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 Power 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 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 AS 36.30.040(16); 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 AS 36.30.040(16).

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, 1982, by Governor Bill Sheffield; Administrative Order No. 76, dated May 23, 1983, by Governor Bill Sheffield; Administrative Order No. 86, dated March 4, 1986, by Governor Sheffield; and Administrative Order No. 93, dated March 4, 1987, by Governor Steve Cowper; 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 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) In 1986, the Alaska legislature passed, and Governor Sheffield signed, a model procurement code (AS 36.30; ch. 106, SLA 1986) that ensures the fair and equitable treatment of all persons who deal with the procurement system of the state and seeks to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, or parenthood. AS 36.30.040(16). Regulations implementing these statutory goals took effect on January 1, 1988.

(d) A number of state-funded public works projects will be put out to bid by the Alaska Power Authority.

(e) It is in the public interest to ensure that all state-funded public works construction projects awarded by the Alaska Power 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 now in effect or that might subsequently take effect during the term of the contract.

4. Alaska Power 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 Power Authority after the date of this order:

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 Power Authority after the date of this order, 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 Power Authority Construction.

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

(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 and AS 36.30.040(16), are not discriminated against in the award of contracts and subcontracts. The Alaska Power Authority shall also take 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 AS 36.30.040(16); 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 AS 36.30.040(16), to receive public construction funds. Affirmative action measures may include requiring that a contractor meet goals established by the Alaska Power Authority for each public works contract or may include offering to the contractor a financial incentive for subcontracting work under the public works contract to minorities, women, or other classes of persons protected by AS 18.80.200 and AS 36.30.040(16).

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 13 day of May, 1988.

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