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Senate Passes Bill Streamlining Procurement Process

SB12 encourages more competition and allows state to achieve efficiencies

JUNEAU-The Alaska State Senate this week passed Senate Bill 12, sponsored by Senator Anna Fairclough, R-East Anchorage/Eagle River, which streamlines and modernizes how the state obtains equipment, materials and supplies. The changes will encourage more competition and allow the state to achieve efficiencies while benefitting Alaskan businesses.

“It has been many years since our procurement code has been updated,” said Senator Fairclough.   “These changes will cut costs and reduce barriers for Alaskan businesses, especially small and rural based firms, as well as increase the effectiveness of state employees who procure and administer contracts for goods and services.”

Senate Bill 21 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 much less formal way.

“Small procurement procedures are easier for businesses to understand and less expensive for them to comply with, and they are faster and 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.”

The bill also allows the state to take advantage of today’s technology by allowing for electronic receipt of bids and signatures.   The bill also eliminates the requirement to maintain outdated vendor lists in a time when commerce is moving online.

“This bill helps move Alaska into the 21st century where nearly everything is being 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.”

For more information, please contact Laura Pierre in Senator Fairclough’s office at 907-465-3777.

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