purchasing

Alaska Resident Bidder Preference

Revised September 10, 2020

Title 29: Municipal Government
Chapter 71: General Provisions
Section 29.71.050. Procurement preferences for recycled Alaska products.

(a) Alaska recycled products shall be used in municipal procurements when the products are of comparable quality, of equivalent price, and appropriate for the intended use.

(b) Unless the procurement is governed by AS 29.71.040, in the evaluation of a bid or proposal for a procurement by a municipality, if a bid or proposal designates the use of recycled Alaska products for the products identified in the contract specifications, and if the recycled Alaska products meet the contract specifications, the bid or offer shall be decreased by the percentage of preference given to the recycled Alaska products under AS 36.30.332.

Title 35: Public Buildings, Works, And Improvements
Chapter 27: Art Works in Public Buildings and Facilities
Section 35.27.20: Art requirements for public buildings and facilities.

(g) The architect, superintendent, department, and the Alaska State Council on the Arts shall encourage the use of state cultural resources in these art works and the selection of Alaska resident artists for the commission of these art works.

Title 36: Public Contracts
Chapter 15: Alaska Product Preferences
Section 36.15.010: Use of local forest products required in projects financed by public money.

In a project financed by state money in which the use of timber, lumber, and manufactured lumber products is required, only timber, lumber, and manufactured lumber products originating in this state from local forests shall be used wherever practicable.

Title 36: Public Contracts
Chapter 15: Alaska Product Preferences
Section 36.15.050: Use of local agricultural and fisheries products required in purchases with state money.

(a) When agricultural products are purchased by the state or by a school district that receives state money, a preference not less than seven percent nor more than 15 percent shall be applied to the price of products harvested in the state.

(b) When fisheries products are purchased by the state or by a school district that receives state money, a preference not less than seven percent nor more than 15 percent shall be applied to the price of products harvested or processed within the jurisdiction of the state.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.321: Alaska bidder and related preferences.

(a) If the bidder or offeror is an Alaska bidder, a five percent preference shall be applied to the price in the bid or proposal.

(b) Except as otherwise provided in (d), (e), or (g) of this section, if a bidder or offeror qualifies as an Alaska bidder and is offering services through an employment program, a 15 percent preference shall be applied to the price in the bid or proposal.

(c) If a bidder or offeror qualifies as an Alaska bidder and is an Alaska domestic insurer, and if the procurement is for an insurance-related contract, a five percent preference shall be applied to the price in the bid or proposal.

(d) A 10 percent preference shall be applied to a price in a bid or proposal if the bidder or offeror qualifies as an Alaska bidder and is a:

  • (1) sole proprietorship owned by a person with a disability;
  • (2) partnership under AS 32.06 or AS 32.11 if each of the partners is a person with a disability;
  • (3) limited liability company organized under AS 10.50 if each of the members is a person with a disability;
  • (4) corporation that is wholly owned by individuals, and each of the individuals is a person with a disability; or
  • (5) joint venture that is composed of ventures that qualify under (1) — (4) of this subsection.

(f) If a bidder or offeror qualifies as an Alaska bidder and is a qualifying entity, a five percent preference shall be applied to the price in the bid or proposal. The preference may not exceed $5,000. In this subsection:

  • (1) "Alaska veteran" means an individual who is both a resident of the state and a veteran;
  • (2) "qualifying entity" means a
    • (A) sole proprietorship owned by an Alaska veteran;
    • (B) partnership under AS 32.06 or AS 32.11 if a majority of the partners are Alaska veterans;
    • (C) limited liability company organized under AS 10.50 if a majority of the members are Alaska veterans; or
    • (D) corporation that is wholly owned by individuals, and a majority of the individuals are Alaska veterans;
  • (3) "veteran" means an individual who
  • (A) served in the
  • (i) armed forces of the United States, including a reserve unit of the United States armed forces; or
  • (ii) Alaska Territorial Guard, the Alaska Army National Guard, the Alaska Air National Guard, or the Alaska Naval Militia; and
  • (B) was separated from service under a condition that was not dishonorable.

(g) A bidder or offeror may not receive a preference under both (b) and (d) of this section for the same contract.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.322: Use of local forest products.

(a) Only timber, lumber, and manufactured lumber products originating in this state from Alaska forests may be procured by an agency or used in construction projects of an agency unless: (1) the manufacturers and suppliers who have notified the commissioner of commerce, community, and economic development of their willingness to manufacture or supply Alaska forest products have been given reasonable notice of the forest product needs of the procurement or project; and

(2) a manufacturer or supplier who has notified the commissioner of commerce, community, and economic development of its willingness to manufacture or supply Alaska forest products is not the low bidder after all applicable preferences have been applied to the price of the qualifying forest product under AS 36.30.336.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.324: Use of Alaska products and recycled Alaska products.

Alaska products shall be used whenever practicable in procurements for an agency. Recycled Alaska products shall be used when they are of comparable quality, of equivalent price, and appropriate for the intended use.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.328: Grant of Alaska products preference.

In the evaluation of a bid or proposal for a procurement for an agency, a bid or offer that designates the use of Alaska products identified in the contract specifications and designated as Class I, Class II, or Class III state products under AS 36.30.332 is decreased by the percentage of the value of the designated Alaska products under AS 36.30.332.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.330: Penalty for failing to use designated products.

(a) If a successful bidder or offeror who designates the use of an Alaska product in a bid or proposal for a procurement for an agency fails to use the designated product for a reason within the control of the successful bidder or offeror, each payment under the contract shall be reduced according to the following schedule:

  • (1) for a Class I designated Alaska product — four percent;
  • (2) for a Class II designated Alaska product — six percent;
  • (3) for a Class III designated Alaska product — eight percent.

(b) A person is not a responsible bidder or offeror if, in the preceding three years, the person has twice designated the use of an Alaska product in a bid or proposal for a procurement for an agency and has each time failed to use the designated Alaska product for reasons within the control of the bidder or offeror.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.332: Classification of Alaska products.

(b) Materials and supplies with value added in the state that are

  • (1) more than 25 percent and less than 50 percent produced or manufactured in the state are Class I products;
  • (2) 50 percent or more and less than 75 percent produced or manufactured in the state are Class II products; and
  • (3) 75 percent or more produced or manufactured in the state are Class III products.

(c) In a bid or proposal evaluation a

  • (1) Class I product is given a three percent preference;
  • (2) Class II product is given a five percent preference;
  • (3) Class III product is given a seven percent preference.

Title 36: Public Contracts
Chapter 30: State Procurement Code
Section 36.30.336: Application of preferences.

(a) Except as provided in AS 36.15.050(g) and AS 36.30.321(g), the preferences provided in AS 36.15.050 and AS 36.30.321 — 36.30.338 are cumulative. A bidder who would otherwise qualify for preferences under AS 36.30.321 may not be given a preference over another bidder who qualifies for the same preferences.

(b) Notwithstanding the other provisions of this chapter, AS 36.30.321 — 36.30.338 apply to all procurements subject to this chapter, except as provided in AS 36.15.050(h) and AS 36.30.322(b).

Alaska Administrative Code
Title 2: Administration
Chapter 12: Procurement
Article 4: Competitive Sealed Proposals
Section 2 AAC 12.260. Evaluation of proposals

(e) If a numerical rating system is used, an Alaska offeror's preference of at least 10 percent of the total possible value of the rating system must be assigned to a proposal of an offeror who qualifies as an Alaska bidder under AS 36.30.990(2). This subsection does not apply to solicitations or contracts for lease space under AS 36.30.080.