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CSSB 275(STA): "An Act relating to state procurement practices and procedures; and providing for an effective date."

00CS FOR SENATE BILL NO. 275(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 24.55.275 is amended to read: 05  Sec. 24.55.275. CONTRACT PROCEDURES. The ombudsman shall adopt 06 by regulation procedures consistent with AS 36.30 to be followed by the office of the 07 ombudsman in contracting for services. However, the procedure for requests for 08 proposals does not apply to contracts for investigations under AS 24.55.100, and the 09 office of the ombudsman shall comply with AS 36.30.170(b). 10 * Sec. 2. AS 36.30.015(e) is amended to read: 11  (e) The board of directors of the Alaska Railroad Corporation and the board 12 of directors of the Alaska Aerospace Development Corporation shall adopt procedures 13 to govern the procurement of supplies, services, professional services, and construction. 14 The procedures must be substantially equivalent to the procedures prescribed in this

01 chapter and in regulations adopted under this chapter. Notwithstanding the other 02 provisions of this subsection, the Alaska Railroad Corporation and the Alaska 03 Aerospace Development Corporation shall comply with AS 36.30.170(b). 04 * Sec. 3. AS 36.30.015(f) is amended to read: 05  (f) The board of directors of the Alaska Housing Finance Corporation, 06 notwithstanding AS 18.56.088, shall adopt regulations under AS 44.62 (Administrative 07 Procedure Act) and the board of trustees of the Alaska State Pension Investment Board 08 shall adopt regulations under AS 37.10.240 to govern the procurement of supplies, 09 services, professional services, and construction for the respective public corporation 10 and board. The regulations must [(1)] reflect competitive bidding principles and 11 provide vendors reasonable and equitable opportunities to participate in the 12 procurement process [;] and must [(2)] include procurement methods to meet 13 emergency and extraordinary circumstances. Notwithstanding the other provisions 14 of this subsection, the Alaska Housing Finance Corporation and the Alaska State 15 Pension Investment Board shall comply with AS 36.30.170(b). 16 * Sec. 4. AS 36.30.015(h) is amended to read: 17  (h) The board of directors of the Alaska Seafood Marketing Institute shall 18 adopt procedures to govern the procurement of supplies, services, and professional 19 services. The procedures must be similar to the procedures prescribed in this chapter 20 and in regulations adopted under this chapter, except that the Alaska Seafood 21 Marketing Institute shall comply with AS 36.30.170(b). 22 * Sec. 5. AS 36.30.020 is amended to read: 23  Sec. 36.30.020. LEGISLATURE. The Legislative Council shall adopt and 24 publish procedures to govern the procurement of supplies, services, professional 25 services, and construction by the legislative branch. The procedures must be based on 26 the competitive principles consistent with this chapter and must be adapted to the 27 special needs of the legislative branch as determined by the Legislative Council. The 28 procedures must be consistent with the provisions of AS 36.30.080(c) - (e) and 29 36.30.085. Notwithstanding the other provisions of this section, the legislative 30 agencies subject to the legislative council's regulations shall comply with 31 AS 36.30.170(b).

01 * Sec. 6. AS 36.30.030 is amended to read: 02  Sec. 36.30.030. COURT SYSTEM. The administrative director of courts shall 03 adopt and publish procedures to govern the procurement of supplies, services, 04 professional services, and construction by the judicial branch. The procedures must 05 be based on the competitive principles consistent with this chapter and must be adapted 06 to the special needs of the judicial branch as determined by the administrative director 07 of courts. The procedures must be consistent with the provisions of AS 36.30.080(c) - 08 (e) and 36.30.085. Notwithstanding the other provisions of this section, the judicial 09 branch shall comply with AS 36.30.170(b). 10 * Sec. 7. AS 36.30.040(b)(4) is amended to read: 11  (4) conditions and procedures for the use of source selection methods 12 authorized by this chapter, including single [SOLE] source procurements, emergency 13 procurements, and small procurements; 14 * Sec. 8. AS 36.30.040(b)(15) is amended to read: 15  (15) a bidder's or offeror's duties under this chapter [AS 36.30.115 16 AND 36.30.210]; and 17 * Sec. 9. AS 36.30.050(a) is amended to read: 18  (a) Except for persons debarred or suspended under AS 36.30.635 - 19 36.30.655, the [THE] commissioner shall establish and maintain current lists of 20 persons who desire to provide supplies, services, professional services, or construction 21 services to the state. 22 * Sec. 10. AS. 36.30.080 is amended by adding a new subsection to read: 23  (f) When the department is acquiring leased space of 3,000 square feet or less, 24 the department may procure the leased space using the procedures for small 25 procurements under AS 36.30.320. 26 * Sec. 11. AS 36.30 is amended by adding a new section to read: 27  Sec. 36.30.083. LEASE EXTENSIONS AUTHORIZED. (a) Notwithstanding 28 any other provision of this chapter, the department, the legislative council, or the court 29 system may extend, for up to a maximum extension of 10 years, a real property lease 30 that is entered into under this chapter, including procedures and regulations adopted 31 under AS 36.30.020 and 36.30.030, if a minimum cost savings of

