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Introduction
The
purpose of these programs is to provide incentives and encouragement
for Alaska businesses when responding to bids and/or proposals for state
contracts, by giving those businesses preference consideration. Under
the state procurement code, the Alaska Product Preference Program can
provide a cost preference of as great as 7% on State procurement. Alaska
Forest Products receive a 7% preference in State procurement bids for
wood products manufactured from Alaska timber. In order to obtain the
preference, a company must apply and be certified by the Department of Commerce, Community, and Economic Development.
Certification
Process
Any
Alaskan business that manufactures a product with at least 25% value
added in Alaska, may apply to the Commissioner of the Department of Community
and Economic Development for certification in the preference programs.
The department will gather information on the applicant's products through
the information submitted on the application and by conducting an inspection
of the applicant's facilities.
Currently, certification
in the preference programs goes to the individual products and not
to the manufacturer.
Based on this information,
the Commissioner will make the determination if the product meets the
preference program requirements. If the application is approved, the
Commissioner will issue, without cost, written notice of certification
for the approved product for a period of two years.
Certification
Requirements
The
Department of Community and Economic Development publishes the "Alaska
Product Preference List" twice a year, on the first working day
of April and October. Only those products included in the most recently
published final certified list will receive a preference. Per AS 36.30.338,
the following definitions are to be used:
- "Alaska product" means
a product of which not less than 25 percent of the value, as determined
in accordance with regulations adopted under AS 36.30.332(a), has
been added by manufacturing or production in the state;
- "produced
or manufactured" means processing, developing, or making an
item into a new item with a distinct character and use through the
application within the state of materials, labor, skill, or other
services;
- "product" means
materials or supplies but does not include gravel and asphalt
Alaska
Product Preference Back
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Products
that meet the above definitions are classified as Class I,II, or III,
depending upon the percentage of value added to the product. These classes
determine the preference amount of 3, 5, or 7 percent respectively. Per
AS 36.30.332:
- More than 25 percent
and less than 50 percent produced or manufactured in the state are
Class I products which are given a 3 percent preference.
- More than 50 percent
and less than 75 percent produced or manufactured in the state are
Class II products which are given a 5 percent preference.
- More than 75 percent
produced or manufactured in the state are Class III products which
are given a 7 percent preference.
Documents
must be viewed/printed with Adobe Acrobat
Reader
Alaska
Forest Products Back
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Aaska
forest products receive a 7 percent preference in a state procurement
bid for wood products manufactured from Alaska timber. To be considered
a supplier eligible for the Alaska Forest Product Preference, a supplier
must also annually notify the Department of Community and Economic Development
of their willingness to supply forest products.
Documents
must be viewed/printed with Adobe Acrobat
Reader
Contact
Information
Requests
for applications, the certified list, or questions concerning the Alaska
Product Preference Program should be directed to:
Jennifer Abbott
Small Business Regulations Coordinator
Office of Economic Development
Department of Commerce, Community & Economic Development
550 W. 7th Avenue, Suite 1770
Anchorage, AK 99501
(907) 269-5734
(907) 269-8125 (fax) | 
