STATE OF ALASKA
PROCUREMENT REGULATIONS
TITLE 2, CHAPTER 12
2/16/12
IMPORTANT
This is not the official version of the regulations currently in effect. This version may contain errors or omissions and may not contain information that has been inserted or changed after their preparation. This is intended as an informational guide only. The Division of General Services makes no warranty, expressed or implied, of the accuracy of this document. To be certain of the current version, please refer to the official printed version of the regulations.
ARTICLE 1
SOURCE SELECTION
12.010Nondiscrimination in source selection
12.020Exclusion of prospective contractor from competition
12.030Procuring state-produced supplies or services from industries of Alaska correctional institutions
12.040Procurement of legal counsel
12.050Procuring supplies or services from employment programs or from youth education and employment programs
12.060Contractors lists
2 AAC 12.010NONDISCRIMINATION IN SOURCE SELECTION
Source selection may not be based on discrimination because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation.
(Eff. 1/1/88, Register 104; am 6/29/95, Register 134)
2 AAC 12.020EXCLUSION OF PROSPECTIVE CONTRACTOR FROM COMPETITION
A procurement officer may exclude a prospective contractor from submitting a bid or proposal, or may reject a prospective contractor's bid or proposal, after making a written determination that the prospective contractor assisted in drafting the invitation to bid or request for proposal, or gained substantial information regarding the invitation to bid or request for proposal that was not available to the general public. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.050
2 AAC 12.030PROCURING STATE-PRODUCED SUPPLIES OR SERVICES FROM INDUSTRIES OF ALASKA CORRECTIONAL INSTITUTIONS
Purchasing requirements of an agency may be fulfilled by procuring supplies produced or services performed by industries of Alaska correctional institutions. The Commissioner of Administration will determine whether such supplies or services meet the state's requirements and whether the price represents a reasonable cost for such supplies or services. If a procurement is to be made from the state correctional industries program, the private sector may not be solicited to compete. (Eff. 1/1/88, Register 104)
Authority
AS 33.32.030
AS 36.30.040
AS 36.30.100
2 AAC 12.040PROCUREMENT OF LEGAL COUNSEL
An agency may not contract for the services of legal counsel without the prior written approval of the Attorney General. Contracts for the services of legal counsel may incorporate clauses for adjustments in prices, time of performance, and total dollar amount. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.015
AS 36.30.040
2 AAC 12.050PROCURING SUPPLIES OR SERVICES FROM EMPLOYMENT PROGRAMS OR FROM YOUTH EDUCATION AND EMPLOYMENT PROGRAMS
(a)The Chief Procurement Officer shall use the list maintained by the division of vocational rehabilitation of employment programs that qualify under AS 36.30.990(11).
(b) A procurement officer may fulfill agency requirements by procuring supplies produced or services performed by an eligible employment program or an accredited youth education and employment program.
(c) Before procuring supplies or services from an eligible employment program or an accredited youth education and employment program, the procurement officer shall determine whether the supplies or services meet the state's requirements and whether the price represents a reasonable cost for the supplies or services. If it is determined that the requirements cannot bemet by supplies produced or services performed by an eligible employment program or an accredited youth education and employment program, or the price is not reasonable, the procurement may be made from the private sector in accordance with AS 36.30 and this chapter. If a procurement is to be made from an employment program, it is not necessary that the private sector be solicited. (Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 11/28/97, Register 144; am 10/3/02, Register 163).
Authority
AS 36.30.040
AS 36.30.100
AS 36.30.311
2 AAC 12.060CONTRACTORS LISTS
(a) A person who wishes to be on a contractors list must submit to the Commissioner of Administration
(1) evidence of a valid Alaska business license;
(2) a biennial fee of $25 if required; and
(3) for construction contractor lists, a valid certificate of registration issued under AS 08.18.
(b) The Commissioner of Administration or the Chief Procurement Officer may require other information for contractor’s lists.
(c) A business that is debarred or suspended under AS 36.30 shall be removed from the contractors list during the period of debarment or suspension.