01  (1) 10 percent can be achieved on the rent due under the lease; or 02  (2) five percent can be achieved on the rent due under the lease and the 03 lessor agrees to make modifications of the leased real property to bring the real 04 property into compliance with the requirements of 42 U.S.C. 12101 - 12213 05 (Americans with Disabilities Act of 1990). 06  (b) The cost savings under (a) of this section shall be calculated on the 07 remaining term of the lease and any renewals, including extensions allowed under (a) 08 of this section. 09  (c) The department, the court system, and the Legislative Affairs Agency shall 10 submit individually an annual report to the Legislative Budget and Audit Committee 11 detailing the leases extended and the cost savings achieved by the entity under (a) or 12 (b) of this section during the previous fiscal year. The report is due August 31 of each 13 year. 14 * Sec. 12. AS 36.30.115 is amended to read: 15  Sec. 36.30.115. SUBCONTRACTORS FOR CONSTRUCTION 16 CONTRACTS. (a) Within five working days after the identification of the apparent 17 low bidder for a construction contract, the apparent low bidder shall submit a list of 18 the subcontractors the bidder proposes to use in the performance of the construction 19 contract. The list must include the name and location of the place of business for each 20 subcontractor, [AND] evidence of each [THE] subcontractor's valid Alaska business 21 license, and [. A BIDDER FOR A CONSTRUCTION CONTRACT SHALL ALSO 22 SUBMIT] evidence of each subcontractor's registration under AS 08.18. If a 23 subcontractor on the list did not have a valid Alaska business license and a valid 24 certificate of registration under AS 08.18 at the time the bid was opened, the bidder 25 may not use the subcontractor in the performance of the contract, and shall replace the 26 subcontractor with a subcontractor who had a valid Alaska business license and a valid 27 certificate of registration under AS 08.18 at the time the bid was opened. 28  (b) The apparent low [A] bidder for a construction contract may replace 29 a listed subcontractor if the subcontractor 30  (1) fails to comply with AS 08.18; 31  (2) files for bankruptcy or becomes insolvent;

01  (3) fails to execute a contract with the bidder involving performance 02 of the work for which the subcontractor was listed and the bidder acted in good faith; 03  (4) fails to obtain bonding; 04  (5) fails to obtain insurance acceptable to the state; 05  (6) fails to perform the contract with the bidder involving work for 06 which the subcontractor was listed; 07  (7) must be substituted in order for the prime contractor to satisfy 08 required state and federal affirmative action requirements; 09  (8) refuses to agree or abide with the bidder's labor agreement; or 10  (9) is determined by the procurement officer not to be a responsible 11 subcontractor. 12  (c) If a bidder for a construction contract fails to list a subcontractor or lists 13 more than one subcontractor for the same portion of work and the value of that work 14 is in excess of half of one percent of the total bid, the bidder shall be considered to 15 have agreed to perform that portion of work without the use of a subcontractor and to 16 have represented the bidder to be qualified to perform that work. 17  (d) A bidder for a construction contract who attempts to circumvent the 18 requirements of this section by listing as a subcontractor another contractor who, in 19 turn, sublets the majority of the work required under the contract violates this section. 20  (e) If a construction contract is awarded to a bidder who violates this section, 21 the procurement [PURCHASING] officer may 22  (1) cancel the contract; or 23  (2) after notice and a hearing, assess a penalty on the bidder in an 24 amount that does not exceed 10 percent of the value of the subcontract at issue. 25 * Sec. 13. AS 36.30.130(a) is amended to read: 26  (a) The procurement officer shall give adequate public notice of the invitation 27 to bid at least 21 days before the date for the opening of bids. If the procurement 28 officer determines [A DETERMINATION IS MADE] in writing that a shorter notice 29 period is advantageous [NECESSARY] for a particular bid and adequate 30 competition is anticipated, the 21-day period may be shortened. [THE 31 DETERMINATION SHALL BE MADE BY THE CHIEF PROCUREMENT OFFICER

