00 CS FOR HOUSE BILL NO. 482(STA)                                                                                          
01 "An Act relating to state procurement practices and procedures; and providing                                           
02 for an effective date."                                                                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 36.30.040(b)(4) is amended to read:                                                                 
05   (4)  conditions and procedures for the use of source selection methods                                               
06 authorized by this chapter, including single [SOLE] source procurements, emergency                                    
07 procurements, and small procurements;                                                                                   
08    * Sec. 2.  AS 36.30.040(b)(15) is amended to read:                                                                   
09   (15)  a bidder's or offeror's duties under this chapter [AS 36.30.115                                              
10 AND 36.30.210]; and                                                                                                     
11    * Sec. 3.  AS 36.30.050(a) is amended to read:                                                                       
12  (a)  Except for persons debarred or suspended under AS 36.30.635 -                                                   
13 36.30.655, the [THE] commissioner shall establish and maintain current lists of                                      
14 persons who desire to provide supplies, services, professional services, or construction                                
01 services to the state.                                                                                                  
02    * Sec. 4.  AS 36.30.080 is amended by adding a new subsection to read:                                               
03  (f)  When the department is acquiring leased space of 3,000 square feet or less,                                      
04 the department may procure the leased space using the procedures for small                                              
05 procurements under AS 36.30.320, providing public notice is given to prospective                                        
06 offerors in the market area.                                                                                            
07    * Sec. 5.  AS 36.30 is amended by adding a new section to read:                                                      
08  Sec. 36.30.083.  LEASE EXTENSIONS AUTHORIZED.  (a)  Notwithstanding                                                   
09 any other provision of this chapter, the department, the Board of Regents of the                                        
10 University of Alaska, the legislative council, or the court system may extend, for up                                   
11 to a maximum extension of 10 years, a real property lease that is entered into under                                    
12 this chapter including procedures and regulations adopted under AS 36.30.005(c),                                        
13 36.30.020, and 36.30.030 and has at least six months remaining under the lease term,                                    
14 if a minimum cost savings of                                                                                            
15   (1)  15 percent can be achieved on the rent due under the lease; or                                                  
16   (2)  10 percent can be achieved on the rent due under the lease and the                                              
17 lessor agrees to make modifications of the leased real property to bring the real                                       
18 property into compliance with the requirements of 42 U.S.C. 12101 - 12213                                               
19 (Americans with Disabilities Act of 1990).                                                                              
20  (b)  The cost savings under (a) of this section shall be calculated on the                                            
21 remaining term of the lease and any renewals, including extensions allowed under (a)                                    
22 of this section.                                                                                                        
23  (c)  The department, the University of Alaska, the court system, and the                                              
24 Legislative Affairs Agency shall submit individually an annual report to the Legislative                                
25 Budget and Audit Committee detailing the leases extended and the cost savings                                           
26 achieved by that entity under (a) or (b) of this section.  Reports are due August 31 of                                 
27 each year.                                                                                                              
28    * Sec. 6.  AS 36.30.085(d) is amended to read:                                                                       
29  (d)  If the department, Board of Regents, legislative council, or supreme court                                       
30 intends to enter into or renew a lease-purchase agreement for real property with an                                    
31 annual rent to the department, University of Alaska, legislative council, or                                            
01 supreme court that is anticipated to exceed $500,000, or with total lease payments                                      
02 that exceed $2,500,000 for the full term of the lease-purchase agreement, the                                          
03 department, Board of Regents, legislative council, or supreme court shall provide                                       
04 notice to the legislature.  The notice must include the                                                                 
05   (1)  anticipated total construction, acquisition, or other costs of the                                              
06 project;                                                                                                                
07   (2)  anticipated annual amount of the rental obligation; and                                                         
08   (3)  total lease payments for the full term of the lease-purchase                                                    
09 agreement.                                                                                                              
10    * Sec. 7.  AS 36.30.085(e) is amended to read:                                                                       
11  (e)  The department, the Board of Regents, the legislative council, or the                                            
12 supreme court may not enter into a lease-purchase agreement to acquire or improve                                       
13 real property with an annual rent to the department, University of Alaska,                                             
14 legislative council, or supreme court that is anticipated to exceed $500,000, or with                                   
15 total lease payments that exceed $2,500,000 for the full term of the lease-purchase                                     
16 agreement, unless the agreement has been approved by the legislature by law.                                           
17    * Sec. 8.  AS 36.30.115 is amended to read:                                                                          
18  Sec. 36.30.115.  SUBCONTRACTORS FOR CONSTRUCTION                                                                     
19 CONTRACTS.  (a)  Within five working days after the identification of the apparent                                     
20 low bidder for a construction contract, the apparent low bidder shall submit a list of                                
21 the subcontractors the bidder proposes to use in the performance of the construction                                  
22 contract.  The list must include the name and location of the place of business for each                                
23 subcontractor, [AND] evidence of each [THE] subcontractor's valid Alaska business                                   
