The Procurement Code is a set of regulations that allow for specific public process surrounding state business contracts. This often time-consuming process works well for state entities that work from a set annual budget and have predictable contract needs. In the dynamic natural gas industry, it is imperative that the Authority be able to respond quickly to contract offers in a timely manner.

Like the Alaska Housing Finance Corporation, the Alaska Railroad and other state-owned entities that are exempt from the state’s Procurement Code, the Authority would make their own procurement code that more accurately reflects the type of business they do.

Recently, several major corporations have entered into contracts to purchase natural gas from international suppliers at the exclusion of Alaska. The Authority needs every advantage the state can give it to compete with the less-regulated international suppliers.