News from the Senate Majority
Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

Bill Requires Alaska Railroad to Utilize a Competitive Bidding Process

For Immediate Release: March 3, 1998 Contact: Kristy Tibbles, Assistant to Senator Drue Pearce, at (907) 465-4993.

Juneau – To change the way the Alaska Railroad awards construction contracts for projects that cross the railroad, the Senate Tuesday passed legislation requiring the Alaska Railroad to utilize a competitive and openly advertised bidding process. Senate Bill 285, introduced by the Senate Finance Committee, passed by a vote of 18 to 1.

"For too long, the Alaska Railroad has held a monopoly on Railroad projects," said Senator Drue Pearce, Co-chair of the Senate Finance Committee. "Given our goal to make government smaller, it’s prime time we open the bidding process for construction projects to the private sector. Building a competitive environment will help save the state time and money."

When Alaska highway improvements are needed, a project is designed, an advertisement for bids occur, and a construction contract is competitively awarded for the construction. When the highway that is being improved crosses a railroad track, the work involved for a railroad crossing or overpass is defined with technical requirements and the construction work is included in the contract for the total highway improvement project.

When the situation described above occurs, the Alaska Railroad has input into the technical and financial requirements. The Department of Transportation negotiates a force account contract with the Alaska Railroad and their needs are satisfied.

Pearce said the Senate Finance Committee introduced SB 285 at the request of the Associated General Contractors of Alaska (AGC), a 600+ member organization serving and representing the state’s construction industry.

"Unrestricted, open, competitive bidding is the only proven method to insure that the public receives the best deal for capital works," said Heinrich Springen, AGC Executive Director.

# # #