24 license, and  [.  A BIDDER FOR A CONSTRUCTION CONTRACT SHALL ALSO                                                     
25 SUBMIT] evidence of each subcontractor's registration under AS 08.18.  If a                                             
26 subcontractor on the list did not have a valid Alaska business license and a valid                                      
27 certificate of registration under AS 08.18 at the time the bid was opened, the bidder                                   
28 may not use the subcontractor in the performance of the contract, and shall replace the                                 
29 subcontractor with a subcontractor who had a valid Alaska business license and a valid                                  
30 certificate of registration under AS 08.18 at the time the bid was opened.                                              
31  (b)  The apparent low [A] bidder for a construction contract may replace                                          
01 a listed subcontractor if the subcontractor                                                                             
02   (1)  fails to comply with AS 08.18;                                                                                  
03   (2)  files for bankruptcy or becomes insolvent;                                                                      
04   (3)  fails to execute a contract with the bidder involving performance                                               
05 of the work for which the subcontractor was listed and the bidder acted in good faith;                                  
06   (4)  fails to obtain bonding;                                                                                        
07   (5)  fails to obtain insurance acceptable to the state;                                                              
08   (6)  fails to perform the contract with the bidder involving work for                                                
09 which the subcontractor was listed;                                                                                     
10   (7)  must be substituted in order for the prime contractor to satisfy                                                
11 required state and federal affirmative action requirements;                                                             
12   (8)  refuses to agree or abide with the bidder's labor agreement; or                                                 
13   (9)  is determined by the procurement officer not to be a responsible                                                
14 subcontractor.                                                                                                          
15  (c)  If a bidder for a construction contract fails to list a subcontractor or lists                                 
16 more than one subcontractor for the same portion of work and the value of that work                                     
17 is in excess of half of one percent of the total bid, the bidder shall be considered to                                 
18 have agreed to perform that portion of work without the use of a subcontractor and to                                   
19 have represented the bidder to be qualified to perform that work.                                                       
20  (d)  A bidder for a construction contract who attempts to circumvent the                                            
21 requirements of this section by listing as a subcontractor another contractor who, in                                   
22 turn, sublets the majority of the work required under the contract violates this section.                               
23  (e)  If a construction contract is awarded to a bidder who violates this section,                                   
24 the procurement [PURCHASING] officer may                                                                              
25   (1)  cancel the contract; or                                                                                         
26   (2)  after notice and a hearing, assess a penalty on the bidder in an                                                
27 amount that does not exceed 10 percent of the value of the subcontract at issue.                                        
28    * Sec. 9.  AS 36.30.130(a) is amended to read:                                                                       
29  (a)  The procurement officer shall give adequate public notice of the invitation                                      
30 to bid at least 21 days before the date for the opening of bids.  If the procurement                                   
31 officer determines [A DETERMINATION IS MADE] in writing that a shorter notice                                          
01 period is advantageous [NECESSARY] for a particular bid and adequate                                                 
02 competition is anticipated, the 21-day period may be shortened.  [THE                                                  
03 DETERMINATION SHALL BE MADE BY THE CHIEF PROCUREMENT OFFICER                                                            
04 FOR BIDS FOR SUPPLIES, SERVICES, OR PROFESSIONAL SERVICES.  THE                                                         
05 DETERMINATION SHALL BE MADE BY THE COMMISSIONER OF                                                                      
06 TRANSPORTATION AND PUBLIC FACILITIES FOR BIDS FOR                                                                       
07 CONSTRUCTION OR ACQUISITION OF PROPERTY FOR THE STATE                                                                   
08 EQUIPMENT FLEET.]  Notice shall be published in the Alaska Administrative                                               
09 Journal. The time and manner of notice must be in accordance with regulations                                           
10 adopted by the commissioner of administration. When practicable, notice may include                                     
11   (1)  publication in a newspaper calculated to reach prospective bidders                                              
12 located in the state;                                                                                                   
13   (2)  notices posted in public places within the area where the work is                                               
14 to be performed or the material furnished; and                                                                          
15   (3)  notices mailed to all active prospective contractors on the                                                     
16 appropriate list maintained under AS 36.30.050                                                                          
17   (A)  if the contractors are located in the state;                                                                   
18   (B)  upon request, if the contractors are not located in the state.                                                 
19    * Sec. 10.  AS 36.30.170(b) is amended to read:                                                                      
20  (b)  The procurement officer shall award a contract based on solicited bids to                                        
21 the lowest responsive and responsible bidder after an Alaska bidder preference of five                                  
22 percent,  an Alaska products preference as described in AS 36.30.322 - 36.30.338, and                                   
23 a recycled products preference under AS 36.30.339 have been applied.  In this                                           
24 subsection, "Alaska bidder" means a person who                                                                          
25   (1)  holds a current Alaska business license;                                                                        
26   (2)  submits a bid for goods, services, or construction under the name                                               
27 as appearing on the person's current Alaska business license;                                                           
28   (3)  has maintained, for a period of six months immediately before                                                  
29 the date of the bid, a place of business within the state that regularly provides in                                  