(d) If a solicitation is returned to a state agency by the U.S. Postal Service as undeliverable, the returned solicitation shall be forwarded to the Department of Administration for removal of the bidder or offeror from the contractors list. The state will not pursue correction of incorrect addresses. (Eff. 1/1/88, Register 104; am 3/30/90, Register 113)
Authority
AS 36.30.040
AS 36.30.050
ARTICLE 2
SPECIFICATIONS
12.070Authority to prepare specifications
12.080Purpose of specifications
12.090No unduly restrictive specifications
12.100Brand name specification
12.110Qualified products list
2 AAC 12.070AUTHORITY TO PREPARE SPECIFICATIONS
The Chief Procurement Officer may prepare and approve specifications for supplies or services. The Commissioner of Transportation and Public Facilities may prepare and approve specifications for construction and purchases for the state equipment fleet. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.060
2 AAC 12.080PURPOSE OF SPECIFICATIONS
(a) The purpose of a specification is to serve as a basis for obtaining, in a cost effective manner, a supply, service, or construction item suitable for the state's needs.
(b)Specifications must, to the extent practicable, emphasize functional or performance criteria necessary to meet the needs of the state. Specifications emphasizing functional or performance criteria are primarily applicable to the procurement of supplies and services and might not be practicable in construction, apart from the procurement of supply type items for a construction project.
(c) It is state policy to procure standard commercial products if practicable. (Eff. 1/1/88,Register 104; am 11/28/97, Register 144)
Authority
AS 36.30.040
AS 36.30.060
2 AAC 12.090NO UNDULY RESTRICTIVE SPECIFICATIONS
Except for specifications relating to procurements under 2 AAC 12.400 (a) or (b), all specifications must describe the requirements to be met without having the effect of exclusively requiring a proprietary supply, service, or construction item, or procurement from a single source, unless no other manner of description will suffice. (Eff. 1/1/88, Register 104; am 11/28/97, Register 144)
Authority
AS 36.30.040
AS 36.30.060
2 AAC 12.100BRAND NAME SPECIFICATION
Except for specifications relating to procurements under 2 AAC 12.400 (a) or (b), a specification that limits the procurement of items to a specific manufacturer's name or catalog number may be used only if the procurement officer determines in writing that only the identified brand name item or items will satisfy the state's needs. (Eff. 1/1/88, Register 104; am 11/28/97, Register 144)
Authority
AS 36.30.040
AS 36.30.060
2 AAC 12.110. QUALIFIED PRODUCTS LIST
(a)A qualified products list may be developed with the approval of the Chief Procurement Officer, or the Commissioner of Transportation and Public Facilities, if testing or examination of the supplies or construction items before issuance of the solicitation is desirable or necessary in order to best satisfy state requirements.
(b) When developing a qualified products list, a representative group of potential suppliers must be solicited, in writing, to submit products for testing and examination to determine acceptability for inclusion on a qualified products list. Any potential supplier, even though not solicited, may offer its products for consideration.
(c) Inclusion on a qualified products list must be based on results of tests or examinations conducted in accordance with state requirements. Test results may be made public in a manner that protects the identity of the competitors, such as using numerical designations. Except as otherwise provided by law, trade secrets, test data, and similar information provided by the supplier will be kept confidential if requested in writing by the supplier.
(d) The existence of a qualified products list does not constitute pre-qualification of any prospective supplier of pre-qualified products. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.060
ARTICLE 3
COMPETITIVE SEALED BIDDING; MULTI-STEP BIDDING
12.120Invitations for competitive sealed bids
12.130Public Notice
12.140Pre-opening correction or withdrawal of bids
12.150Receipt, opening, and recording of bids
12.160Late bids, late corrections, and late withdrawals
12.170Inadvertent errors discovered after opening but before award
12.180Bid evaluation and award
12.190Only one responsive bid received
12.200Documentation of award
12.210Notice of intent to award
2 AAC 12.120INVITATIONS FOR COMPETITIVE SEALED BIDS
(a) An invitation to bid must include the following:
(1) instructions and information to bidders concerning the bid submission requirements, the time and date set for receipt of bids, the address of the office to which bids are to be delivered, the maximum time for bid acceptance by the state, and any other special information;
(2) a purchase or project description, evaluation factors, delivery or performance schedule, and the inspection and acceptance requirements that are not included in the purchase or project description;
(3) a description of all applicable contract terms and conditions, including warranty and bonding or other security requirements;
(4) a requirement for certification by the bidder that they comply with the applicable provisions of 42 U.S.C. 1981 and 42 U.S.C. 2000e - 2000e-17 (Civil Rights Act), 42 U.S.C. 12001 - 12213 (Americans with Disabilities Act of 1990), AS 18.80, and regulations adopted under those statutes;
(5) a requirement for certification by the bidder that, by submitting a bid, the bidder certifies that the price submitted was independently arrived at without collusion; and
(6) provisions, such as goals or financial incentives, established to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability.
