Legislature(1993 - 1994)

03/22/1994 03:00 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  SB 212 - STATE PROCUREMENTS AND PUBLICATIONS                                 
  Number 295                                                                   
  JOSH FINK, Staff, Sen. Tim Kelly, Chair of the Senate Labor                  
  & Commerce Committee, presented SB 212 and read the                          
  following sponsor statement:                                                 
  State government is one of the largest purchasers of goods                   
  and services in the Alaskan economy.                                         
  SB 212 aims to help strengthen Alaska's economy by                           
  increasing the share of State government's contracts for                     
  goods and services going to Alaskan businesses.                              
  Specifically, this legislation would establish an Innovative                 
  Construction Procurement Methods Pilot Program within the                    
  DOT/PF for a period of two years to implement an Alaska                      
  Bonus Program to replace the current preferences.                            
  Current incentives include the Alaskan Bidders Preference,                   
  Alaska Subcontracting, Disadvantage Business                                 
  Enterprises/Equal Employment Opportunity programs, and                       
  Alaska Products Preference, and the Alaska Hire Program.                     
  The latter two are largely unworkable and consequently                       
  underutilized or not utilized at all.  Allowing DOT/PF to                    
  test on a trial basis a bonus system which provides bonuses                  
  at project completion and encourages the same policy goals                   
  would be more economically beneficial for vendors, reduce                    
  administrative costs and bid protests, and could likely be                   
  used in joint federal/state projects where State preferences                 
  are currently not allowed.                                                   
  Lastly, this bill incorporates a number of provisions from                   
  the "Make-it-Alaskan" legislation from the 17th Legislature,                 
  House Bill 245, which would also increase the amount of                      
  State work going to Alaskans.  This bill would:                              
  1)  Encourage procurement officers to restrict notice of                     
  contract solicitation to Alaskan suppliers and providers of                  
  services desiring to compete for state contract work.  (This                 
  practice is already standard in DOT/PF);                                     
  2)  Require the commissioner to include in his report to the                 
  legislature on State procurement the number of bidders                       
  located in-state and out-of-state that bid or made proposals                 
  on procurement;                                                              
  3)  Replace the statutory requirement that State                             
  publications be produced at State-operated facilities with a                 
  requirement that State publications be produced at a private                 
  sector facility located in the State when practical.  In                     
  addition, standards for the production of publications would                 
  be established by the Department of Administration, and a                    
  cost box would be required for all publication's exceeding                   
  $1,500.00 in cost.                                                           
  Number 342                                                                   
  CHRIS GATES, Director, Division of Economic Development,                     
  Department of Commerce and Economic Development, testified                   
  in support of SB 212.  He stated that his division has been                  
  working hard on one provision in SB 212, the Innovative                      
  Construction Procurement Methods Pilot Program.  Mr. Gates                   
  stated that SB 212 will allow the state to offer incentives                  
  for federal contracts.                                                       
  MR. GATES added that SB 212 cures a lot of administrative                    
  problems that the state currently has with the bid based                     
  Number 388                                                                   
  RESA JERREL, Lobbyist, National Federation of Independent                    
  Businesses (NFIB), testified in support of SB 212.  She                      
  added that 83% of the members of NFIB polled support getting                 
  government out of competing with private business.                           
  Number 400                                                                   
  JOSH WARNER, Owner, Alaska Corporation Printing, testified                   
  in support of SB 212.  He stated that with the technological                 
  advances of the last decade, centralized printing centers                    
  run by the government are outdated.                                          
  Number 435                                                                   
  LOREN RASMUSSEN, Chief of Design and Construction Center,                    
  Department of Transportation, testified in favor of SB 212.                  
  He stated that SB 212 would not eliminate the competitive                    
  sealed bid process.  He said SB 212 would allow the                          
  opportunity to improve the use of Alaskan products                           
  preferences, subcontracting and Alaska hire.                                 
  Number 485                                                                   
  REP. SITTON asked if the integrated pilot program in SB 212                  
  would get in the way of the minority business enterprise                     
  Number 487                                                                   
  MR. RASMUSSEN replied no.                                                    
  Number 490                                                                   
  REP. MULDER asked if the effective dates in Sections 2 and 3                 
  were the result of this being a pilot program.                               
  Number 500                                                                   
  MR. RASMUSSEN stated that those sections do not apply to the                 
  integrated program, it applies to when and where DOT                         
  advertises contracts.                                                        
  Number 505                                                                   
  REP. GREEN offered Amendment 1, page 2, line 30.  This                       
  amendment would encourage use of in-state investment and                     
  brokerage services whenever possible.                                        
  Number 530                                                                   
  MR. FINK added that there was similar language in the                        
  original bill, but it was taken out as there was some                        
  concern that other legislation could get tagged on to it.                    
  Number 535                                                                   
  CHAIRMAN HUDSON asked if there were any objections to                        
  Amendment 1.  No objections were heard; Amendment 1 was                      
  Number 540                                                                   
  REP. GREEN moved HCSCS SB 212(L&C) am with individual                        
  recommendations and fiscal note.  No objections were heard;                  
  it was so ordered.                                                           

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