Louisiana Senate Bill SB727 Latest Draft

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Regular Session, 2010
SENATE BILL NO. 727
BY SENATOR MICHOT 
PROCUREMENT CODE.  Updates the procurement statutes. (1/1/11)
AN ACT1
To amend and reenact Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 39:1551 through 1716, and to repeal R.S.3
39:1540, Part V-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised4
Statutes of 1950, comprised of R.S. 39: 196 through 200 and Chapter 16 of Subtitle5
III of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S. 39:14816
through 1526, relative to the procurement code; to provide for procurement by public7
bodies, including provisions for a central purchasing agency, for procurement8
regulations, and for source selection for items to be purchased and methods for such9
purchases; to provide for definitions and access to procurement information; to10
provide for the authority and duties of the commissioner of administration with11
respect to procurement; to provide for certain appointments and qualifications; to12
provide for mandatory information requirements; to provide for bid procedures and13
for types of contracts; to provide for contract modification, termination, and contract14
clauses; to provide for legal and contractual remedies and for administrative appeals;15
to provide for cooperative purchasing; to provide with respect to conflicts with other16
provisions of law; to provide for an effective date; and to provide for related matters.17 SB NO. 727
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Be it enacted by the Legislature of Louisiana:1
Section 1. Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised Statutes2
of 1950, comprised of R.S. 39:1551 through 1716, is hereby amended and reenacted to read3
as follows:4
CHAPTER 17. LOUISIANA PROCUREMENT CODE5
PART I. GENERAL PROVISIONS6
SUBPART A. SHORT TITLE, PURPOSES,7
CONSTRUCTION, AND APPLICATION8
§1551. Short title9
This Chapter shall be known as and may be cited as the Louisiana10
Procurement Code.11
§1552. Purposes; rules of construction12
A. Interpretation. This Chapter shall be construed and applied to promote its13
underlying purposes and policies.14
B. Purposes and policies. The underlying purposes and policies of this15
Chapter are:16
(1) To simplify, clarify, and modernize the law governing procurement by17
this state.18
(2) To permit the continued development of procurement policies and19
practices.20
(3) To provide for increased public confidence in the procedures followed in21
public procurement.22
(4) To ensure the fair and equitable treatment of all persons who deal with the23
procurement system of this state.24
(5) To provide increased economy in state procurement activities by fostering25
effective competition.26
(6) To provide safeguards for the maintenance of a procurement system of27
quality and integrity.28
§1553. Construction29 SB NO. 727
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A. Supplementary general principles of law applicable. To the extent not1
inconsistent with the particular provisions of this Chapter, the principles of Louisiana2
law shall supplement its provisions.3
B. Obligation of good faith. Every contract or duty within this Chapter4
imposes an obligation of good faith in its performance or enforcement. "Good faith"5
means honesty in fact in the conduct or transaction concerned and the observance of6
reasonable commercial standards of fair dealing.7
§1554. Application of this Chapter8
A. General application. This Chapter applies only to contracts solicited or9
entered into after the effective date of this Chapter unless the parties agree to its10
application to a contract entered into prior to the effective date.11
B. Application to state procurement. Except as otherwise provided in12
Subsections C and D below, this Chapter shall apply to every expenditure of public13
funds irrespective of their source, including federal assistance monies except as14
otherwise specified in Subsection F below, by this state, acting through a15
governmental body defined herein,. under any contract for supplies, services, or16
major repairs defined herein, except that this Chapter shall not apply to either grants17
or contracts between the state and its political subdivisions or other governments,18
except as provided in Part VII (Intergovernmental Relations). Notwithstanding any19
other provision of this Chapter, the provisions of R.S. 38:2181 through R.S. 38:231620
shall govern the procurement of construction and the selection of architects,21
engineers, and landscape architects by governmental bodies of this state, and R.S.22
38:2181 through R.S. 38:2316 shall not apply to any procurement of supplies,23
services, or major repairs by the state except that the provisions of R.S. 38:2301 shall24
be applicable to major repairs.25
C. Procurement by the governor. Notwithstanding any other provisions of this26
Chapter, the governor shall procure all materials, supplies, equipment, and27
contractual services required for the governor's mansion, the cafeteria operated in the28
state capitol, and similar agencies. The procurement shall, insofar as practicable, be29 SB NO. 727
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in accordance with the provisions of this Chapter.1
D. Exclusions. (1) This Chapter shall not be construed to change, affect,2
increase, or relieve the requirements of:3
(a) R.S. 42:261 through R.S. 42:264, regarding the retaining and employment4
of lawyers.5
 (b) R.S. 39:1481 through R.S. 39:1526, regarding the procurement of6
professional, personal, consulting, and social services.7
(c) Repealed by Acts 1983, No. 306, §3.8
(d) (b) R.S. 46:335, as regarding the purchase of products or services from9
the blind.10
(2) This Chapter shall not be applicable to the legislative and judicial11
branches of state government or to any agency within the legislative branch of state12
government.13
(3) The office for citizens with developmental disabilities in the Department14
of Health and Hospitals shall be exempt from the requirements of R.S. 39:1643 in15
order to lease residential living options for mentally 	retarded or developmentally16
disabled individuals without carrying out the competitive sealed bidding requirement17
of this Chapter.18
(4) This Chapter shall not be applicable to any hospital owned or operated by19
the state through the Department of Health and Hospitals for the purchase of20
supplies, materials, and equipment from a qualified group purchasing organization21
if the Department of Health and Hospitals, with the concurrence of the division of22
administration, has determined that the cost is less than the state procurement prices,23
and that it is in the best interest of the state to purchase the supplies, materials, and24
equipment from the qualified group purchasing organization.25
(5) This Chapter shall not be applicable to the purchase of any medical26
supplies or medical equipment from a qualified group purchasing organization if the27
commissioner of administration has determined that it is in the best interest of the28
state to purchase the medical supply or medical equipment from the qualified group29 SB NO. 727
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purchasing organization. An annual report on the number, type, and volume of such1
procurements shall be made to the commissioner of administration, the speaker of2
the House of Representatives, and the president of the Senate.3
(6) (4)The provisions of this Chapter shall not be applicable to the State Bond4
Commission in the solicitation of bids for printing of financial documents. However,5
the State Bond Commission shall obtain a minimum of three written or telefaxed6
bids from separate vendors which meet the criteria required by the State Bond7
Commission for printing of financial documents.8
(7) (5) The provisions of this Chapter shall not be applicable to9
interinstitutional agreements between co-owners of intellectual property when one10
co-owner is a Louisiana regionally accredited college, technical school, or university.11
(6) Contracts awarded by an agency for the benefit of an industry,12
payment of which comes from self-generated funds received from that industry,13
are exempt from the requirements of this Chapter provided that any such14
contract is awarded through a competitive process.15
§1482(1)(a) (7)(a) This Chapter shall not apply to Professional16
professional services for engineering design contracts, construction contracts, or17
contracts for surveying pertaining to the maintenance and construction of roads and18
bridges, flood control, aviation, public transportation, or public works entered into19
by the Department of Transportation and Development as provided in Part XIII-A20
of Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950.21
§1482(1)(b) (b) This Chapter shall not apply to Consulting consulting22
service contracts with appraisers, foresters, economists, right-of-way agents, title23
abstractors, asbestos abatement inspectors, negotiators, accountants, and cost24
consultants relating to acquisition of rights-of-way for maintenance and construction25
projects entered into by the Department of Transportation and Development.26
§1482(2) (8) This Chapter shall not apply to Grants grants or contracts or27
like business agreements between the state and its political subdivisions or other28
governmental entities, or between higher education boards and institutions under29 SB NO. 727
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their jurisdiction, except this Chapter shall apply to interagency contracts as defined1
in R.S. 39:1490(C), and to contracts or grants between the state and its political2
subdivisions to procure social services.3
§1482(B) (9) This Chapter shall not apply or affect licensed insurance agents4
appointed as agents of record on policies insuring any of the state's insurable5
interests. Nor shall it apply to or affect insurance consultants and actuaries when6
used in lieu of agents of record, so long as fees paid do not exceed the commission7
that would have been paid to said agents of record.8
§1482(C) (10) This Chapter shall not apply to those services performed by9
architects, engineers, or landscape architects as provided for in L.S.A.10
38:2310-38:2316, nor shall the provisions of this Chapter affect or otherwise limit11
the duties, functions, and jurisdiction of the Louisiana Architect Selection Board, the12
Louisiana Engineer Selection Board, or the Louisiana Landscape Architect Selection13
Board.14
§1482(F)(1) (11)(a) This Chapter shall not apply to those personal,15
professional, or social services provided to the clients of the Department of Health16
and Hospitals, the Department of Social Services, the office of special education17
services within the Department of Education, provided that the expense for these18
special education services is five thousand dollars or less per child, corrections19
services within the Department of Public Safety and Corrections, or the office of20
juvenile justice, Department of Public Safety and Corrections, in the following21
circumstances:22
(a) (i) When these services are accessed directly by clients through utilization23
of medical vendor cards, with the clients arranging services with providers and24
providers then billing the agency for payment.25
(b) (ii) When clients of a particular program area are guaranteed freedom of26
choice in selection of a provider of services.27
(c) (iii) When personal and professional services are arranged on a28
case-by-case basis by a worker as the need arises.29 SB NO. 727
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(d) (iv) When social services are arranged on a case-by-case basis from a1
social service provider qualifying under 	R.S. 39:1494.1(A) R.S. 39:1618(B).2
(e) (v) When the using agency arranging social services on a case-by-case3
basis makes no guarantee of specific sums of monthly or annual payment or referrals4
of clientele.5
(2) (b) If personal, professional, or social services are provided for the6
primary benefit of a single using agency provided for in R.S. 39:1482(F)(1), , as7
provided in Subparagraph (a) of this Paragraph, and said agency exhibits8
budgetary and programmatic control over the provider of the services, and the9
deliverables of the services are intended solely for the benefit of the using agency,10
the provisions of this Chapter shall apply.11
(3) (c) This Chapter shall not apply to the use of professional services of12
physicians who provide consultative examinations regarding applicants for disability13
benefits under the Social Security Act by the disability determinations service of the14
Department of Social Services.15
(4) (d) This Chapter shall not apply to the taking of Medicaid applications by16
certified Medicaid enrollment centers for prospective Medicaid clients pursuant to17
an agreement with the Department of Health and Hospitals and in accordance with18
federal regulations.19
§1482(J) (12) This Chapter shall not apply to any contract for the20
procurement of individualized agreements for persons with developmental21
disabilities by the Department of Health and Hospitals.22
K.(1) (13)(a) This Chapter shall not apply to contracts of an institution of23
higher education or other agency of higher education, hereinafter collectively24
referred to as "higher education entity," to which the director of the office of25
contractual review state chief procurement officer has delegated authority to26
procure services with private grant funds or federal funds specifically provided for27
such purpose.28
(2) (b) This Chapter shall not apply to Procurements procurements29 SB NO. 727
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conducted by a higher education entity operating under delegation of authority as1
provided herein and shall be made in accordance with all federal requirements2
necessary for the receipt and use of such private grant or federal funds, particularly3
with regard to competitive bidding requirements for procurement of research4
services. Further, in making such procurements, such entity may also consider5
factors such as quality, reliability, expected life span, and compatibility with existing6
equipment or research protocols, as permitted under federal guidelines.7
E. Political subdivisions authorized to adopt this Chapter. The procurement8
of supplies, services, major repairs, and construction by political subdivisions of this9
state shall be in accordance with the provisions of R.S. 38:2181 through 38:2316,10
except that all political subdivisions are authorized to adopt all or any part of this11
Chapter and its accompanying regulations.12
F. Compliance with federal requirements. Where a procurement involves the13
expenditure of federal assistance or contract funds, the procurement officer shall14
comply with such federal law and authorized regulations which are mandatorily15
applicable and which are not reflected in this Chapter.16
G. Applicable to Department of Public Safety and Corrections.17
(1) Repealed by Acts 1999, No. 1164, §5.18
(2) Because the prison enterprise system operates under the constraints of an19
income statement, the secretary of the Department of Public Safety and Corrections20
shall have the authority, notwithstanding any other provisions of law, to purchase for21
that system used agricultural and industrial equipment sold at public auction which22
shall result in savings to the correctional system, according to the following terms23
and conditions:24
(a) The used agricultural and industrial equipment shall be purchased by the25
secretary within the price range set by the director of state purchasing in his26
statement of written approval for the purchase which must be obtained by the27
secretary prior to purchase.28
(b) The secretary shall certify in writing to the director of state purchasing all29 SB NO. 727
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of the following:1
(i) The price for which the used equipment may be obtained.2
(ii) The plan for maintenance and repair of the equipment and the cost3
thereof.4
(iii) The savings that will accrue to the state because of the purchase of the5
used equipment.6
(iv) The fact that following the procedures set out in the Louisiana7
Procurement Code will result in the loss of the opportunity to purchase the8
equipment.9
H. Exemption for inmate canteens and the employee commissary of the10
Louisiana State Penitentiary. Whenever, for sound economic reasons and improved11
administrative procedures, the secretary of the Department of Public Safety and12
Corrections certifies in writing that it is not practical to comply with the provisions13
of this Chapter, the Department of Public Safety and Corrections may procure the14
various items for resale to inmates at the inmate canteens in state correctional15
facilities and the various items for resale to employees of the department at the16
employee commissary of the Louisiana State Penitentiary, without competitive17
sealed bidding as required in R.S. 39:1594 and without complying with the18
requirements of R.S. 39:1597. Any procurement pursuant to this Subsection is19
exempt from the provisions of R.S. 39:1611. Any contract entered into pursuant to20
this Subsection must have prior written approval of the commissioner of21
administration, the Joint Legislative Committee on the Budget, and the attorney22
general, who shall only approve the contract if they determine in writing that it is in23
the best interest of the state to enter into the contract. All such information shall be24
of public record.25
I. G. Plasmapheresis programs. All plasmapheresis programs operated for26
and participated in by inmates in correctional facilities under the jurisdiction of the27
Department of Public Safety and Corrections, or its designees or assignees, such as28
private contractors operating correctional facilities under contract with the29 SB NO. 727
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department, shall operate only pursuant to a contract entered into independent of any1
other contracts for prison management or operation, and only pursuant to competitive2
sealed bids on an individual basis at each penal institution and other facility in3
accordance with this Chapter. Contracts presently in existence affecting all4
plasmapheresis programs on site and off site shall be excluded and shall remain in5
effect for the duration of the contract.6
§1554.1. Federal block grants7
The provisions of this Part Chapter shall be applicable to any goods and8
services procured with funds pursuant to the federally enacted community services9
block grant or community development block grant.10
§1555.  Authorization for the use of electronic transmissions11
The use of electronic media, including acceptance of electronic12
signatures, is authorized consistent with applicable statutory, regulatory, or13
other guidelines for use of such media, provided such guidance includes the both14
of the following:15
(1) Appropriate security to prevent unauthorized access to the bidding,16
approval, and award processes.17
(2) Accurate retrieval or conversion of electronic forms of such18
information into a medium which permits inspection and copying.19
SUBPART B. DEFINITIONS20
§1556. Definitions21
As used in this Chapter, the words defined in this Section shall have the22
meanings set forth below, unless the context in which they are used clearly requires23
a different meaning or a different definition is prescribed for a particular Part or24
provision:25
§1752(1) (1) "Agency" as used in this Part Chapter and in Part V of Chapter26
1 of this Title shall have the same meaning ascribed to it as provided in R.S. 36:3(1).27
§1591(9) (2) "Assembled" means the process of putting together all28
component parts of an item of equipment by the manufacturer where the assembly29 SB NO. 727
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plant is located within the territorial borders of the state of Louisiana. "Assembled"1
shall not mean the reassembly of parts packed for shipping purposes.2
(1) (3) "Business" means any corporation, partnership, individual, sole3
proprietorship, joint stock company, joint venture, or any other legal entity through4
which business is conducted.5
(4) "Central purchasing agency" means the office of state procurement.6
(2) (5) "Change order" means a written order signed by the procurement7
officer, directing the contractor to make changes which the changes clause of the8
contract authorizes the procurement officer to order without the consent of the9
contractor.10
(3) (6) "Chief procurement officer" means the state director of purchasing the11
person holding the position created in R.S. 39:1562 and the directors of12
purchasing of the departments exempt from central purchasing the office of state13
procurement by R.S. 39:1572.14
(7) "Complex procurement" means that the procurement requires any15
combination of supplies, services, consulting services or major repairs to fulfill16
a specified scope of work. The scope of work is so complicated or intricate that17
factors other than price must be evaluated in order to identify the best value.18
§1484(A)(4)(a) (8) "Consulting service" means work, other than professional,19
personal, or social service, rendered by either individuals or firms who possess20
specialized knowledge, experience, and expertise to investigate assigned problems21
or projects and to provide counsel, review, design, development, analysis, or advice22
in formulating or implementing programs or services, or improvements in programs23
or services, including but not limited to such areas as management, personnel,24
finance, accounting, planning, data processing, and advertising contracts, except for25
printing associated therewith.26
(4) (9) "Contract" means all types of state agreements, regardless of what27
they may be called, including orders and documents purporting to represent28
grants, which are for the purchase or disposal of supplies, services, or major repairs29 SB NO. 727
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or any other item. It includes awards and notices of award; contracts of a1
fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the2
issuance of job or task orders; leases; letter contracts; and purchase orders. It also3
includes supplemental agreements with respect to any of the foregoing.4
(5) (10) "Contract modification" means any written alteration in5
specifications, delivery point, rate of delivery, period of performance, price, quantity,6
or other provisions of any contract accomplished by mutual action of the parties to7
the contract.8
(6) (11) "Contractor" means any person having a contract with a9
governmental body.10
§1701(1) (12) "Cooperative purchasing" means procurement conducted by11
or on behalf of more than one public procurement unit or by a public procurement12
unit with an external procurement activity or by a private procurement unit.13
§1591(1) (13) "Cost-reimbursement contract" means a contract under which14
a contractor is reimbursed for costs which are allowable and allocable in accordance15
with cost principles as provided for in regulations, with reasonable cost principles16
and a fee, if any.17
(7) (14) "Data" means recorded information, regardless of form or18
characteristic.19
(8) (15) "Debarment" means the disqualification of a person to receive20
invitations for bids or requests for proposals, or the award of any contract by any21
governmental body, for a specified period of time commensurate with the22
seriousness of the offense or the failure or the inadequacy of performance.23
(9) (16) "Designee" means a duly authorized representative of a person24
holding a superior position.25
(17) "Electronic" means electrical, digital, magnetic, optical,26
electromagnetic, or any other similar technology.27
§1484(A)(10) (18) "Employee" means an individual drawing a salary from28
a governmental body, whether elected or not, and any nonsalaried individual29 SB NO. 727
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performing personal services for any governmental body.1
§1591(2) (19) "Established catalog price" means the price included in a2
catalog, price list, schedule, or other form that:3
(a) Is regularly maintained by a manufacturer or contractor.4
(b) Is either published or otherwise available for inspection by customers, and5
(c) States prices at which sales are currently or were last made to a significant6
number of buyers constituting the general buying public for the supplies or services7
involved .8
§1701(2) (20) "External procurement activity" means any buying9
organization not located in this state which, if located in this state, would qualify as10
a public procurement unit. An agency of the United States government is an external11
procurement activity.12
(10) (21) "Governmental body" means any department, office, division,13
commission, council, board, bureau, committee, institution, agency, government14
corporation, or other establishment or official of the executive or judicial branches15
of state government.16
§1484(A)(11.1) (22) "Governmental entity" means any governmental unit17
which is not included in the definition of "governmental body" in R.S. 39:1484(11)18
R.S. 39:1556(21).19
(11) (23) "Grant" means the furnishing by the state of assistance, whether20
financial or otherwise, to any person to support a program authorized by law. It does21
not include an award whose primary purpose is to procure an end product, whether22
in the form of supplies, services, or major repairs; a contract resulting from such an23
award is not a grant but a procurement contract.24
(24) "Information technology", which includes telecommunications, shall25
have the same meaning as defined in R.S. 39:15.3.26
(12) (25) "Installment-purchase contract" means a contract which is utilized27
to procure supplies or equipment from a contractor where payment for the supplies28
or equipment is made in a set of installment payments over a fixed period of time in29 SB NO. 727
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accordance with the provisions of the contract, and in which the contractor agrees to1
deliver title of the property to the governmental body in accordance with the terms2
and conditions of the contract.3
§1591(3) (26) "Invitation for bids" means all documents, whether attached4
or incorporated by reference, utilized for soliciting bids in accordance with the5
procedures set forth in R.S. 39:1594.6
§1490(C) (27) As used in this Chapter, "interagency "Interagency contract"7
means any contract in which each of the parties thereto is a "governmental body" as8
defined in R.S. 39:1484(11) R.S. 39:1556(21).9
§1701(3) (28) "Local public procurement unit" means any parish, city, town,10
governmental body, and any other subdivision of the state or public agency thereof,11
