2021-03-31                     Senate Journal                      Page 0600
SB 117                                                                                                                        
SENATE BILL NO. 117 BY THE SENATE 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 State Affairs and                                                                   
Transportation Committees.                                                                                                      
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Transportation and Public                                                               
  Facilities                                                                                                                    
                                                                                                                                
Governor's transmittal letter dated March 30:                                                                                   
                                                                                                                                
Dear President Micciche:                                                                                                        
                                                                                                                                
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 15                                                                
fifteen 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’ regulations, and is a common and accepted                                                            
practice in the construction industry.                                                                                          
                                                                                                                                

2021-03-31                     Senate Journal                      Page 0601
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