30 the normal course of business the supplies, services, or construction of the general                                    
31 nature solicited by the agency and that is staffed by the bidder or an employee of                                     
01 the bidder [FOR A PERIOD OF SIX MONTHS IMMEDIATELY PRECEDING THE                                                        
02 DATE OF THE BID];                                                                                                       
03   (4)  is incorporated or qualified to do business under the laws of the                                               
04 state, is a sole proprietorship  and the proprietor is a resident of the state, or is a                                 
05 partnership  and all partners are residents of the state; and                                                           
06   (5)  if a joint venture, is composed entirely of ventures that qualify                                               
07 under (1) - (4) of this subsection.                                                                                     
08    * Sec. 11.  AS 36.30.200 is amended to read:                                                                         
09  Sec. 36.30.200.  CONDITIONS FOR USE.  (a)  Except as otherwise provided                                               
10 in this chapter, or unless specifically exempted by law, an agency contract shall be                                    
11 awarded by competitive sealed proposals if it is not awarded by competitive sealed                                      
12 bidding.  [CONSTRUCTION MAY ONLY BE PROCURED BY COMPETITIVE                                                             
13 SEALED PROPOSALS IF THE CONDITIONS UNDER (c) OF THIS SECTION ARE                                                        
14 MET.]                                                                                                                   
15  (b)  The commissioner may provide by regulation that it is either not                                                 
16 practicable or not advantageous to the state to procure specified types of supplies,                                    
17 services, or construction by competitive sealed bidding that would otherwise be                                         
18 procured by that method.  When the [CHIEF] procurement officer [, OR FOR                                                
19 CONSTRUCTION CONTRACTS OR PROCUREMENTS FOR THE STATE                                                                    
20 EQUIPMENT FLEET, THE COMMISSIONER OF TRANSPORTATION AND                                                                 
21 PUBLIC FACILITIES,] determines in writing with particularity that the use of                                          
22 competitive sealed proposals is more [BIDDING IS EITHER NOT PRACTICABLE                                               
23 OR NOT] advantageous to the state than competitive sealed bidding, a contract may                                     
24 be entered into by competitive sealed proposals [IN ACCORDANCE WITH THE                                                 
25 REGULATIONS.  WHEN IT IS DETERMINED THAT IT IS PRACTICABLE BUT                                                          
26 NOT ADVANTAGEOUS TO USE COMPETITIVE SEALED BIDDING, THE CHIEF                                                           
27 PROCUREMENT OFFICER OR COMMISSIONER OF TRANSPORTATION AND                                                               
28 PUBLIC FACILITIES SHALL SPECIFY WITH PARTICULARITY THE BASIS FOR                                                        
29 THE DETERMINATION].                                                                                                     
30  (c)  When the commissioner of transportation and public facilities [CHIEF                                           
31 PROCUREMENT OFFICER] determines that it is advantageous to the state, a                                                 
01 procurement officer may issue a request for proposals requesting the submission of                                      
02 offers to provide construction in accordance with a design provided by the offeror.                                     
03 The request for proposals shall require that each proposal submitted contain a single                                   
04 price that includes the design/build.                                                                                   
05    * Sec. 12.  AS 36.30.210 is repealed and reenacted to read:                                                          
06  Sec. 36.30.210.  REQUEST FOR PROPOSALS.  (a)  A request for competitive                                               
07 sealed proposals must contain the date, time, and place for delivering proposals, a                                     
08 specific description of the supplies, construction, services, or professional services to                               
09 be provided under the contract, and the terms under which the supplies, construction,                                   
10 services, or professional services are to be provided.                                                                  
11  (b)  An offeror for a construction contract shall submit evidence of the offeror's                                    
12 registration under AS 08.18.  A request for sealed proposals for a construction contract                                
13 must require the offeror, no later than five working days after the proposal that is the                                
14 most advantageous to the state is identified, to list subcontractors the offeror proposes                               
15 to use in the performance of the construction contract.  The list must include the                                      
16 information required under AS 36.30.115(a).  The provisions of AS 36.30.115(b) - (e)                                    
17 apply to competitive sealed proposals for construction contracts.                                                       
18  (c)  A request for proposals must contain that information necessary for an                                           
19 offeror to submit a proposal or contain references to any information that cannot                                       
20 reasonably be included with the request.  The request must provide a description of the                                 
21 factors that will be considered by the procurement officer when evaluating the                                          
22 proposals received, including the relative importance of price and other evaluation                                     
23 factors.                                                                                                                
24  (d)  Notice of a request for proposals shall be given in accordance with                                              
25 procedures under AS 36.30.130.  The procurement officer may use additional means                                        
26 considered appropriate to notify prospective offerors of the intent to enter into a                                     
27 contract through competitive sealed proposals.                                                                          
28  (e)  The offeror must have a valid Alaska business license at the time                                                
29 designated, in the request for proposals, for opening of the proposals.                                                 
30    * Sec. 13.  AS 36.30.230 is amended to read:                                                                         
31  Sec. 36.30.230.  DISCLOSURE OF PROPOSALS.  The procurement officer                                                    
01 shall open proposals so as to avoid disclosure of contents to competing offerors before                                
02 notice of intent to award a contract is issued [DURING THE PROCESS OF                                                  
03 NEGOTIATION].  A register of proposals containing the name and address of each                                          
04 offeror shall be prepared in accordance with regulations adopted by the commissioner.                                   
