CSSB 212(FIN) AM: "An Act relating to the giving of procurement notices; changing the content of the required procurement reports to the legislature by the commissioner of administration; relating to publications produced by state agencies; establishing an innovative construction procurement methods pilot program; and establishing legislative findings, a legislative purpose, and legislative intent for state procurement; and providing for an effective date."
00CS FOR SENATE BILL NO. 212(FIN) am 01 "An Act relating to the giving of procurement notices; changing the content of 02 the required procurement reports to the legislature by the commissioner of 03 administration; relating to publications produced by state agencies; establishing an 04 innovative construction procurement methods pilot program; and establishing 05 legislative findings, a legislative purpose, and legislative intent for state 06 procurement; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. FINDINGS, PURPOSE, AND INTENT. (a) The legislature finds that 09 (1) the state needs to develop and maintain a strong, stable, and prosperous 10 economy based on private investment; 11 (2) the existence of a strong and healthy free enterprise system is directly 12 related to the well-being and competitive strength of Alaskan businesses and to the opportunity 13 for Alaskan businesses to have free entry into the business market and to grow and expand; 14 (3) the use of products manufactured, grown, or produced in Alaska
01 strengthens, stabilizes, and diversifies Alaska's economy; 02 (4) when governmental agencies purchase and use out-of-state products and 03 services, they reduce job-creating investments and limit the growth of the economy of Alaska; 04 (5) contracts are frequently awarded to out-of-state firms, even though Alaskan 05 suppliers, manufacturers, and providers of services are more accessible and responsive to the 06 needs of Alaska's business community than their out-of-state counterparts; 07 (6) there is a need for Alaska to examine its purchasing practices in order to 08 ensure that state agencies support Alaskan businesses by making every reasonable effort to 09 identify available Alaskan goods and services and to foster bidding by local and resident 10 businesses and labor forces; 11 (7) state agencies should look outside Alaska for goods and services only if 12 they have provided notice of the procurement in Alaska. 13 (b) The legislature declares that the purpose of this Act is to foster a procurement 14 process where Alaskan businesses obtain a fair proportion of Alaska's total procurement 15 contracts by providing Alaskan businesses with a fair, equitable, and competitive bid process. 16 (c) It is the intent of the legislature that 17 (1) except as prohibited under AS 36.30.320(d), a state agency shall, when 18 practicable and economically feasible, design procurements in a way that fosters participation 19 by Alaska bidders or offerors; 20 (2) except as prohibited under AS 36.30.320(d), and unless it is anticipated that 21 two or more Alaska bidders or offerors would be capable of performing the procurement, an 22 agency that is proposing a procurement shall, when practicable and economically feasible, 23 divide or otherwise structure the procurement so that it can be performed by Alaska bidders 24 or offerors, if the proposed procurement is too large to be performed by Alaska bidders or 25 offerors, and if the procurement officer determines that Alaska bidders or offerors generally 26 would be capable of performing the procurement if the procurement were reduced in size or 27 otherwise restructured; in this paragraph, "Alaska bidders or offerors" means persons who 28 qualify as Alaska bidders under AS 36.30.170(b). 29 * Sec. 2. AS 36.30.130(a) is amended 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 a determination is
01 made in writing that a shorter notice period is necessary for a particular bid, the 02 21-day period may be shortened. The determination shall be made by the chief 03 procurement officer for bids for supplies, services, or professional services. The 04 determination shall be made by the commissioner of transportation and public facilities 05 for bids for construction or acquisition of property for the state equipment fleet. 06 Notice shall be published in the Alaska Administrative Journal. The time and manner 07 of notice must be in accordance with regulations adopted by the commissioner of 08 administration. When practicable, notice may include 09 (1) publication in a newspaper calculated to reach prospective bidders 10 located in the state; 11 (2) notices posted in public places within the area where the work is 12 to be performed or the material furnished; and 13 (3) notices mailed to all active prospective contractors on the 14 appropriate list maintained under AS 36.30.050 15 (A) if the contractors are located in the state; 16 (B) upon request, if the contractors are not located in the 17 state. 18 * Sec. 3. AS 36.30.130(a) is repealed and reenacted to read: 19 (a) The procurement officer shall give adequate public notice of the invitation 20 to bid at least 21 days before the date for the opening of bids. If a determination is 21 made in writing that a shorter notice period is necessary for a particular bid, the 22 21-day period may be shortened. The determination shall be made by the chief 23 procurement officer for bids for supplies, services, or professional services. The 24 determination shall be made by the commissioner of transportation and public facilities 25 for bids for construction or acquisition of property for the state equipment fleet. 26 Notice shall be published in the Alaska Administrative Journal. The time and manner 27 of notice must be in accordance with regulations adopted by the commissioner of 28 administration. When practicable, notice may include 29 (1) publication in a newspaper calculated to reach prospective bidders; 30 (2) notices posted in public places within the area where the work is 31 to be performed or the material furnished; and
