Lynn Canal Materials Contract Cancelled

FOR IMMEDIATE RELEASE 07-043

Juneau-Lynn Canal Highway $11 Million Materials Contract Cancelled

February 28, 2007, Juneau, Alaska - At Governor Sarah Palin’s direction, the Department of Transportation & Public Facilities (DOT&PF) cancelled a materials contract related to the Juneau-Lynn Canal Highway project, totaling nearly $11 million. The cancelled contract was for concrete girders which would have been used to construct bridges on the Juneau-Lynn Canal Highway.

“The concrete girders contract committed millions of dollars to a project that is still under review and lacks the necessary permits to proceed,” said Governor Palin. “In my opinion, DOT&PF acted prematurely in awarding the girder contract.”

The concrete girder contract was part of a rushed process and was signed on December 4, 2006, the day Governor Murkowski left office.

The governor’s office has also considered DOT&PF’s purchases of roughly $9 million of piling and culvert materials. DOT&PF has assured the administration that the materials could be used on other public projects in the state. The benefits of cancelling these contracts are less clear, in part because partial contract performance has already occurred.

“I believe that cancelling the $11 million girder order is appropriate pending further examination of the Juneau-Lynn Canal Highway project, including associated permitting and long-term project cost considerations,” said Governor Palin. “The cancellation of this contract is not a reflection on the Juneau-Lynn Canal Highway project. We want to move forward with developing a long-term transportation solution for Southeast Alaska, which includes both the Alaska Marine Highway System and connecting road system. Such challenges can only be met by using a transparent and open process.”

 Source: Governor Palin's official website (now offline).