01 FOR BIDS FOR SUPPLIES, SERVICES, OR PROFESSIONAL SERVICES. THE 02 DETERMINATION SHALL BE MADE BY THE COMMISSIONER OF 03 TRANSPORTATION AND PUBLIC FACILITIES FOR BIDS FOR 04 CONSTRUCTION OR ACQUISITION OF PROPERTY FOR THE STATE 05 EQUIPMENT FLEET.] Notice shall be published in the Alaska Administrative 06 Journal. The time and manner of notice must be in accordance with regulations 07 adopted by the commissioner of administration. When practicable, notice may include 08  (1) publication in a newspaper calculated to reach prospective bidders 09 located in the state; 10  (2) notices posted in public places within the area where the work is 11 to be performed or the material furnished; and 12  (3) notices mailed to all active prospective contractors on the 13 appropriate list maintained under AS 36.30.050 14  (A) if the contractors are located in the state; 15  (B) upon request, if the contractors are not located in the state. 16 * Sec. 14. AS 36.30.170 is amended by adding a new subsection to read: 17  (k) In order to qualify for a preference under (c), (e), or (f) of this section, a 18 bidder must add value by actually performing, controlling, managing, and supervising 19 the services provided, or a bidder must have sold supplies of the general nature 20 solicited to state agencies, other governments, or to the general public. 21 * Sec. 15. AS 36.30.200 is amended to read: 22  Sec. 36.30.200. CONDITIONS FOR USE. (a) Except as otherwise provided 23 in this chapter, or unless specifically exempted by law, an agency contract shall be 24 awarded by competitive sealed proposals if it is not awarded by competitive sealed 25 bidding. [CONSTRUCTION MAY ONLY BE PROCURED BY COMPETITIVE 26 SEALED PROPOSALS IF THE CONDITIONS UNDER (c) OF THIS SECTION ARE 27 MET.] 28  (b) The commissioner may provide by regulation that it is either not 29 practicable or not advantageous to the state to procure specified types of supplies, 30 services, or construction by competitive sealed bidding that would otherwise be 31 procured by that method. When the [CHIEF] procurement officer [, OR FOR

01 CONSTRUCTION CONTRACTS OR PROCUREMENTS FOR THE STATE 02 EQUIPMENT FLEET, THE COMMISSIONER OF TRANSPORTATION AND 03 PUBLIC FACILITIES,] determines in writing with particularity that the use of 04 competitive sealed proposals is more [BIDDING IS EITHER NOT PRACTICABLE 05 OR NOT] advantageous to the state than competitive sealed bidding, a contract may 06 be entered into by competitive sealed proposals [IN ACCORDANCE WITH THE 07 REGULATIONS. WHEN IT IS DETERMINED THAT IT IS PRACTICABLE BUT 08 NOT ADVANTAGEOUS TO USE COMPETITIVE SEALED BIDDING, THE CHIEF 09 PROCUREMENT OFFICER OR COMMISSIONER OF TRANSPORTATION AND 10 PUBLIC FACILITIES SHALL SPECIFY WITH PARTICULARITY THE BASIS FOR 11 THE DETERMINATION]. 12  (c) When the commissioner of transportation and public facilities [CHIEF 13 PROCUREMENT OFFICER] determines that it is advantageous to the state, a 14 procurement officer may issue a request for proposals requesting the submission of 15 offers to provide construction in accordance with a design provided by the offeror. 16 The request for proposals shall require that each proposal submitted contain a single 17 price that includes the design/build. 18 * Sec. 16. AS 36.30.210 is repealed and reenacted to read: 19  Sec. 36.30.210. REQUEST FOR PROPOSALS. (a) A request for competitive 20 sealed proposals must contain the date, time, and place for delivering proposals, a 21 specific description of the supplies, construction, services, or professional services to 22 be provided under the contract, and the terms under which the supplies, construction, 23 services, or professional services are to be provided. 24  (b) An offeror for a construction contract shall submit evidence of the offeror's 25 registration under AS 08.18. A request for sealed proposals for a construction contract 26 must require the offeror, no later than five working days after the proposal that is the 27 most advantageous to the state is identified, to list subcontractors the offeror proposes 28 to use in the performance of the construction contract. The list must include the 29 information required under AS 36.30.115(a), and the provisions of AS 36.30.115(b) - 30 (e) apply to competitive sealed proposals for construction contracts; in this sentence, 31 "bidder" in AS 36.30.115(a) - (e) is read as "offeror."