01 (3) notices mailed to all active prospective contractors on the 02 appropriate list maintained under AS 36.30.050. 03 * Sec. 4. AS 36.30.540 is amended to read: 04 Sec. 36.30.540. REPORT TO LEGISLATURE. The [BEGINNING WITH 05 DECEMBER 1, 1989, THE] commissioner shall biennially report to the legislature 06 concerning procurements by agencies. The report must include 07 (1) the records maintained by the commissioner under AS 36.30.510 08 and the records maintained under as 36.30.520(a) for the previous two fiscal years; 09 (2) recommendations for changes in this chapter or other laws based 10 on implementation of this chapter in the previous two fiscal years; 11 (3) a description of any matters that involved litigation concerning this 12 chapter in the previous two fiscal years; 13 (4) a list of procurements made under this chapter from out-of-state 14 sources during the previous two fiscal years together with the total number of 15 procurement contracts entered into during that period with out-of-state contractors and 16 the total value of these contracts; this paragraph does not apply to procurements made 17 under AS 36.30.320; and 18 (5) a list of procurements made under this chapter from state sources 19 during the previous two fiscal years together with the total number of procurement 20 contracts entered into during that period with state contractors and the total value of 21 these contracts; this paragraph does not apply to procurements made under 22 AS 36.30.320; 23 (6) the number of bidders and offerors that bid on or made 24 proposals for procurements under this chapter, the number of these bidders and 25 offerors that were located in the state, and the number of these bidders and 26 offerors that were located outside the state; this paragraph does not apply to 27 procurements made under AS 36.30.320. 28 * Sec. 5. AS 44.99.200 is repealed and reenacted to read: 29 Sec. 44.99.200. PRODUCTION OF PUBLICATIONS. The publications of a 30 state agency shall be produced at a private sector facility located in the state when 31 practicable. The Department of Administration shall establish standards for the
01 production of publications by state agencies, except that the Board of Regents of the 02 University of Alaska shall establish the standards for the university. The standards 03 shall be designed to promote simplicity, low cost, and consistency. 04 * Sec. 6. AS 44.99.210 is amended to read: 05 Sec. 44.99.210. DISCLOSURES ON PUBLICATION. If [A PUBLICATION 06 OF A STATE AGENCY IS EXEMPTED UNDER AS 44.99.200(a) FROM BEING 07 PRODUCED AT A STATE-OPERATED FACILITY AND IF] the actual annual costs 08 for a [THE] publication of a state agency that are paid from the general fund exceed 09 $1,500, or if the actual annual costs of a state agency publication that is a report 10 required by law are paid from a source other than the general fund and exceed 11 $1,500, the publication must include a statement that gives the name of the agency 12 releasing the publication, the purpose of the publication, the cost for each copy of the 13 publication, and the city and state where the printing was done. The statement must 14 read: "This publication was released by . . . (name of state agency) . . ., produced at 15 a cost of $ . . . . . per copy to . . . (statement of purpose) . . ., and printed in . . . . . 16 . (city and state where printed)." If the publication is required by law, the statement 17 must also include: "This publication is required by . . . (appropriate citation to Alaska 18 law)." The statement may include, if applicable, a declaration of the revenue raised 19 by the sale of the publication or from the purchase of advertising in the publication. 20 The statement shall be printed in one conspicuous place in the body of the publication 21 in a type size that is not smaller than twelve [EIGHT] points and shall be placed in 22 a box composed of at least two [ONE] point rule. In this section, "cost for each copy" 23 means the figure that results after dividing the total contract cost of producing the 24 publication by the number of copies produced. This section does not apply to a 25 publication that is intended primarily for foreign or other out-of-state use, [OR] to a 26 program for a public ceremony of a state agency, or to materials used by a state 27 agency to develop a market for the agency's services or products. 28 * Sec. 7. AS 44.99.230 is repealed. 29 * Sec. 8. INNOVATIVE CONSTRUCTION PROCUREMENT METHODS PILOT 30 PROGRAM. (a) Within six months after the effective date of this section, the commissioner 31 of transportation and public facilities shall begin a two-year pilot program for the use of
01 innovative methods for the procurement of construction services by using bonuses to replace 02 the preferences required under AS 36.30. 03 (b) Notwithstanding the provisions of AS 36.30, if the commissioner determines in 04 writing that using innovative construction procurement methods for the procurement of 05 construction contracts would be in the best interests of the state, the commissioner may, by 06 regulation, adopt procedures different than those provided under AS 36.30 as necessary to use 07 bonuses instead of preferences in the procurement of construction contracts. The 08 determination must find that the innovative methods are not contrary to the intent and 09 purposes of AS 36.30, demonstrate that the innovative methods are in the best interests of the 10 state, and describe how the innovative methods modify the procurement methods and 11 procedures of AS 36.30. 12 (c) Within 15 months after the pilot program begins, the commissioner shall report 13 to the legislature on the construction contracts awarded during the first year of the pilot 14 program. Within 27 months after the pilot program begins, the commissioner shall report to 15 the legislature on the construction contracts awarded during the second year of the pilot 16 program. In a report under this subsection, the information must include for each contract 17 awarded during the period covered by the report 18 (1) the geographical region where the construction is to be performed; and 19 (2) whether the contractor is classified as a minority contractor. 20 (d) The legislature may review the pilot program at any time during the program and 21 may make the program permanent or broaden the scope of the innovative procurement 22 program. 23 (e) In this section, 24 (1) "best interests of the state" means that the proposed action would provide 25 (A) an economic benefit to the private businesses and citizens of the 26 state; 27 (B) an economic benefit to state government; and 28 (C) greater administrative efficiencies than existing procedures provide; 29 (2) "commissioner" means the commissioner of transportation and public 30 facilities. 31 * Sec. 9. APPLICABILITY. AS 36.30.540(6), enacted by sec. 4 of this Act, applies to