Legislature(1993 - 1994)
03/22/1994 03:00 PM L&C
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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 program. 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 function. 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 adopted. 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.