01  (c) A request for proposals must contain the information necessary for an 02 offeror to submit a proposal or contain references to any information that cannot 03 reasonably be included with the request. The request must provide a description of the 04 factors that will be considered by the procurement officer when evaluating the 05 proposals received, including the relative importance of price and other evaluation 06 factors. 07  (d) Notice of a request for proposals shall be given in accordance with 08 procedures under AS 36.30.130. The procurement officer may use additional means 09 considered appropriate to notify prospective offerors of the intent to enter into a 10 contract through competitive sealed proposals. 11  (e) The offeror must have a valid Alaska business license at the time 12 designated, in the request for proposals, for opening of the proposals. 13 * Sec. 17. AS 36.30.230 is amended to read: 14  Sec. 36.30.230. DISCLOSURE OF PROPOSALS. The procurement officer 15 shall open proposals so as to avoid disclosure of contents to competing offerors before 16 notice of intent to award a contract is issued [DURING THE PROCESS OF 17 NEGOTIATION]. A register of proposals containing the name and address of each 18 offeror shall be prepared in accordance with regulations adopted by the commissioner. 19 The register and the proposals are open for public inspection after the notice of intent 20 to award a contract is issued under AS 36.30.365. To the extent that the offeror 21 designates and the procurement officer concurs, trade secrets and other proprietary data 22 contained in the proposal documents are confidential. 23 * Sec. 18. AS 36.30.230 is amended by adding a new subsection to read: 24  (b) If a solicitation is cancelled under AS 36.30.350 after proposals are 25 received but before a notice of intent to award a contract has been issued under 26 AS 36.30.365, a protest of the solicitation or of the cancellation of the solicitation has 27 not been filed by an interested party under AS 36.30.560, and the time specified in 28 AS 36.30.565(a) for filing a protest has expired, the procurement officer may return 29 a proposal to the offeror that made the proposal. The procurement officer shall keep 30 a list of returned proposals in the file for the solicitation. 31 * Sec. 19. AS 36.30.260 is amended to read:

01  Sec. 36.30.260. CONTRACT EXECUTION. A contract awarded under 02 competitive sealed proposals must contain 03  (1) a statement of the amount of the contract [STATED ON ITS 04 FIRST PAGE]; 05  (2) the date for the supplies to be delivered or the dates for 06 construction, services, or professional services to begin and be completed; 07  (3) a description of the supplies, construction, services, or professional 08 services to be provided; and 09  (4) certification by the project director for the contracting agency, the 10 head of the contracting agency, or a designee that sufficient money is [FUNDS ARE] 11 available in an appropriation to be encumbered for the amount of the contract. 12 * Sec. 20. AS 36.30.300 is repealed and reenacted to read: 13  Sec. 36.30.300 SINGLE SOURCE PROCUREMENTS. (a) A contract may 14 be awarded for supplies, services, professional services, or construction without 15 competitive sealed bidding, competitive sealed proposals, or other competition in 16 accordance with regulations adopted by the commissioner. A contract may be awarded 17 under this section only when the chief procurement officer or, for construction 18 contracts or procurements for the state equipment fleet, the commissioner of 19 transportation and public facilities determines in writing that 20  (1) it is not practicable to award a contract by competitive sealed 21 bidding under AS 36.30.100, competitive sealed proposals under AS 36.30.200, or 22 limited competition under AS 36.30.305; and 23  (2) award of the contract under this section is in the state's best interest. 24  (b) An agency using a single source procurement under (a) of this section shall 25 submit written evidence to support a request for the single source procurement. The 26 commissioner of administration or the commissioner of transportation and public 27 facilities, as appropriate, may also require the submission of cost or pricing data in 28 connection with an award under this section. 29  (c) To the extent practicable, the procurement officer shall negotiate with the 30 single source to obtain contract terms advantageous to the state. 31  (d) Procurement requirements may not be aggregated or structured so as to

