State looks to ramp up road project funding
get better quickly. About $200 mil- lion in new projects will be out for bid between March and May, the commissioner said. DOTPF will also focus on getting small contracts out that will allow contractors to retain skilled workers until work on major summer projects ramp up. Anderson briefed state legislative committees in late February on ef- forts to get more work on the street and also met with the Associated General Contractors of Alaska, the construction industry’s trade asso- ciation. Although hundreds of millions
of dollars of transportation projects are in the advanced planning stages, DOTPF has hit roadblocks in getting work on the street. Contract awards dropped from $736.7 million in Federal Fiscal Year (FFY) 2023 to $630.6 million in FFY 2024, which cut work for contrac- tors. FFY 2025 is now expected to be better, with a total of $935 million, DOTPF told legislators. There have particularly been de- lays in getting utility relocations done to allow road work to proceed. Anderson told legislators that util- ities have been hampered in relo- cations by supply chain issues and federal regulations including Buy America and Build America. Unless utilities can source materials that are certified under federal rules, they ar- en’t willing to risk doing work. Until that happens, the state can’t get the final sign-off for a project from the Federal Highway Adminis- tration, which pays the bills. Another problem is the cost increase of many projects after estimates are done by state engineers and bids come in from contractors. If costs exceed funds available, the project must be reconfigured or de- layed. This has particularly become a problem in rural airport projects where there are complicated logis- tics. This is a national problem. The National Highway Construction Cost Index, a metric used nationwide, has gone up 61% from mid-2020 to mid- 2024. Legislators asked Anderson whether federal workforce cuts are hampering approvals of funds for Alaska construction. The commis- sioner said this is being watched closely but so far there are no delays. In some cases, projects fund- ed from federal programs with cer- tain key words like “carbon reduc-
Transportation commissioner
discusses process Construction is booming on the North Slope but highway contractors are complaining of lean times this spring with a slump in new contracts going to bid from the Department of Transportation and Public Facilities. State transportation Commission- er Ryan Anderson said things should
THE LINK: MARCH 2025
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