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Legislature Unanimously Approves Legislation Streamlining the State’s Procurement Process

SB12 encourages more competition and allows state to achieve efficiencies

JUNEAU-Today, the Legislature unanimously passed a bill streamlining and modernizing how the state obtains equipment, materials and supplies.   Senate Bill 12, sponsored by Senator Anna Fairclough, R-East Anchorage/Eagle River, will encourage more competition and allow the state to achieve efficiencies while benefitting Alaskan businesses.

“Small procurement procedures are easier for businesses to understand and less expensive for them to comply with, and they are more efficient for the state to conduct,” said Senator Fairclough.  “These changes are fair and reasonable while still making sure that Alaskan-owned businesses get the first shot at doing business with the state.”

Senate Bill 12 simplifies the procurement process by standardizing complex and confusing preference language.  It also increases small procurement thresholds from $50,000 to $100,000 for goods and services and from $100,000 to $200,000 for construction so small transactions can be dealt with in a less formal way.

“These changes will help rural and urban communities by allowing more Alaskans to bid on Alaskan projects,” said Senator Fairclough.   “This legislation will also increase the effectiveness of state employees who procure and administer contracts for goods and services by allowing them to focus on the bigger, more complicated projects.”

With declining oil production, we are facing revenue shortages in Alaska.  We must dig deep into state government and look for areas where we can find cost savings.  Senate Bill 12 has the potential to save the state money while helping small business owners in Alaska.

“This bill helps move Alaska into the 21st century where many business transactions are handled online,” said Senator Fairclough.  “It saves time and money for everyone involved and, in the end, will benefit the state by allowing enough time to really investigate the cost benefit of larger procurements.”

Senate Bill 12 now heads to Governor Parnell for his signature.

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