02/15/1994 09:20 AM Senate FIN

  CSSB 212(L&C): An Act relating to the giving  of procurement                 
                 notices; changing the content of the required                 
                 procurement reports to the legislature by the                 
                 commissioner of  administration; relating  to                 
                 publications  produced  by   state  agencies;                 
                 establishing   an   innovative   construction                 
                 procurement   methods   pilot   program;  and                 
                 establishing    legislative    findings,    a                 
                 legislative purpose,  and legislative  intent                 
                 for state procurement;  and providing for  an                 
                 effective date.                                               
                                                                               
                 Josh  Fink,  aide to  Senator  Kelly  and the                 
                 Labor  & Commerce  Committee,  sponsor of  SB
,  testified  in   support  of  the  bill.                 
                 Amendment 1  by Co-chair  Pearce was  ADOPTED                 
                 with  no  objections.    CSSB  212(FIN)   was                 
                 REPORTED OUT  of committee with a  "do pass,"                 
                                                                               
                                                                               
                 a  zero fiscal  notes for  the  Department of                 
                 Administration,   a   fiscal  note   for  the                 
                 Department  of  Administration-Statewide  for                 
                 $256.1, and a fiscal note for the  Department                 
                 of Transportation & Public Facilities in  the                 
                 amount of $5.0.                                               
                                                                               
  CS FOR SENATE BILL NO. 212(L&C):                                             
                                                                               
                                                                               
       An Act relating  to the giving of  procurement notices;                 
       changing  the  content   of  the  required  procurement                 
       reports  to  the  legislature  by  the  commissioner of                 
       administration;  relating  to publications  produced by                 
       state agencies; establishing an innovative construction                 
       procurement  methods  pilot  program; and  establishing                 
       legislative  findings,  a   legislative  purpose,   and                 
       legislative intent for state procurement; and providing                 
       for an effective date.                                                  
                                                                               
  CO-CHAIR PEARCE announced that CSSB  212(L&C) was before the                 
  committee.  She invited Josh Fink, aide to Senator Kelly and                 
  the Labor & Commerce  Committee, sponsor of SB 212,  to come                 
  before the committee.                                                        
                                                                               
  JOSH  FINK  said  that  SB  212,  termed  the "buy  Alaskan"                 
  legislation, had several  components.   The idea behind  the                 
  bill was that the state is one of the largest  purchasers of                 
  goods and services  in the state purchasing  everything from                 
  road design and  construction services to copy  machines and                 
  paper and  pencils.  This bill aimed  to strengthen Alaska's                 
  economy   by  increasing  the   share  of  State  government                 
  contracts  going  to Alaskan  businesses.   This  bill would                 
  establish  an  Innovative  Construction Procurement  Methods                 
  pilot  program  within  Dept.  of  Transportation  &  Public                 
  Facilities (DOT&PF) for  a period of two years  to implement                 
  an Alaska Bonus Program to replace the current preferences.                  
                                                                               
  He  went  on  to  say that  current  incentives  include the                 
  Alaskan   Bidders    Preference,   Alaska    Subcontracting,                 
  Disadvantage    Business     Enterprises/Equal    Employment                 
  Opportunity  programs, Alaska  Products Preference,  and the                 
  Alaska  Hire  Program.     The   latter  two  were   largely                 
  unworkable,  under-utilized,   or  not   utilized  at   all.                 
  Allowing DOT/PF to  test, on a  trial basis, a bonus  system                 
  which provided bonuses at project completion  and encouraged                 
  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 were currently not allowed.                          
                                                                               
  The  commissioner  would  establish   this  program  through                 
  regulation and report  to the  legislature on the  program's                 
  progress  15  to   27  months  after  implementation.     If                 
  successful,  the legislature  could  expand and  extend  the                 
  program indefinitely, replacing current preferences.                         
                                                                               
  Lastly, this bill  incorporates a number of  provisions from                 
  the "Make-It-Alaskan" legislation from the 17th Legislature,                 
  HB 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                 
  procurements,  the number  of  bidders located  in-state and                 
  out-of-state  that bid  or made  proposals on  procurements;                 
  and,   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 practicable.   In                 
  addition, standards for the production of publications would                 
  be established  by the Dept.  of Administration, and  a cost                 
  box  would  be  required  for  all  publication's  exceeding                 
  $1,500.  With that, he concluded his testimony.                              
                                                                               
  In answer to Co-chair Frank, Mr. Fink said that page 4, line                 
  29,  is   where  the   section  relating   to  printing   of                 
  publications began.   Co-chair Pearce believed this  was the                 
  same language used in Co-chair Frank's  bill that was in the                 
  house.                                                                       
                                                                               
  Co-chair  Pearce  stated that  amendment  #1 was  before the                 
  committee.  She said it strengthened the cost box portion of                 
  SB 212.  She said  that it was not aimed at  the Division of                 
  Tourism's planner because  it was  not required by  statute.                 
  This was aimed at annual reports  required by law from state                 
  agencies.                                                                    
                                                                               
  SENATOR  KELLY MOVED for adoption  of amendment #1.  Hearing                 
  no objection, it was ADOPTED.                                                
                                                                               
  Senator  Kelly  MOVED  for  passage  of CSSB  212(FIN)  from                 
  committee  with individual  recommendations.   No  objection                 
  having  been  raised,  CSSB  212(FIN)  was REPORTED  OUT  of                 
  committee with  a "do  pass" recommendation,  a zero  fiscal                 
  note for the Department of Administration, a fiscal note for                 
  the Department of Administration-Statewide for $256.1, and a                 
  fiscal note for  the Department  of Transportation &  Public                 
  Facilities  in the  amount of  $5.0.   Co-chairs Pearce  and                 
  Frank,  Senators  Kelly, Sharp  and  Jacko voted  "do pass."                 
  Senator Rieger voted "no recommendation."