https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com

issue_20031001


Move to Do Away with Competitive Bidding in Not in States Best Interest

Move to Do Away with Competitive Bidding in Not in States Best Interest

Move to Do Away with Competitive Bidding is Not in State's Best Interest The State of Alaska is jumping into the world of non-competitive bidding under
  • Written by Null Null
  • 29th October 2003

Move to Do Away with Competitive Bidding is Not in State’s Best Interest

The State of Alaska is jumping into the world of non-competitive bidding under a pilot project that Governor Frank Murkowski signed into law last June. The results could be devastating for Alaska businesses. The new law began as an idea to save money, but is a major step toward doing away with competitive bid-ding, including the 5 percent bidder preference for Alaska contractors that has been law for many years. The project exempts two huge areas of the state from the State Procurement Code, and globalizes purchasing by allowing a private firm to outsource Alaska business through the Internet.

The pilot project initially affects the Southeast and Central Regions of the Department of Transportation and Public Facilities (DOT/PF). These Regions are responsible for all competitive bidding, engineering and architectural services, and equipment and supply purchases in an area that includes Bethel, the Aleutians, Anchorage, the Kenai Peninsula, parts of the Parks and Glenn Highways, and extends as far south as Ketchikan and Prince of Wales Island. The project also includes the Alaska Marine Highway System.

Billions of dollars of state road, airport, and building projects and Marine Highway vessel repair, maintenance, and overhaul, as well as purchases of parts, heavy equipment, food, and retail sales items will be controlled by a private contractor who will not be bound by the competitive requirements of the State Procurement Code.

During testimony on the bill before the State Legislature, Rep. Lesil McGuire, the bill’s sponsor, said the program could save the state between $5 and $20 million dollars over its three-year life. While the bill might result in this up-front savings on state purchasing, it could end up costing the state much more as Alaska public-sector jobs and private-sector business go south or overseas. The elimination of skilled public-sector professionals, along with competition from the bidding process, could result in a return to a system that is open to abuse.

Alaska’s state procurement laws are stringent because safeguards were recommended by a grand jury that investigated an office lease deal that nearly led to impeachment of Governor Bill Sheffield in 1985. The grand jury advised adoption of procurement regulations “… designed to deter intervention on behalf of favored political interests, while at the same time not hamper the efficient delivery of governmental services.”

The grand jury report resulted in an exhaustive five-month review by a legislative committee of state procurement practices which found there was confusion among those wishing to contract with the state, and there had been “a dramatic increase in litigation concerning contract disputes because the state does not have a comprehensive procurement law.” The committee report said: “Public procurement is a highly technical process and involves millions of state dollars annually. Expertise is required to make the process work efficiently and effectively.” In 2003, the Central and Southeast Regions of DOT/PF handled billions of dollars of public money.

The attempt to update the state’s procurement system is not a new idea. Several years ago the DOT/PF worked with the Association of General Contractors (AGC) to investigate the possibilities of going to an electronic bid-ding process. The working group found that the current construction contracting system is already highly accessible electronically. The working group also raised concerns that 100 percent online bidding would make it far easier for non-Alaskan and foreign bidders to compete for bids, raising a whole array of concerns if bids are won by firms unfamiliar with Alaskan conditions.

By concentrating so intently on reducing operating expenses, state legislators and administrators are losing sight of the intent of the State Procurement Code to protect state businesses and ensure that state funds are fairly spent on behalf of all Alaskans. The employees who currently oversee state procurement understand the peculiarities of competitive bidding and purchasing in Alaska’s construction environment.

The attempt to streamline Alaska’s procurement process may have been well intentioned, but the result could be the loss of competitive bidding, Alaska jobs and business, and a return to a politicized system of contracting.

Editor’s Note: Contributors to this month’s Guest Findings include Jim Duncan, Business Manager, Alaska State Employees Association; Bruce Ludwig, Business Manager, Alaska Public Employees Association; Don Valesko, Business Manager, Alaska Public Employees Local 71; and Darryl Tseu, Regional Director, Inland Boatman’s Union of the Pacific.

Tags: ar issue_20031001 mag

Most Recent


  • What’s my truck worth?
    Truck Value VIN Decoding & Make/Year/Model Lookup
  • Move to Do Away with Competitive Bidding in Not in States Best Interest
    Calendar of events
    A list of NIGP courses, conferences and webinars for NIGP members held in December 2012 and January 2013.
  • Move to Do Away with Competitive Bidding in Not in States Best Interest
    UPPCC new certifications
    The Universal Public Purchasing Certification Council announces that 208 individuals successfully completed the spring 2012 UPPCC certification examinations administered in May 2012.
  • Move to Do Away with Competitive Bidding in Not in States Best Interest
    Performance data on the latest certification exams
    The UPPCC has released key performance data from the May 2012 examinations.

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Move to Do Away with Competitive Bidding in Not in States Best Interest
    State Fiscal Picture Brightens
  • Contracting for Performance: No More Acquisition Think
  • Product Spotlight: Public Works
  • Are Your Employees Giving You the Silent Treatment

White papers


Modern American Perspectives on Law Enforcement

14th July 2022

Reimagine the Employee Experience

12th July 2022

How to Assemble a Rockstar Website Redesign Steering Committee

7th June 2022
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

In Nevada county, data underpins efforts to address climate change dlvr.it/SWTGHy

11th August 2022
AmerCityCounty

$52B semiconductor investment intended to rejuvenate American manufacturing dlvr.it/SWPqHQ

10th August 2022
AmerCityCounty

How capital improvement project prioritization helps secure infrastructure funding dlvr.it/SWLQB7

9th August 2022
AmerCityCounty

Climate bill lauded; predicted to reduce nation’s carbon foot print by 40% within decade dlvr.it/SWHGQL

8th August 2022
AmerCityCounty

Partnership launches no-cost wastewater monitoring service for local governments dlvr.it/SW7N74

5th August 2022
AmerCityCounty

Investing in America’s onsite wastewater treatment systems for equity and sustainability dlvr.it/SW4Mb9

4th August 2022
AmerCityCounty

With passage of PACT Act, veterans service officers are preparing for an influx in applicants dlvr.it/SW4KTg

4th August 2022
AmerCityCounty

The 5 Procurement Superpowers Shaping the Future of Public Procurement dlvr.it/SW4DqT

4th August 2022

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X