public authority, public educational, health, or other institution, and to the extent12
provided by law, any other entity which expends public funds for the acquisition or13
leasing of supplies, services, major repairs, and construction, and any nonprofit14
corporation operating a charitable hospital.15
(13) (29) "Major repairs" means those repairs payable with funds16
appropriated in the general appropriations act, except those funds transferred from17
the operating budget of one governmental body to supplement and complete a project18
under contract by the division of administration facility planning and control section.19
§197(9) (30) "Master agreement" means an agreement between the state and20
a vendor which specifies the general terms and conditions under which parties will21
routinely conduct procurement business.22
(14) (31) "May" denotes the permissive.23
§1484(A)(13) (32) "Negotiation" means the formulation of a contractual24
relationship by either of the methods set forth in Sections 1494, 1495, and 1496 of25
through discussions as may be allowed under this Chapter.26
(33) "Operating service" means routine operation of programs, existing27
facilities, structures, buildings or real property that are not considered to be28
professional, social, consulting, or personal services.29 SB NO. 727
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§1484(A)(14) (34) "Performance-based energy efficiency contract" means1
a contract for energy efficiency services and equipment in which the payment2
obligation for each year of the contract is either:3
(a) Set as a percentage of the annual energy cost savings attributable to the4
services or equipment under the contract, or5
(b) Guaranteed by the person under contract to be less than the annual energy6
cost savings attributable to the services or equipment under the contract.7
(15) (35) "Person" means any business, individual, union, committee, club,8
or other organization or group of individuals.9
§1484(a)(16) (36) "Personal service" means work rendered by individuals10
which requires use of creative or artistic skills, such as but not limited to graphic11
artists, sculptors, musicians, photographers, and writers, or which requires use of12
highly technical or unique individual skills or talents, such as but not limited to13
paramedicals, therapists, handwriting analysts, foreign representatives, and expert14
witnesses for adjudications or other court proceedings. A "foreign representative"15
shall mean a person in a foreign country whose education and experience qualify16
such person to represent the state in such foreign country.17
(16) (37) "Practicable" means that which can be done or put into practice;18
feasible.19
§1701(4) (38) "Private procurement unit" means any independent institution20
of higher education in this state.21
(17) (39) "Procurement" means the buying, purchasing, renting, leasing, or22
otherwise obtaining any supplies, services, or major repairs. It also includes all23
functions that pertain to the obtaining of any public procurement, including24
description of requirements, selection and solicitation of sources, preparation and25
award of contract, and all phases of contract administration.26
(18) (40) "Procurement officer" means any person authorized by a27
governmental body, in accordance with procedures prescribed by regulations, to28
enter into and administer contracts and make written determinations and findings29 SB NO. 727
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with respect thereto. The term also includes an authorized representative acting1
within the limits of authority.2
§1484(A)(18)(a) (41) "Professional service" means work rendered by an3
independent contractor who has a professed knowledge of some department of4
learning or science used by its practical application to the affairs of others or in the5
practice of an art founded on it, which independent contractor shall include but not6
be limited to lawyers, doctors, dentists, psychologists, certified advanced practice7
nurses, veterinarians, architects, engineers, land surveyors, landscape architects,8
accountants, actuaries, and claims adjusters. A profession is a vocation founded upon9
prolonged and specialized intellectual training which enables a particular service to10
be rendered. The word "professional" implies professed attainments in special11
knowledge as distinguished from mere skill. For contracts with a total amount of12
compensation of fifty thousand dollars or more, the definition of "professional13
service" shall be limited to lawyers, doctors, dentists, psychologists, certified14
advanced practice nurses, veterinarians, architects, engineers, land surveyors,15
landscape architects, accountants, actuaries, claims adjusters, and any other16
profession that may be added by regulations adopted by the office of contractual17
review state procurement of the division of administration.18
(b) For the period beginning July 1, 2008, and ending June 30, 2009,19
"professional service" shall include work rendered by an educational consultant20
which is procured by the Department of Education through a contract which has a21
maximum amount of compensation of two hundred fifty thousand dollars and a term22
of no longer than twelve months. Regardless of the number of contracts, the23
aggregate total compensation to be paid to any contractor for contracts authorized24
pursuant to this Subparagraph shall not exceed two hundred fifty thousand dollars.25
Any contract entered into pursuant to this Subparagraph shall contain specific26
measurable objectives and goals for achievement, and shall be available for public27
inspection for a period of at least thirty days prior to the execution of the contract.28
For purposes of this Subparagraph "educational consultant" shall mean a person who29 SB NO. 727
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holds an earned doctorate degree in education from a postsecondary institution1
accredited by a regional accrediting organization which is recognized by the United2
States Department of Education. The provisions of this Subparagraph shall be null,3
void, and of no effect on July 1, 2009.4
(42) "Public notice" means the distribution or dissemination of5
information to interested parties using methods that are reasonably available.6
§1701(5) (43) "Public procurement unit" means either a local public7
procurement unit or a state public procurement unit.8
§1591(4) (44) "Purchase description" means specifications or any other9
document describing the supplies, services, or major repairs to be procured.10
(19) (45) "Purchase request" means that document whereby a using agency11
requests that a contract be obtained for a specified need, and may include, but is not12
limited to, the technical description of the requested item, delivery schedule,13
transportation, criteria for evaluation of solicitees, suggested sources of supply, and14
information supplied for the making of any written determination and finding15
required by this Chapter.16
(20) (46) "Purchasing agency" means any governmental body which is17
authorized by this Chapter or its implementing regulations, or by way of delegation18
from the state director of purchasing chief procurement officer, to contract on its19
own behalf rather than through the central contracting authority of the 	central20
purchasing office of state procurement agency.21
(21) (47) "Qualified group purchasing organization" means a service22
organization, whether for profit or not, with a membership of at least fifteen hospitals23
within the United States, which contracts with suppliers for supplies and materials24
used in hospitals and makes such contracts available to its members.25
§1591(5) (48) "Request for proposals" means all documents, whether26
attached or incorporated by reference, utilized for soliciting proposals in accordance27
with the procedures set forth in R.S. 39:1595, R.S. 39:1596, R.S. 39:1597, or R.S.28
39:1598 this Chapter.29 SB NO. 727
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§1591(6) (49) "Resident business" means one authorized to do and doing1
business under the laws of this state, which either:2
(a) Maintains its principal place of business in the state; or3
(b) Employs a minimum of two employees who are residents of the state.4
§1591(7) (50) "Responsible bidder or proposer" means a person who has the5
capability in all respects to perform the contract requirements and the integrity and6
reliability which will assure good faith performance.7
§1591(8) (51) "Responsive bidder" means a person who has submitted a bid8
under R.S. 39:1594 which conforms in all substantive respects to the invitation for9
bids, including the specifications set forth in the invitation.10
(52) "Reverse auctions" means a competitive online solicitation process11
on the Internet for products, supplies, services, and other materials in which12
vendors compete against each other online in real time in an open and13
interactive environment.14
(22) (53) "Sealed bidding" means the receipt of bids protected from15
inspection prior to bid opening. Bids may be received in any manner specified in the16
invitation for bids including receipt by mail, by direct delivery, or through any secure17
electronic interactive environment permitted by rule or regulation.18
(23) (54) "Services" means the furnishing of labor, time, or and effort by a19
contractor not involving the delivery of a specific end product other than reports20
which are merely incidental to the required performance. whose primary purpose21
is to perform an identifiable task rather than to furnish an end item of supply.22
(a) Services include but are not limited to the following:23
(i) Maintenance, overhaul, repair, servicing, rehabilitation, salvage,24
modernization, or modification of supplies, systems, or equipment.25
(ii) Routine recurring maintenance of real property.26
(iii) Housekeeping and base services.27
(iv) Advisory and assistance services.28
(v) Operation of government-owned equipment, real property, and29 SB NO. 727
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systems.1
(vi) Information technology services.2
(vii) Research and development.3
(b) This The term "services" shall not include:4
(a) (i) Employment agreements or collective bargaining agreements.5
(b) Personal, professional, consultant, or social services as provided by R.S.6
39:1481 through R.S. 39:1526.7
(c) (ii) Services performed by lawyers as provided by R.S. 42:261 through8
R.S. 42:264.9
(d) (iii) Services performed by an architect, engineer, or landscape architect10
as provided by R.S. 38:2310 through R.S. 38:2314.11
(24) (55) "Shall" denotes the imperative.12
(56) "Signature" means a manual or electronic signature (as defined by R.S.13
9:2602(8)).14
§1484(A)(22) (57) "Social service" means work rendered by any person,15
firm, corporation, organization, governmental body, or governmental entity in16
furtherance of the general welfare of the citizens of Louisiana, including but not17
limited to the objectives provided for in Subsection B of this Section R.S. 39:1618.18
§197(5) (58) "Software" means computer programs and documentation19
essential to and necessary for a computer to perform productive operations.20
§1651(B). (59) As used in this Part, the term "specification" "Specification"21
means any description of the physical or functional characteristics, or of the nature22
of a supply, service, or major repair. It may include a description of any requirement23
for inspecting, testing, or preparing a supply, service, or major repair for delivery.24
(25) "State director of purchasing" means the person holding the position25
created in R.S. 39:1562, as the head of the central purchasing office of Louisiana.26
(60) "State chief procurement officer" means the person holding the27
position created in R.S. 39:1562, as head of the central purchasing office of28
Louisiana.29 SB NO. 727
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§1701(6) (61) "State public procurement unit" means the central purchasing1
agency and any other purchasing agency of this state.2
§1484(A)(23) (62) "Supplemental agreement" means any contract3
modification which is accomplished by the mutual action of the parties .4
(26) (63) "Supplies" means all property, including but not limited to5
equipment, materials, insurance, right to use license agreements for software and6
leases on real property excluding land or a permanent interest in land.7
(27) (64) "Suspension" means the disqualification of a person to receive8
invitations for bids or requests for proposals, or the award of a contract by the state,9
for a temporary period pending the completion of an investigation and any legal10
proceedings that may ensue because a person is suspected upon probable cause of11
engaging in criminal, fraudulent, or seriously improper conduct or failure or12
inadequacy of performance which may lead to debarment.13
(28) (65) "Using agency" means any governmental body of the state which14
utilizes any supplies, services, or major repairs purchased under this Chapter.15
(29) (66) "Written" or "in writing" means the product of any method of16
forming characters on paper, other materials, or viewable screen, which can be read,17
retrieved, and reproduced, including information that is electronically transmitted18
and stored.19
SUBPART C. RECORDS; PUBLIC ACCESS20
§1557. Public access to procurement information21
Procurement information shall be a public record to the extent provided in22
Chapter 1 of Title 44 of the Louisiana Revised Statutes of 1950 and shall be23
available to the public as provided in such statute.24
§1558. Determinations25
Written determinations and findings required by this Chapter shall be retained26
in an official contract file in the central purchasing agency or purchasing agency or27
by the governmental body administering the contract.28
PART II. PURCHASING ORGANIZATION29 SB NO. 727
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SUBPART A. DIVISION OF ADMINISTRATION1
§1561. Authority and duties of the commissioner of administration2
A. Except as otherwise provided in this Chapter, the commissioner of3
administration, hereinafter referred to as "the commissioner," shall have the authority4
and responsibility to promulgate regulations, consistent with this Chapter, governing5
the procurement, management, and control of any and all supplies, services, and6
major repairs required to be procured by the state. However, the commissioner shall7
not require by rule or regulation any policy or management board of public higher8
education or any institution under their jurisdiction to prepare or submit a monthly9
report on items purchased from state contracts or on contract item usage to the10
Division of Administration. The quarterly report listing purchases for under five11
thousand dollars and the annual report for purchases above five thousand dollars on12
all items purchased from state contracts shall be sufficient to meet the requirements13
of this Chapter.14
B. The commissioner or his designee shall consider and decide matters of15
policy within the provisions of this Chapter including those referred to him by the16
state director of purchasing chief procurement officer. The commissioner or his17
designee shall have the power to audit and review the implementation of the18
procurement regulations and the requirements of this Chapter.19
SUBPART B. CENTRAL PURCHASI NG AGENCY20
§1562. Central purchasing agency; creation21
There is hereby created, within the division of administration, the Central22
Purchasing Agency, headed by the State Director of Purchasing, hereinafter referred23
to as "the director" state chief procurement officer.24
§1563. Appointment and qualifications25
The director state chief procurement officer shall be in the classified26
service of the state and shall be appointed in accordance with the provisions of27
Article X, Section 7 of the Louisiana Constitution of 1974. The director state chief28
procurement officer shall have had a minimum of eight years experience in the29 SB NO. 727
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large scale procurement of supplies, services, or construction, involving specification1
development, the preparation of bid proposals and bid evaluation and award,2
including at least three years of supervisory experience. Preference shall be given to3
such experience in governmental purchasing.4
§1564. Authority of the state director purchasing chief procurement officer5
A. Central procurement officer of the state. The director state chief6
procurement officer shall serve as the central procurement officer of the state.7
B. Power to adopt rules. Consistent with the provisions of this Chapter, the8
director state chief procurement officer may adopt rules governing procurements9
conducted under this Chapter including the internal procedures of the central10
purchasing agency.11
C. Duties. Except as otherwise specifically provided in this Chapter, the12
director state chief procurement officer shall, within the limitations of regulations13
promulgated by the commissioner:14
(1) Procure or supervise the procurement of all supplies, services, and major15
repairs needed by the state.16
(2) Exercise supervision over all inventories of warehoused supplies17
belonging to the state.18
(3) Establish and maintain programs for the inspection, testing, and19
acceptance of supplies, services, and major repairs.20
(4) Ensure compliance with this Chapter and implementing regulations21
by reviewing and monitoring procurements conducted by any department,22
agency, or official delegated authority in accordance with provisions provided23
in this Chapter.24
§1565. Duties of the attorney general25
The attorney general shall be the chief legal adviser to the director state chief26
procurement officer.27
§1566. Appointment of assistants and other employees; delegation of authority by28
the state director of purchasing chief procurement officer29 SB NO. 727
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Subject to the provisions of the Article X, Section 7 of the Louisiana1
Constitution of 1974, the director state chief procurement officer may employ and2
supervise such assistants and other persons as may be necessary and may delegate3
authority to such designees or to any governmental body as the director state chief4
procurement officer may deem appropriate within the limitations of state law and5
the state procurement regulations.6
§1567. Reporting requirements7
A. The director state chief procurement officer shall prepare any reports8
that the commissioner of administration may deem necessary and shall deliver such9
reports to such recipients as the commissioner may designate. As provided in R.S.10
44:1 et seq., such reports shall be available to the public upon request. However,11
nothing in this Section shall require any policy or management board of public12
higher education or any institution under their jurisdiction to prepare or submit a13
monthly report on items purchased from state contracts or on contract item usage to14
the director state chief procurement officer. The quarterly report listing purchases15
for under five thousand dollars and the annual report for purchases above five16
thousand dollars on all items purchased from state contracts, shall be sufficient to17
meet the requirements of this Section.18
§1489 B. The director state chief procurement officer shall prepare such19
reports as he finds necessary for the proper conduct of his duties, to include an20
annual report of all professional, personal, consulting, social services, and other21
contracts over which the office of contractual review state procurement has power22
and authority under the provisions of this Chapter or through administrative rules and23
regulations. The annual report shall be compiled on a fiscal year basis and consist,24
at a minimum, of summary descriptive and statistical data regarding the number and25
amounts of such contracts by type of service. The annual report shall be submitted26
to the president of the Senate and speaker of the House of Representatives not later27
than January first of the year following the end of the fiscal year for which the report28
is prepared.29 SB NO. 727
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§1517 A. C. (1) When for any reason collusion is suspected among any1
offerers bidders or proposers, a written notice of the facts giving rise to such2
suspicion shall be transmitted to the director of contractual review state chief3
procurement officer and the attorney general.4
B. (2) All documents involved in any procurement in which collusion is5
suspected shall be retained until the Office of Contractual Review office of state6
procurement gives notice that they may be destroyed. All retained documents shall7
be made available to the commissioner of administration or his designee upon8
request.9
§1554 D. (5) D. This Chapter shall not be applicable to the purchase of any10
medical supplies or medical equipment from a qualified group purchasing11
organization if the commissioner of administration has determined that it is in the12
best interest of the state to purchase the medical supply or medical equipment from13
the qualified group purchasing organization. An annual report on the number, type,14
and volume of such procurements purchases of any medical supplies or medical15
equipment from a qualified group purchasing organization shall be made to the16
commissioner of administration, the speaker of the House of Representatives, and17
the president of the Senate.18
§1613 E. Subject to the limitations of R.S. 39:1611 and R.S. 39:1612, any19
type of contract, including brand name and multiple award contracts, which will20
promote the best interests of the state may be used, provided that the chief21
procurement officer must make a written determination justifyin g the type of22
contract used. An annual report on the number, type, and volume of 	such23
procurements brand name contracts shall be made to the commissioner or cabinet24
department head within ninety days after the end of the fiscal year.25
§1658 §1567.1. Mandatory information requirement for contracts let without26
competition under the authority of an executive order27
A. The provisions of this Section shall apply to any contract for state28
procurement of goods or services which is subject to the provisions of Chapter 17 of29 SB NO. 727
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this Title, hereinafter referred to as "state procurement law", which contract is let1
without competition pursuant to an executive order issued by authority granted under2
the Louisiana Homeland Security and Emergency Assistance and Disaster Act,3
which order grants exceptions to the requirements of state procurement law. Such4
provisions shall apply to contracts which have been or will be let without5
competition pursuant to executive orders related to Hurricane Katrina or Rita which6
granted exceptions to the requirements of state procurement law.7
B.(1) For any contract subject to the provisions of this Section, the8
information cited in Subparagraphs (a) through (d) of this Paragraph shall be9
submitted by the primary contractor to the office of state purchasing procurement.10
The following information shall be submitted, in a format to be determined by such11
agencies, no later than forty-five days after the effective date of the contract, or12
forty-five days after June 29, 2006, whichever is later:13
(a) The name of the primary contractor.14
(b) The amount of the contract.15
(c) The name of each subcontractor.16
(d) The amount of each subcontract.17
(2) Any change in subcontractors, or in the amount of a subcontract which18
exceeds twenty-five percent in the aggregate of the original subcontracted amount,19
shall necessitate the submission of updated information as required in Paragraph (1)20
of this Subsection.21
(3) The primary contractor for each contract subject to the provisions of this22
Section shall be notified of the requirements of this Section by the contracting state23
agency. Such notification shall be made no later than ten days after June 29, 2006,24
for contracts which are currently in effect. Otherwise, the The notification shall be25
made prior to execution of the contract.26
C. The office of state purchasing procurement shall maintain a listing or27
registry of all information reported to it pursuant to the provisions of this Section.28
D. Failure to submit all of the information required as provided in Subsection29 SB NO. 727
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B of this Section shall be grounds for debarment. It shall be unlawful for any person1
to intentionally fail to submit such information, which failure is hereby deemed to2
be a violation of the duty to provide the mandatory information. Whomever violates3
such provisions of Subsection B of this Section shall be fined in an amount not to4
exceed one-half of the contract amount and imprisoned for not more than six months,5
or both.6
E. The provisions of this Section shall not be subject to suspension pursuant7
to the authority granted to the governor by R.S. 29:721 et seq., the Louisiana8
Homeland Security and Emergency Assistance and Disaster Act.9
§1493. §1567.2. Collection of data concerning public procurement10
The using agencies shall cooperate with the office of contractual review state11
procurement in the preparation of statistical data concerning the acquisition, usage,12
and disposition of all professional, personal, consulting, and social services, and may13
employ trained personnel, as necessary, to carry out this function. All using agencies14
shall furnish such reports as the office of contractual review state procurement may15
require concerning usage and needs, and the office of contractual review state16
procurement shall have authority to prescribe forms to be used by the using17
agencies in the reporting of professional, personal, consulting, and social services.18
§1518. 1567.3. Reports of procurement actions related to professional, personal,19
consulting, and social service contracts20
A.  A written report shall be compiled annually, within one hundred twenty21
days after the close of the fiscal year, of contracts made under Sections 1494, 1495,22
and 1496 of this Chapter R.S. 39:1617, 1618, 1619, and 1620 during that preceding23
fiscal year. The report shall (1) name each contract; (2) state the amount and type of24
each contract; (3) describe the services purchased by each contract, and (4) include,25
as attachments, copies of all determinations and findings required to be made by26
provisions of this Part and implementing rules and regulations.27
B.(1) A central file or listing of all architects, engineers, clerks of the works,28
attorneys, including bond attorneys or counsel, and public relations persons or firms29 SB NO. 727
