Legislative committee hires Guidehouse for $650,000 corrections cost study

The Legislative Budget and Audit Committee awarded a contract Wednesday to Guidehouse Inc. to study what drives spending at the Alaska Department of Corrections. The firm will be paid up to $650,000 from money lawmakers set aside for the committee in this year's operating budget.

The award carries out intent language the Alaska State Legislature wrote into House Bill 263, the operating budget bill that funded the study. Sen. Elvi Gray-Jackson chairs the committee. She read the intent language aloud before the vote. It calls for "an independent third-party study to identify, evaluate, and analyze the primary cost drivers within the Department of Corrections."

The legislative document behind the study says it should give an objective assessment of what pushes corrections spending and identify potential savings. The committee is to share the findings with the co-chairs of the legislative finance committees and the Legislative Finance Division.

Sen. Lyman Hoffman explained the reasoning during a Senate floor session on May 7. "The Department of Corrections has been one of our fastest growing areas of government," Hoffman said. He said the study "should provide data to help the next governor and the legislature make informed decisions."

The committee first heard the bidding results in closed executive session. Legislative procurement rules keep proposals confidential until a notice of intent to award is issued, according to a Legislative Affairs Agency memo to Gray-Jackson.

The Legislative Affairs Agency ran the search. Its request for proposals closed Sept. 18. Three firms responded, and two proposals were deemed responsive. A three-member panel of state employees scored them. Guidehouse earned 86.92 points. CGL Management Group earned 84.67. The panel recommended Guidehouse.

Back on the record, no committee member objected to the motion, which asked for unanimous consent.