(b) An invitation to bid may incorporate documents by reference.
(c) An invitation to bid may require the receipt of all amendments issued by the using agency to be acknowledged by bidders.
(d) An invitation to bid may require the submission of bid samples, descriptive literature, technical data, or other material. An invitation to bid may provide for any of the following before award:
(1) inspection or testing of a product for such characteristics as quality or workmanship;
(2) examination of such elements as appearance, finish, taste, or feel; or
(3) other examinations to determine whether a product conforms with other purchase requirements.
(e) An invitation to bid must require the bidder to submit evidence that the bidder's subcontractor work will be allocated to meet provisions, such as goals or financial incentives, established in the bid to
eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability. (Eff.1/1/88, Register 104; am 5/16/88, Register 106; am 6/29/95, Register 134)
Authority
AS 36.30.040
AS 36.30.110
2 AAC 12.130PUBLIC NOTICE
(a) Except for small purchases made under 2 AAC 12.400, notice of an invitation to bid shall be given by posting on the Alaska Online Public Notice system as required by AS 36.30.130(a). Notice may also be provided in accordance with AS 36.30.130 by one of the following methods:
(1) mailings to prospective contractors on a contractors list compiled under 2 AAC 12.060, and, if practicable, located in the state;
(2) publication in a newspaper of general circulation, and, if practicable, in a way calculated to reach prospective contractors located in the state;
(3) publication in a newspaper of local circulation in the area pertinent to the procurement, and, if practicable, in a way calculated to reach prospective contractors located in the state;
(4) notices posted in public locations within the area where the work is to be performed or the material or supplies furnished;
(5) communication in another appropriate media, including postings in electronic media, and, if practicable, in a way calculated to reach prospective contractors located in the state.
(b) The provisions of 2 AAC 12.400(e) apply to the requirements regarding public notice of procurement for leased office space of no more than 3,000 square feet.
(c) Nothing in this section limits use of additional methods of public notice in order to reach prospective contractors located in the state.
(d) The procurement officer shall provide notice of an invitation to bid to a prospective contractor upon request, regardless of the location of the prospective contractor.
(e) The procurement officer may require payment of duplication costs or a cash deposit for supplying the invitation to bid. (Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 7/20/95, Register 135; am 11/28/97, Register 144; am 10/3/02, Register 163).
Authority
AS 36.30.040
AS 36.30.130
2 AAC 12.140PRE-OPENING CORRECTION OR WITHDRAWAL OF BIDS
(a) A bid may be corrected or withdrawn by written request received by the office designated in the invitation for bids before the time and date set for opening.
(b) A request under (a) of this section must provide authorization for the person making the correction or withdrawal to do so.
(c) If a bid is withdrawn, the bid security, if any, shall be returned to the bidder.
(d) All documents relating to the correction or withdrawal of a bid shall be included in the appropriate procurement file. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.160
2 AAC 12.150RECEIPT, OPENING, AND RECORDING OF BIDS
(a)A bid must be submitted in a sealed envelope with the invitation to bid number identified on the outside of the envelope. Upon receipt, a bid correction shall be stored in a secure place until the time and date set for bid opening.
(b) Bids and corrections shall be opened at the time, date, and place designated in the invitation to bid. The name of each bidder, the bid price, and other information deemed appropriate by the procurement officer shall be tabulated. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.140
2 AAC 12.160LATE BIDS, LATE CORRECTIONS, AND LATE WITHDRAWALS
A bid received after the time and date set for receipt of bids is late. A correction or withdrawal of a bid received after the time and date set for opening of bids at the place designated for opening is late. A late bid correction, or withdrawal, may not be accepted unless the delay was due to an error of the contracting agency. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.160
2 AAC 12.170INADVERTENT ERRORS DISCOVERED AFTER OPENING BUT BEFORE AWARD
(a)Inadvertent errors discovered after opening but before award, other than minor informalities, may not be corrected. If a bidder submits proof that clearly and convincingly demonstrates that an inadvertent error other than a minor informality was made, the bidder may withdraw the bid.