05 The register and the proposals are open for public inspection after the notice of intent                                
06 to award a contract is issued under AS 36.30.365.  To the extent that the offeror                                       
07 designates and the procurement officer concurs, trade secrets and other proprietary data                                
08 contained in the proposal documents are confidential.                                                                   
09    * Sec. 14.  AS 36.30.230 is amended by adding a new subsection to read:                                              
10  (b)  If a solicitation is cancelled under AS 36.30.350 after proposals are                                            
11 received but before a notice of intent to award a contract has been issued under                                        
12 AS 36.30.365, a protest of the solicitation or of the cancellation of the solicitation has                              
13 not been filed by an interested party under AS 36.30.560, and the time specified in                                     
14 AS 36.30.565(a) for filing such a protest has expired, the procurement officer may                                      
15 return a proposal to the offeror that made the proposal.  The procurement officer shall                                 
16 keep a list of returned proposals in the file for the solicitation.                                                     
17    * Sec. 15.  AS 36.30.260 is amended to read:                                                                         
18  Sec. 36.30.260.  CONTRACT EXECUTION.  A contract awarded under                                                        
19 competitive sealed proposals must contain                                                                               
20   (1)  a statement of the amount of the contract [STATED ON ITS                                                      
21 FIRST PAGE];                                                                                                            
22   (2)  the date for the supplies to be delivered or the dates for                                                      
23 construction, services, or professional services to begin and be completed;                                             
24   (3)  a description of the supplies, construction, services, or professional                                          
25 services to be provided; and                                                                                            
26   (4)  certification by the project director for the contracting agency, the                                           
27 head of the contracting agency, or a designee that sufficient money is [FUNDS ARE]                                    
28 available in an appropriation to be encumbered for the amount of the contract.                                          
29    * Sec. 16.  AS 36.30.300 is repealed and reenacted to read:                                                          
30  Sec. 36.30.300.  SINGLE SOURCE PROCUREMENTS.  (a)  A contract may                                                     
31 be awarded for supplies, services, professional services, or construction without                                       
01 competitive sealed bidding, competitive sealed proposals, or other competition in                                       
02 accordance with regulations adopted by the commissioner.  A contract may be awarded                                     
03 under this section only when the chief procurement officer or, for construction                                         
04 contracts or procurements for the state equipment fleet, the commissioner of                                            
05 transportation and public facilities determines in writing that                                                         
06   (1)  it is not practicable to award a contract by competitive sealed                                                 
07 bidding under AS 36.30.100, competitive sealed proposals under AS 36.30.200, or                                         
08 limited competition under AS 36.30.305; and                                                                             
09   (2)  award of the contract under this section is in the state's best interest.                                       
10  (b)  The using agency shall submit written evidence to support a request for a                                        
11 single source procurement.  The commissioner of administration or the commissioner                                      
12 of transportation and public facilities, as appropriate, may also require the submission                                
13 of cost or pricing data in connection with an award under this section.                                                 
14  (c)  To the extent practicable, the procurement officer shall negotiate with the                                      
15 single source to obtain contract terms advantageous to the state.                                                       
16  (d)  Procurement requirements may not be aggregated or structured so as to                                            
17 constitute a purchase under this section or to circumvent the source selection                                          
18 procedures required by AS 36.30.100 - 36.30.270.                                                                        
19  (e)  Except for procurements of supplies, services, professional services, or                                         
20 construction that do not exceed the amount for small procurements under                                                 
21 AS 36.30.320(a) as applicable, the authority to make a determination required by this                                   
22 section may not be delegated, even if the authority to contract is delegated under                                      
23 AS 36.30.015(a) and (b).                                                                                                
24    * Sec. 17.  AS 36.30.305(a) is amended to read:                                                                      
25  (a)  A contract for supplies, services, professional services, or a construction                                      
26 contract under $100,000, may be awarded without competitive sealed bidding or                                           
27 competitive sealed proposals, in accordance with regulations adopted by the                                             
28 commissioner.  A contract may be awarded under this section only when the chief                                         
29 procurement officer, or, for construction contracts under $100,000 or procurements for                                  
30 the state equipment fleet, the commissioner of transportation and public facilities, or,                               
31 for services of legal counsel, the attorney general, determines in writing that a                                      
01 situation exists that makes competitive sealed bidding or competitive sealed proposals                                  
02 impractical or contrary to the public interest.  Procurements under this section shall be                               
