Legislature(2005 - 2006)BELTZ 211
04/12/2005 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB160 | |
| SB108 | |
| SB157 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 157 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 160 | TELECONFERENCED | |
| += | SB 108 | TELECONFERENCED | |
SB 160-STATE PROCUREMENT ELECTRONIC TOOLS
CHAIR BUNDE announced CSSB 160(L&C) to be up for consideration
and that it contains the Alaska bidder preference.
PATTY ADY, Supply Technician, Sitka Pioneer Home, opposed SB
160. She said:
The state is nine months into a two-year pilot
project. There is insufficient data to know what the
long-term outcome will be. A private contractor is in
business to make money, not to provide for all the
different needs of Alaskans. These companies are more
concerned with their profit margins than with the
quality of the products used by frail elders. Our
resident needs are different than the needs of other
areas of the state that could suffer by the decisions
made by people who do not have the experience to deal
with these frail elders.... Our state will lose
approximately 200 jobs, which we can ill afford to be
lost.
1:45:32 PM
SENATOR ELLIS joined the committee.
1:46:05 PM
BRUCE LUDWIG, Business Manager, Alaska Public Employees
Association (APEA), American Federation of Teachers, said he is
also Secretary-Treasurer of the Alaska State AFL-CIO. He said
the pilot program was rushed through in the final days of the
2003 session. There were no measurements of success included nor
benchmarks for comparison. He said the bill title is also
misleading. Alaska Supply Chain Integrators (ASCI) was the only
responsive bidder.
MR. LUDWIG said:
Since the pilot project began, only one quarter of the
work has been audited. The second quarter is in the
process of the audit and the third quarter is just
over and we can presume that that's going to be
started soon. The pilot has until June 30, 2006 until
it expires. As the Department of Administration
testified last week, the jury is still out on the
project. It's too early to extend it. The bill should
be held over while a sufficient record is established
to be able to make a decision on whether or not it's a
success.
MR. LUDWIG said he has heard many negative things about the
experience. He heard that the purchasing of goods has resulted
in a 20 percent increase in the cost. If that is extended over
the life of the project, it will actually cost the state $2.5
million more for the same goods that would have been purchased
through the state purchasing procedure. He has heard that 1,500
invoices haven't been paid because they don't match up with the
purchase orders.
That's Alaska firms that aren't getting paid. It's
going to affect the state's reputation with its
vendors and it's going to affect those firms that
aren't getting their money timely.
1:49:00 PM
He related how the M/V Kennicott had an engine overhaul and
seven orders were placed for engine parts. Six of the orders
were shipped to Juneau, but the ship was in dry-dock in Portland
and all the heavy parts had to be shipped there. Of the original
$250,000 projected savings, about half was from eliminating the
warehouse, but that has been reinstated. ASCI employees are
working overtime now and the remaining savings might be
nonexistent. In addition, since ASCI does not follow the
procurement code, their procedures do not meet the minimum
requirements for federal purchasing, which are very strict.
Overhead, contract oversight and other things were not budgeted
for. "In summary, it's too early to extend the project...."
1:51:19 PM
CHAIR BUNDE asked him about conflict of interest concerns.
MR. LUDWIG explained he had heard about a conflict of interest
between a state official and someone connected with ASCI, but he
didn't find any connection and the issue should be dropped.
1:52:33 PM
SENATOR SEEKINS moved to pass CSSB 160(L&C) from committee with
individual recommendations and fiscal note.
SENATOR ELLIS objected to ask someone to discuss the audit
report.
VERN JONES, Chief Procurement Officer, Department of
Administration, said the initial audit was done at a time of
lots of transitions and he felt there wasn't a large enough
sample to draw conclusions for the audit.
SENATOR ELLIS asked when the next audit would be available.
MR. JONES replied at the end of this week and he hoped to
conclude the third quarter's audit by end of session.
SENATOR ELLIS again noted the memo from Mr. Barton that has
comparisons.
MR. JONES said memo is technically correct, but he believes
through talking to professionals at the Division of Legislative
Audit that the actual sample was so small, they couldn't
extrapolate any findings that would hold up.
2:00:36 PM
SENATOR DAVIS noted that the bill doesn't have any other
referrals and asked what the hurry is.
CHAIR BUNDE replied that he wanted the bill to move through the
process.
2:01:30 PM
SENATOR ELLIS also asked what's the hurry. They are barely eight
months into the pilot program.
CHAIR BUNDE said he thought progress was being made towards
better service to the state, but the full body makes that
decision.
2:02:56 PM
SENATOR ELLIS said state employees could do a better job if they
were to be provided with the modern tools and techniques that
private industry has. He also appreciated the attention to
detail and urged people who erroneously made references to
conflicts of interest to correct their comments in an
expeditious manner.
CHAIR BUNDE said that had been done.
A roll call vote was taken. Senators Ben Stevens, Seekins, and
Chair Bunde voted yea; Senators Davis and Ellis voted nay; and
CSSB 160(L&C) moved from committee.
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