1. (a) The innovative construction contracting pilot program may be used for the construction of a project that has unique requirements because of locale, climatic conditions, or environmental constraints, and the commissioner determines that use of this program for a particular project is in the best interests of the state. On a contract specific basis, the department will, in its discretion, provide for a bonus to encourage local industry, strengthen and stabilize the economy, decrease unemployment, or strengthen the tax and revenue base of the state, if the successful bidder, upon completion of performance on the contract, has achieved the goal for which the bonus is authorized.
2. (b) Award of a construction contract under the innovative construction contracting pilot program will be to the lowest responsible bidder that is responsive to the invitation to bid.

3. (c) The following sections from AS 36.30 are incorporated by reference and apply to the innovative construction contracting pilot program:

   1. (1) AS 36.30.110 (invitation to bid);
   2. (2) AS 36.30.120 (bid security);
   3. (3) AS 36.30.130 (public notice of invitation to bid);
   4. (4) AS 36.30.140 (bid opening);
   5. (5) AS 36.30.150 (bid acceptance and bid evaluation);
   6. (6) AS 36.30.160 (late bids);
   7. (7) AS 36.30.170(a) (award to the lowest responsible and responsive bidder);
   8. (8) AS 36.30.560 - 36.30.615 (bid protests);
   9. (9) AS 36.30.620 - 36.30.630 (contract controversies); and
   10. (10) AS 36.30.670 - 36.30.690 (hearings and appeals).

4. (d) The following sections from 2 AAC 12 are incorporated by reference and apply to the innovative construction contracting pilot program:

   1. (1) 2 AAC 12.120 (invitations for competitive sealed bids);
   2. (2) 2 AAC 12.130 (public notice);
   3. (3) 2 AAC 12.140 (pre-opening correction or withdrawal of bids);
   4. (4) 2 AAC 12.150 (receipt, opening, and recording of bids);
   5. (5) 2 AAC 12.160 (late bids, late corrections, and late withdrawals);
   6. (6) 2 AAC 12.170 (inadvertent errors discovered after opening but before award);
   7. (7) 2 AAC 12.180 (bid evaluation and award);
   8. (8) 2 AAC 12.190 (only one responsive bid received);
   9. (9) 2 AAC 12.200 (documentation of award); and
   10. (10) 2 AAC 12.210 (notice of intent to award).

5. (e) For the purposes of this section,

   1. (1) "best interests of the state" has the meaning set out in sec. 8(e), ch. 59, SLA 1994;
   2. (2) "innovative construction contracting pilot program" has the same meaning as "innovative construction procurement methods pilot program" described in sec. 8, ch. 59, SLA 1994.

(Eff. 7/21/95, Register 135)