Legislature(2023 - 2024)GRUENBERG 120
04/16/2024 01:00 PM House MILITARY & VETERANS' AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB154 | |
| HB373 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 154 | TELECONFERENCED | |
| *+ | HB 373 | TELECONFERENCED | |
SB 154-BIDDER PREF MILITARY CAREER SKILLS PROG
1:03:05 PM
CHAIR WRIGHT announced that the first order of business would be
SENATE BILL NO. 154, "An Act relating to bidder preferences in
state procurement."
1:03:54 PM
KALEB CALLAHAN, Staff, Senator Bill Wielechowski, Alaska State
Legislature, on behalf of Senator Wielechowski, prime sponsor,
paraphrased the sponsor statement for SB 154 [included in the
committee packet], which read as follows [original punctuation
provided]:
SB 154 establishes a bidder preference of state
contracts for veterans and servicemembers.
Alaska's population of veterans is 68,719 (2017, DoVA)
as well as 21,407 (2019, Ak Labor Statistics) active-
duty personnel, it is estimated that nearly 1/3 of
Alaskans are either veterans themselves or have
immediate family that are veterans. SB 154 looks to
highlight career opportunities for our former service
members looking for a new way to serve their community
as civilians, as well as add adept employees to the
state's workforce.
SB 154 enacts a 2 percent bidder preference not to
exceed $5,000 for procurement contracts. These
programs aim to offer civilian work experience through
industry training, pre-apprenticeships, registered
apprenticeships, or internships for their time while
exiting their active service contract.
Eligible entities are those that have employed at
least one person enrolled in or recently graduated
from, the US Dept. of Defense, SkillBridge, or Army
Career Services for servicemembers or spouses.
SB 154 is a win-win for Alaskan businesses and for
Alaska's veterans looking to start their new chapter
in the civilian workforce.
1:06:52 PM
REPRESENTATIVE RAUSCHER pointed to language on page 1, line 11
of the proposed legislation and questioned how the 2 percent
preference would be calculated.
MR. CALLAHAN answered that this represents a 2 percent bidder
preference. He gave the example of a cap of $5,000, with a $1
million contract. He explained that the state would not take
$20,000 from the bid, but it would give the cap of $5,000. In
response to a follow-up question, he stated that the $5,000
would be taken off the price of the contract. In response to a
follow-up question, he deferred the question to the Department
of Military and Veterans Affairs (DMVA).
1:09:44 PM
ANGELA LAFLAMME, Legislative Liaison, Department of Military and
Veteran Affairs, Joint Base Elmendorf-Richardson, explained the
procurement process when preferences are applied. When a bidder
claims [veteran] preference, she said, the 2 percent would be
taken off the total bid. The bidder with the lower amount after
the preference is applied would get the contract, but the
contract award would not be reduced. In response to a follow-up
question, she confirmed that the preference would not change the
amount of the bid offered; therefore, in the example, the $1
million would still be the amount of the contract, but the
contract would be awarded based on the reduced amount of the
bid.
1:11:24 PM
REPRESENTATIVE GRAY pointed out that, based on [veteran]
preference, the state could be paying more than other bidders
who do not have the preference.
MS. LAFLAMME responded in agreement. She stated that the
preference would not change the award amount, just the ranking
of offers.
1:12:45 PM
MS. LAFLAMME, in response to a question from Representative
Saddler, answered that the SkillBridge Program is a U.S.
Department of Defense (DoD) voluntary program that businesses
can apply for, and this program allows DoD to pay a service
member's salary when the member transitions from military
service to civilian status. In response to a follow-up question
concerning the current percentage of participants, she deferred
the question to Kyle Kaiser.
1:14:09 PM
KYLE KAISER, President and Founder, Viper Transitions, explained
that giving an exact percentage would be difficult, as every
service member goes through the [Transition Assistance Program],
but participation in the program depends on command approval.
