Legislature(1995 - 1996)

1996-02-09 House Journal

Full Journal pdf

1996-02-09                     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             
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                  
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          
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.                                              
						Tony Knowles