01 constitute a purchase under this section or to circumvent the source selection 02 procedures required by AS 36.30.100 - 36.30.270. 03  (e) Except for procurements of supplies, services, professional services, or 04 construction that do not exceed the amount for small procurements under 05 AS 36.30.320(a) as applicable, the authority to make a determination required by this 06 section may not be delegated, even if the authority to contract is delegated under 07 AS 36.30.015(a) - (b). 08 * Sec. 21. AS 36.30.305(a) is amended to read: 09  (a) A construction contract under $100,000, or a contract for supplies, 10 services, or professional services, [OR A CONSTRUCTION CONTRACT UNDER 11 $100,000,] may be awarded without competitive sealed bidding or competitive sealed 12 proposals, in accordance with regulations adopted by the commissioner. A contract 13 may be awarded under this section only when the chief procurement officer [, OR, 14 FOR CONSTRUCTION CONTRACTS UNDER $100,000 OR PROCUREMENTS 15 FOR THE STATE EQUIPMENT FLEET, THE COMMISSIONER OF 16 TRANSPORTATION AND PUBLIC FACILITIES,] determines in writing that a 17 situation exists that makes competitive sealed bidding or competitive sealed proposals 18 impractical or contrary to the public interest, except that the attorney general may 19 make the determination for services of legal counsel, and the commissioner of 20 transportation and public facilities may make the determination for construction 21 contracts under $100,000 or procurements for the state equipment fleet. 22 Procurements under this section shall be made with competition that is practicable 23 under the circumstance. Except for procurements of supplies, services, professional 24 services, or construction that do not exceed the amount for small procurements under 25 AS 36.30.320(a) [OR (b)], as applicable, the authority to make a determination 26 required by this section may not be delegated. 27 * Sec. 22. AS 36.30.305(d) is amended to read: 28  (d) Single [SOLE] source procurements may not be made under this section. 29 * Sec. 23. AS 36.30 is amended by adding a new section to read: 30  Sec. 36.30.308. INNOVATIVE COMPETITIVE PROCUREMENTS. (a) A 31 contract may be awarded for supplies, services, professional services, or construction

01 using an innovative procurement process, with or without competitive sealed bidding 02 or competitive sealed proposals, in accordance with regulations adopted by the 03 commissioner. A contract may be awarded under this section only when the chief 04 procurement officer, or, for construction contracts or procurements of the state 05 equipment fleet, the commissioner of transportation and public facilities, determines 06 in writing that it is advantageous to the state to use an innovative competitive 07 procurement process in the procurement of new or unique requirements of the state, 08 new technologies, or to achieve best value. 09  (b) The procurement officer shall submit a procurement plan to the Department 10 of Law for review and approval as to form before issuing the notice required by (c) 11 of this section. 12  (c) A procurement under this section is subject to the requirements of 13 AS 36.30.130. 14  (d) This section does not preclude the adoption of regulations providing for the 15 use of bonuses instead of preferences in a procurement of construction. 16 * Sec. 24. AS 36.30 is amended by adding new sections to read: 17  Sec. 36.30.311. EMPLOYMENT PROGRAM PROCUREMENTS. A 18 procurement of products manufactured or services provided by an employment 19 program of the state may be made without competitive sealed bidding or competitive 20 sealed proposals, in accordance with regulations adopted by the commissioner. 21  Sec. 36.30.313. CORRECTIONAL INDUSTRIES PROCUREMENTS. A 22 procurement of products or services provided by the correctional industries program 23 established under AS 33.32 may be made without competitive sealed bidding or 24 competitive sealed proposals, in accordance with regulations adopted by the 25 commissioner. 26 * Sec. 25. AS 36.30.315 is repealed and reenacted to read: 27  Sec. 36.30.315. FALSE STATEMENTS IN DETERMINATIONS; 28 CRIMINAL PENALTY. If a state official knowingly makes a false statement in a 29 determination under this chapter, the state official is guilty of a class A misdemeanor. 30 * Sec. 26. AS 36.30.320(a) is amended to read: 31  (a) A procurement for supplies, services, or professional services