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employed or retained by each state agency, board, commission, or department,1
including nonbudget units shall be compiled and updated annually, within one2
hundred twenty days after the close of the fiscal year, of contracts made during that3
preceding year. Each such list shall be kept separately by profession and shall4
contain information relative to such employment or retention, including a detailed5
description of the nature of services rendered to the agency, the extent and duration6
of such services, the amount of the fee or other compensation paid in return for such7
services, and any other information deemed pertinent by the commissioner of the8
division of administration.9
(2) Notwithstanding any other the provisions of this Chapter R.S. 39:1482,10
each state agency, board, commission, or department, including nonbudget units,11
shall forward on an annual basis on forms to be supplied by the office of contractual12
review state procurement, a report containing the data and information on all13
professional services retained or employed which are required to be listed in a central14
listing as provided in this Subsection B of this Section.15
C. The reports required by this Section shall be retained as public records.16
§1500(B). §1568. Contract performance report17
A. After completion of performance under a professional, personal,18
consulting, or social service contract, the using agency shall prepare a final report on19
the contract which shall include an evaluation of contract performance and an20
assessment of the utility of the final product. This report shall be delivered to the21
director of the office of contractual review state chief procurement officer within22
sixty days after completion of performance and shall be retained in the official23
contract file. Reports not submitted to the office of contractual review state24
procurement within the sixty-day period shall be delinquent. The report shall25
include at least the following:26
(1) The name of the agency official or officials responsible for monitoring27
the contract and for final agency acceptance of the contract deliverables.28
(2) The contractor, contract amount, contract cost basis, and contract29 SB NO. 727
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timetable which shall reflect both the proposed and actual work initiation and1
completion dates.2
(3) Any contract modifications.3
(4) A listing of the contract deliverables, inclusive of specific products and4
services, and whether all such deliverables were satisfactorily and timely completed.5
(5) An itemization of any problems encountered with respect to the execution6
of the contract.7
(6) An assessment of the utility of the contract deliverables.8
C. B. Final evaluation reports required by this Section for contracts in9
amounts of two hundred fifty thousand dollars or greater shall also be submitted to10
the legislative auditor.11
D. C. No contract for professional, personal, consulting, or social services12
shall be entered into by a using agency with any contractor for which a delinquent13
final evaluation report remains outstanding for a contract with such using agency.14
In cases where the using agency fails to submit a final evaluation report and the15
report remains delinquent, the state chief procurement officer may refuse to16
approve any future contract for professional, personal, consulting, or social17
services.18
§1615(A) D. Specified Period. Unless otherwise provided by law, a contract19
for supplies or services may be entered into for periods of not more than five years,20
if funds for the first fiscal year of the contemplated contract are available at the time21
of contracting. Payment and performance obligations for succeeding fiscal years22
shall be subject to the availability and appropriation of funds therefor. No contract23
shall be entered into for more than one year unless the length of the contract was24
clearly stated in the specifications. Any lease or similar agreement affecting the25
allocation of space in the state capitol shall have the prior approval of the Legislative26
Budgetary Control Council if it extends for more than one year. A report of all27
multiyear contracts shall be provided to the Joint Legislative Committee on the28
Budget no later than ninety days after the end of each fiscal year.29 SB NO. 727
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SUBPART C. CENTRALIZATION OF PUBLIC PROCUREMENT1
§1571. Centralization of procurement authority2
Except as otherwise provided in this Subpart, all rights, powers, duties, and3
authority relating to the procurement of supplies, services, and major repairs now4
vested in or exercised by any state governmental body under the several statutes5
relating thereto are hereby transferred to the central purchasing agency.6
§1572. Exemptions7
A. Exemption from central purchasing agency and procurement regulations8
of commissioner. Procurement of the following items or by the following9
governmental bodies shall not be required to be conducted through the central10
purchasing agency, and shall not be required to follow the procurement11
regulations of the commissioner or the office of state procurement, but shall12
nevertheless be subject to the requirements of this Chapter and such regulations as13
may be promulgated by the head of such governmental body:14
(1) The Department of Transportation and Development, for procurement of15
materials, and supplies that will become a component part of any road, highway,16
bridge, or appurtenance thereto, and17
(2) Textbooks, scientific and laboratory equipment, teaching materials,18
teaching devices, and teaching supplies procured by the Department of Education.19
B. Exemptions from central purchasing only. Unless otherwise ordered by20
regulation of the commissioner with approval of the governor, the following21
governmental bodies shall not be required to conduct procurement through the22
central purchasing agency, but shall nevertheless be subject to the requirements of23
this Chapter and the regulations promulgated by the commissioner:24
(1) Louisiana State University System.25
(2) Southern University System.26
(3) Board of Trustees of State Colleges and Universities System University27
of Louisiana Systems.28
(4) Special schools and other institutions under the supervision of the State29 SB NO. 727
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Board of Elementary and Secondary Education.1
(5) Department of Education for items other than those exempted in2
Paragraph A(2) of this Section.3
(6) (5) The office of the state bond commission in the Department of the4
Treasury for printing only.5
(7) (6) Louisiana Community and Technical College System.6
C. The procurement of professional, consulting, or social services,7
information technology, or vehicles is not exempt from central purchasing8
unless otherwise provided for in R.S. 39:1554.9
C. D. Use of central purchasing by exempt agencies. A governmental body10
exempted from centralized purchasing may use the central purchasing facilities11
whenever the best interests of such governmental body and the state may be served.12
SUBPART D. STATE PROCUREMENT REGULATI ONS13
§1581. State procurement regulations14
A. Regulations. Regulations promulgated by the commissioner in accordance15
with the Administrative Procedure Act shall govern all procurements by all16
governmental bodies except for:17
(1) Regulations promulgated by the secretary of the Department of18
Transportation and Development governing procurement by that department, for19
procurement of materials and supplies that will become a component part of any20
road, highway, bridge, or appurtenance thereto.21
(2) Regulations promulgated by the State Superintendent of Education22
governing the procurement of textbooks, scientific and laboratory equipment,23
teaching materials, teaching devices, and teaching supplies by the Department of24
Education.25
B. Exempted departments. Secretaries of departments exempted under26
Subsection A of this Section shall promulgate regulations for the purposes set forth27
in accordance with the Administrative Procedures Act. Such regulations shall not be28
inconsistent with the provisions of this Chapter.29 SB NO. 727
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C. Power to promulgate regulations shall not be delegated. The commissioner1
or secretary shall not delegate his power to promulgate regulations.2
D. Regulations shall not change existing contract rights. No regulation shall3
change any commitment, right, or obligation of the state or of a contractor under a4
contract in existence on the effective date of such regulation.5
E. Incorporation of required clauses into contracts by operation of law only6
with consent of both parties. No clause which is required by regulation to be7
included shall be considered to be incorporated by operation of law in any state8
contract without the consent of both parties to the contract to such incorporation;9
provided, however, that the parties to the contract may give such consent to10
incorporation by reference at any time after the contract has been entered into and11
without the necessity of consideration passing to either party.12
SUBPART E. COORDINATION, TRAINING, AND EDUCATION13
§1586. Relationship with using agencies14
The commissioner and the director state chief procurement officer shall15
maintain a close and cooperative relationship with the using agencies. The director16
state chief procurement officer shall afford each using agency reasonable17
opportunity to participate in and make recommendations with respect to matters18
affecting such using agency. Any using agency may at any time make19
recommendations to the commissioner or the director state chief procurement20
officer, and the commissioner or director state chief procurement officer may at21
any time make recommendations to any using agency.22
§1587. Procurement Advisory Council; other advisory groups23
A. Procurement Advisory Council. The commissioner may establish a24
Procurement Advisory Council. If created, such council, upon adequate public25
notice, shall meet at least once a year for the discussion of problems and26
recommendations for improvement in the procurement process. When requested by27
the commissioner, the Procurement Advisory Council may conduct studies, research,28
and analyses and make such reports and recommendations with respect to such29 SB NO. 727
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subjects or matters within the jurisdiction of the commissioner. The Procurement1
Advisory Council shall consist of such qualified persons as the commissioner may2
deem desirable.3
B. Other advisory groups. The director state chief procurement officer may4
appoint advisory groups to assist with respect to specifications and procurement in5
specific areas and with respect to any other matters within the authority of the6
director state chief procurement officer.7
C. Drug procurement advisory council. The commissioner shall establish a8
Drug Procurement Advisory Council which shall be composed of persons from the9
division of administration and from using agencies of drugs procured by the division10
and persons qualified in the fields of medicine and pharmacy. The council shall11
advise the commissioner with respect to the procurement of drugs for any using12
agency by generic contract, as further provided in R.S. 39:1594.1.13
PART III. SOURCE SELECTION AND CONTRACT FORMATION14
SUBPART B A. METHODS OF SOURCE SELECTI ON15
§1593. Methods of source selection16
A. Unless otherwise authorized by law, all state contracts shall be awarded17
by competitive sealed bidding, pursuant to R.S. 39:1594, except as provided in R.S.18
39:1593.1 and R.S. 39:1595 through 1598. one of the following methods:19
(1) Competitive sealed bids.20
(2) Competitive sealed proposals.21
(3) Small purchases.22
(4) Sole source.23
(5) Emergency procurements.24
(6) Other procurement methods.25
(a) Unstable market conditions.26
(b) Group purchasing organizations.27
(c) Fiscal intermediary services.28
(d) Master agreements.29 SB NO. 727
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(e) Volume pricing agreements.1
(f) Multi-step bids or proposals.2
(g) Used equipment.3
(h) Reverse auctions.4
(i) Negotiation of non-competitive contracts.5
(j) Maintenance services for information technology equipment.6
(k) Software and software maintenance.7
B. Notwithstanding any other provisions of this Section to the contrary and8
in accordance with rules and regulations promulgated by the commissioner in9
accordance with the Administrative Procedure Act, the directors of state purchasing10
or directors of purchasing at a college or university, with the approval of the11
commissioner, may procure by solicitation requiring written response from at least12
three bona fide bidders under the provisions of this Subsection, when it is determined13
that market conditions are unstable and the competitive bid process is not conducive14
for best pricing for products, supplies and other materials. The provisions of this15
Subsection shall be applicable only if the value of the contract is fifty thousand16
dollars or less and only after sufficient documentation is provided to the17
commissioner by the director to substantiate the unstable market. Other methods18
of procurement may be used in the state's best interest with the written19
determination of the state chief procurement officer, and a recommendation by20
the procurement support team, that an unusual or unique situation exists that21
makes the use of methods listed in Subsection A of this Section impracticable.22
Such method shall be initiated with public notice and in accordance with rules23
promulgated by the commissioner.24
C.(1) Notwithstanding any other provision of this Section to the contrary,25
with the approval of the commissioner and the written determination by the director26
of state purchasing that the best interests of the state would be served, a competitive27
request for proposals process as provided in this Subsection may be used in the28
following circumstances:29 SB NO. 727
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(a) For the procurement of supplies, services, or major repairs, including but1
not limited to the procurement of high technology acquisitions or of complex2
services.3
(b) Through a contract with a group purchasing organization, for the4
procurement of medical and laboratory supplies and medical equipment required for5
the purpose of diagnosis or direct treatment of a patient by a health care provider in6
a hospital or clinical setting, provided the commissioner determines the total cost to7
be less than the state procurement prices and in the best interest of the state.8
(2)(a)(i) For a contract to be let under the provisions of this Subsection, the9
agency shall give adequate public notice of the request for proposals by advertising10
in the official journal of the state at least thirty days before the last day that proposals11
will be accepted. In addition, the agency shall mail written notice to persons, firms,12
or corporations who are known to be in a position to furnish the required services at13
least thirty days before the last day that proposals will be accepted.14
(ii) All requests for proposals shall be advertised through a centralized15
electronic interactive environment administered by the division of administration as16
provided in this Section. The advertisement or written notice required by this Section17
shall contain the name and address of the using agency and shall establish the18
specific date, time, and place by which the request for proposals must be received.19
(b) The request for proposals shall clearly state the technological or other20
outcome desired from the procurement of the technological or complex systems21
and/or services, if applicable, and shall indicate the relative importance of price and22
other evaluation factors, the criteria to be used in evaluating the proposals, and the23
time frames within which the work must be completed.24
(c) Written or oral discussions shall be conducted with all responsible25
offerers who submit proposals determined in writing to be reasonably susceptible of26
being selected for award. Discussions shall not disclose any information derived27
from proposals submitted by competing offers. Discussions need not be conducted:28
(i) If prices are fixed by law or regulation, except that consideration shall be29 SB NO. 727
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given to competitive terms and conditions.1
(ii) If time of delivery or performance will not permit discussions.2
(iii) If it can be clearly demonstrated and documented from the existence of3
adequate competition or accurate prior cost experience with the particular service4
that acceptance of an initial offer without discussion would result in fair and5
reasonable prices and the request for proposals notifies all offerers of the possibility6
that award may be made on the basis of the initial offers.7
(d)(i) Award shall be made to the responsible offerer whose proposal is8
determined in writing by the agency to be the most advantageous to the state, taking9
into consideration review of price and the evaluation factors set forth in the request10
for proposals.11
(ii) A request for proposals or other solicitation may be cancelled or all12
proposals may be rejected only if it is determined, based on reasons provided in13
writing, that such action is taken in the best interest of the state.14
(e) Each contract entered into pursuant to this Subsection shall contain as a15
minimum:16
(i) Description of the work to be performed and/or objectives to be met, when17
applicable.18
(ii) Amount and time of payments to be made.19
(iii) Description of reports or other deliverables to be received, when20
applicable.21
(iv) Date of reports or other deliverables to be received, when applicable.22
(v) Responsibility for payment of taxes, when applicable.23
(vi) Circumstances under which the contract can be terminated either with or24
without cause.25
(vii) Remedies for default.26
(viii) A statement giving the legislative auditor the authority to audit records27
of the individual(s) or firm(s).28
(f)(i) Upon entering into a contract, the using agency shall have full29 SB NO. 727
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responsibility for the diligent administration and monitoring of the contract. The1
director of state purchasing may require the using agency to report at any time on the2
status of any such outstanding contracts to which the using agency is a party. After3
completion of performance under a contract, the using agency shall evaluate contract4
performance and the utility of the final product. This evaluation shall be delivered5
to the director of state purchasing within one hundred twenty days after completion6
of performance and shall be retained in the official contract file.7
(ii)(aa) No contract shall be valid, nor shall the state be bound by the contract,8
until it has first been executed by the head of the using agency, or his designee,9
which is a party to the contract and the contractor and has been approved in writing10
by the director of state purchasing.11
(bb) In cases where the head of the using agency wants to delegate authority12
to one or more of his subordinates to sign contracts on behalf of the agency, this13
delegation shall be made in accordance with regulations of the commissioner and14
shall be subject to the approval of the director of state purchasing.15
§1594. Competitive sealed biddings16
A. Conditions for use. Contracts exceeding the amount provided by R.S.17
39:1596 shall be awarded by competitive sealed bidding unless otherwise provided18
in this Chapter.19
B. Invitation for bids. Competitive sealed bidding shall be initiated by the20
issuance of an invitation for bids containing a description of the supplies, services,21
or major repairs to be procured and all contractual terms and conditions applicable22
to the procurement.23
C. Public notice.24
(1) Adequate For procurements of fifty thousand dollars or more,25
adequate public notice of the invitation for bids shall be given at least ten days prior26
to the date set forth therein for the opening of bids on all matters except those made27
for housing of state agencies, their personnel, operations, equipment, or activities28
pursuant to R.S. 39:1643, for which such notice shall be given at least twenty fifteen29 SB NO. 727
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days prior to the opening of bids. Notice Public notice shall be in writing and1
provided to persons in a position to furnish the supplies, services, or major repairs2
required, as shown by its records of the procuring agency. , and by advertising if3
the amount of the purchase is twenty-five thousand dollars or more. Public notice4
may include advertising in accordance with Paragraph (3) of this Subsection.5
(2) The advertisements and public notices or written notices shall contain6
general descriptions of the supplies, services, or major repairs for which bids are7
wanted and shall state:8
(a) The names and locations of the departments or institutions for which the9
purchases are to be made.10
(b) Where and how specifications and quotation forms may be obtained, and11
(c) The date and time not later than which bids must be received and will be12
opened.13
(3) Each advertisement shall be published in the official journal of the state14
at least fifteen days prior to the opening of bids. In the case of any purchase to15
meet the needs of a single budget unit the advertisement shall may be published also16
in a newspaper of general circulation printed in the parish in which the budget unit17
is situated or, if there is no newspaper printed in the parish, in a newspaper printed18
in the nearest parish, that has a general circulation in the parish in which the budget19
unit is situated.20
(5) (4) All bids shall be advertised announced by public notice by a using21
agency through a centralized electronic interactive environment administered by the22
division of administration as provided in this Section. The advertisement public23
notice or written notice required by this Section shall contain the name and address24
of the using agency and shall establish the specific date, time, and place by which the25
bids must be received.26
(4) (5) Evidence of agency, corporate, or partnership authority shall be27
required for submission of a bid to the division of administration or purchasing28
agencies of the state of Louisiana. The authority of the signature of the person29 SB NO. 727
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submitting the bid shall be deemed sufficient and acceptable if any of the following1
conditions is are met:2
(a) The signature on the bid is that of any corporate officer listed on the most3
current annual report on file with the secretary of state, or the signature on the bid4
is that of any member of a partnership or partnership in commendam listed in the5
most current partnership records on file with the secretary of state.6
(b) The signature on the bid is that of an authorized representative of the7
corporation, partnership, or other legal entity and the bid is accompanied by bidder8
submits or provides upon request a corporate resolution, certification as to the9
corporate principal, or other documents indicating authority which are acceptable to10
the public entity, including registration on an electronic internet database11
maintained by the public entity.12
(c) The corporation, partnership, or other legal entity has filed in the13
appropriate records of the secretary of state in which the public entity is located, an14
affidavit, resolution, or other acknowledged or authentic document indicating the15
names of all parties authorized to submit bids for public contracts. Such document16
on file with the secretary of state shall remain in effect and shall be binding upon the17
principal until specifically rescinded and canceled from the records of the respective18
offices.19
D. Bid opening. Bids shall be opened publicly in the presence of one or more20
witnesses at the time and place designated in the invitation for bids. Each bid,21
together with the name of the bidder, shall be recorded and open to public inspection.22
E. Bid evaluation.23
(1) Bids shall be evaluated based on the requirements set forth in the24
invitation for bids, which may include criteria to determine acceptability such as25
inspection, testing, quality, workmanship, delivery, and suitability for a particular26
purpose, and criteria affecting price such as life cycle or total ownership costs. The27
invitation for bids shall set forth the evaluation criteria to be used. No criteria may28
be used in bid evaluation that are not set forth in the invitation for bids.29 SB NO. 727
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(2) For bids made for housing of state agencies, their personnel, operations,1
equipment, or activities pursuant to R.S. 39:1643, the criteria for evaluation shall be2
included in the invitation for bids and shall include, at a minimum, the following:3
(a) Location of the proposed space.4
(b) Condition of the proposed space.5
(c) Suitability of the proposed space for the advertiser's needs.6
(d) Timeliness of availability of the proposed space.7
F. Correction or withdrawal of bids. Patent errors in bids or errors in bids8
supported by clear and convincing evidence may be corrected, or bids may be9
withdrawn, if such correction or withdrawal does not prejudice other bidders, and10
such actions may be taken only to the extent permitted under regulations.11
G. Award. The contract shall be awarded with reasonable promptness by12
written notice to the lowest responsive and responsible bidder whose bid meets the13
requirements and criteria set forth in the invitation for bids. Award shall be made by14
unconditional acceptance of a bid without alteration or correction except as15
authorized in this Part Chapter.16
H. Resident business preference. In state contracts awarded by competitive17
sealed bidding, resident businesses shall be preferred to nonresident businesses18
where there is a tie bid and where there will be no sacrifice or loss in quality.19
I. Exemption.20
(1) Purchases of goods manufactured by or services performed by severely21
handicapped individuals in state-operated and state-supported sheltered workshops22
as defined in R.S. 39:1595.4 R.S. 39:1599.4 shall be exempt from the provisions of23
this Section. This exemption shall also apply to goods and services procured by24
purchase order directly from a central nonprofit agency contracting under 	R.S.25
39:1595.4 R.S. 39:1599.4 to assist qualified sheltered workshops; any purchase order26