(b) If, before award, a procurement officer knows of an error in a bid, the officer shall notify the bidder of the error. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.160
2 AAC 12.180BID EVALUATION AND AWARD
(a) Award of a bid may not be based on discrimination due to the race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation of the bidder. A bid shall be evaluated to determine whether the bidder responds to the provisions, such as goals or financial incentives, established in the invitation to bid in order to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability.
(b) An evaluation of product acceptability shall be conducted to determine whether a bidder's offering is acceptable as set out in the invitation to bid. A bid that does not meet the acceptability requirements shall be rejected as non-responsive.
(c) Bids may be evaluated to determine which bid offers the lowest cost to the state in accordance with the evaluation criteria set out in the invitation to bid. Evaluation factors need not be precise predictors of actual future costs, but to the extent possible the evaluation factors must
(1) be reasonable estimates based upon information the state has available concerning future use; and
(2) treat all bids equitably.
(d) Nothing in this section permits contract award to a bidder submitting a higher quality item than that designated in the invitation for bids if the bidder is not also the lowest bidder as determined under (c) of this section. This section does not permit negotiations with a bidder. (Eff. 1/1/88, Register 104; am 5/16/88, Register 106; am 6/29/95, Register 134)
Authority
AS 36.30.040
AS 36.30.150
2 AAC 12.190ONLY ONE RESPONSIVE BID RECEIVED
If only one responsive bid is received in response to an invitation to bid, including multi-step bidding, an award may be made to the single bidder if the bidder is responsible and if the procurement officer finds that the price submitted is fair and reasonable and that either other prospective bidders had reasonable opportunity to respond or there is not adequate time for re-solicitation. Otherwise the bid may be rejected and
(a) new bids or offers may be solicited;
(b) the proposed procurement may be canceled; or
(c) if the procurement officer determines in writing that the need for the supply or service continues, but that the price of the one bid is not fair and reasonable, and there is no time for resolicitation or it is unlikely that resolicitation would increase the number of bids, the procurement may be conducted under 2 AAC 12.410 (single source procurement), 2 AAC 12.430 (limited competition procurement), or 2 AAC 12.440 (emergency procurements), as appropriate. (Eff. 1/1/88, Register 104; am 11/28/97, Register 144)
Authority
AS 36.30.040
AS 36.30.350
2 AAC 12.200. DOCUMENTATION OF AWARD
Following award, a record showing the basis for determining the successful bidder shall be made a part of the procurement file. (Eff. 1/1/88, Register 104)
Authority
AS 36.30.040
AS 36.30.500
2 AAC 12.210NOTICE OF INTENT TO AWARD
Notice of intent to award does not constitute a formal award of a contract. The notice of intent to award must include
(1) a statement of the bidder's right under AS 36.30 to protest the award, including the time within which the protest must be received; and
(2) the name of the successful bidder. (Eff. 1/1/88, Register 104; am 3/30/90, Register 113)
Authority
AS 36.30.040
AS 36.30.365
AS 36.30.565
ARTICLE 4
COMPETITIVE SEALED PROPOSALS
12.215Exceptions to competitive sealed bidding
12.220Public notice of competitive sealed proposals
12.230Correction, modification, or withdrawal of proposals
12.240Receipt and registration of proposals
12.250Late proposals, late corrections, late modifications, and late withdrawals
12.260Evaluation of proposals
12.265Evaluation factors for heavy trucks and equipment
12.270Only one responsive proposal
12.280Duty of offerors (Repealed)
12.285Clarification of offers
12.290Proposal discussion with individual offerors
12.295Amendments to requests for proposals
12.300Documentation of contractor selection
12.310Notice of intent to award
12.315Contract negotiations
2 AAC 12.215EXCEPTIONS TO COMPETITIVE SEALED BIDDING
(a) The following types of supplies and services, for which the use of competitive sealed bidding is either not practicable or not advantageous to the state, may be procured by competitive sealed proposals without a written determination by the procurement officer:
(1) professional services;
(2) supplies and services for clean-up of oil and hazardous substances;
(3) telephone systems and telephone system maintenance;
(4) concession contracts;
(5) repealed 11/28/97;
(6) leased office space.
(b) The procurement officer may procure other supplies or services not listed in (a) of this section by competitive sealed proposals only if the procurement officer determines that the use of competitive sealed bidding is not practicable or not advantageous to the state. The determination under this subsection must comply with AS 36.30.200(b). (Eff. 3/30/90, Register 113; am 6/29/95, Register 134; am 11/28/97, Register 144)