The Assembly Finance Committee approved a sole‑source contract with Alaska Connect Inc. for primary data center space and a dedicated fiber link at a cost of $300,705.60 for the first year and a five‑year potential total of $1,945,087.08.

Corey Beal of General Services presented the award and Blake Moore, director of Digital Services, said the contract covers server space, storage and a dedicated fiber connection from the Juanita Helms Administrative Center to the data center. Moore said the borough’s enterprise applications and production systems are hosted there and the dedicated fiber enables rapid movement of large virtual machines.

Committee members asked why a dedicated fiber line was required; Moore said the need is operational: capacity and speed to move large virtual machines and storage quickly rather than a regulatory requirement. Mr. Kress asked about resiliency; staff said Alaska Connect’s facility offers on‑site generators, battery backup and priority power from the local provider and that reproducing that capability in‑house would not be feasible.

Staff reported last fiscal year’s total cost was roughly $298,000, so the proposed first year represents under a 1% increase. The contract contains a 3% annual increase for subsequent years. The committee approved the sole‑source award by roll call, 8‑0.