03 made with competition that is practicable under the circumstances                                                     
04 [CIRCUMSTANCE. EXCEPT FOR PROCUREMENTS OF SUPPLIES, SERVICES,                                                           
05 PROFESSIONAL SERVICES, OR CONSTRUCTION THAT DO NOT EXCEED THE                                                           
06 AMOUNT FOR SMALL PROCUREMENTS UNDER AS 36.30.320(a) OR (b),                                                             
07 AS APPLICABLE, THE AUTHORITY TO MAKE A DETERMINATION                                                                    
08 REQUIRED BY THIS SECTION MAY NOT BE DELEGATED].                                                                         
09    * Sec. 18.  AS 36.30.305(d) is amended to read:                                                                      
10  (d)  Single [SOLE] source procurements may not be made under this section.                                          
11    * Sec. 19.  AS 36.30 is amended by adding a new section to read:                                                     
12  Sec. 36.30.308.  INNOVATIVE PROCUREMENTS.  (a)  A contract may be                                                     
13 awarded for supplies, services, professional services, or construction using an                                         
14 innovative procurement process, with or without competitive sealed bidding or                                           
15 competitive sealed proposals, in accordance with regulations adopted by the                                             
16 commissioner.  A contract may be awarded under this section only when the chief                                         
17 procurement officer, or, for construction contracts or procurements of the state                                        
18 equipment fleet, the commissioner of transportation and public facilities, determines                                   
19 in writing that it is advantageous to the state to use an innovative competitive                                        
20 procurement process in the procurement of new or unique requirements of the state,                                      
21 new technologies, or to achieve best value.                                                                             
22  (b)  The procurement officer shall submit a procurement plan to the Department                                        
23 of Law for review and approval as to form before issuing the notice required by (c)                                     
24 of this section.                                                                                                        
25  (c)  A procurement under this section is subject to the requirements of                                               
26 AS 36.30.130.                                                                                                           
27  (d)  Nothing in this section precludes the adoption of regulations providing for                                      
28 the use of bonuses instead of preferences in a procurement of construction.                                             
29    * Sec. 20.  AS 36.30 is amended by adding new sections to read:                                                      
30  Sec. 36.30.311.  EMPLOYMENT PROGRAM PROCUREMENTS. A                                                                   
31 procurement of products manufactured or services provided by an employment                                              
01 program of the state may be made without competitive sealed bidding or competitive                                      
02 sealed proposals, in accordance with regulations adopted by the commissioner.                                           
03  Sec. 36.30.313.  CORRECTIONAL INDUSTRIES PROCUREMENTS.  A                                                             
04 procurement of products or services provided by the correctional industries program                                     
05 established under AS 33.32 may be made without competitive sealed bidding or                                            
06 competitive sealed proposals, in accordance with regulations adopted by the                                             
07 commissioner.                                                                                                           
08    * Sec. 21.  AS 36.30.315 is amended to read:                                                                         
09  Sec. 36.30.315.  FALSE STATEMENTS IN DETERMINATIONS [BY                                                             
10 CHIEF PROCUREMENT OFFICER]; CRIMINAL PENALTY.  (a)  In a determination                                                  
11 made by a state official [THE CHIEF PROCUREMENT OFFICER] under                                                        
12 AS 36.30.300 - 36.30.310, the state official making the determination [CHIEF                                          
13 PROCUREMENT OFFICER] shall independently examine the material facts of the                                              
14 procurement and independently determine whether the procurement is eligible for the                                     
15 procurement method requested.                                                                                           
16  (b)  If a state official [THE CHIEF PROCUREMENT OFFICER] knowingly                                                  
17 makes a false statement in a determination made [BY THE CHIEF PROCUREMENT                                               
18 OFFICER] under AS 36.30.300 - 36.30.310, the state official [CHIEF                                                    
19 PROCUREMENT OFFICER] is guilty of a class A misdemeanor.                                                                
20    * Sec. 22.  AS 36.30.320(a) is amended to read:                                                                      
21  (a)  A procurement for supplies, services, or professional services                                                 
22 [CONSTRUCTION] that does not exceed an aggregate dollar amount of $50,000,                                             
23 construction that does not exceed an aggregate dollar amount of $100,000, or lease                                      
24 of space that does not exceed 3,000 square feet [$25,000] may be made in                                               
25 accordance with regulations adopted by the commissioner for small procurements.                                         
26    * Sec. 23.  AS 36.30 is amended by adding a new section to read:                                                     
27  Sec. 36.30.331.  DELIVERY OF SUPPLIES.  Supplies purchased under this                                                 
28 chapter shall be delivered at a location within the state unless the department                                         
29 determines that a point of delivery outside the state would be in the best interest of the                              
30 state.  A bid or proposal involving the procurement of supplies must specify the                                        
31 delivery location and must state that the price is the delivered price at that location.                                
