2021-03-31                     House Journal                      Page 0493
HB 160                                                                                                                        
HOUSE BILL NO. 160 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the state procurement code; establishing the                                                           
     construction manager general contractor procurement method; and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
was read the first time and referred to the Transportation Committee.                                                           
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Transportation & Public Facilities                                                                           
                                                                                                                                
The Governor's transmittal letter dated March 30 follows:                                                                       
                                                                                                                                
"Dear Speaker Stutes:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill amending the state procurement                                                           
code to authorize construction manager general contractor (CM/GC)                                                               
procurement contracts.                                                                                                          
                                                                                                                                
The Department of Transportation and Public Facilities (DOT&PF)                                                                 
has been using the CM/GC contracting methodology under the State’s                                                              
existing innovative procurement statute AS 36.30.308 over the past 15                                                           
years. CM/GC allows a contractor to be awarded a two-phase contract                                                             
to provide both the preconstruction and construction phases of a                                                                
project. Since this style of procurement does not fit the State’s existing                                                      
statutory procurement framework, each two-phase contract has had to                                                             
follow the innovative procurement guidelines in statute. Under that                                                             
methodology, DOT&PF must submit an “innovative procurement”                                                                     
request to the Department of Law for each CM/GC contract it solicits,                                                           
even though each procurement follows a similar process. CM/GC is                                                                
included in Federal Highway Administrative regulations, other states’                                                           

2021-03-31                     House Journal                      Page 0494
regulations, and is a common and accepted practice in the construction                                                          
industry.                                                                                                                       
                                                                                                                                
This bill modernizes Alaska’s procurement code to include the                                                                   
CM/GC methodology. This will improve and clarify our procurement                                                                
process, help avoid unnecessary administrative delays, and allow the                                                            
department to more quickly improve Alaska’s roads, highways, and                                                                
other critical infrastructure.                                                                                                  
                                                                                                                                
I urge your prompt attention to this measure.                                                                                   
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"