shall be issued directly to the central nonprofit agency for all goods and services27
within the exemption provided under this Subsection.28
(2) Purchases of raw materials and supplies used in the manufacturing29 SB NO. 727
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process by the Department of Public Safety and Corrections, division of prison1
enterprises, with the approval of the director of state purchasing state chief2
procurement officer, shall be exempt from the provisions of this Section and shall3
be procured through the use of written bids.4
§1594.1.  Contracts for drugs5
Multisource generic drug contracts shall be used for the procurement of drugs6
approved by the Federal Drug Administration and listed in the Federal Drug7
Administration Prescription Drug Products with Therapeutic Equivalence8
Evaluations Compendium and Supplements for all using agencies.  Such contracts9
shall be competitively bid at the lowest available price. However, a brand name10
contract may be used if there is only one source of supply for a particular drug or if11
the using agency certifies to the chief procurement officer that a justifiable medical12
reason exists for the use of a particular brand name drug.  The chief procurement13
officer shall seek the advice of the Drug Procurement Advisory Council on all such14
requests other than declared emergencies.15
§1593(C). §1594.1. Competitive sealed proposals16
(1) A. Notwithstanding any other provision of this Section to the contrary,17
with the approval of the commissioner and the written determination by the director18
of state purchasing that the best interests of the state would be served, a A19
competitive request for proposals process as provided in this Subsection Section may20
be used in the following circumstances:21
(a) (1) For the procurement of supplies, services, or major repairs, including22
but not limited to the procurement of high information technology acquisitions, or23
of consulting services, social services or complex services procurements.24
(b) Through a contract with a group purchasing organization, for the25
procurement of medical and laboratory supplies and medical equipment required for26
the purpose of diagnosis or direct treatment of a patient by a health care provider in27
a hospital or clinical setting, provided the commissioner determines the total cost to28
be less than the state procurement prices and in the best interest of the state.29 SB NO. 727
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(2) Notwithstanding any other provision of this Section to the contrary,1
with approval of the commissioner and written determination by the state chief2
procurement officer that the best interest of the state would be served, a3
competitive request for proposal process may be used for the procurement of4
supplies, operating services, or major repairs, as defined by regulations.5
(2)(a)(i) B.(1) For Except as otherwise provided by law, for a contract of6
fifty thousand dollars or more to be let under the provisions of this Subsection7
Section, the agency shall give adequate public notice of the request for proposals ,8
which may include by advertising in the official journal of the state accordance9
with Paragraph (2) of this Subsection, at least thirty fifteen days except where10
noted before the last day that proposals will be accepted. Additional time shall be11
allowed when conditions warrant. In addition, the agency shall mail written notice12
to persons, firms, or corporations who are known to be in a position to furnish the13
required services, as shown by records of the procuring agency, at least thirty14
fifteen days except where noted before the last day that proposals will be accepted.15
(2) Notice of the request for proposals shall be published in the official16
journal at least fifteen days before the last day that proposals will be accepted.17
(ii) (3) All requests for proposals shall be advertised announced by public18
notice through a centralized electronic interactive environment administered by the19
division of administration as provided in this Section. The advertisement public20
notice or written notice required by this Section shall contain the name and address21
of the using agency and shall establish the specific date, time, and place by which the22
request for proposals must be received.23
(b) (4) The request for proposals shall clearly state the technological or other24
outcome desired from the procurement of the technological or complex systems25
and/or services, if applicable, and shall indicate the relative importance of price and26
other evaluation factors, the criteria to be used in evaluating the proposals, and the27
time frames within which the work must be completed.28
C.(1) Discussion with responsible proposer and revisions to proposals.29 SB NO. 727
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As provided in the request for proposals, and under regulations, discussions1
may be conducted with responsible proposers who submit proposals determined2
to be reasonably susceptible of being selected for award for the purpose of3
clarification to assure full understanding of, and responsiveness to, the4
solicitation requirements. Proposers shall be accorded fair and equal treatment5
with respect to any opportunity for discussion and revision of proposals, and6
such revisions may be permitted after submissions and prior to award for the7
purpose of obtaining best and final offers. In conducting discussions, there shall8
be no disclosure of any information derived from proposals submitted by9
competing proposers.10
§1593(C)(2)(c) (2) Written or oral discussions shall be conducted with all11
responsible offerers who submit proposals determined in writing to be reasonably12
susceptible of being selected for award. Discussions shall not disclose any13
information derived from proposals submitted by competing offers. Discussions need14
not be conducted:15
(i) (a) If prices are fixed by law or regulation, except that consideration shall16
be given to competitive terms and conditions.17
(ii) (b) If time of delivery or performance will not permit discussions.18
(iii) (c) If it can be clearly demonstrated and documented from the existence19
of adequate competition or accurate prior cost experience with the particular service20
that acceptance of an initial offer without discussion would result in fair and21
reasonable prices and the request for proposals notifies all offerers proposers of the22
possibility that award may be made on the basis of the initial offers.23
(d)(i) Award shall be made to the responsible offerer proposer whose24
proposal is determined in writing by the agency to be the most advantageous to the25
state, taking into consideration review of price and the evaluation factors set forth26
in the request for proposals.27
(ii) A request for proposals or other solicitation may be cancelled or all28
proposals may be rejected only if it is determined, based on reasons provided in29 SB NO. 727
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writing, that such action is taken in the best interest of the state.1
(e) Each contract entered into pursuant to this Subsection shall contain as a2
minimum:3
(i) Description of the work to be performed and/or objectives to be met, when4
applicable.5
(ii) Amount and time of payments to be made.6
(iii) Description of reports or other deliverables to be received, when7
applicable.8
(iv) Date of reports or other deliverables to be received, when applicable.9
(v) Responsibility for payment of taxes, when applicable.10
(vi) Circumstances under which the contract can be terminated either with or11
without cause.12
(vii) Remedies for default.13
(viii) A statement giving the legislative auditor or other specified entities14
the authority to audit records of the individual(s) or firm(s).15
(ix) Performance measurements.16
(x) Monitoring plan.17
(f)(i) Upon entering into a contract, the using agency shall have full18
responsibility for the diligent administration and monitoring of the contract. The19
director of state purchasing state chief procurement officer may require the using20
agency to report at any time on the status of any such outstanding contracts to which21
the using agency is a party. After completion of performance under a contract, the22
using agency shall evaluate contract performance and the utility of the final product.23
This evaluation shall be delivered to the director of state purchasing state chief24
procurement officer or designee or the directors of purchasing at a college or25
university within one hundred twenty days after completion of performance and26
shall be retained in the official contract file.27
§1500 (B) After completion of performance under a professional, personal,28
consulting, or social service contract, the using agency shall prepare a final report on29 SB NO. 727
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the contract which shall include an evaluation of contract performance and an1
assessment of the utility of the final product. This report shall be delivered to the2
contractual review state chief procurement officer within sixty days after completion3
of performance and shall be retained in the official contract file. Reports not4
submitted to the office of contractual review state procurement within the sixty-day5
period shall be delinquent. The report shall include at least the following:6
(1) The name of the agency official or officials responsible for monitoring7
the contract and for final agency acceptance of the contract deliverables.8
(2) The contractor, contract amount, contract cost basis, and contract9
timetable which shall reflect both the proposed and actual work initiation and10
completion dates.11
(3) Any contract modifications.12
(4) A listing of the contract deliverables, inclusive of specific products and13
services, and whether all such deliverables were satisfactorily and timely completed.14
(5) An itemization of any problems encountered with respect to the execution15
of the contract.16
(6) An assessment of the utility of the contract deliverables.17
C. Final evaluation reports required by this Section for contracts in amounts18
of two hundred fifty thousand dollars or greater shall also be submitted to the19
legislative auditor.20
D. No contract for professional, personal, consulting, or social services shall21
be entered into by a using agency with any contractor for which a delinquent final22
evaluation report remains outstanding for a contract with such using agency.23
§1593(C)(2)(f)(ii)(aa) No contract let under the provisions of this Section24
shall be valid, nor shall the state be bound by the contract, until it has first been25
executed by the head of the using agency, or his designee, which is a party to the26
contract and the contractor and has been approved in writing by the director of state27
purchasing state chief procurement officer or designee or the directors of28
purchasing at a college or university.29 SB NO. 727
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(bb) In cases where the head of the using agency wants to delegate authority1
to one or more of his subordinates to sign contracts on behalf of the agency, this2
delegation shall be made in accordance with regulations of the commissioner and3
shall be subject to the approval of the director of state purchasing.4
§1496. §1595. Consulting service contracts Procurement support team5
A. Contracts for consulting services which have a total maximum amount of6
compensation less than fifty thousand dollars may be awarded without the necessity7
of competitive bidding or competitive negotiation.8
B. Contracts for consulting services which have a total maximum amount of9
compensation of fifty thousand dollars or more shall be awarded through a request10
for proposal process under rules and regulations issued by the office of contractual11
review. Service requirements shall not be artificially divided so as to exempt12
contracts from the request for proposal process.13
C.(1) A. All contracts for consulting services and information technology14
systems and services which have a total maximum amount of compensation of cost15
greater than one hundred forty thousand dollars or more may be entered into with16
the assistance of a procurement support team as provided herein, and in accordance17
with guidelines rules promulgated by the commissioner and published by the office18
of contractual review state procurement.19
B. All contracts for information technology systems and services which20
have a total cost of one hundred thousand dollars or more shall be entered into21
with the assistance of a procurement support team as provided herein, and in22
accordance with rules promulgated by the commissioner and published by the23
office of state procurement.24
(2) C.(1) For each such consulting contract the office of contractual review25
state procurement may shall establish a procurement support team which shall26
include one or more representatives from each of the following:27
(a) A person chosen jointly by the speaker of the House of28
Representatives and the president of the Senate from among the attorneys on29 SB NO. 727
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the legislative services staff of the House of Representatives or the staff of the1
Senate or a representative of the office of the attorney general.2
(a) (b) The office of contractual review state procurement.3
(b) (c) The using agency initiating the contract.4
(c)  The office of the attorney general.5
(d)  The Legislative Fiscal Office.6
(2) At least two members of the team should have received formal7
training in contract negotiations. At least four members must be present to8
constitute a quorum.9
(3) D. Participation of the procurement support team must shall include, at10
a minimum where applicable, assistance in development and/or review of the bid11
or request for proposals, review of the evaluation of responses received to the bid12
or request for proposals, and formulation of recommendations to be submitted to the13
director of the office of contractual review concerning the final contract negotiation14
of contracts.15
§1596. Small purchases16
Procurements not exceeding the amounts established by executive order of17
the governor may be made in accordance with small purchase procedures prescribed18
by such executive order, except that procurement requirements shall not be19
artificially divided so as to constitute a small purchase under this Section.20
§1597. Sole source procurements21
A contract may be awarded for a required supply, service, or major repair22
without competition when, under regulations, the chief procurement officer or his23
designee above the level of procurement officer determines in writing that there is24
only one source for the required supply, service, or major repair item.  The contract25
may be awarded after public notice.26
§1598. Emergency procurements27
A. Conditions for use. The chief procurement officer or his designee above28
the level of procurement officer may make or authorize others to make emergency29 SB NO. 727
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procurements when there exists an imminent threat to the public health, welfare,1
safety, or public property under emergency conditions as defined in accordance with2
regulations.3
B. Written quotations. Every effort shall be made to obtain quotations from4
three or more vendors when supplies, services, or major repairs are to be purchased5
on an emergency basis, except for standard equipment parts for which prices are6
established. Immediate purchasing shall be discouraged as much as is practicable.7
When supplies, services, or major repairs are urgently required and time does not8
permit the obtaining of written quotations, the procurement officer may obtain9
quotations by telephoning or otherwise, but such quotations shall be made on the10
relative purchase requisitions. So far as practicable, quotations shall be secured from11
institutions of the state as provided by law.12
C. Determination required. (1) The Chief Procurement Officer chief13
procurement officer shall make a written determination of the basis of the14
emergency that includes the facts and circumstances leading to the conclusion that15
such procurement was necessary as well as a written determination detailing the16
steps taken prior to selecting a particular contractor and the basis for the final17
selection.18
(2) The written determination shall be included in the contract file either prior19
to contracting or as soon thereafter as practicable.20
§1593 B. §1598.1. Other procurement methods21
A. Unstable market conditions. Notwithstanding any other provisions of22
this Section to the contrary and in accordance with rules and regulations promulgated23
by the commissioner in accordance with the Administrative Procedure Act, the24
directors of state purchasing state chief procurement officer or directors of25
purchasing at a college or university, with the approval of the commissioner, may26
procure by solicitation requiring written response from at least three bona fide27
bidders under the provisions of this Subsection, when it is determined that market28
conditions are unstable and the competitive bid process is not conducive for best29 SB NO. 727
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pricing for products, supplies and other materials. The provisions of this Subsection1
shall be applicable only if the value of the contract is fifty thousand dollars or less2
and only after sufficient documentation is provided to the commissioner by the3
director state chief procurement officer to substantiate the unstable market.4
§1593.1. A. B. Group purchasing.(1) The Louisiana State University Health5
Sciences Center may contract with a group purchasing organization through a6
competitive request for proposals process for medical and laboratory supplies and7
medical equipment required for the purpose of diagnosis or direct treatment of a8
patient by a health care provider in a hospital or clinic setting.9
B. (2) Prior to the award of the such contract, the proposed contract shall be10
approved by the commissioner of administration provided he determines the total11
cost to be less than the state procurement prices the LSUHSC makes a written12
determination that prices from the group purchasing organization are fair13
market prices and that the contract is in the best interest of the state.14
C. (3) No later than sixty days after a purchasing agency submits a proposed15
contract to the commissioner for approval, the commissioner shall notify the16
purchasing agency in writing as to whether the proposed contract has been approved17
or rejected. If the commissioner does not timely notify the purchasing agency of his18
decision, the request for approval on the proposed contract shall be deemed to have19
been approved. The commissioner shall not unreasonably withhold his approval.20
§198. D. C. Fiscal intermediary services. Contracts for fiscal intermediary21
services in processing claims of health care providers. State agencies may enter into22
contracts for fiscal intermediary services in processing claims of health care23
providers. The term of such a contract shall be one hundred twenty months. In the24
event special circumstances, as provided in Paragraph (9) of this Subsection,25
necessitate, additional one-year extensions of the contract may be granted. The26
award process and final contract shall include the following:27
(1) Contracts for fiscal intermediary services in processing claims of health28
care providers shall be awarded by a competitive selection process which shall list29 SB NO. 727
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in the solicitation for proposals the method by which the contract shall be awarded1
and include all criteria to be used and the weights assigned to each criterion. The2
procedure for issuance of the solicitation for proposals shall be in accordance with3
guidelines published by the state central purchasing agency. The selection of the4
contractor shall be made by the head of the using agency only in accordance with the5
method and criteria as set forth in the solicitation for proposals and in accordance6
with the recommendation of the procurement support team.7
(2) Justification for the contract shall be submitted to the state central8
purchasing agency and shall be presented in a public hearing to the House and Senate9
committees on Health and Welfare, meeting jointly, or a joint subcommittee thereof10
prior to the issuance of a solicitation for proposals. Such justification shall include11
identification and consideration of all factors, including costs, relevant to the12
solicitation for proposals and the final contract.13
(3) The one-hundred-twenty-month term of such contract shall be divided14
into one period of between thirty-six months and sixty months, immediately followed15
by successive twelve-month periods. The state shall have an option to renew such16
contract for each of the twelve-month periods. If the state does not exercise its option17
to renew, the contract shall be terminated. In the event special circumstances occur,18
as provided in Paragraph (9), additional twelve-month extensions of the contract may19
be granted.20
(4) In addition to other provisions as required by law or in the best interests21
of the state, such contract shall contain provisions setting forth, (a) the amount and22
requirements of the contractor's performance bond, (b) penalty and enforcement23
provisions for the failure of the contractor to perform in accordance with the contract24
documents, (c) conditions for optional renewal of the contract by the state in25
accordance with the provisions of this Subsection, and (d) requirements for26
termination of the contract by the state at any time, or for cause, or upon the refusal27
of the state to exercise an option to renew such contract.28
(5) Issuance of specifications for a solicitation for proposals on a contract for29 SB NO. 727
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fiscal intermediary services in processing claims of health care providers shall be1
made at least twelve months prior to the termination date of an existing contract,2
unless the contract termination is for cause or due to the refusal of the state to3
exercise an option to renew.4
(6) No award of the contract shall be made until the House and Senate5
committees on health and welfare, meeting jointly or a joint subcommittee thereof6
has conducted a public hearing concerning such award.7
(7) No award of the contract shall be made later than eight months prior to8
the termination date of an existing contract, unless the contract termination is for9
cause or due to the refusal of the state to exercise an option to renew.10
(8) No option to renew such contract shall be exercised by the state until after11
a public hearing concerning such renewal has been held before the House and Senate12
committees on health and welfare, meeting jointly or a joint subcommittee thereof.13
(9) In the event the Department of Health and Hospitals and/or the United14
States Department of Health and Human Services, Health Care Financing15
Administration propose substantial changes in the operations of the Medicaid16
program that would materially impact the services performed by the fiscal17
intermediary, the Department of Health and Hospitals may, subject to the approval18
of the House and Senate Committees on Health and Welfare, approve additional19
extensions of the contract until such time as it is practical to prepare a solicitation for20
proposals describing the revised services that would be performed by the fiscal21
intermediary. During the time frame covered by any extension beyond the original22
one-hundred-twenty-month period, the fiscal intermediary may be required to23
perform additional functions to assist in preparing the Department of Health and24
Hospitals in the transition to the new program. Such functions shall include existing25
fiscal intermediary services as well as efforts to control fraud and abuse, program26
reports, beneficiary enrollment and program information services, encounter data,27
and annual managed care negotiation data.28
§198. E. D. Master Agreements. The state director of purchasing chief29 SB NO. 727
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procurement officer may enter into master agreements for information technology1
systems, services and/or supplies for with vendors with which the state conducts2
substantial business over a period of time.3
(1) Such agreements shall set forth those terms and conditions of specific4
legal import which relate to the basic provisions according to which procurement5
activity will be conducted, and shall meet the following requirements:6
(a) Such agreements may be for any term up to sixty months.7
(b) All agreements must contain a clause providing that any changes8
mandated by state or federal law, whether legislative or judicial, will be9
incorporated; however, if such a change is not acceptable to either party, the affected10
term or terms of the contract shall be renegotiated and, if agreement cannot be11
reached, shall be stricken from the contract.12
(c) A specific provision of any such agreement may be waived or changed13
only once during the term of the agreement, by mutual consent, expressed in writing.14
(d) Each master agreement must be negotiated by entered into with the15
assistance of a procurement support team and executed on behalf of the state by the16
state director of purchasing chief procurement officer.17
(2) Vendors may refer to the master agreement on file with the state director18
of purchasing chief procurement officer when responding to invitation for bids a19
state procurement for specific items of data processing related services,20
information technology systems, services and/or supplies or software. Such bid21
responses must include a proposed schedule incorporating the terms of the master22
agreement and further detailing the items and prices bid. The selected vendor and the23
procuring agency shall sign the price schedule and submit it to the state central24
purchasing agency for approval.25
(3) The state director of purchasing chief procurement officer, subject to the26
approval of the commissioner of administration, shall have authority for determining27
when and if master agreements may be used. Notwithstanding any other provisions28
of this Part Chapter, master agreements shall not be used to circumvent the29 SB NO. 727
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competitive bid process otherwise required by law.1
§200(L) E. Volume pricing agreements. Volume discounts for software2
and software maintenance. The state director of purchasing chief procurement3
officer, on behalf of one or more state agencies, may enter into non-binding4