01    * Sec. 24.  AS 36.30 is amended by adding a new section to read:                                                     
02  Sec. 36.30.333.  PROCUREMENT OF PAPER.  Except as otherwise required                                                  
03 under AS 36.15.050, AS 36.30.322 - 36.30.332, and 36.30.334  - 36.30.338, when a                                        
04 state agency purchases paper, at least 25 percent of the quantity purchased must be                                     
05 recycled paper unless recycled paper is not available for the purchase or unless, after                                 
06 application of the procurement preference under AS 36.30.339, the recycled paper is                                     
07 more expensive than the nonrecycled paper.                                                                              
08    * Sec. 25.  AS 36.30 is amended by adding a new section to read:                                                     
09  Sec. 36.30.335.  PRODUCT PREFERENCES.   This chapter does not modify                                                  
10 AS 36.15.010 and 36.15.020 regarding preference for Alaska forest products, or                                          
11 AS 36.15.050 and 36.15.060 regarding preference for Alaska agricultural and fisheries                                   
12 products, except as provided in AS 36.30.170(b), (c), (e) - (h), and 36.30.339.                                         
13    * Sec. 26.  AS 36.30.520(a) is amended to read:                                                                      
14  (a)  The commissioner shall maintain for a minimum of five years a record                                             
15 listing all single [SOLE] source procurement contracts made under AS 36.30.300 and                                    
16 emergency procurements made under AS 36.30.310.  The record must contain                                                
17   (1)  each contractor's name;                                                                                         
18   (2)  the amount and type of each contract; and                                                                       
19   (3)  a listing of the supplies, services, professional services, or                                                  
20 construction procured under each contract.                                                                              
21    * Sec. 27.  AS 36.30 is amended by adding a new section to read:                                                     
22  Sec. 36.30.522.  RECORDS OF INNOVATIVE PROCUREMENTS.  The                                                             
23 commissioner and the contracting agency shall keep a file for each contract awarded                                     
24 under an innovative procurement process under AS 36.30.308.  The file is subject to                                     
25 inspection under the same standards as described in AS 36.30.140(b) and 36.30.230.                                      
26 The file kept by the commissioner must contain a summary of the information in the                                      
27 file of the contracting agency.  The file kept by the contracting agency must contain                                   
28  (1)  a copy of the contract;                                                                                         
29  (2)  the written determination under AS 36.30.308(a);                                                                
30   (3)  the procurement plan as approved as to form by the Department of                                                
31 Law;                                                                                                                    
01  (4)  the record of notice under AS 36.30.130; and                                                                    
02  (5)  the record of respondents to solicitation.                                                                      
03    * Sec. 28.  AS 36.30 is amended by adding a new section to article 9 to read:                                        
04  Sec. 36.30.550.  APPLICABILITY OF PROTEST AND APPEAL                                                                  
05 PROCEDURES.  (a)  Except for small procurements made under AS 36.30.320, the                                            
06 provisions of AS 36.30.560 - 36.30.615 apply to a solicitation, a proposed contract                                     
07 award, and a contract for supplies, services, professional services, or construction.                                   
08  (b)  The commissioner shall adopt regulations providing for protest and appeal                                        
09 procedures of small procurements made under AS 36.30.320.                                                               
10    * Sec. 29.  AS 36.30.565(a) is amended to read:                                                                      
11  (a)  A protest based upon alleged improprieties or ambiguities in a                                                  
12 solicitation must be filed at least 10 days before the due date of the bid or                                           
13 proposal, unless a later protest deadline is specifically allowed in the solicitation.                                  
