Anchorage shelter contract grows to nearly $5 million ahead of Assembly vote

A congregate shelter contract the Anchorage Assembly approved for just over $1 million in July 2025 has grown to nearly $5 million. The Assembly is scheduled to vote on the latest increase at its July 7 meeting.

The measure before the Assembly would add $500,000 to the Henning, Inc. contract, bringing the total to $4,933,396. The Anchorage Health Department says the money covers an increase in the 100-person maximum allowed in the shelter between Jan. 1 and April 30, 2026.

The contract's growth traces a specific path. The Assembly approved the original contract on July 29, 2025. The contract was executed Aug. 29, 2025, with a performance period beginning Aug. 31, 2025, and ending Dec. 31, 2025. Amendment 1, which added winter-weather surge capacity and waiting-area language, came before the Assembly and was approved Dec. 2, 2025. A renewal option extended the contract through Dec. 31, 2026. Amendment 2 was executed Dec. 12, 2025, after the Assembly met regarding a Title 7 waiver and approved it. Amendment 3 was executed Dec. 23, 2025, after the administration issued a Title 7 waiver on Dec. 20, 2025. Amendment 4 is the item now before the Assembly.

Grants and Contracts Administrator Valarie Clark wrote in the Health Department memo that Amendment 4 "is under the 20% that requires Assembly approval." The administration nonetheless recommends Assembly approval of the amendment.

Questions about the contract can be directed to Clark at 343-4639.