He stated that for employment opportunities, this would require
a process that starts a year out from separation. The member
would then be allowed to attend training to obtain employment
skills six months out from separation. He stated that it also
depends on the programs and employment opportunities that are
available.
REPRESENTATIVE SADDLER expressed the understanding that Section
2 of SB 154 would allow the 2 percent bidder preference to go to
those who are employed by a qualifying entity. To qualify the
entity would be an organization that employs someone who has
participated in the program. He asked if all service members
would qualify for the preference.
MR. KAISER answered that everyone in the military would qualify
under the program. He explained that the difference between the
SkillBridge Program and the Army Career Skills Program (CSP), is
that CSP is the U.S. Army's specific version, and it requires
more qualifications. In response to a follow-up question, he
stated that every service member leaving service who went
through the approved transition program would qualify for the 2
percent bidder preference under CSP and the SkillBridge Program.
He affirmed that every military member would qualify through one
of the programs.
1:17:48 PM
REPRESENTATIVE GROH expressed the understanding that U.S. Air
Force members would qualify.
1:18:11 PM
MR. KAISER, in response to a question from Chair Wright,
answered that the SkillBridge Program has been around a number
of years, but it has not received very much attention or
support.
1:19:03 PM
REPRESENTATIVE SADDLER, concerning the bidder preference
qualifications in Section 2, asked Senator Wielechowski whether
the intention is to make a preference for veterans who are
qualified Alaska bidders.
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, answered
that the preference applies to any bidder with an employee who
has graduated from the DoD transition program within the past
two years. He reiterated that this would track the employer.
REPRESENTATIVE SADDLER inquired whether there are any service
members who would not meet these qualifications.
1:20:48 PM
MR. CALLAHAN expressed the understanding that there are no
service members who would not meet the qualifications. He noted
that if a business hires a person who has completed the
SkillBridge Program, the business has partnered with DoD to
offer internships.
REPRESENTATIVE SADDLER expressed support for service members to
obtain employment training after service. He asked why the bill
would not directly address companies that hire Alaska veterans
in order to qualify for the 2 percent preference.
MR. CALLANHAN responded that a veteran preference already
exists, and this is larger than the one offered under SB 154;
therefore, the bill would strengthen this "pipeline." He said
that the proposed legislation would target those transitioning
out of service and becoming veterans. If the business retained
the employee, then it would qualify for the already existing 5
percent bidder preference. He added that these preferences do
not stack. In response to a follow-up question, he stated that
this preference would apply to a business that employs a
veteran.
1:23:15 PM
CHAIR WRIGHT, in response to a question from Representative
Gray, stated that a person becomes a veteran the day he/she
joins the military.
REPRESENTATIVE CARPENTER commented that he retired from the
military in 2018 and did not participate in a career skills
program; therefore, not every departing service member would be
in a program. He expressed the understanding that the proposed
legislation would be promoting only these programs.
1:25:03 PM
MR. KAISER stated that not every service member goes through
such programs, and the goal of the bill would be to create a
mechanism to support veteran workforce development and encourage
Alaska employers to retain veterans who participated in the
program.
1:26:58 PM
REPRESENTATIVE CARPENTER asked whether the 2 percent preference
is already in the state's procurement statutes. He also asked
whether the different preference percentages would stack.
MR. CALLAHAN expressed the understanding from Legislative Legal
Services that the preference percentages would not stack.
1:27:55 PM
REPRESENTATIVE RAUSCHER questioned the situation where a
contractor is the only employee.
1:28:15 PM
The committee took a brief at-ease.
1:28:35 PM
REPRESENTATIVE RAUSCHER reiterated his question.
MR. CALLAHAN expressed uncertainty and stated he would follow up
with the answer.
1:29:12 PM
CHAIR WRIGHT opened public testimony on SB 154. After
ascertaining that there was no one who wished to testify, he
closed public testimony.
1:29:39 PM
CHAIR WRIGHT announced that SB 154 was held over.
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