ALASKA STATE LEGISLATURE

 

House of Representatives
Dear Mr. Boutin and Commissioner Anderson,

We are writing regarding the $441,000 sole-source, no?bid contract awarded from AIDEA to Clark
Penney and Penney Capital.

Reports indicate that thejusti?cation for a sole-source, no?bid contract is the recipient's "extensive
opportunities in connecting investors with opportunities in new businesses and industry development."
The company receiving this contract has only existed for 3 months. While the recipient has experience in
?nance, award of a contract like this should require competition to ensure that individuals and ?rms with
similar or greater experience could compete for the contract.

We know AIDEA is subject to its own procurement regulations, which line out in detail the parameters
for a sole-source contract. 

Please provide an explanation of how AIDEA, Department of Commerce, Community, and Economic
Development, and the Of?ce of State Procurementjustify that this $44l,000 contract be let, without
competition, to Clark Penney under 3 AAC 109.490 and the administration?s rationale why Alaska is
de?cient in other quali?ed contractors to compete for the contract. procurement code 3 AAC
109.490(b) speci?cally stipulates that the request to use a non-competitive procurement method must not
be ?arbitrary, capricious or be prompted by corruption.?

In this instance, the concern is ampli?ed by the multi-hundred-thousand-dollar ?nancial relationship the
Penney family has with the governor?s election campaign. Additionally, it appears the company selected
in this contract shares a business address with multiple family members who were amongst the top donors
to the Govemor?s election campaign.

We hope to hear a more detailed explanation of the waiver process for this contract, particularly how it
precluded competitive bids in the mission to make the Governor?s strategic ?Open for Business? plan
successful.

Thank you,



Representative Zack Fields Representative .

  

Co-Chairs, State Affairs Committee