In furtherance of the State of Alaska's commitment to human rights as expressed in art. I of the Alaska Constitution, Alaska Statute 18.80.200, and the recently enacted procurement code, ch. 106, SLA 1986, in particular in connection with construction projects of the Alaska Industrial Development Authority, I, Steve Cowper, 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 Industrial Development Authority; (2) to overcome the effects of past discrimination against minorities, women, and other classes of persons protected by AS 18.80.200 and sec. 1, ch. 106, SLA 1986; 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 and sec. 1, ch. 106, SLA 1986.

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 Governor Bill Sheffield; Administrative Order No. 76, dated May 23, 1983, by Governor Sheffield; and Administrative Order No. 86, dated March 4, 1986, by Governor Sheffield; 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 recently passed, and Governor Sheffield signed, a model procurement code (AS 36.30; ch. 106, SLA 1986) that will 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. Regulations implementing these statutory goals are not scheduled to take effect until July 1, 1987. Sec. 66, ch. 106, SLA 1986. The Act, 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. AS 36.30.850(a).

(d) A number of state-funded public works projects will be put out to bid by the Alaska Industrial Development Authority and may be awarded before the effective date of regulations implementing the new legislation that should ensure fair and equitable treatment of the targeted groups.

(e) It is in the public interest to ensure that all state-funded public works construction projects awarded by the Alaska Industrial Development Authority after the date of this administrative order incorporate a provision securing the contractor's agreement and commitment to comply with any applicable affirmative action legislation and regulations that might subsequently take effect during the term of the contract.

4. Alaska Industrial Development Authority Public Works Bid Documents and Contracts. (a) 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 Industrial Development Authority after the date of this order and before the effective date of any applicable procurement regulations 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.

(b) In light of the findings set out in sec. 3 above, in any public works bid document issued or public works contract awarded by the Alaska Industrial Development Authority after the date of this order and before the effective date of any applicable procurement regulations, I further direct that language be included ensuring that Minority Business Enterprises (MBE's) and Women Business Enterprises (WBE's) have an increased opportunity to compete for and participate in the performance of the contract.

5. Public Funds; Alaska Industrial Development Authority Construction. (a) A significant amount of public funds will be spent for public construction projects by the Alaska Industrial Development Authority through contracts awarded. to competitive bidders. In addition, a majority of the construction contracts awarded by the Alaska Industrial Development Authority will be carried out with significant use of subcontractors.

(b) In light of (a) of this section, the Alaska Industrial Development 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 and paragraph 9, sec. 1, ch. 106, SLA 1986, are not discriminated against in the award of contracts and subcontracts. The Alaska Industrial Development 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 paragraph 9, sec. 1, ch. 106, SLA 1986; 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 and paragraph 9, sec. 1, ch. 106, SLA 1986, 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, 1987.

By: S/S Steve Cowper            
Steve Cowper                    
Governor of the State of Alaska