agreements with vendors for the purpose of establishing volume discounts. Such5
agreements shall be based on the estimated usage and requirements of state agencies.6
F. Multi-step bids or proposals. (1) When it is considered impractical to7
initially prepare a purchase description to support an award based on price, an8
invitation for bids or request for proposal may be issued requesting the9
submission of unpriced offers to be followed by an invitation for bids limited to10
those bidders whose offers have been qualified under the criteria set forth in the11
first solicitation.12
(2) When determined in writing by the state chief procurement officer13
to be in the state's best interest, an invitation for bids or request for proposals14
may be issued through the following multi-step bid or proposal process:15
Upon issuance of public notice, step one may consist of an invitation for16
bids or request for proposals, responses thereto, evaluation of the responses,17
and (if necessary) discussion of a technical proposal, to determine the18
acceptability of the supplies or services bid or offered proposed, with19
appropriate regard given, where applicable, to the proposer's maximum20
submitted price, and to establish the terms and conditions governing contracts21
to be awarded during a given period. Multiple contracts may be awarded as22
stated in the solicitation documents to acceptable proposers or bidders. Upon23
completion of step one, step two shall involve the submission of sealed priced24
bids or proposals in response to a specified statement of work from those who25
submitted acceptable responses and have been awarded a contract in step one.26
§1645 G. Used equipment. (1) Procurement of used equipment. A. Any27
agency covered by this Chapter may procure any equipment which is used or which28
has been previously purchased by an individual or corporation where the agency29 SB NO. 727
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proposing to make such procurement can present satisfactory information to the1
procurement officer to illustrate that the procurement of said equipment is cost2
effective to the state.3
B.(1) (2)(a) The used equipment shall be purchased by the head of the4
agency, college, or university, within the price range set by the 	director of state5
purchasing state chief procurement officer, or the directors of purchasing at6
colleges and universities, in a statement of written approval for the purchase which7
must be obtained by the head of the agency, college, or university, prior to the8
purchase.9
(2) (b)The head of the agency, college, or university, shall certify in writing10
to the director of state purchasing state chief procurement officer, or the directors11
of purchasing at colleges and universities, all of the following:12
(a) (i) The price for which the used equipment may be obtained.13
(b) (ii) The plan for maintenance and repair of the equipment and the cost14
thereof.15
(c) (iii) The savings that will accrue to the state because of the purchase of16
the used equipment.17
(d) (iv) The fact that following the procedures set out in the Louisiana18
Procurement Code this Chapter will result in the loss of the opportunity to purchase19
the equipment.20
(3) Rules may provide for the procurement of used equipment at public21
auction when such method is determined to be in the best interest of the state22
by the state chief procurement officer.23
H. Reverse auctions. When determined in writing by the state chief24
procurement officer to be in the state's best interest, reverse auctions may be25
used in accordance with rules and regulations.26
§1499 I. Negotiation of non-competitive contracts for professional,27
personal, consulting, and social services. For all contracts exempt from28
competitive source selection as provided in this Chapter, The the head of the29 SB NO. 727
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using agency or the agency procurement officer his designee shall negotiate with the1
highest qualified persons for all contracts for professional, personal, or those2
consulting services for less than fifty thousand dollars, or those social services3
qualifying under R.S. 39:1494.1(A) at compensation which the head of the using4
agency determines in writing to be fair and reasonable to the state. In making this5
determination, the head of the using agency shall take into account, in the following6
order of importance, the professional or technical competence of offerers proposers,7
the technical merits of offers, and the compensation for which the services are to be8
rendered, including fee. Negotiation of consulting services for fifty thousand dollars9
or more or social services not qualifying under R.S. 39:1494.1(A) R.S. 39:1618(B)10
shall be conducted in accordance with Part II, Subpart B 	hereof of this Chapter.11
§199(C) J. Information technology. (1) Method for procuring maintenance12
Maintenance services for information technology equipment. Notwithstanding13
any other provisions of this Part, any agency may procure maintenance services for14
data processing information technology equipment without the need for competitive15
bidding. Such procurement must shall have the written advance approval of the state16
central purchasing agency and shall not be for a price greater than the vendor's17
published price. The procurement support team shall develop and deliver to the18
office of state purchasing and the office of information technology proposed rules19
establishing guidelines for procurement activities under this Part. Upon approval of20
the office of information technology, the office of state purchasing shall promulgate21
rules in accordance with the Administrative Procedure Act.22
§199(D) (2) Method for procuring software Software and software23
maintenance and support services. Notwithstanding any other provisions of this Part,24
any agency may procure data processing information technology software, and25
software maintenance, and support services without the need for competitive26
bidding. Such procurement must have the written advance approval of the state27
central purchasing agency and shall not be for a price greater than the vendor's28
published price.29 SB NO. 727
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(3) The procurement support team shall develop and deliver to the office of1
state purchasing procurement and the office of information technology proposed2
rules establishing guidelines for procurement activities under this Part. Upon3
approval of the office of information technology, the office of state purchasing4
procurement shall promulgate rules in accordance with the Administrative5
Procedure Act.6
§1594.2. §1598.5. Right to reject bids from Communist countries7
In awarding contracts for supplies, any public entity is authorized to reject8
the lowest bid if received from a bidder domiciled in a Communist country, or if the9
supplies are manufactured in a Communist country, including but not limited to the10
Soviet Union, China, North Korea, and Vietnam, and to award the contract to the11
next lowest bidder, provided this Section shall not apply to any country having12
established trade relations agreements or approvals from the government of the13
United States.14
§1594.3. §1598.7. Limitations on consultants competing for contracts15
A. Any person contracting with an agency for the purposes of developing16
bidding documents, requests for proposals, or any other type of solicitation related17
to a specific procurement shall be prohibited from bidding, proposing, or otherwise18
competing for award of that procurement. Such persons shall further be prohibited19
from participating as subcontractors related to the award of that procurement.20
B. For the purposes of this Section, the following activities shall not be21
considered "developing bidding documents, requests for proposals, or any other type22
of solicitation":23
(1) Architectural and engineering programming.24
(2) Master planning.25
(3) Budgeting.26
(4) Feasibility analysis.27
(5) Constructability review.28
(6) Furnishing specification data or other product information.29 SB NO. 727
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(7) Any other services that do not establish selection qualifications or1
evaluation criteria for the procurement of an architect or engineer.2
§1595. §1599. Preference for all types of products produced, manufactured,3
assembled, grown, or harvested in Louisiana; exceptions4
A. As used in this Section, the following terms shall have the following5
meanings ascribed to them:6
(1) "Meat" and "meat product" means beef, veal, pork, mutton, poultry, and7
other meats, and products made from those meats.8
(2) "Other products" includes "other meat", "other meat products", "other9
seafood", and "other seafood products" and means products which are produced,10
manufactured, grown, processed, and harvested outside the state.11
(3) "Seafood" means crawfish, catfish, other fish, shrimp, oysters, crabs,12
underutilized species, and other seafood and freshwater food.13
(4) "Processed" means the alteration of any raw product altered from its14
original state to enhance its value or render it suitable for further refinement or15
marketing.16
B. Notwithstanding any other provision of this Section to the contrary, each17
procurement officer, purchasing agent, or similar official who procures or purchases18
agricultural or forestry products, including meat, seafood, produce, eggs, paper or19
paper products under the provisions of this Chapter shall procure or purchase20
Louisiana products provided all of the following conditions are met:21
(1) The bidder certifies in the bid submitted that the product meets the criteria22
of a Louisiana product.23
(2) The product is equal to or better than equal in quality to other products.24
(3) The cost of the Louisiana product shall not exceed the cost of other25
products by more than ten percent, except as otherwise provided in this Chapter as26
a specific exception.27
C. In order to qualify as Louisiana products for the purpose of this Section,28
the following products shall meet the following requirements:29 SB NO. 727
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(1) Produce shall be produced in Louisiana and produce products shall be1
produced and processed in Louisiana.2
(2) Eggs shall be laid in Louisiana and egg products shall be processed from3
eggs laid in Louisiana.4
(3) Meat and meat products shall be processed in Louisiana from animals5
which are alive at the time they enter the processing plant.6
(4)(a) Seafood shall be:7
(i) Harvested in Louisiana seas or other Louisiana waters; or8
(ii) Harvested by a person who holds a valid appropriate commercial fishing9
license issued under R.S. 56:1 et seq.10
(b) Products produced from such seafood shall be processed in Louisiana.11
(5) Domesticated catfish shall be processed in Louisiana from animals which12
were grown in Louisiana.13
(6) Paper and paper products shall be manufactured or converted in14
Louisiana. For the purposes of this Paragraph, "manufactured" shall mean the15
process of making a product suitable for use from raw materials by hand or by16
machinery, and "converted" shall mean the process of converting roll stock into a17
sheeted and fully packaged product in a full-time converting operation. For paper18
supplied in wrapped reams, each carton and each individual ream shall be clearly19
labeled with the name of the manufacturer or converter and the location within20
Louisiana where such paper is manufactured or converted. For paper and paper21
products supplied in bulk or in other forms, the smallest unit of packaging shall be22
clearly labeled with the name of the manufacturer or converter and the location23
within Louisiana where such paper or paper product is manufactured or converted.24
(7) All other agricultural or forestry products shall be produced,25
manufactured, or processed in Louisiana.26
D. Notwithstanding any other provision of this Section to the contrary, each27
procurement officer, purchasing agent, or similar official who procures or purchases28
products under the provisions of this Chapter shall procure or purchase meat and29 SB NO. 727
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meat products which are further processed in Louisiana under the grading and1
certification service of the Louisiana Department of Agriculture and Forestry and2
which are equal in quality to other meat and meat products, provided the cost of the3
further processed meat and meat products does not exceed the cost of other meat or4
meat products by more than seven percent.5
E. Notwithstanding any other provision of this Section to the contrary, each6
procurement officer, purchasing agent, or similar official who procures or purchases7
products under the provisions of this Part Chapter shall procure or purchase8
domesticated or wild catfish which are processed in Louisiana but grown outside of9
Louisiana and which are equal in quality to domesticated or wild catfish which are10
processed outside of Louisiana provided the cost of the domesticated or wild catfish11
which are processed in Louisiana does not exceed the cost of the domesticated or12
wild catfish which are processed outside of Louisiana by more than seven percent.13
F. Notwithstanding any other provision of this Section to the contrary, each14
procurement officer, purchasing agent, or similar official who procures or purchases15
products under the provisions of this Part Chapter shall procure or purchase produce16
processed in Louisiana but grown outside of Louisiana and which is equal in quality17
to produce processed and grown outside of Louisiana, provided the cost of the18
produce processed in Louisiana does not exceed the cost of the produce processed19
outside of Louisiana by more than seven percent.20
G. Notwithstanding any other provision of this Section to the contrary, each21
procurement officer, purchasing agent, or similar official who procures or purchases22
products under the provisions of this Chapter shall procure or purchase eggs or23
crawfish which are further processed in Louisiana under the grading service of the24
Louisiana Department of Agriculture and Forestry and which are equal in quality to25
other eggs or crawfish, provided the cost of the further processed eggs or crawfish26
does not exceed the cost of other eggs or crawfish by more than seven percent.27
H. Except as otherwise provided in this Section, each procurement officer,28
purchasing agent, or similar official who procures or purchases materials, supplies,29 SB NO. 727
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products, provisions, or equipment under the provisions of this Chapter may1
purchase such materials, supplies, products, provisions, or equipment which are2
produced, manufactured, or assembled in Louisiana, as defined in R.S. 38:2251(A),3
and which are equal in quality to other materials, supplies, products, provisions, or4
equipment, provided that all of the following conditions are met:5
(1) The cost of such items does not exceed the cost of other items which are6
manufactured, processed, produced, or assembled outside the state by more than ten7
percent.8
(2) The vendor of such Louisiana items agrees to sell the items at the same9
price as the lowest bid offered on such items.10
(3) In cases where more than one bidder offers Louisiana items which are11
within ten percent of the lowest bid, the bidder offering the lowest bid on Louisiana12
items is entitled to accept the price of the lowest bid made on such items.13
I. Notwithstanding any other provision of this Section to the contrary, such14
preferences shall only apply to bidders whose Louisiana business workforce is15
comprised of a minimum of fifty percent Louisiana residents.16
J. Notwithstanding any other provision of this Section to the contrary, such17
preference shall not apply to Louisiana products whose source is a clay which is18
mined or originates in Louisiana, and which is manufactured, processed or refined19
in Louisiana for sale as an expanded clay aggregate form different than its original20
state. No provision of this Subsection shall affect the preferences applicable to brick21
manufacturers.22
K. The provisions of this Section shall not apply to treated wood poles and23
piling.24
§1595.1. §1599.1. Preference in awarding contracts25
A. In the awarding of contracts by any public entity, except contracts for the26
construction, maintenance, or repair of highways and streets, and contracts financed27
in whole or in part by contributions or loans from any agency of the United States28
government, where both in-state and out-of-state vendors are bidding, in-state29 SB NO. 727
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vendors shall be given a preference in the same manner that any of the out-of-state1
vendors would be given on a comparative bid in their own state. If one party to a2
joint venture is qualified under this Section as a vendor domiciled in Louisiana, this3
qualification shall extend to all parties to the joint venture. For the purpose of this4
Section, a foreign corporation which was qualified to do business in the state of5
Louisiana in the manner required by law more than six months prior to the6
advertising of bids on a contract shall be considered to be a vendor domiciled in the7
state of Louisiana for the purpose of awarding the contract.8
B. For purposes of determination of the lowest responsible bidder, when9
letting contracts where bids are received from in-state vendors and out-of-state10
vendors, local sales and use taxes shall be excluded from the bid.11
C. The provisions and requirements of this Section shall not be waived by12
any public entity.13
§1595.2. §1599.2. Preference General preference in letting contracts for public14
work15
A.(1) In the letting of contracts for public work by any public entity, except16
contracts financed in whole or in part by contributions or loans from any agency of17
the United States government:18
(a) Preference shall be given to contractors domiciled in the state of19
Louisiana over contractors domiciled in a state that provides for a preference in favor20
of contractors domiciled in that state over contractors domiciled in the state of21
Louisiana for the same type of work; and22
(b) Contractors domiciled in the state of Louisiana are to be granted the same23
preference over contractors domiciled in such state favoring contractors domiciled24
therein with a preference over contractors domiciled in the state of Louisiana in the25
same manner and on the same basis and to the same extent that such preference may26
be granted in letting contracts for the same type of work by such other state to27
contractors domiciled therein over contractors domiciled in the state of Louisiana.28
(2) If one party to a joint venture is qualified under this Section as a29 SB NO. 727
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contractor domiciled in Louisiana, this qualification shall extend to all parties to the1
joint venture.2
(3) For the purpose of this Section, a foreign corporation that has qualified3
to do business in the state of Louisiana in the manner required by law more than six4
months prior to the advertising for bids on a contract for public work shall be5
considered to be a contractor domiciled in the state of Louisiana for the purpose of6
letting the contract for such public work.7
B. The provisions and requirements of this Section shall not be waived by8
any public entity.9
§1595.3. §1599.3. Preference in awarding contracts for certain services10
In the awarding of contracts by any public entity, for services to organize or11
administer rodeos and livestock shows, where state-owned facilities will be used to12
house or contain such activities, and where both in-state and out-of-state vendors are13
bidding, in-state vendors shall be given preference, provided such services are equal14
in quality and do not exceed in cost by more than ten percent those services available15
from outside the state.16
§1595.4. §1599.4. Preference for goods manufactured, or services performed, by17
sheltered workshops; definitions; coordinating council18
A. Every governmental body shall give a preference in its purchasing19
practices to goods manufactured and services performed by severely handicapped20
individuals in state-operated and state-supported sheltered workshops.21
B. The provisions of this Section shall not be construed to limit or otherwise22
affect the provisions of R.S. 46:334 and 335 regarding the sheltered industries23
program for the blind.24
C. There is hereby created within the Department of Social Services a council25
whose function shall be to coordinate and facilitate the carrying out of provisions of26
this Section. The membership of this council shall be determined by the secretary of27
the Department of Social Services. It shall have authority to designate and contract28
with a central nonprofit agency to assist sheltered workshops in submitting29 SB NO. 727
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applications for the selection of suitable goods and services, to facilitate the1
allocation of orders among qualified sheltered workshops, and otherwise to assist the2
council in performing its functions.3
D. The Department of Social Services may adopt, promulgate, and enforce4
such rules and regulations as are necessary and appropriate to implement the5
provisions of this Section. The regulations shall be promulgated in accordance with6
the Administrative Procedure Act, R.S. 49:950, et seq.7
E. For the purposes of this Section, the following terms are defined as8
follows:9
(1) "Direct labor" means all labor involved in the manufacture of goods or10
the performance of services except for supervision, instruction, administration, and11
shipping.12
(2) "Goods manufactured and services performed by severely handicapped13
individuals" means goods and services for which not less than seventy-five percent14
of the man-hours of direct labor required for manufacture or performance is provided15
by severely handicapped individuals.16
(3) "Qualified nonprofit agency for the severely handicapped" means an17
agency that:18
(a) Is incorporated under the Louisiana Nonprofit Corporation Law and19
operated in the interests of severely handicapped individuals, and the income of20
which does not inure in whole or in part to the benefit of any shareholder or other21
private individual, and22
(b) Complies with any applicable occupational health and safety standards23
provided by the statutes or regulations of this state or of the United States.24
(4) "Severely handicapped individuals" means individuals with a physical,25
mental, or substance abuse disability which constitutes a substantial obstacle to their26
employment and is of such a nature as to prevent an individual from engaging in27
normal competitive employment.28
(5) "Sheltered workshop" means a facility designed to provide gainful29 SB NO. 727
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employment for severely handicapped individuals who cannot be absorbed into the1
competitive labor market or to provide interim employment for such individuals2
when employment opportunities for them in the competitive labor market do not3
exist.4
(6) "State-operated sheltered workshop" means a sheltered workshop staffed5
by state agency personnel.6
(7) "State-supported sheltered workshop" means a sheltered workshop funded7
in whole or in part by the state and staffed by personnel from a qualified nonprofit8
agency for the severely handicapped.9
§1595.5. §1599.5. Preference for items purchased from Louisiana retailers10
A. When purchasing items at retail, every procurement officer under the11
provisions of this Chapter or other person acting as purchasing agent shall purchase12
items from a retail dealer located in the state of Louisiana which items are equal in13
quality to items purchased from a retail dealer located outside the state, provided the14
cost of items purchased from a retail dealer located in this state does not exceed by15
more than ten percent the cost of items purchased from a retail dealer located outside16
the state.17
B. A retail dealer shall qualify for the preference if the dealer can show that18
he has paid Louisiana corporate income, corporate franchise, and inventory taxes or19
any combination thereof during the previous twelve-month period.20
C. Retailers domiciled in the state of Louisiana are to be granted the same21
preference over retailers domiciled in the state favoring retailers domiciled therein22
with a preference over retailers domiciled in the state of Louisiana in the same23
manner and on the same basis and to the same extent that such preference may be24
granted in purchasing items of the same type by such other state to retailers25
domiciled therein over retailers domiciled in the state of Louisiana.26
§1595.6. §1599.6. Preference for steel rolled in Louisiana27
A. When purchasing steel, every person acting as purchasing agent for any28
agency, board, commission, department, or other instrumentality of the state or of29 SB NO. 727
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a parish, municipality, or other unit of local government, including a levee board,1
drainage district, school board, or special district, shall purchase steel rolled in this2
state which is equal in quality to steel rolled outside the state, provided the cost of3
steel rolled in this state does not exceed by more than ten percent the cost of steel4
which is rolled outside the state.5
B. The provisions of this Section shall not apply when sufficient quantities6
of steel rolled in Louisiana are not available.7
SUBPART C. B. CANCELLATION OF INVITATIONS8
FOR BIDS OR REQUESTS FOR PROPOSALS9
§1599. §1600. Cancellation of invitations for bids or requests for proposals10
An invitation for bids, a request for proposals, or other solicitation may be11
cancelled, or any or all bids or proposals may be rejected in whole or in part, only12
if it is determined in writing by the chief procurement officer or his designee that13
such action when it is taken in the best interests of the state in accordance with14
regulations.  The reasons therefor shall be made part of the contract file.15
SUBPART D. C. QUALIFICATIONS AND DUTIES16
§1601. Responsibility of bidders and offerors proposers17
A. A reasonable inquiry to determine the responsibility of a bidder or offeror18
proposer may be conducted. The unreasonable failure of a bidder or offeror19
proposer promptly to supply information in connection with such an inquiry may20
be grounds for a determination of nonresponsibility with respect to such bidder or21
offeror proposer.22
B. Whenever the Chief Procurement Officer chief procurement officer,23
Commissioner commissioner, or head of a governmental body with such authority24