01 [CONSTRUCTION] that does not exceed an aggregate dollar amount of $50,000, for 02 construction that does not exceed an aggregate dollar amount of $100,000, or for 03 lease of space that does not exceed 3,000 square feet [$25,000] may be made in 04 accordance with regulations adopted by the commissioner for small procurements. 05 * Sec. 27. AS 36.30 is amended by adding a new section to read: 06  Sec. 36.30.331. DELIVERY OF SUPPLIES. Supplies purchased under this 07 chapter shall be delivered at a location within the state unless the department 08 determines that a point of delivery outside the state would be in the best interest of the 09 state. A bid or proposal involving the procurement of supplies must specify the 10 delivery location and must state that the price is the delivered price at that location. 11 * Sec. 28. AS 36.30 is amended by adding a new section to read: 12  Sec. 36.30.333. PROCUREMENT OF PAPER. Except as otherwise required 13 under AS 36.15.050, AS 36.30.322 - 36.30.332, and 36.30.334 - 36.30.338, when a 14 state agency purchases paper, at least 25 percent of the quantity purchased must be 15 recycled paper unless recycled paper is not available for the purchase or unless, after 16 application of the procurement preference under AS 36.30.339, the recycled paper is 17 more expensive than the nonrecycled paper. 18 * Sec. 29. AS 36.30 is amended by adding a new section to read: 19  Sec. 36.30.335. PRODUCT PREFERENCES. This chapter does not modify 20 AS 36.15.010 and 36.15.020 regarding preference for Alaska forest products, or 21 AS 36.15.050 and 36.15.060 regarding preference for Alaska agricultural and fisheries 22 products, except as provided in AS 36.30.170(b), (c), (e) - (h), and 36.30.339. 23 * Sec. 30. AS 36.30.520 is amended to read: 24  Sec. 36.30.520. RECORDS OF SINGLE [SOLE] SOURCE AND 25 EMERGENCY PROCUREMENTS. (a) The commissioner shall maintain for a 26 minimum of five years a record listing all single [SOLE] source procurement contracts 27 made under AS 36.30.300 and emergency procurements made under AS 36.30.310. 28 The record must contain 29  (1) each contractor's name; 30  (2) the amount and type of each contract; and 31  (3) a listing of the supplies, services, professional services, or

01 construction procured under each contract. 02  (b) The Department of Transportation and Public Facilities and any agency to 03 whom the commissioner of administration or the commissioner of transportation and 04 public facilities has delegated procurement authority under AS 36.30.015 shall, by 05 October 1 of each year, submit to the commissioner of administration records of the 06 type specified in (a) of this section for emergency procurements made under 07 AS 36.30.310. The Department of Transportation and Public Facilities shall, even 08 if procurement authority has been delegated under AS 36.30.015 to another 09 agency, by October 1 of each year, submit to the commissioner of administration 10 records of the type specified in (a) of this section for single source procurement 11 contracts made under AS 36.30.300. The commissioner of administration shall 12 maintain these records as required by (a) of this section. 13 * Sec. 31. AS 36.30 is amended by adding a new section to read: 14  Sec. 36.30.522. RECORDS OF INNOVATIVE PROCUREMENTS. The 15 commissioner and the contracting agency shall keep a file for each contract awarded 16 under an innovative procurement process under AS 36.30.308. The file is subject to 17 inspection under the same standards as described in AS 36.30.140(b) and 36.30.230. 18 The file kept by the commissioner must contain a summary of the information in the 19 file of the contracting agency. The file kept by the contracting agency must contain 20  (1) a copy of the contract; 21  (2) the written determination under AS 36.30.308(a); 22  (3) the procurement plan as approved as to form by the Department of 23 Law; 24  (4) the record of notice under AS 36.30.130; and 25  (5) the record of respondents to the solicitation. 26 * Sec. 32. AS 36.30 is amended by adding a new section to article 9 to read: 27  Sec. 36.30.550. APPLICABILITY OF PROTEST AND APPEAL 28 PROCEDURES. (a) Except for small procurements made under AS 36.30.320, the 29 provisions of AS 36.30.560 - 36.30.615 apply to a solicitation, the proposed award of 30 a contract, and the award of a contract for supplies, services, professional services, or 31 construction.

