BILL SHEFFIELD
GOVERNOR 

 STATE OF ALASKA
OFFICE OF THE GOVERNOR
JUNEAU

March 4, 1986

ADMINISTRATIVE ORDER NO. 86

In furtherance of the State of Alaska's commitment to human rights as expressed in art. I of the Alaska Constitution and Alaska Statute 18.80.200, in particular in connection with construction projects of the Alaska Power Authority, I, Bill Sheffield, Governor of the State of Alaska, under the authority granted by art. III, sec. 1, of the Alaska Constitution, order the following:

1. Purpose. The purpose of this order is (1) to assure that there is no unconstitutional or otherwise unlawful discrimination in the award of contracts and subcontracts for public works projects undertaken by the Alaska Power Authority; (2) to overcome the effects of past discrimination against minorities, women, and other classes of persons protected by AS 18.80.200; and (3) to promote the economic health and well-being of the state through taking positive measures to ensure equal business opportunities for minorities, women, and other classes of persons protected by AS 18.80.200.

2. Minorities and Women in Business Enterprises; Affirmative Action; Supplement to Earlier Orders. This order supplements Administrative Order No. 59, dated June 20, 1980, by Governor Jay Hammond; Administrative Order No. 75, dated April 7, 1983, by me; and Administrative Order No. 76, dated May 23, 1983, by me; by adding provisions for affirmative action in state contracting.

3. Findings. (a) The historical and continuing high rate of unemployment among Alaska residents poses serious social and economic consequences that are chronic in nature. These consequences include, but are certainly not limited to, high rates of alcoholism, poverty, broken families, violent crimes, and personal and commercial insolvencies and bankruptcies.

(b) A significant and contributing factor to this high rate of unemployment, particularly in certain industries such as construction, is the disproportionate award of construction contracts and construction procurement contracts to male non- minorities, even though minority and female contractors are available and qualified to perform the work.

(c) The Alaska legislature is presently considering a model procurement code that would ensure the fair and equitable treatment of all persons who deal with the procurement system of the state and eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, or parenthood. This measure might not be enacted and take effect until January 1, 1987. The bill in its present form, however, provides that parties to a contract may agree to the application of the procurement code for contracts solicited or entered into before that date.

(d) A number of state-funded and energy-related public works projects will be put out to bid by the Alaska Power Authority and might be awarded before the effective date of any new legislation that might be adopted to ensure fair and equitable treatment of the targeted groups.

(e) In order to maximize the coverage and benefits of any new affirmative action legislation that might be included in the model procurement code at the time of its adoption, it is in the public interest to ensure that all state-funded and energy-related public works construction projects awarded by the Alaska Power Authority after the date of this administrative order and before the effective date of any procurement legislation that might be enacted incorporate a provision securing the contractors' agreement and commitment to comply with any applicable affirmative action legislation that might subsequently take effect during the term of the contract.

4. Alaska Power Authority Public Works Bid Documents and Contracts. In light of the findings set out in sec. 3 above, I direct that language substantially as follows be included in any public works bid document issued or public works contract awarded by the Alaska Power Authority after the date of this order and before the effective date of any applicable procurement legislation that might be enacted:

Contractor shall comply with all applicable laws and regulations regarding the fair and equitable treatment of minority and female contractors and subcontractors now in effect or that might subsequently take effect during the term of this contract. In order to ensure that contractor's subcontractors. will comply with all applicable laws and regulations regarding the fair and equitable treatment of minority and female contractors and subcontractors now in effect or that might subsequently take effect, contractor shall include in its contracts with subcontractors under this contract language that is substantially the same as the first sentence of this paragraph.

5. Public Funds; Alaska Power Authority Construction, (a) An overwhelming share of public funds spent for energy-related public construction projects is spent by the Alaska Power Authority on contracts awarded to competitive bidders. In addition, a majority of the construction contracts awarded by the Alaska Power Authority is carried out with significant use of subcontractors. Consequently, a preponderant share of state funds spent on energy-related public construction carried out by the Alaska Power Authority goes to contractors and subcontractors under contracts with the Alaska Power Authority.

(b) In light of (a) of this section, the Alaska Power Authority shall take positive, aggressive measures to help assure that business enterprises owned or controlled by minorities, women, or other classes of persons protected by AS 18.80.200 are not discriminated against in the award of contracts and subcontracts. The Alaska Power Authority shall take all possible affirmative action that will help (1) to overcome effects of past discrimination in the contracting business against minorities, women, and other classes of persons protected by AS 18.80.200; and (2) to promote full and equal opportunity for business enterprises owned or controlled by minorities, women, or other classes of persons protected by AS 18.80.200, to receive public construction funds.

6. Definition of "Minority"; Administrative Order No. 18 Definition Superseded. The definition of "minority" in Administrative Order No. 18 dated November 22, 1972, by Governor Egan is superseded. For purposes of this order and Administrative Order No. 18, "minority" includes a person from the following groups: Black American, Hispanic American, Asian American, Pacific Islander, American Indian, or Alaska Native.

This order takes effect immediately

DATED at Juneau, Alaska, this 4th day of March, 1986.

S/S Bill Sheffield                            
Bill Sheffield                                  
Governor of the State of Alaska     



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