proposes to disqualify the lowest bidder or proposer on bids or proposals for25
non-responsibility of $5,000 or more such individual shall:26
(1) Give written notice of the proposed disqualification to such bidder and27
include in the written notice all reasons for the proposed disqualification; and28
(2) Give such bidder who is proposed to be disqualified, a reasonable29 SB NO. 727
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opportunity to be heard at an informal hearing at which such bidder is afforded the1
opportunity to refute the reasons for the disqualification.2
§1505(B) C. Except as otherwise provided by law, information furnished by3
an offerer a proposer pursuant to this Section may not be disclosed outside of the4
user agency or the state central purchasing agency without prior written consent of5
notice to the offerer proposer.6
§1602. Prequalification of suppliers7
Prospective suppliers may be prequalified for particular types of supplies and8
services. The information required in order to be prequalified and the method9
of submitting prequalification information shall be determined by the chief10
procurement officer.11
§1603. Cost or pricing data12
A. Contractor certification. A contractor shall submit cost or pricing data and13
shall certify that, to the best of its knowledge and belief, the cost or pricing data14
submitted was accurate, complete, and current as of a mutually determined specified15
date prior to the date of:16
(1) Pricing of any contract awarded by other than competitive sealed bidding,17
as provided in R.S. 39:1594, or small purchase procedures, as provided in R.S.18
39:1596, where the total contract price is expected to exceed an amount established19
by regulations; or20
(2) Pricing of any change order or contract modification which is expected21
to exceed an amount established by regulations.22
B. Price adjustment. Any contract, change order, or contract modification23
under which a certificate is required shall contain a provision that the price to the24
state, including profit or fee, shall be adjusted to exclude any significant sums by25
which the procurement officer finds that such price was increased because the26
contractor-furnished cost or pricing data was inaccurate, incomplete, or not current27
as of the date agreed upon between the parties.28
C. Cost or pricing data not required. The requirements of this Section need29 SB NO. 727
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not be applied to contracts:1
(1) Where the contract price is based on adequate price competition;2
(2) Where the contract price is based on established catalog or market prices3
of commercial items sold in substantial quantities to the general public;4
(3) Where contract prices are set by law or regulation; or5
(4) In exceptional cases where it is determined in writing in accordance with6
regulations that the requirements of this Section may be waived, and the reasons for7
such waiver are stated in writing.8
SUBPART E. D. TYPES OF CONTRACTS9
§1611. Cost-plus-a-percentage-of-cost contracts10
The cost-plus-a-percentage-of-cost system of contracting shall not be used.11
However, such contracts may be used in case of a disaster or emergency12
declared by the governor.13
§1612. Cost-reimbursement contracts14
A. Determination required prior to use. No cost-reimbursement prime15
contract may be made unless it is determined in writing in accordance with16
regulations that such contract is likely to be less costly to the state than any other17
type of contract or that it is impracticable to obtain supplies, services, or major18
repairs of the kind or quality required except under such a contract.19
B. Reimbursement of costs. All cost-reimbursement contracts shall contain20
a provision that only costs recognized as allowable in accordance with reasonable21
cost principles set forth in regulations specifications will be reimbursable.22
§1511.§1612.1. Prior notice requirement concerning use of cost-reimbursement type23
subcontract24
Each contractor under a cost-reimbursement type contract shall give notice,25
as provided for in the contract, before entering into (1) a cost-reimbursement type26
subcontract or (2) any other type of subcontract involving more than ten thousand27
dollars or ten percent of the estimated cost of the prime contract.28
§1512. §1612.2. Reimbursement of costs Advance payments of cost for personal,29 SB NO. 727
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consulting, and social service contracts1
A. All cost-reimbursement type contracts shall contain a provision that only2
costs recognized as allowable in accordance with cost principles set forth in rules and3
regulations, issued pursuant to Part IV hereof will be reimbursable.4
B. A. Payments may be made to the contractor for professional, personal,5
consulting, and social service contracts in advance of services being performed if the6
following conditions are met:7
(1) The using agency has submitted, in writing, to the Division of8
Administration division of administration a certification that an advance is9
necessary in order to provide the services at the lowest total cost and that there is no10
other cost effective source of such advance funding. The certification shall include11
a narrative setting out the facts which necessitate the advance funding.12
(2) The advance is approved by the chief procurement officer.13
(3) Except as may be otherwise provided by law, the amount of such advance14
shall be limited to a sum not to exceed twenty percent of the total contract amount,15
excluding travel advances which shall be governed by applicable regulations.16
(4) The contractor is a nonprofit corporation.17
C. B. If local matching funds are available to fund the advance, no state18
monies shall be advanced through the contract.19
D. C. If federal funds are used for the advance, federal regulations and20
statutes shall govern the use and amounts of advance payments made.21
E. D. Interagency contracts as defined in R.S. 39:1490(C) R.S. 39:1556(27)22
are exempt from the provisions of Subsections B A and C B of this Section.23
F. E. The provisions of this Section shall not be construed to authorize24
payments in advance of services to be performed pursuant to a professional service25
contract.26
G. F. State funds may be expended to fund the advance only in the same27
fiscal year in which the funds are appropriated.28
§1613. Use of other types of contracts29 SB NO. 727
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Subject to the limitations of R.S. 39:1611 and R.S. 39:1612, any type of1
contract, including brand name and multiple award contracts, which will promote the2
best interests of the state may be used, provided that the chief procurement officer3
must make a written determination justifying the type of contract used. An annual4
report on the number, type, and volume of such procurements shall be made to the5
commissioner or cabinet department head within ninety days after the end of the6
fiscal year.7
§1614. Approval of accounting system8
Except with respect to firm fixed-price contracts, no contract type shall be9
used unless it has been determined in writing by the chief procurement officer or his10
designee that:11
(1) The proposed contractor's accounting system will permit timely12
development of all necessary cost data in the form required by the specific contract13
type contemplated; and14
(2) The contractor's accounting system is adequate to allocate costs in15
accordance with generally accepted accounting principles.16
§1615. Multiyear contracts17
A. Specified Period. Unless otherwise provided by law, a contract for18
supplies or services may be entered into for periods of not more than five years, if19
funds for the first fiscal year of the contemplated contract are available at the time20
of contracting. Payment and performance obligations for succeeding fiscal years21
shall be subject to the availability and appropriation of funds therefor. No contract22
shall be entered into for more than one year unless the length of the contract was23
clearly stated in the specifications. Any lease or similar agreement affecting the24
allocation of space in the state capitol shall have the prior approval of the Legislative25
Budgetary Control Council if it extends for more than one year. A report of all26
multiyear contracts shall be provided to the Joint Legislative Committee on the27
Budget no later than ninety days after the end of each fiscal year.28
B. Determination prior to use. Prior to the utilization of a multiyear contract,29 SB NO. 727
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it shall be determined in writing to be in the best interest of the state as provided1
in Subsection D of this Section. The determination shall include:2
(1) That estimated requirements cover the period of the contract and are3
reasonably firm and continuing; and4
(2) That such a contract will serve the best interests of the state by5
encouraging effective competition or otherwise prompting promoting economies in6
state procurement.7
(3) A written resume of the supportive underlying facts for the foregoing8
determinations shall be included in the determination, and the resume shall state the9
estimated savings to be obtained by entering into a multiyear contract.10
C. Termination due to unavailability of funds in succeeding years. When11
funds are not appropriated or otherwise made available to support continuation of12
performance in a subsequent year of a multiyear contract, the contract for such13
subsequent year shall be terminated. Such contract may be cancelled by the14
governmental body (provided the governmental body gives thirty days notice15
of such cancellation). However, the contractor shall be reimbursed for the16
reasonable value of any non-recurring costs incurred but not amortized in the17
price of the supplies or services delivered under the contract. The cost of18
cancellation may be paid from any appropriations available for such purposes.19
When a contract is terminated under these conditions, no additional funds shall be20
paid to the contractor as a result of such action.21
D. Unless otherwise provided by law, the use of a multi-year contract22
shall be in accordance with rules and regulations and under the following23
conditions:24
(1) The head of the department shall approve in writing the use of a25
multi-year contract over one year, not to exceed three years.26
(2) The state chief procurement officer or his designee shall approve in27
writing the use of a multi-year contract over three years, not to exceed five28
years.29 SB NO. 727
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(3) The commissioner of administration, or his designee, shall approve1
in writing the use of a multi-year contract over five years, not to exceed ten2
years.3
(4) The Joint Legislative Committee on Budget shall approve in writing4
the use of a multi-year contract over ten years.5
D. E. Educational institutions excepted. (1) An educational institution may6
enter into a multiyear nonexclusive contract, not to exceed ten years, with a vendor7
who has made a gift to the institution of equipment utilized for promoting products8
and university activities at a cost to the vendor in excess of fifty thousand dollars.9
Further, for this exception to be applicable, the contract shall cover products for10
resale within the institution.11
(2) The state superintendent of education may enter into a multiyear contract,12
not to exceed ten years, with any public or private agency to act as the depository in13
the state for school books.14
E. With respect to all multiyear contracts, there shall be no provisions for a15
penalty to the state for the cancellation or early payment of the contract.16
F. The Department of Environmental Quality may enter into a multiyear17
contract, not to exceed seven years, for the operation of privately operated vehicle18
emission inspection facilities pursuant to R.S. 30:2054(B)(8). The secretary shall19
seek and consider proposals for an enhanced inspection maintenance program to be20
implemented no sooner than January 1, 1995, from contractors proposing to21
implement currently evolving, cost-effective technologies, presenting minimal public22
inconvenience, designed to bring Louisiana into compliance with federal ambient air23
quality standards and meeting EPA required program standards.24
§199(F) G. The Department of Public Safety and Corrections may enter into25
a multiyear contract not to exceed ten years when contracting for the Video Gaming26
Monitoring System for the purposes described in R.S. 27:302(A)(5)(o). This contract27
may be awarded by the competitive request for proposal procedures set forth in R.S.28
39:1593(C) R.S. 39:1594.1.29 SB NO. 727
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§199(G) H. The Department of Wildlife and Fisheries may enter into a1
multiyear contract not to exceed ten years when contracting for the issuance of2
hunting and fishing licenses through an electronic issuance system as authorized by3
R.S. 56:30.1. This contract may be awarded by the competitive request for proposal4
procedures set forth in R.S. 39:1593(C) R.S. 39:1594.1.5
§1753(E) I. Notwithstanding the provisions of R.S. 39:1615 this Section to6
the contrary, the use of a multi-year contract for telecommunications systems and7
telecommunications services shall be in accordance with rules and regulations and8
under the following conditions:9
(1) The director of the office of telecommunications management chief10
information officer shall approve in writing the use of a multi-year contract over11
one year, not to exceed three years.12
(2) The director of the state purchasing office state chief procurement13
officer shall approve in writing the use of a multi-year contract over three years, not14
to exceed five years.15
(3) The commissioner of administration, or his designee, shall approve in16
writing the use of a multi-year contract over five years. The term shall not exceed17
ten years.18
§1514.A.(1) Unless otherwise provided in the statutes making appropriations19
therefor, a contracts for professional, personal, consulting, or social services: may20
be entered into for periods of not more than five years, except that:21
(a) J. Contracts for management of food services at public universities and22
colleges, contracts of retirement systems for investment management services and23
investment advisory services, contracts for electronic disbursement services for child24
support payments, contracts for prisoner dialysis, and contracts for central banking25
services for the state may be entered into for periods of up to five years.26
(b) K. Contracts for electronic benefits issuance system services as required27
under R.S. 46:450.1 may be entered into for periods of up to ten years. The contracts28
shall be for an initial contract period of six years with the state having two options29 SB NO. 727
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for two-year extensions up to a maximum of ten years.1
(c) L. Contracts for national norm-referenced testing or other testing services2
which are to be used as part of the school and district accountability system as3
provided in R.S. 17:10.1 et seq. may be entered into for a period of up to twelve4
years. Modifications to existing contracts may be made in order to ensure the5
acquisition and usage of the most current tests offered by the contractor.6
(d)(i) M. (1) Contracts or amendments to existing contracts issued to7
institutions of higher education under the authority of grants or joint agreements8
between the Board of Regents and federal agencies for research, educational, or9
infrastructure development activities, and contracts or amendments to existing10
contracts issued by such institutions under the authority of grants or joint agreements11
issued by federal agencies or private grants, may be entered into for a period12
corresponding to the performance period of the grant or agreement.13
(ii) (2) Contracts or amendments to existing contracts issued to institutions14
of higher education under the authority of the Board of Regents to award grants for15
educational and research purposes with funds available from the Louisiana Quality16
Education Support Fund, the Louisiana Fund, and the Health Excellence Fund may17
be entered into for periods of not more than six years. However, such contracts may18
be extended beyond the six-year limit up to an additional two years provided no19
additional costs are incurred.20
(e) N. Contracts for the administration of the Medicaid early periodic21
screening diagnosis and treatment program (EPSDT), primary care case management22
(PCCM), and home and community-based services waivers may be entered into by23
the Department of Health and Hospitals for periods of up to five years.24
(2) Any such contract may be cancelled by the governmental body, provided25
the governmental body gives thirty days notice of such cancellation. If funds for the26
first fiscal year of the contemplated contract are available at the time of contracting,27
payment and performance obligations for succeeding fiscal years shall be subject to28
the availability of funds therefor.29 SB NO. 727
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B. Prior to the utilization of a multi-year contract, it shall be determined in1
writing by the commissioner of administration that (1) estimated requirements cover2
the period of the contract and are reasonably firm and continuing and (2) such a3
contract will serve the best interests of the state by encouraging effective competition4
or otherwise promoting economies in state procurement.5
C. When funds are not appropriated or otherwise made available to support6
continuation of performance in a subsequent year of a multi-year contract, the7
contract for such subsequent year shall be cancelled and the contractor shall be8
reimbursed in accordance with the terms of the contract for the reasonable value of9
any nonrecurring costs incurred but not amortized in the price of the services10
delivered under the contract. The cost of cancellation may be paid from (1)11
appropriations currently available for performance of the contract; (2) appropriations12
currently available for procurement of similar services and not otherwise obligated,13
or (3) appropriations made specifically for the payment of such cancellation costs.14
D. Except for those contracts provided in Subparagraph (A)(1)(a) through (e)15
of this Section, any contract entered into for a period of not more than five years but16
for a period of more than three years as authorized by this Section shall be subject17
to prior approval of the Joint Legislative Committee on the Budget.18
§1616. Installment-purchase contract19
The central purchasing agency may, on behalf of any governmental body,20
enter into contracts for the installment purchase of supplies or equipment, procured21
under the Louisiana Procurement Code this Chapter and any other applicable laws22
on the procurement of supplies or equipment, in accordance with the following23
provisions:24
(1) All installment-purchase contracts shall be entered into utilizing the25
requisite procedures applicable to the particular supply or equipment being procured.26
(2) The term of such contract shall not exceed the economic life to the item27
or items being procured, which shall be established by the central purchasing agency28
and shall be set forth in the invitation to bid or request for proposal, but in no case29 SB NO. 727
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shall the term of the contract exceed five years.1
(3) Each contract shall contain an annual appropriation dependency clause2
which shall provide that the continuation of the contract is contingent upon the3
continuation of an appropriation of funds by the legislature to fulfill the requirements4
of the contract. If the legislature fails to appropriate sufficient monies to provide for5
the continuation of the contract or if a veto or reduction of appropriation of funds6
necessitates the discontinuance of the contract, the contract shall terminate on the last7
day of the fiscal year for which funds were appropriated, in accordance with R.S.8
39:1615(C).9
(4) Such contracts shall also conform to any other requirements which may10
be established by the central purchasing agency through rules and regulations,11
promulgated in accordance with law.12
§1494. §1617. Professional service contracts13
A. Professional service contracts are as defined in R.S. 39:1556 (41) and14
include but are not limited to lawyers, doctors, dentists, psychologists, certified15
advanced practice nurses, veterinarians, architects, engineers, land surveyors,16
landscape architects, accountants, actuaries, and claims adjusters.  For17
contracts with a total amount of compensation of fifty thousand dollars or more,18
the definition of "professional service" shall be limited to lawyers, doctors,19
dentists, psychologists, certified advanced practice nurses, veterinarians,20
architects, engineers, land surveyors, landscape architects, accountants,21
actuaries, claims adjusters, and any other profession that may be added by22
regulation adopted in accordance with this Chapter.23
B. Contracts for professional services may be awarded without the necessity24
of competitive bidding or competitive negotiation.25
§1521.1. §1617.1. Contractual attorney's fees; affidavit26
Each attorney hired on a contractual basis for professional services shall27
submit his fee by sworn affidavit. The affidavit shall contain a detailed statement of28
the number of hours actually worked, giving the dates and time of day, and a29 SB NO. 727
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description of the work performed. No contract fee shall be paid unless submitted by1
affidavit as provided herein.2
§1484(B) §1618. Social service contracts3
Social services as defined in R.S. 39:1556(57) include but are not limited4
to:5
B. A.(1) Rehabilitation and health support include services rendered by a6
contractor with special knowledge or service available to assist individuals attain or7
maintain a favorable condition of physical and mental health. These services include8
but are not limited to:9
(a) Health-related counseling.10
(b) Alcohol or drug abuse training and treatment.11
(c) Training to support emergency medical services.12
(d) Services to support family planning.13
(e) Counseling, delinquency prevention.14
(f) Genetic disease evaluation and counseling.15
(g) Community-based medical support services.16
(h) Evaluation and training for physically/mentally handicapped.17
(i) Other services in support of same.18
(2) Habilitation and socialization include services rendered by a contractor19
with special knowledge to assist specified client groups to enhance their20
self-sufficiency or alleviate their dependency or isolation from the community. These21
services include but are not limited to:22
(a) Day care.23
(b) Work and training.24
(c) Early intervention for the mentally retarded disabled, developmentally25
delayed, or physically handicapped.26
(d) Transportation for service access.27
(e) Homemaker, home management, and housing improvement services.28
(f) In-home and out-of-home respite care.29 SB NO. 727
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(g) Socialization services for low income and other special needs groups.1
(h) Nursing home ombudsman.2
(i) Nutritional, employment, case management, senior center activities, or3
other services to aid independent living by the elderly.4
(j) Training and community planning services for same.5
(3) Protection for adults and children include services rendered by a6
contractor to provide therapeutic intervention for adults or children who are in7
danger or threatened with danger of physical or mental injury, neglect, maltreatment,8
extortion, or exploitation, including victims of family violence. These services9
include but are not limited to:10
(a) Community planning for neglect/abuse.11
(b) Adoption.12
(c) Substitute care.13
(d) Education and training.14
(e) Crisis intervention type services.15
(f) Emergency shelter for victims of rape/family violence or services in16
support of same.17
(g) Training and evaluation services for same.18
(4) Improvement of living conditions and health include services rendered by19
an authorized contractor with special knowledge or services available to assist20
individuals to attain or maintain favorable conditions in which to live. These services21
include but are not limited to:22
(a) Distribution of foodstuffs either purchased or that are made available from23
government-owned commodities.24
(b) Determining the needs of the poor, and development of programs to25
distribute the available resources.26
(c) Determining the needs of the poor and identifying programs to alleviate27
these poverty conditions.28
(d) Providing services to respond to the educational/employment needs of29 SB NO. 727
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eligible individuals in the communities needing these services. The primary purpose1
of this service is to provide the participating individuals with the skills necessary for2
them to advance socially, academically, and occupationally.3
(e) Providing training and evaluation of services for any of the above4
services.5
(5) Evaluation, testing, and remedial educational services for exceptional6
handicapped or learning disabled nonpublic school students include services7
rendered by a contractor with special knowledge or services available to provide8
special educational and related services for exceptional or handicapped students9
voluntarily enrolled in approved nonpublic schools of Louisiana who are not10
otherwise provided with such services through either their local school program or11
through other services afforded to them by local school boards or other public12
agencies. These services include but are not limited to:13
(a) Identification, assessment, appraisal, and evaluation of exceptional or14
handicapped children.15
(b) Development of individualized educational programs.16
(c) The providing of instructional and supportive services to such eligible17
students in accordance with the provisions of R.S. 17:1941, et seq. and P.L. 94-14218
and their regulations.19
§1494.1(A) A. B. Contracts for social services may be awarded without the20
necessity of competitive bidding or competitive negotiation only if the director of the21
office of contractual review state chief procurement officer determines that any22
one of the following conditions is present. The using agency shall document the23
condition present and such documentation shall be part of the contract record24
submitted to the office of contractual review state procurement.25
(1) The services are available only from a single source (sole source). Sole26
source procurement shall be determined by the director of the office of contractual27
