Alaska Product Preference Program

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The Alaska Product Preference (APP), AS 36.30.332 and 3AAC 92.010 is one of the State of Alaska preferences applied to in-state bids on State contracts, or proposals in response to a request for proposal. Under the State's procurement code,the Alaska Product Preference can provide a local bidder or offeror with a cost preference between three and seven percent.

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What is a product?

A product is something that is made or created, especially something that is offered for sale, but does not include gravel and asphalt.

How are products classified and arranged?

The State of Alaska is using a system of coding that was developed by the National Institute of Governmental Purchasing (NIGP). The NIGP Commodity/Services Codes were developed to bring efficiency to automated purchasing, and the Code has since been adopted by more than 1,400 government users.

We are using the 5-Digit Class-Item Code.

The first 3 digits of the code is the Class Code. This is a high level group code. This level contains over 250 Commodity (Product) Classes.

The last 2 digits of the code is the Item Code. It is used to provide a more detailed description of the products.

The list is officially published twice a year, on the first working day of April and October. It is always available on this web site.

To be certified as Alaska Product Preference, a product must be made with materials and supplies that are:

  1. 25 percent or more and less than 50 percent produced and/or manufactured in state. This is Class I, and receives 3% bid preference;
  2. 50 percent or more and less than 75 percent produced and/or manufactured in state. This is Class II, and receives 5% bid preference;
  3. 75 percent or more produced and/or manufactured instate. This is Class III, and receives 7% bid preference.

Please note that the certification in the State's preference programs goes to the products and not to the manufacturer.

How to Get Certified in the Alaska Product Preference Program

Any Alaskan business that manufactures a product with at least 25% value added in Alaska, may submit a signed and notarized application for certification to the Department of Commerce, Community, and Economic Development. The department will determine whether the applicant's products meet the statutory requirements. If the certification is granted, the department will send written notice of a two-year certification for the approved product.

Per AS 36.30.338, the following definitions are used:

  1. "Alaska product" means a product of which not less than 25 percent of the value, as determined in accordance with regulations adopted under AS 36.30.332(a), has been added by manufacturing or production in the state;
  2. "produced or manufactured" means processing, developing, or making an item into a new item with a distinct character and use through the application within the state of materials, labor, skill, or other services;
  3. "product" means materials or supplies but does not include gravel and asphalt.

Alaska Preference Program Links

Contacts

Alaska Product Preference

Michael Hanzuk Development Specialist II Division of Economic Development Department of Commerce, Community, and Economic Development 550 West 7th Ave., Suite 1770 Anchorage, AK 99501 Phone: (907) 269-8104 Fax: (907) 269-5666 michael.hanzuk@alaska.gov

Alaska Bidder, Offeror, Agriculture, and Recycled Preferences

Matt Pegues Contracting Officer III Department of Administration Division of General Services PO Box 110210 Juneau, AK 99811-0210 Phone (907) 465-5681 matthew.pegues@alaska.gov

Alaska Employment Preferences

Department of Labor and Workforce Development Division of Vocational Rehab 801 West 10th Street, Suite A Juneau, Alaska 99801-1894 Phone: (907) 465-6936 or (800) 478-2815 Fax: (907) 465-2856