Attachment A
Details of Increase in Payments to Out-of-State Vendors

STATE VENDOR NAME

EXPLANATION

AMOUNT OF INCREASE

AZ Corrections Corporation of America Approximately 260 Alaskan inmates are currently being held in private Arizona correction facilities. Inmates are being housed in out-of-state facilities to alleviate overcrowding in Alaskan prisons. Since calendar year 1993, there has been an increase of inmates housed out-of-state. $5,517,648
Microage During fiscal year 1996, the Department of Administration, Division of General Services let a contract for microcomputers. Microage is one of many vendors for this computer contract. The contract is with the Anchorage office, however payments are sent to the main office in Arizona. $2,475,788
Chemonics Industries, Inc. Chemonics is one of two federally approved vendors for fire retardant. The Department of Natural Resources has chosen to primarily use the Chemonics product due to a longer shelf life. There are no vendors in Alaska who could provide this product. The amount of fire retardant purchased in any given year will depend upon the fire season, CY 1996 was a heavy fire season. $328,218
Fox Systems, Inc. During 1996 the Department of Health and Social Services (DHSS) contracted with Fox Systems for assistance in procurement of a federally certified Medicaid Management Information System (MMIS). DHSS had no in-house expertise, nor were there any vendors in-state who could provide this expertise. Of the limited responses to the request for proposals, Fox Systems was awarded the contract $293,176
MS Halter Marine, Inc. Halter Marine Inc. designed and is building the newest ferry, M/V Kennecott, for the Alaska Marine Highway System (AMHS). There are no Alaskan vendors who could provide this service. $12,426,194
TX American Express Business travel accounts (BTA) were introduced to limited departments in February 1993. Every year since, additional departments have decided to utilize the system, thus the yearly increase. Departments continue to patronize local travel agencies, however all billing is centralized through the American Express BTAs. $10,273,070
John McStay Investment Council This firm manages several retirement and benefits equity portfolios. The fees for this service are a percentage of the assets, thus an increase in fees equates to an increase in assets. Also during 1996, additional funds were given to the council for investment. $635,299
WA Kiewit Pacific Company This company is currently performing work for the Department of Transportation and Public Facilities (DOTPF) on the Seward Highway. Since DOTPF lets contracts on a competitive bid basis, it is reasonable that the company had minor contracts with DOTPF during 1993 and had a large contract during 1996, thus the increase in payments to this out-of-state vendor. $9,279,259
Todd Pacific Shipyards The amount of total awards for AMHS vessel repairs has increased significantly since 1993. This is due to the vessel maintenance schedule for AMHS M/Vs Matanuska, Taku and Aurora. The safety features on these vessels are being upgraded in order to meet the Safety of Life at Sea (SOLAS) requirements. These requirements must be met by August, 1998 in order for the vessels to enter the Canadian port of Prince Rupert. There are three primary contractors for M/V maintenance; Todd Pacific, Ak-Wa, Inc. and Maritime Contractors, Inc., all based in the State of Washington. $9,719,285
Inslee, Best & Doezie This payment was a negotiated settlement for the case Berger V. State. A supplemental appropriation for the settlement was approved by the legislature in Ch 123 SLA 96 Sec 84 (d). $3,609,487
    TOTAL $54,557,424




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