14 A protest of a bid or proposal with a shortened public notice, which is based upon                                      
15 alleged improprieties or ambiguities in the solicitation, must be filed prior to the                                    
16 due date of the bid or proposal.  Notwithstanding the other provisions in this                                          
17 subsection, a protest of a bid or proposal in which a pre-bid or pre-proposal                                           
18 conference is held within 12 days of the due date, which is based upon alleged                                          
19 improprieties or ambiguities in the solicitation, must be filed prior to the due date                                   
20 of the bid or proposal.  A protest based upon alleged improprieties in an award of                                     
21 a contract or a proposed award of a contract must be filed within 10 days after a notice                                
22 of intent to award the contract is issued by the procurement officer.                                                   
23    * Sec. 30.  AS 36.30.580(a) is amended to read:                                                                      
24  (a)  The procurement officer of the contracting agency shall issue a written                                          
25 decision containing the basis of the decision within 15 [14] days after a protest has                                 
26 been filed.  A copy of the decision shall be furnished to the protester by certified mail                               
27 or other method that provides evidence of receipt.                                                                      
28    * Sec. 31.  AS 36.30.580(b) is amended to read:                                                                      
29  (b)  The time for a decision may be extended up to 30 [26] days for good cause                                      
30 by the commissioner of administration, or, for protests involving construction or                                     
31 procurements for the state equipment fleet, the commissioner of transportation and                                      
01 public facilities.  If an extension is granted, the procurement officer shall notify the                                
02 protester in writing of the date that [OF] the decision is due.                                                       
03    * Sec. 32.  AS 36.30.585 is amended by adding a new subsection to read:                                              
04  (c)  Notwithstanding (a) and (b) of this section, if a protest is sustained in                                        
05 whole or part, the protester's damages are limited to reasonable bid or proposal                                        
06 preparation costs.                                                                                                      
07    * Sec. 33.  AS 36.30.605(a) is amended to read:                                                                     
08  (a)  The procurement officer of the contracting agency shall file a complete                                          
09 report on the protest and decision with the commissioner of administration or the                                       
10 commissioner of transportation and public facilities, as appropriate, within 10 [SEVEN]                               
11 days after a protest appeal is filed.  The procurement officer shall furnish a copy of                                  
12 the report to the protester and to interested parties that have requested a copy of the                                 
13 appeal under AS 36.30.595(b).                                                                                           
14    * Sec. 34.  AS 36.30.605(c) is amended to read:                                                                      
15  (c)  The protester may file comments on the protest report with the                                                   
16 commissioner of administration or the commissioner of transportation and public                                         
17 facilities, as appropriate, within 10 [SEVEN] days after the report is received.  The                                 
18 protester shall provide copies of the comments to the procurement officer and to                                        
19 interested parties that have requested a copy of the appeal under AS 36.30.595(b).                                      
20    * Sec. 35.  AS 36.30.620(a) is amended to read:                                                                      
21  (a)  A contractor shall file a claim concerning a contract awarded under this                                         
22 chapter with the procurement officer.  The contractor shall certify that the claim is                                   
23 made in good faith, that the supporting data are accurate and complete to the best of                                   
24 the contractor's knowledge and belief, and that the amount requested accurately                                         
25 reflects the contract adjustment for which the contractor believes the state is liable.                                
26 Except for a lease rate adjustment called for in the lease, a claim under this                                          
27 section must be filed within 90 days after the contractor becomes aware of the                                          
28 basis of the claim or should have known the basis of the claim, whichever is                                            
29 earlier.  A lease rate adjustment called for in the lease must be filed prior to the                                    
30 expiration date of the lease.                                                                                          
31    * Sec. 36.  AS 36.30.620 is amended by adding a new subsection to read:                                              
01  (g)  This section does not apply to payment disputes governed by                                                      
02 AS 37.05.285.                                                                                                           
03    * Sec. 37.  AS 36.30.655 is amended to read:                                                                         
04  Sec. 36.30.655.  LIST OF PERSONS DEBARRED OR SUSPENDED.  The                                                          
05 commissioner shall maintain a list of all persons debarred or suspended from                                            
06 consideration for award of contracts.  The commissioner shall remove a person                                          
07 debarred or suspended from the lists of contractors under AS 36.30.050 for the                                          
08 period of debarment or suspension.                                                                                     
09    * Sec. 38.  AS 36.30.850(b)(23) is amended to read:                                                                  
10   (23)  operation and protection of assets or disposals of equipment                                                
11 and supplies acquired through foreclosure or other legal proceedings relating to [OF]                                
12 loans issued under AS 03.10;                                                                                            
