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Governor Signs Bill Creating Competition and Cost Savings

SB12 modernizes state’s procurement code to achieve efficiencies and benefit Alaskan businesses

ANCHORAGE-Today, Governor Sean Parnell signed legislation designed to modernize and streamline 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.

“With declining oil production, we are facing revenue shortages in Alaska,” said Senator Fairclough.  “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.”

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.  The legislation also clarifies when an Alaskan Business license is required to qualify for award of a contract.  

“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.”

The changes under SB12 will also allow the state to achieve efficiencies by taking advantage of today’s technology by allowing electronic bidding and eliminating outdated requirements such as bidder lists.

“By modernizing and moving online like much of the rest of the business world, this bill will help save time and money for everyone involved and, in the end, will benefit the state by increasing 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.”

Senate Bill 12 is effective immediately. 

For more information, please contact Laura Pierre in Senator Fairclough’s office at (907) 269-0149.

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