Legislature(1995 - 1996)
04/23/1996 08:45 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 275 An Act relating to state procurement practices and procedures; and providing for an effective date. Co-chairman Halford directed that SB 275 be brought on for hearing. Senator Donley referenced his amendment relating to employment of staff outside of Alaska. DAVE WILDER, Vice-chairman, Alaska Seafood Marketing Institute, came before committee. He explained that as a fisherman in Bristol Bay for 30 years, he has great interest in legislation impacting the industry. Mr. Wilder noted that ASMI saved approximately $200.0 as a result of last year's exemption from the procurement code. That allowed for hire of an additional field representative in Southeast. In addition to ASMI staff in Juneau and Seattle, three representatives presently market Alaska seafood products domestically. ASMI manages its own promotions. Mr. Wilder remarked on industry distress and competition from farmed salmon in both domestic and export markets. The declining value of the product is having a "very stressful impact on the industry." ASMI must remain responsive to opportunities. The institute does as much contracting as possible within the state. The majority of the board are Alaska residents, and half of the members of the board are fishermen. Mr. Wilder again attested to savings derived from exemption from the procurement code. Senator Donley voiced his understanding that CSSB 275 (STA) would not return ASMI to the procurement code. It would merely place it back under the bidder preference for Alaskan products. Mr. Wilder concurred but added that inclusion would add costs to future contracts. He cited a recent advertising contract as an example and said the bidder preference would have made no difference. He again stressed need to timely and efficiently respond to the market. ASMI is becoming less dependent on the state as it improves its processes. More regulations do not improve that process. Senator Donley voiced his belief that all should comply with the bidder preference. Discussion of past practices relating to advertising contracts followed between Senator Randy Phillips and Co- chairman Halford. Senator Donley noted that the 5 percent bidder preference applies "if everything else is equal." Bidders have to meet the basic contract criteria before they are eligible for the preference. If they do not have expertise in the marketplace (in the instance of a foreign campaign), they will not meet qualifications, and the 5 percent preference would make no difference. Mr. Wilder cited an instance in which an Alaska firm was hired for a project. The Alaska firm then "went outside and got all the expertise . . . ." The state ended up paying an "extra $100.0, plus, a year to honor the bidder preference." If that $100.0 could have been put into marketing, it would have been much more responsive to the legislature and the industry. Senator Donley suggested that bid specifications could be crafted to require greater involvement. Co-chairman Halford noted need to recess for attendance at the Senate floor session and suggested that the meeting reconvene at 4:00 p.m. ADJOURNMENT The meeting was recessed at approximately 11:00 a.m.
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