13    * Sec. 39.  AS 36.30.850(b) is amended by adding a new paragraph to read:                                            
14   (34)  purchases of livestock by a correctional industries program                                                    
15 established under AS 33.32.                                                                                             
16    * Sec. 40.  AS 36.30.910 is amended to read:                                                                         
17  Sec. 36.30.910.  PURCHASES THROUGH GENERAL SERVICES                                                                   
18 ADMINISTRATION.  Notwithstanding any other provision of this chapter, [THIS                                           
19 CHAPTER DOES NOT PREVENT] purchasing through the general services                                                       
20 administration or from federal supply schedules of the general services                                                
21 administration may be made without competitive sealed bidding, competitive                                              
22 sealed proposals, or other competition, so long as the purchasing is made in                                            
23 accordance with regulations adopted by the commissioner for purchases under                                             
24 this section and as provided by federal law.                                                                         
25    * Sec. 41.  AS 36.30.990 is amended by adding a new paragraph to read:                                               
26   (22)  "state official" means a public employee, public officer, or official                                          
27 of an agency.                                                                                                           
28    * Sec. 42.  Section 3, ch. 59, SLA 1994, is amended to read:                                                         
29    Sec. 3.  AS 36.30.130(a) is repealed and reenacted to read:                                                         
30  (a)  The procurement officer shall give adequate public notice of the invitation                                      
31 to bid at least 21 days before the date for the opening of bids.  If the procurement                                   
01 officer determines [A DETERMINATION IS MADE] in writing that a shorter notice                                          
02 period is advantageous [NECESSARY] for a particular bid and adequate                                                 
03 competition is anticipated, the 21-day period may be shortened.  [THE                                                  
04 DETERMINATION SHALL BE MADE BY THE CHIEF PROCUREMENT OFFICER                                                            
05 FOR BIDS FOR SUPPLIES, SERVICES, OR PROFESSIONAL SERVICES.  THE                                                         
06 DETERMINATION SHALL BE MADE BY THE COMMISSIONER OF                                                                      
07 TRANSPORTATION AND PUBLIC FACILITIES FOR BIDS FOR                                                                       
08 CONSTRUCTION OR ACQUISITION OF PROPERTY FOR THE STATE                                                                   
09 EQUIPMENT FLEET.]  Notice shall be published in the Alaska Administrative                                               
10 Journal.  The time and manner of notice must be in accordance with regulations                                          
11 adopted by the commissioner of administration.  When practicable, notice may include                                    
12   (1)  publication in a newspaper calculated to reach prospective bidders;                                             
13   (2)  notices posted in public places within the area where the work is                                               
14 to be performed or the material furnished; and                                                                          
15   (3)  notices mailed to all active prospective contractors on the                                                     
16 appropriate list maintained under AS 36.30.050.                                                                         
17    * Sec. 43.  (a)  AS 36.30.015(c),  36.30.090,  36.30.095,  36.30.100(b), 36.30.850(b)(14),                           
18 and 36.30.900 are repealed.                                                                                             
19  (b)  AS 36.30.320(b) is repealed.                                                                                      
20    * Sec. 44.  REVISOR'S CHANGES.  The revisor of statutes is requested to change the                                   
21 heading of art. 5 of AS 36.30 from "Article 5. Preference for Alaska Products." to "Article 5.                          
22 Preferences."  Additionally, the revisor of statutes is requested to renumber AS 36.30.339 to                           
23 AS 36.30.337, to place that section in art. 5 of AS 36.30.                                                              
24    * Sec. 45.  TRANSITION:  REGULATIONS.  Notwithstanding secs. 49 - 51 of this Act,                                    
25 the commissioner of administration and the commissioner of transportation and public facilities                         
26 may proceed to adopt regulations necessary to implement respective changes in law enacted                               
27 by this Act.  The regulations take effect under AS 44.62 (Administrative Procedure Act), but                            
28 not before the effective date of the change in law in this Act.                                                         
29    * Sec. 46.  APPLICABILITY.  Notwithstanding the changes in law made by this Act, the                                 
30 state agencies may continue to act on or consider a provision of a solicitation, notice of intent                       
31 to award, or response to solicitation made before the effective date of the relevant change in                          
01 law enacted by this Act, to the extent that the provision is not inconsistent with a provision                          
02 of this Act.                                                                                                            
03    * Sec. 47.  FIRST LEASE EXTENSION REPORT.  Notwithstanding AS 36.30.083(c),                                          
04 enacted by sec. 5 of this Act, the first lease extension report under AS 36.30.083(c) is due                            
05 August 31, 1997, and must cover fiscal year 1997.                                                                       
06    * Sec. 48.  Sections 2 - 9, 11, 15, 20, 21, 23 - 25, 37 - 39, 41, 43(a), and 44 - 47 of this                         
07 Act take effect immediately under AS 01.10.070(c).                                                                      
08    * Sec. 49.  Sections 1, 10, 12 - 14, 16 - 19, 22, 26, 27, 29 - 36, 40, and 43(b) of this Act                         
09 take effect September 30, 1996.                                                                                         
10    * Sec. 50.  Section 28 of this Act takes effect January 1, 1997.                                                     
11    * Sec. 51.  Section 42 of this Act takes effect August 22, 1998.