Legislature(1995 - 1996)
1996-02-09 House Journal
Full Journal pdf1996-02-09 House Journal Page 2686 HB 482 HOUSE BILL NO. 482 by the House Rules Committee by request of the Governor, entitled: An Act relating to state procurement practices and procedures; and providing for an effective date. was read the first time and referred to the Labor & Commerce, State Affairs and Finance Committees. 1996-02-09 House Journal Page 2687 HB 482 The following fiscal notes apply: Fiscal note, Dept. of Administration, 2/9/96 Fiscal note, Dept. of Transportation & Public Facilities, 2/9/96 Zero fiscal notes (2), Dept. of Administration, 2/9/96 Zero fiscal note, Dept. of Commerce & Economic Development, 2/9/96 Zero fiscal note, Dept. of Community & Regional Affairs, 2/9/96 Zero fiscal note, Dept. of Corrections, 2/9/96 Zero fiscal note, Dept. of Education, 2/9/96 Zero fiscal note, Dept. Of Environmental Conservation, 2/9/96 Zero fiscal note, Dept. of Fish & Game, 2/9/96 Zero fiscal note, Office of the Governor, 2/9/96 Zero fiscal note, Dept. of Health & Social Services, 2/9/96 Zero fiscal note, Dept. of Labor, 2/9/96 Zero fiscal note, Dept. of Law, 2/9/96 Zero fiscal note, Dept. of Military & Veterans Affairs, 2/9/96 Zero fiscal note, Dept. of Natural Resources, 2/9/96 Zero fiscal note, Dept. of Public Safety, 2/9/96 Zero fiscal note, Dept. of Revenue, 2/9/96 Zero fiscal note, University of Alaska, 2/9/96 The Governor's transmittal letter, dated February 9, 1996, appears below: Dear Speaker Phillips: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that proposes to change state procurement practices to make them more efficient, effective and economic while preserving public accountability. Todays rapidly changing business environment, coupled with declining state revenue, underscores the importance of streamlining our administrative practices. This bill responds to that need by reducing costs, simplifying procurement practices, focusing on results, and empowering procurement officers to make sound purchasing decisions. The proposed revisions to the state procurement code set out in this bill are the result of recommendations made by the statewide Procurement Advisory Council, formed by the Department of 1996-02-09 House Journal Page 2688 HB 482 Administration, to review and streamline statewide procurement practices. The council is made up of private, state and University of Alaska procurement professionals, vendors and small business advocates. Critics rightfully argue that government procurement is not getting the best value for the public. Some current practices impede an agencys ability to accomplish its business, and are not efficient. This bill seeks to correct these problems by simplifying acquisition of office leases under 5,000 square feet and giving procurement officers the discretion to shorten the solicitation process when adequate competition exists along with the ability to enter into a single source contract when in the best interest of the state. This bill also would allow state agencies, including the legislative council, University of Alaska and state Supreme Court, to enter into or renew lease-purchase agreements for real property without legislative approval if the annual payment does not exceed $500,000 and total lease-purchase payments do not exceed $2.5 million. This mirrors the threshold lease rates in current statute for which no legislative approval is needed. And this proposal simplifies small procurements by increasing their dollar limit to the levels set in the Federal Acquisition Streamlining Act of 1994. This bill will result in cost savings for the state because of streamlined acquisition methods and more economic contracts that will allow for lease extensions in return for rent concessions; purchases from General Services Administration supply schedules as authorized in the Federal Acquisition Streamlining Act of 1994; and prevention of preference brokering that adds cost to contracts without adding value. Contractors and bidders have been critical of the costly and time- consuming protest process under the current procurement code. This bill allows a simplified protest process for small procurement to provide more immediate and less costly redress of procurement actions. The procurement process is often identified as a barrier to accomplishing the states business. This bill establishes an innovative procurement track allowing the purchase of new, unique services or supplies or technologies in controlled circumstances without strict 1996-02-09 House Journal Page 2689 HB 482 adherence to the formal invitation to bid or competitive sealed proposal rules. This permits and encourages a tailored, innovative solution aimed at reducing costs and improving results. This provision also looks to the future through a reporting mechanism that will allow procurement officers to see what works and doesnt work in applying this process for purchasing new services and supplies. That will help build better, faster, and cheaper solutions for tomorrows procurement culture. Integrity, competition, and accountability must remain at the very core of our procurement process. With increased discretion for procurement officers, increased accountability is also expected. Anyone making a false statement or providing false evidence in the alternate source selection process would be guilty of a class A misdemeanor. The changes offered in this bill simplify and streamline state procurement practices and will result in more efficiency and cost savings in the acquisition of services and supplies. I urge your support of this bill. Sincerely, /s/ Tony Knowles Governor