review. A contract shall also be considered as sole source if a request for proposals28
is issued in accordance with R.S. 39:1503 and only one or no proposals are received29 SB NO. 727
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sole source contract awarded after public notice.1
(2) The state legislature has made an appropriation for that particular2
contractor or contractors via the appropriation bill or other statutes.3
(3) A quasi-public and/or nonprofit corporation, such as a parish voluntary4
council on aging, an area agency on aging, an association of retarded mentally5
disabled citizens or equivalent, an organization serving children, youth, and/or6
families, or an organization promoting independence from public assistance has been7
established in coordination with the state to provide the particular service involved8
in the contract.9
(4) Local matching funds of greater than ten percent of the contract amount10
are required to be contributed by the contractor. Such matching funds may be in the11
form of cash, certified expenditures or in-kind contributions, where applicable to the12
funding source.13
(5) The nature of the services being provided necessitates that a continuity14
of contractors be maintained as in but not limited to therapeutic and crisis support15
to clients and employment and training programs.16
(6) An emergency exists which will not permit the delay in procurement17
necessitated by the request for proposal procedure given in R.S. 39:1503 Part III of18
this Chapter. Such emergency shall be determined by the contractual review state19
chief procurement officer.20
(7) The total contract amount is less than two hundred fifty thousand dollars21
per twelve-month period. Service requirements shall not be artificially divided so as22
to exempt contracts from the request for proposal process.23
(8) The contract is with another governmental entity or governmental body.24
(9) Funds are specifically designated by the federal government for a25
particular private or public contractor or political subdivision.26
(10) The contract is with a social service contractor who supplies services27
under a contract in existence as of November 30, 1985, as long as such contractor28
continues to supply substantially the same services and the using agency certifies:29 SB NO. 727
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(a) The services are satisfactory.1
(b) They intend to continue contracting with that contractor.2
B. C. If none of the conditions given in R.S. 39:1494.1(A) Subsection B of3
this Section are determined by the director of the office of contractual review state4
chief procurement officer to be present in a contract for social service, then that5
contract shall be awarded through a request for proposal process in accordance with6
R.S. 39:1503 Part III of this Chapter under rules and regulations issued by the7
office of contractual review state procurement.8
§1482(A)(2) D. Grants or contracts or like business agreements between the9
state and its political subdivisions or other governmental entities, or between higher10
education boards and institutions under their jurisdiction, except this This Chapter11
shall apply to interagency contracts as defined in R.S. 39:1490(C) R.S. 39:1556(27),12
and to contracts or grants between the state and its political subdivisions to procure13
social services.14
§1495. §1619. Personal service contracts15
A. Personal service contracts are as defined in R.S. 39:1556(36) and16
include but are not limited to graphic artists, sculptors, musicians,17
photographers, writers, paramedics, therapists, handwriting analysts, foreign18
representatives, and expert witnesses for adjudications or other court19
proceedings. A "foreign representative" shall mean a person in a foreign20
country whose education and experience qualify such person to represent the21
state in such foreign country.22
B. Contracts for personal services may be awarded without the necessity of23
competitive bidding or competitive negotiation.24
§1496. §1620. Consulting service contracts25
A. Consulting service contracts are as defined in R.S. 39:1556(8) and26
include but are not limited to such areas as management, personnel, finance,27
accounting, planning, information technology, and advertising contracts, except28
for printing associated therewith.29 SB NO. 727
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B. The term "consulting service" includes the procurement of supplies1
and services by a contractor when such supplies and services are merely2
ancillary to the provision of consulting services under a contingency fee3
arrangement. Supplies or services ancillary to the provision of consulting4
services are those supplies or services which assist the contractor in fulfilling the5
objective of his contract when the cost for such supplies and services is less than6
the cost of providing consulting services, as determined by the using agency.7
A. C. Contracts for consulting services which have a total maximum amount8
of compensation less than fifty thousand dollars per twelve month period may be9
awarded without the necessity of competitive bidding or competitive negotiation.10
Service requirements shall not be artificially divided so as to exempt contracts11
from the request for proposal process.12
B. D. Contracts for consulting services which have a total maximum amount13
of compensation of fifty thousand dollars or more shall be awarded through a request14
for proposal process under rules and regulations issued by the office of contractual15
review state procurement. Service requirements shall not be artificially divided so16
as to exempt contracts from the request for proposal process.17
C.(1) All contracts for consulting services which have a total maximum18
amount of compensation of one hundred forty thousand dollars or more may be19
entered into with the assistance of a procurement support team as provided herein,20
and in accordance with guidelines promulgated and published by the office of21
contractual review state procurement.22
(2) For each such consulting contract the office of contractual review may23
establish a procurement support team which shall include one or more24
representatives from each of the following:25
(a) The office of contractual review state procurement.26
(b) The using agency initiating the contract.27
(c) The office of the attorney general.28
(d) The Legislative Fiscal Office.29 SB NO. 727
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(3) Participation of the procurement support team must include, at a1
minimum, assistance in development or review of the request for proposals,2
evaluation of responses received to the request for proposals, and formulation of3
recommendations to be submitted to the director of the office of contractual review4
state procurement concerning the final contract.5
§1496.1. §1620.1. Performance-based energy efficiency contracts6
A. Any state agency as defined in R.S. 39:2 may enter into a7
performance-based energy efficiency contract for services and equipment as8
provided in this Section. The commissioner of administration shall adopt and9
promulgate rules and regulations necessary to implement the provisions of this10
Section, which rules shall be consistent with the Energy Management Act of 2001.11
Any such rules and regulations shall be adopted and promulgated only after the12
review and approval of the Joint Legislative Committee on the Budget. The13
commissioner of administration shall submit the proposed rules and regulations to14
the Joint Legislative Committee on the Budget thirty days prior to the review and15
approval of such rules and regulations by the committee.16
B. The contract shall be considered a consulting services contract under the17
provisions of this Chapter. Performance-based energy efficiency contracts shall be18
awarded through a request for proposal process under the provisions of this Chapter19
and specifically the provisions of Subsection E of this Section.20
C.(1) Notwithstanding the requirements of R.S. 39:1514(A) R.S. 39:1615(A),21
any performance-based energy efficiency contract entered into shall be for a period22
equal to the lesser of twenty years or the average life of the equipment installed by23
the performance contractor and shall contain a guarantee of energy savings. The24
guarantee of energy savings shall, at a minimum, ensure a total annual savings25
sufficient to fully fund any financing arrangement entered into to fund the contract.26
In addition, any performance-based energy efficiency contract shall contain the27
following clause:28
"The continuation of this contract is contingent upon the appropriation of29 SB NO. 727
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funds by the legislature to fulfill the requirements of the contract. If the legislature1
fails to appropriate sufficient monies to provide for the continuation of the contract,2
the contract shall terminate on the last day of the fiscal year for which funds have3
been appropriated. Such termination shall be without penalty or expense to the4
agency, board, or commission except for payments which have been earned prior to5
the termination date."6
(2) Any contract entered into pursuant to this Section shall include the total7
units of energy saved, the method, device or financial arrangement to establish a firm8
amount for the savings, the cost per unit of energy, and, if applicable, the basis for9
any adjustment in the stated cost for the term of the contract, and for each energy10
saving measure included in the contract, provide the following:11
(a) Detailed scope of work.12
(b) Price to be paid by the state agency as the initial cost.13
(c) Annual energy cost savings.14
(d) Annual maintenance savings including any maintenance and operational15
savings associated with installation; including but not limited to, services, parts,16
materials, labor, and equipment.17
(e) Annual new maintenance cost including operating expenses added as a18
result of new equipment installed or services performed by the contractor.19
(f) Total annual savings by adding annual energy cost savings to annual20
maintenance savings minus any annual new maintenance costs.21
(3) No payment shall be made by a state agency pursuant to a contract22
entered into in accordance with this Section, until there is compliance with Paragraph23
(2). However, Paragraph (2) and this Paragraph shall not invalidate nor require the24
reissuance of a request for proposal for which notice was given pursuant to this25
Chapter prior to June 17, 2004.26
D. When calculating "annual energy cost savings attributable to the services27
or equipment" installed pursuant to a performance-based energy efficiency contract28
as defined in R.S. 39:1484(14) R.S. 39:1556(34), maintenance savings shall be29 SB NO. 727
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included. "Maintenance savings" means operating expenses eliminated and future1
capital replacement expenditures avoided as a result of new equipment installed or2
services performed by the performance contractor.3
E.(1) Prior to award of any performance-based energy efficiency contract, the4
response to the requests for proposals shall be evaluated as follows:5
(a) A state agency that seeks to enter into a contract pursuant to this Section6
shall conduct an initial evaluation of proposals submitted to it. Such evaluation shall7
be consistent with the provisions of this Chapter, except that a state agency shall not8
make a final selection from among submitted proposals.9
(b) A state agency shall forward the results of its evaluation of each such10
proposal to the commissioner of administration. The commissioner of administration11
may select an independent third-party evaluation consultant to review and evaluate12
the submitted proposals. The consultant shall submit the result of his evaluation to13
the commissioner of administration who shall review the evaluation of the14
independent third-party evaluation consultant. Upon completion of such review, the15
commissioner of administration shall notify the agency as to whether it may proceed16
with negotiation of the contract in accordance with the provisions of this Chapter.17
The commissioner of administration may require that the consultant selected18
pursuant to this Section participate on behalf of the agency in the negotiation of the19
contract. Every contract negotiated pursuant to this Section must be approved by the20
commissioner of administration.21
(c) Notwithstanding any other provision of this Chapter, no proposer shall be22
selected pursuant to this Section nor shall any contract be awarded pursuant to this23
Section, except by the commissioner of administration.24
(d) An independent third-party evaluation consultant shall have no direct25
conflict of interest as to the agency, the proposals which the consultant is to evaluate,26
or to any proposer. Prior to the selection of such consultant, the legislative auditor27
shall certify that the consultant has no direct conflict of interest as to the agency, the28
proposals which the consultant is to evaluate, or to any proposer.29 SB NO. 727
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(e) The provisions of Subparagraphs (a) through (d) of this Paragraph shall1
not be applicable when the requests for proposals or the proposed contract was2
received by the division of administration prior to January 1, 2004.3
(2) The legislative auditor shall conduct performance audits of4
performance-based energy efficiency contracts. The legislative auditor shall establish5
a schedule for execution of such performance audits, which schedule shall provide6
for periodic audits during the term of such contracts and for an audit upon the7
completion of any such contract. The results of any such performance audits shall be8
published no later than thirty days prior to the commencement of each Regular9
Session of the Legislature.10
(3)(a)(i) In order to fund the cost of the evaluation, review, approval,11
oversight, and performance audits as provided in this Section, the request for12
proposal for the award of a performance-based energy efficiency contract shall13
require the proposer to pay a sum not to exceed two and one-half percent of the total14
value of the performance-based energy efficiency contract at the time that a contract15
is executed by that proposer.16
(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, where17
a request for proposal or a proposed contract is exempt from the application of18
Subparagraphs (a) through (d) of Paragraph (1) of this Subsection, the proposer shall19
be required to pay a sum not to exceed one percent of the total value of the20
performance-based energy efficiency contract at the time that a contract is executed21
by that proposer.22
(b) The determination of the sum to be paid shall be made by the23
commissioner of administration according to the rules and regulations adopted24
pursuant to this Section.25
(c) The "Energy Performance Contract Fund",, hereinafter referred to as the26
"fund",, is hereby created in the state treasury. After compliance with the provisions27
of Article VII, Section 9(B) of the Constitution of Louisiana relative to the allocation28
of monies to the Bond Security and Redemption Fund, the treasury shall deposit into29 SB NO. 727
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the fund an amount equal to the amount collected pursuant to Subparagraphs (a) and1
(b) of this Paragraph. The monies in the fund shall be used only to fund the2
requirements of this Section and the rules promulgated pursuant thereto. Monies in3
the fund shall be invested in the same manner as monies in the state general fund and4
any interest earned on the investment of monies in the fund shall be credited to the5
fund. Unexpended and unencumbered monies in the fund at the end of the fiscal year6
shall remain in the fund.7
§1498.2. §1620.3. Professional, personal, and consulting service contracts with state8
employees9
A. State agency personnel in the medical, nursing or allied health fields, state10
employees who are qualified to serve as interpreters for the deaf, faculty members11
of public institutions of higher education, and state employees selected to serve as12
instructors in the paralegal studies course of the division of continuing education at13
a state college or university may be employed by other state agencies through a14
contract for professional, personal, consulting, or social services in accordance with15
rules and regulations adopted by the office of contractual review state procurement.16
No such faculty member, except those who are also employed by private firms, may17
contract for the design or redesign of a state-owned facility in which the services of18
a professional architect or engineer, or both, are required.19
B. Additionally, each professional, personal, consulting, and social service20
agreement between a governmental body as defined in R.S. 39:1484(11) R.S.21
39:1556(21) and a faculty member of any state college or state university shall be22
subject to the policies and procedures promulgated by each respective state college23
and university and the management boards having authority over the respective24
institution of higher education in which the faculty member is a member and the25
Board of Regents. Notwithstanding any other provision of law, each such agreement26
shall be subject to the written approval of the president of the college or university27
which employs the faculty member, and written notification of agreement and28
approval shall be given to the appropriate management board.29 SB NO. 727
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C. The list of occupations exempted in this Section from the provision of R.S.1
39:1498(A)(4) R.S. 39:1621.1(A)(4) may be increased by rules adopted by the office2
of contractual review state chief procurement officer.3
D. Notwithstanding any other provisions of law to the contrary, the Louisiana4
School for the Deaf is hereby authorized to enter into professional, personal,5
consulting, and social services contracts with an employee of the school to provide6
sign language and interpreting services which are independent of the employee's7
assigned duties and regular work hours, and for which compensation may be paid.8
E. Notwithstanding any other provisions of law to the contrary, the Louisiana9
Commission for the Deaf is hereby authorized to enter into professional, personal,10
consulting, and social services contracts with an employee of the commission to11
provide sign language and interpreting services which are independent of the12
employee's assigned duties and regular work hours, and for which compensation may13
be paid; however, such contract is authorized only if a person who is not an14
employee of the commission is unavailable for such services.15
SUBPART E. CONTRACT ADMI NISTRATION16
§1497. §1621. Certification by using agency17
A. Upon seeking approval to To enter into a proposed professional, personal,18
consulting, or social service contract valued in excess of five thousand dollars, the19
amount specified in the small purchase executive order, an individual or20
individuals specifically designated by the head of the using agency for such purpose21
shall certify to the state chief procurement officer or designee that:22
(1) Either no employee of that agency is both competent and available to23
perform the services called for by the proposed contract or the services called for are24
not the type readily susceptible of being performed by persons who are employed by25
the state on a continuing basis.26
(2) The services are not available as a product of a prior or existing27
professional, personal, consulting, or social service contract.28
(3) The requirement for consultant and social services contracts, when29 SB NO. 727
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applicable, have been publicized pursuant to R.S. 39:1503 Part III of this Chapter.1
(4) The using agency has developed and fully intends to implement a written2
plan providing for:3
(a) The assignment of specific using agency personnel to a monitoring and4
liaison function.5
(b) The periodic review of interim reports or other indicia of performance to6
date.7
(c) The ultimate use of the final product of the services.8
(5) The cost basis for the proposed contract.9
(6) A description of the specific objectives or deliverables associated with the10
proposed contract and the monitoring plan therefor.11
(7) Methods to be used to measure and determine contract performance.12
B. In addition to the certifications required in Subsection A herein, for any13
proposed professional, personal, consulting, or social service contract that exceeds14
fifty thousand dollars and has a term of more than six months, a cost-benefit analysis15
shall be conducted which indicates that obtaining such services from the private16
sector is more cost-effective than providing such services by the using agency itself17
or by an agreement with another state agency, to include both a short-term and18
long-term analysis. The state chief procurement officer shall promulgate, as19
necessary, rules and regulations relative to the form and content of a cost-benefit20
analysis.21
§1498. §1621.1. Approval of contract; penalties22
A. Before approving a proposed contract for professional, personal,23
consulting, or social services, the director of the office of contractual services state24
chief procurement officer or an assistant designee shall have determined that:25
(1) All provisions of R.S. 39:1497 R.S. 39:1621 have been complied with.26
(2) The using agency has statutory authority to enter into the proposed27
contract.28
(3) The contract will not establish an employer/employee relationship29 SB NO. 727
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between the state or the using agency and any prospective contractor.1
(4) No current state employee will engage in the performance of the proposed2
contract except as provided for in R.S. 39:1498.2 R.S. 39:1620.3.3
(5) No using agency has previously performed or contracted for the4
performance of tasks which would be substantially duplicated under the proposed5
contract without appropriate written justification.6
(6) There has been appropriated or otherwise lawfully made available and7
ready for expenditure sufficient monies for payment of the services called for in the8
contract, at least for the applicable fiscal year.9
(7) The contracting using agency has specified the purpose, duration, specific10
goals and objectives, measures of performance, and a plan for monitoring the11
services to be provided under the contract.12
(8) The using agency has a written plan for the monitoring of the contract and13
such monitoring plan has been submitted in accordance with rules and regulations14
adopted by the office of contractual review state procurement.15
(9) The provisions of R.S. 12:25(E) have been complied with, if the contract16
is with a business corporation, the provisions of R.S. 12:205(E) have been complied17
with, if the contract is with a nonprofit corporation, or the provisions of R.S.18
12:304(A)(11) have been complied with, if the contract is with a foreign corporation.19
B. Any corporation which fails to make complete disclosure of ownership,20
directors, and officers as required by law shall be required, as a penalty, to refund21
any funds received by that corporation from the state for the contract.22
§1498.1. §1621.2. Contract content23
Each contract for professional, personal, consulting, or social services entered24
into by a governmental body as defined in R.S. 39:1484(11) R.S. 39:1556(21) shall25
contain as a minimum: description of the work to be performed and objectives to be26
met; amount and time of payments to be made; description of reports or other27
deliverables to be received, when applicable; date of reports or other deliverables to28
be received, when applicable; responsibility for payment of taxes, when applicable;29 SB NO. 727
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circumstances under which the contract can be terminated either with or without1
cause; remedies for default; and a statement giving the legislative auditor and other2
appropriate entities the authority to audit records of the individual(s) or firm(s).3
§1502. §1621.3. Contract Validity validity of professional, personal, consulting,4
and social service contracts5
A.  No contract shall be valid, nor shall the state be bound by the contract,6
until it has first been executed by the head of the using agency, or his designee,7
which is a party to the contract and the contractor, and has been approved in writing8
by the director of the office of contractual review state chief procurement officer9
or his designee.10
B. In cases where the head of the using agency wants to delegate authority11
to one or more of his subordinates to sign contracts on behalf of the agency, this12
delegation must be made in accordance with regulations of the office of contractual13
review state procurement and shall be subject to the approval of the office of14
contractual review state chief procurement officer.15
SUBPART F. INSPECTION OF PLANT AND AUDIT OF RECORDS16
§1621. §1623. Right to inspect plant17
The state may, at reasonable times, inspect the part of the plant or place of18
business of a contractor or any subcontractor which is related to the performance of19
any contract awarded or to be awarded by the state.20
§1622. §1624. Right to audit records21
A. Audit of persons submitting cost or pricing data. The state may, at22
reasonable times and places, audit the books and records of any person who has23
submitted cost or pricing data pursuant to R.S. 39:1603 this Chapter to the extent24
that such books and records relate to such cost or pricing data.25
B. Contract audit. The state shall be entitled to audit the books and records26
of a contractor or any subcontractor under any negotiated contract or subcontract27
other than a firm fixed-price contract to the extent that such books and records relate28
to the performance of such contract or subcontract. Such books and records shall be29 SB NO. 727
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maintained by the contractor for a period of five years from the date of final payment1
under the prime contract and by the subcontractor for a period of five years from the2
date of final payment under the subcontract.3
SUBPART G. DETERMINATIONS AND REPORTS4
§1625. Finality of determinations5
The determinations required by R.S. 39:1595(A), R.S. 39:1599(E), R.S.6
39:1597, R.S. 39:1598(C), R.S. 39:1599 R.S. 39:1600, R.S. 39:1601, R.S.7
39:1603(C), R.S. 39:1612(A), R.S. 39:1613, and R.S. 39:1614, R.S. 39:1671, R.S.8
39:1684, R.S. 39:1685, and R.S. 39:1691 are final and conclusive unless they are9
clearly erroneous, arbitrary, capricious, or contrary to law.10