01  (b) The commissioner shall adopt regulations providing for protest and appeal 02 procedures of small procurements made under AS 36.30.320. 03 * Sec. 33. AS 36.30.565(a) is repealed and reenacted to read: 04  (a) A protest based on alleged improprieties or ambiguities in a solicitation 05 must be filed at least 10 days before the due date of the bid or proposal, unless a later 06 protest due date is specifically allowed in the solicitation. If a solicitation is made 07 with a shortened public notice period and the protest is based on alleged improprieties 08 or ambiguities in the solicitation, the protest must be filed before the due date of the 09 bid or proposal. Notwithstanding the other provisions in this subsection, the protest 10 of an invitation to bid or a request for proposals in which a pre-bid or pre-proposal 11 conference is held within 12 days of the due date must be filed before the due date of 12 the bid or proposal if the protest is based on alleged improprieties or ambiguities in 13 the solicitation. A protest based upon alleged improprieties in an award of a contract 14 or a proposed award of a contract must be filed within 10 days after a notice of intent 15 to award the contract is issued by the procurement officer. 16 * Sec. 34. AS 36.30.580(a) is amended to read: 17  (a) The procurement officer of the contracting agency shall issue a written 18 decision containing the basis of the decision within 15 [14] days after a protest has 19 been filed. A copy of the decision shall be furnished to the protester by certified mail 20 or other method that provides evidence of receipt. 21 * Sec. 35. AS 36.30.580(b) is amended to read: 22  (b) The time for a decision may be extended up to 30 [26] days for good cause 23 by the commissioner of administration, or, for protests involving construction or 24 procurements for the state equipment fleet, the commissioner of transportation and 25 public facilities. If an extension is granted, the procurement officer shall notify the 26 protester in writing of the date that [OF] the decision is due. 27 * Sec. 36. AS 36.30.585 is amended by adding a new subsection to read: 28  (c) Notwithstanding (a) and (b) of this section, if a protest is sustained in 29 whole or part, the protester's damages are limited to reasonable bid or proposal 30 preparation costs. 31 * Sec. 37. AS 36.30.605(a) is amended to read:

01  (a) The procurement officer of the contracting agency shall file a complete 02 report on the protest and decision with the commissioner of administration or the 03 commissioner of transportation and public facilities, as appropriate, within 10 [SEVEN] 04 days after a protest appeal is filed. The procurement officer shall furnish a copy of 05 the report to the protester and to interested parties that have requested a copy of the 06 appeal under AS 36.30.595(b). 07 * Sec. 38. AS 36.30.605(c) is amended to read: 08  (c) The protester may file comments on the protest report with the 09 commissioner of administration or the commissioner of transportation and public 10 facilities, as appropriate, within 10 [SEVEN] days after the report is received. The 11 protester shall provide copies of the comments to the procurement officer and to 12 interested parties that have requested a copy of the appeal under AS 36.30.595(b). 13 * Sec. 39. AS 36.30.620(a) is amended to read: 14  (a) A contractor shall file a claim concerning a contract awarded under this 15 chapter with the procurement officer. The contractor shall certify that the claim is 16 made in good faith, that the supporting data are accurate and complete to the best of 17 the contractor's knowledge and belief, and that the amount requested accurately 18 reflects the contract adjustment for which the contractor believes the state is liable. 19 A claim under this section must be filed within 90 days after the contractor 20 becomes aware of the basis of the claim or should have known the basis of the 21 claim, whichever is earlier. 22 * Sec. 40. AS 36.30.620 is amended by adding a new subsection to read: 23  (g) This section does not apply to payment disputes governed by 24 AS 37.05.285. 25 * Sec. 41. AS 36.30.655 is amended to read: 26  Sec. 36.30.655. LIST OF PERSONS DEBARRED OR SUSPENDED. The 27 commissioner shall maintain a list of all persons debarred or suspended from 28 consideration for award of contracts. The commissioner shall remove a person 29 debarred or suspended from the lists of contractors under AS 36.30.050 for the 30 period of debarment or suspension. 31 * Sec. 42. AS 36.30.850(b)(23) is amended to read:

