES, OR 05 CONSTRUCTION REQUIRED EXCEPT UNDER A COST-REIMBURSEMENT 06 CONTRACT.] 07 * Sec. 8. AS 36.30.610(c) is amended to read: 08  (c) The commissioner of administration or the commissioner of transportation 09 and public facilities, as appropriate, shall, within 15 days from the date the 10 appellant's comments on the protest report are due under AS 36.30.605(c) and (d) 11 [AFTER RECEIPT OF AN APPEAL], notify the appellant of the acceptance or 12 rejection of the appeal and, if rejected, the reasons for the rejection. 13 * Sec. 9. AS 36.30.850(b) is amended by adding new paragraphs to read: 14  (30) contracts that are to be performed in an area outside of the country 15 and that require a knowledge of the customs, procedures, rules, or laws of the area; 16  (31) contracts that are between the Department of Law and attorneys 17 who are not employed by the state and that are for the review or prosecution of 18 possible violations of the criminal law of the state in situations where the attorney 19 general concludes that an actual or potential conflict of interest makes it inappropriate 20 for the Department of Law to review or prosecute the possible violations. 21 * Sec. 10. AS 36.30.150(b) is repealed. 22 * Sec. 11. TRANSITIONAL PROVISIONS. (a) With respect to the person holding the 23 position of chief procurement officer on the effective date of this Act, the six-year term of the 24 chief procurement officer under AS 36.30.010(a), as amended by sec. 1 of this Act, shall 25 include the time the person holds the position before the effective date of this Act. 26 (b) AS 36.30.010(c) and (d), added by sec. 2 of this Act, apply to the chief 27 procurement officer on and after the effective date of this Act. 28 (c) AS 36.30.300(a), 36.30.305(a), 36.30.310, 36.30.370, amended by secs. 3 - 5 and 29 7 of this Act, and 36.30.850(b)(30) and (31), added by sec. 9 of this Act, apply to a 30 procurement that begins on or after the effective date of this Act. 31 (d) AS 36.30.315, enacted by sec. 6 of this Act, applies to a determination made on

01 or after the effective date of this Act. 02 (e) AS 36.30.610(c), amended by sec. 8 of this Act, applies to a protest report filed 03 under AS 36.30.605 on or after the effective date of this Act.