01  (23) operation, protection, or disposals of equipment, supplies, and 02 other assets acquired through foreclosure or other legal proceedings relating to [OF] 03 loans issued under AS 03.10; 04 * Sec. 43. AS 36.30.850(b) is amended by adding new paragraphs to read: 05  (34) procurements of contracts with the media for advertising; 06  (35) purchases of livestock by a correctional industries program 07 established under AS 33.32. 08 * Sec. 44. AS 36.30.910 is amended to read: 09  Sec. 36.30.910. PURCHASES THROUGH GENERAL SERVICES 10 ADMINISTRATION. Notwithstanding any other provision of this chapter, [THIS 11 CHAPTER DOES NOT PREVENT] purchasing through the general services 12 administration or from federal supply schedules of the general services 13 administration may be made without competitive sealed bidding, competitive 14 sealed proposals, or other competition, so long as the purchasing is made from 15 persons located in the state in accordance with regulations adopted by the 16 commissioner for purchases under this section and as provided under 41 U.S.C. 17 251 - 266 [BY LAW]. 18 * Sec. 45. AS 36.30.990 is amended by adding a new paragraph to read: 19  (22) "state official" means a public employee, public officer, or official 20 of an agency. 21 * Sec. 46. Section 3, ch. 59, SLA 1994, is amended to read: 22  Sec. 3. AS 36.30.130(a) is repealed and reenacted to read: 23  (a) The procurement officer shall give adequate public notice of the invitation 24 to bid at least 21 days before the date for the opening of bids. If the procurement 25 officer determines [A DETERMINATION IS MADE] in writing that a shorter notice 26 period is advantageous [NECESSARY] for a particular bid and adequate 27 competition is anticipated, the 21-day period may be shortened. [THE 28 DETERMINATION SHALL BE MADE BY THE CHIEF PROCUREMENT OFFICER 29 FOR BIDS FOR SUPPLIES, SERVICES, OR PROFESSIONAL SERVICES. THE 30 DETERMINATION SHALL BE MADE BY THE COMMISSIONER OF 31 TRANSPORTATION AND PUBLIC FACILITIES FOR BIDS FOR

01 CONSTRUCTION OR ACQUISITION OF PROPERTY FOR THE STATE 02 EQUIPMENT FLEET.] Notice shall be published in the Alaska Administrative 03 Journal. The time and manner of notice must be in accordance with regulations 04 adopted by the commissioner of administration. When practicable, notice may include 05  (1) publication in a newspaper calculated to reach prospective bidders; 06  (2) notices posted in public places within the area where the work is 07 to be performed or the material furnished; and 08  (3) notices mailed to all active prospective contractors on the 09 appropriate list maintained under AS 36.30.050. 10 * Sec. 47. (a) AS 36.30.015(c), 36.30.090, 36.30.095, 36.30.100(b), 36.30.850(b)(14), 11 and 36.30.900 are repealed. 12 (b) AS 36.30.320(b) is repealed. 13 * Sec. 48. REVISOR'S CHANGES. The revisor of statutes is requested to change the 14 heading of art. 5 of AS 36.30 from "Article 5. Preference for Alaska Products." to "Article 5. 15 Preferences." Additionally, the revisor of statutes is requested to renumber AS 36.30.339 as 16 AS 36.30.337, to place that section in art. 5 of AS 36.30. 17 * Sec. 49. TRANSITION: REGULATIONS. Notwithstanding secs. 53 - 55 of this Act, 18 the commissioner of administration and the commissioner of transportation and public facilities 19 may proceed to adopt regulations necessary to implement respective changes in law enacted 20 by this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but 21 not before the effective date of the change in law in this Act. 22 * Sec. 50. APPLICABILITY. Notwithstanding the changes in law made by this Act, the 23 state agencies may continue to act on or consider a provision of a solicitation, notice of intent 24 to award, or response to solicitation made before the effective date of the relevant change in 25 law enacted by this Act, to the extent that the provision is not inconsistent with a provision 26 of this Act. 27 * Sec. 51. FIRST LEASE EXTENSION REPORT. Notwithstanding AS 36.30.083(c), 28 enacted by sec. 11 of this Act, the first lease extension report under AS 36.30.083(c) is due 29 August 31, 1997, and must cover fiscal year 1997. 30 * Sec. 52. Sections 8 - 13, 15, 19, 24 - 25, 27 - 29, 41 - 43, 45, 47(a), and 48 - 51 of this 31 Act take effect immediately under AS 01.10.070(c).

01 * Sec. 53. Sections 1 - 7, 14, 16 - 18, 20 - 23, 26, 30, 31, 33 - 40, 44, and 47(b) of this 02 Act take effect September 30, 1996. 03 * Sec. 54. Section 32 of this Act takes effect January 1, 1997. 04 * Sec. 55. Section 46 of this Act takes effect August 22, 1998.