§1626. Reporting of suspected collusive bidding or negotiations11
A. Notification to the attorney general. When for any reason collusion is12
suspected among any bidders or offerors, a written notice of the relevant facts shall13
be transmitted to the attorney general.14
B. Retention of all documents. All documents involved in any procurement15
in which collusion is suspected shall be retained for a minimum of six years or until16
the attorney general gives written notice that they may be destroyed, whichever17
period is longer. All retained documents shall be made available to the attorney18
general or a designee upon request and proper receipt therefor.19
§1627. Record of certain procurement actions20
The chief procurement officer shall retain all contracts made under R.S.21
39:1597 or R.S. 39:1598 for a minimum of six years.22
SUBPART H. INSURANCE23
§1631. Direct purchase of insurance24
Notwithstanding the provisions of R.S. 22:1171 or any other law to the25
contrary, the state may purchase insurance policies covering any property or26
insurable interests or activities of the state directly from insurers or underwriters,27
without the necessity for signature or countersignature of such policies as provided28
by R.S. 22:1171, and in lieu thereof such policy shall be signed by an official or29 SB NO. 727
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designated representative of the company issuing the policy. 	The insurers or1
underwriters making such direct sales to the state shall reduce the policy premiums2
by the amount of the commissions, which would have been paid, as required by R.S.3
22:1171, but for the provisions of this Section. However, if any such insurance4
policy is purchased in accordance with the provisions of R.S. 22:1171, the agent may5
credit any portion of the commission to the state, through the division of6
administration. The state shall be advised of the amount of any such rebate at the7
time the agent furnishes a bid for such policy to the state, and the amount of such8
rebate shall be taken into consideration in determining the cost of such policy.9
§1632. Splitting of commissions prohibited10
It shall be unlawful for an agent to split, pass on, or share with any person,11
group, organization, or other agent, except the state of Louisiana, all or any portion12
of the commission derived from the sale of insurance to the state; except that on13
policies involving properties or exposure in more than one geographic area of the14
state, said commission may be split, shared, or passed on if authorized in writing by15
the commissioner of administration. In any such instance where the sharing of a16
commission on state insurance is authorized, it shall be only with a bona fide17
insurance agent. Whoever violates the provisions of this Section shall, upon18
conviction, be fined not less than one thousand dollars nor more than five thousand19
dollars and shall be imprisoned for not more than two years.20
§1633. Authorization constitutes public record21
Such written authorization as required by R.S. 39:1632 above shall constitute22
a public record as defined in Chapter 1 of Title 44 of the Louisiana Revised Statutes23
of 1950.24
§1540. §1634. Competition Procurement of insurance and related services25
Every contract entered into by the state for the purchase of insurance or for26
obtaining services relating to the operation of the insurance program shall be27
awarded by either competitive sealed bidding or competitive negotiation.28
Competitive negotiation shall be initiated by the issuance of a request for proposals29 SB NO. 727
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containing a description of the coverage required and the factors to be used in1
evaluating the proposals. Where there is more than one offeror, written or oral2
discussions shall be conducted with at least the three, or two if there are only two,3
highest qualified offerors who submit proposals determined in writing to be4
reasonably susceptible of being selected for award. The contract shall be awarded5
with reasonable promptness by written notice to the responsible offeror whose6
proposal meets the requirements and criteria set forth in the request for proposals and7
whose proposal is most beneficial to the state, considering the price and the8
evaluation factors set forth in the request for proposal. Public notice of the request9
for proposals shall be provided in the same manner as established in Part V of10
Chapter 1 of Title 391 of the Louisiana Revised Statutes. in accordance with the11
provisions of this Chapter.12
SUBPART I. ACQUISITION OF HOUSING SPACE13
§1641. Budget for acquisition of housing space and leases by budget units14
A. Contracts and agreements by and in the name of state agencies. All15
contracts and agreements for the lease or rental of space for the housing of state16
agencies, their personnel, operations, equipment, or activities shall be made in the17
name of and by the authorized representative or representative body of the state18
agency but shall be made and entered into only with the approval of the19
commissioner of administration. The cost of such housing shall be provided for in20
and defrayed from the budgets of the using agencies.21
B. Contracts and agreements by and in the name of the state, executed by the22
commissioner. (1) When a contract or agreement for the lease or rental of space for23
the housing of state agencies, their personnel, operation, equipment, or activities,24
shall pertain to more than one building or facility or shall pertain to a building or25
facility which is to house more than one state agency, their personnel, operation,26
equipment, or activities, such contract or agreement may be made in the name of the27
state and executed by the commissioner of administration, rather than in the name28
of and by an authorized representative or a representative body of the state agency29 SB NO. 727
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or agencies to be housed in such building or buildings or facility or facilities.1
(2) The commissioner of administration shall allocate space to one or more2
state agencies in the building or buildings or facility or facilities to which such3
contract or agreement pertains and shall allocate the cost of such housing to or4
among such using agency or agencies, which cost shall be provided for in and5
defrayed from the budgets of the using agency or agencies. The commissioner shall6
determine the amount of the allocations of the costs of such housing to the various7
agencies using such building or buildings and facility or facilities in such manner so8
that the aggregate of the amount so allocated equals the total cost of such housing.9
C. Definition of "agency." The definition of "agency" stated in R.S. 39:2(2)10
shall be the sole definition of the term "state agency" employed in connection with11
the acquisition of housing space in this and following Sections, and the fact that an12
agency is supported by fees or taxes collected by, or dedicated to, the agency or13
which otherwise receives its operating funds through means other than direct14
appropriations, shall not be a test as to whether this Section shall be applicable to an15
agency of the state.16
D. Applicability. The provisions of this Subpart shall be applicable to all17
agencies meeting the definition of R.S. 39:2(2) established by the laws of Louisiana.18
§1642. Uniform space standards; inventory and evaluation of budget unit space19
utilization20
A. Uniform space standards. The division of administration shall prepare and21
utilize a uniform set of standards for determining space needs for state agencies.22
These standards shall also provide for a uniform method of measuring square footage23
or other measurements used as the basis for lease payments or other charges.24
B. Inventory of state space. The division of administration shall conduct and25
maintain a complete inventory of state space, both owned and leased.26
C. Evaluation of space utilization. The division of administration shall27
evaluate the utilization of all leased space on a continuing basis to determine the28
feasibility of locating state agencies in buildings to be purchased and/or constructed29 SB NO. 727
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by the state.1
§1643. Advertisement,public notice, and award of lease bids2
A. Every lease for the use of five thousand square feet or more of space in a3
privately owned building entered into by a state agency as lessee shall be awarded4
pursuant to R.S. 39:1594 in accordance with the conditions for use set forth in that5
Section and only after evaluation of the bids in accordance with the specific criteria6
contained in the invitation for bids as authorized by R.S. 39:1594(E)(2). No such7
lease shall extend beyond a period of ten years.8
B. The ten-year limitation shall not be applicable to the management boards9
created under Article VIII, Sections 6 and 7 of the 1974 Louisiana Constitution.10
§1644. Amendment of leases11
A.(1) An existing lease for office or warehouse space may be renegotiated12
with the present lessor, but only after the division of administration has entered into13
a competitive negotiation process involving discussions with at least three, unless14
there are less than three, offerors proposers who submit written proposals. Such15
proposals shall be solicited by advertising or giving public notice as in R.S.16
39:1594(C).17
(2) If it is determined by the commissioner of administration or his designee,18
after the evaluation of these proposals and discussions with the current lessor, that19
to renew the present lease would be in the best interest of the state, the renewal of an20
existing lease may be renegotiated or the commissioner may enter into a lease with21
one of these offerors proposers if determined to be in the state's best interest. In22
making such a determination the commissioner, or his designee, shall take into23
consideration, over the duration of the lease, rental rates, the amount of funds24
necessary to relocate, any geographical considerations particular to that state25
program, the amount of disruption to state business that may be incurred in moving26
to a new location, and any other relevant factors presented.27
B. Any lease for office or warehouse space for under five thousand square28
feet may be amended up to but not to exceed a maximum of four thousand nine29 SB NO. 727
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hundred ninety-nine square feet.1
C. Existing leases for office or warehouse space between a single state2
agency, a single lessor and affecting a single building or buildings immediately3
adjacent to each other which leases have different termination dates, may be4
renegotiated by the division of administration to perfect a single lease for the whole5
of the office or warehouse space utilized under the existing leases. The renegotiated6
lease shall not extend beyond the termination date of the latest existing lease, nor7
shall the price per square foot paid under the new lease result in a total payment in8
excess of the total of the combined payments under the preexisting leases.9
D. In the event alterations or modifications of space currently under lease are10
required to meet changed operating requirements, a lease may be amended. Such11
lease amendment may, with approval of the division of administration, provide an12
adjustment in monthly lease payments not to exceed twenty-f ive percent of the13
original annual lease price per square foot, sufficient to reimburse the lessor for14
paying for the leasehold improvements; provided, however, that any adjustment in15
monthly lease payments shall also require the approval of the Joint Legislative16
Committee on the Budget and the continuance of an adjustment in excess of the17
current lease shall be further contingent on the appropriation of funds therefor in the18
following fiscal year.19
E. A lease may be amended, with approval of the division of administration,20
to provide an adjustment in monthly lease payments not to exceed ten percent of the21
original annual lease price per square foot and not to exceed ten thousand dollars per22
year.23
SUBPART J. ACQUISITION OF USED EQUIPMENT24
§1645. Procurement of used equipment25
A. Any agency covered by this Chapter may procure any equipment which26
is used or which has been previously purchased by an individual or corporation27
where the agency proposing to make such procurement can present satisfactory28
information to the procurement officer to illustrate that the procurement of said29 SB NO. 727
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equipment is cost effective to the state.1
B.(1) The used equipment shall be purchased by the head of the agency,2
college, or university, within the price range set by the director of state purchasing,3
or the directors of purchasing at colleges and universities, in a statement of written4
approval for the purchase which must be obtained by the head of the agency, college,5
or university, prior to the purchase.6
(2) The head of the agency, college, or university, shall certify in writing to7
the director of state purchasing, or the directors of purchasing at colleges and8
universities, all of the following:9
(a) The price for which the used equipment may be obtained.10
(b) The plan for maintenance and repair of the equipment and the cost11
thereof.12
(c) The savings that will accrue to the state because of the purchase of the13
used equipment.14
(d) The fact that following the procedures set out in the Louisiana15
Procurement Code will result in the loss of the opportunity to purchase the16
equipment.17
SUBPART K. J. ACQUISITION OF MOTOR VEHICLES18
§1646. Acquisition of motor vehicles; minimum requirements for fuel efficiency;19
exceptions20
A. Any purchase or lease of a motor vehicle by an agency which is covered21
by this Chapter shall be made in accordance with the provisions of this Subpart. Such22
vehicles shall have, at the time of acquisition, a fuel efficiency rating of no less than23
eighteen miles per gallon for city driving and no less than twenty-eight miles per24
gallon for highway driving, or a combined city/highway average of twenty-four25
miles per gallon.26
B. For purposes of this Subpart, "motor vehicle" shall include the following27
vehicles as they are specified or defined in administrative rule or regulation28
prescribed by the commissioner of administration pursuant to Part XIII of Chapter29 SB NO. 727
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1 of Title 39 of the Louisiana Revised Statutes of 1950: alternative fuel vehicle,1
sedan, and station wagon.2
C. For purposes of this Subpart, "motor vehicle" shall not include the3
following:4
(1) A vehicle to be used by law enforcement personnel, certified first5
responders and emergency personnel when required for the performance of their6
duties, or a vehicle used in the conduct of military activities.7
(2) A vehicle to be used by any state employee when written authorization8
for such purchase has been provided by the department head to the commissioner of9
administration and approved by him, or a vehicle to be used by an employee of a10
political subdivision of the state when the governing authority of the political11
subdivision authorizes such purchase.12
PART IV. SPECIFICATIONS13
SUBPART A. SPECIFICATIONS14
§1651. Duties of the commissioner of administration Regulations governing15
specifications16
A. The commissioner shall promulgate regulations governing the preparation,17
maintenance, and content of specifications for supplies, services, and major repairs18
required by the state.19
B. As used in this Part, the term "specification" means any description of the20
physical or functional characteristics, or of the nature of a supply, service, or major21
repair. It may include a description of any requirement for inspecting, testing, or22
preparing a supply, service, or major repair for delivery.23
§1651.1. Shrimp specifications24
Notwithstanding any other provision of law to the contrary, regulations25
promulgated by the commissioner of administration or other purchasing entity,26
governing the purchase or use of shrimp shall require that the bid specify the count27
size of such shrimp and not specify size as "jumbo", "extra large", "medium",28
"small", or any other similar term or nomenclature used in the shrimping industry.29 SB NO. 727
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§1652. Duties of the chief procurement officer1
The chief procurement officer shall prepare, issue, revise, and monitor the use2
of specifications for required supplies, services, and major repairs.3
§1653. Exempted items4
Specifications for supplies, services, or major repairs exempted pursuant to5
R.S. 39:1572 may be prepared by a purchasing agency in accordance with the6
provisions of this Part Chapter and regulations promulgated hereunder by the head7
of the governmental body granted authority to promulgate regulations by R.S.8
39:1581.9
§1654. Relationship with using agencies10
The director state chief procurement officer shall obtain advice and11
assistance from personnel of using agencies in the determination of needs and12
development of specifications and may delegate in writing to a using agency the13
authority to prepare and utilize its own specifications, subject to regulations.14
§1655. Maximum practicable competition15
A. All specifications shall seek to promote overall economy for the purposes16
intended and encourage competition in satisfying the needs of the state, and shall not17
be unduly restrictive. A specification may be drafted which describes a product18
which is proprietary to one company only where:19
(1) No other kind of specification is reasonably available for the state to20
describe its requirements; or21
(2) There is a requirement for specifying a particular design or make of22
product due to factors of compatibility, standardization, or maintainability; or23
(3) Such specification includes language which specifically permits an24
equivalent product to be supplied. Such specification shall include a description of25
the essential characteristics of the product.26
(4) Such specification is determined to be in the best interest of the state as27
provided for by R.S. 39:1613.28
B. Except in Paragraph (2) of this Section, whenever such proprietary29 SB NO. 727
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specifications are used, the specifications shall clearly state that they are used only1
to denote the quality standard of supplies, services, or major repairs desired and that2
they do not restrict bidders to the specific brand, make, manufacturer, or3
specification named; that they are used only to set forth and convey to prospective4
bidders the general style, type, character, and quality of supplies, services, or major5
repairs desired; and that equivalent supplies, services, or major repairs will be6
acceptable.7
§1656. Escalation clause8
Bid specifications may contemplate a fixed escalation or deescalation in9
accordance with a recognized price index. Such indexes may include but are not10
limited to the United States Bureau of Labor Statistics, Consumer Price Index and11
Wholesale Price Index. Bids based on specifications which are subject to a12
recognized escalation price index shall be legal and valid.13
§1657. Specifications prepared by 	architects and engineers non-state personnel14
The requirements of this Part regarding the purposes and nonrestrictiveness15
of specifications shall apply to all specifications 	prepared other than by state16
personnel, including but not limited to those proposed by architects, engineers,17
designers, and draftsmen for public contracts.18
§1658. Mandatory information requirement for contracts let without competition19
under the authority of an executive order20
A. The provisions of this Section shall apply to any contract for state21
procurement of goods or services which is subject to the provisions of Chapter 17 of22
this Title, hereinafter referred to as "state procurement law", which contract is let23
without competition pursuant to an executive order issued by authority granted under24
the Louisiana Homeland Security and Emergency Assistance and Disaster Act,25
which order grants exceptions to the requirements of state procurement law. Such26
provisions shall apply to contracts which have been or will be let without27
competition pursuant to executive orders related to Hurricane Katrina or Rita which28
granted exceptions to the requirements of state procurement law.29 SB NO. 727
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B.(1) For any contract subject to the provisions of this Section, the1
information cited in Subparagraphs (a) through (d) of this Paragraph shall be2
submitted by the primary contractor to the office of state purchasing. The following3
information shall be submitted, in a format to be determined by such agencies, no4
later than forty-five days after the effective date of the contract, or forty-five days5
after June 29, 2006, whichever is later:6
(a) The name of the primary contractor.7
(b) The amount of the contract.8
(c) The name of each subcontractor.9
(d) The amount of each subcontract.10
(2) Any change in subcontractors, or in the amount of a subcontract which11
exceeds twenty-five percent in the aggregate of the original subcontracted amount,12
shall necessitate the submission of updated information as required in Paragraph(1)13
of this Subsection.14
(3) The primary contractor for each contract subject to the provisions of this15
Section shall be notified of the requirements of this Section by the contracting state16
agency. Such notification shall be made no later than ten days after June 29, 2006,17
for contracts which are currently in effect. Otherwise, the notification shall be made18
prior to execution of the contract.19
C. The office of state purchasing shall maintain a listing or registry of all20
information reported to it pursuant to the provisions of this Section.21
D. Failure to submit all of the information required as provided in Subsection22
B of this Section shall be grounds for debarment. It shall be unlawful for any person23
to intentionally fail to submit such information, which failure is hereby deemed to24
be a violation of the duty to provide the mandatory information. Whomever violates25
such provisions of Subsection B of this Section shall be fined in an amount not to26
exceed one-half of the contract amount and imprisoned for not more than six months,27
or both.28
E. The provisions of this Section shall not be subject to suspension pursuant29 SB NO. 727
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to the authority granted to the governor by R.S. 29:721 et seq., the Louisiana1
Homeland Security and Emergency Assistance and Disaster Act.2
 §1659. §1658. Purchase of prostheses, orthoses, prosthetic services, and orthotic3
services by a state agency from an accredited facility4
Notwithstanding any other provision of law to the contrary, regulations5
promulgated by the commissioner of administration or other purchasing entity6
governing the purchase of prostheses, orthoses, prosthetic services, or orthotic7
services shall require that such services shall only be purchased from an accredited8
facility as provided in R.S. 40:1300.281. However, nothing in this Section shall9
prohibit a licensed occupational therapist or a licensed physical therapist from10
practicing within his scope of practice. In addition, the provisions of this Section11
shall not apply to a licensed optometrist or ophthalmologist.12
PART V. MODIFICATION AND TERMINATION OF CONTRACTS13
FOR SUPPLIES, SERVICES, AND MAJOR REPAIRS14
§1661. Contract clauses; administration15
A. Contract clauses. Regulations may permit or require the inclusion of16
clauses providing for equitable adjustments in prices, time for performance, or other17
contract provisions, as appropriate, covering including but not limited to the18
following subjects:19
(1) The unilateral right of the state to order in writing changes in the work20
within the general scope of the contract in any one or more of the following:21
(a) Drawings, designs, or specifications, if the supplies to be furnished are to22
be specially manufactured for the state in accordance therewith;23
(b) Method of shipment or packing; or24
(c) Place of delivery.25
(2) The unilateral right of the state to order in writing temporary stopping of26
the work or delaying of performance; and27
(3) Variations between estimated quantities of work in a contract and actual28
quantities.29 SB NO. 727
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(4) Adjustments in price in accordance with rules promulgated by the1
commissioner of administration.2
B. Additional contract clauses. Regulations may permit or require the3
inclusion in state contracts of clauses providing for appropriate remedies and4
covering including but not limited to the following subjects:5
(1) Liquidated damages as appropriate.6
(2) Specified excuses for delay or nonperformance.7
(3) Termination of the contract for default, and8
(4) Termination of the contract in whole or in part for the convenience of the9
state.10
(5) Manufacturers' design drawings shall be supplied in duplicate for all state11
buildings, to the appropriate state agency at the conclusion of contract.12
(6) Security for contract performance.13
(7) Insurance requirements including as appropriate but not limited to14
general liability, automobile coverage, workers' compensation, and errors and15
omissions.16
(8) Beginning and ending date of the contract.17
(9) Maximum compensation to be paid the contractor.18
C. In the event any contractor fails to fulfill or comply with the terms of any19
contract, the chief procurement officer may award the contract to the next lowest20
responsible bidder subject to acceptance by that bidder and charge the difference in21
cost to the defaulting vendor.22
§1662. Fiscal responsibility23
Every contract modification, change order, or contract price adjustment24
under a public contract in excess of small purchase executive order shall be25
subject to prior written certification by the fiscal officer of the entity responsible26
for funding the project or the contract, or other official responsible for27
monitoring and reporting upon the status of costs of the total project budget or28
contract budget, as to the effect of the contract modification, change order, or29 SB NO. 727
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adjustment in contract price on the total project budget or the total contract1
budget. In the event that the certification of the fiscal officer or other2
responsible official discloses a resulting increase in the total project budget3
and/or the total contract budget, such contract modification, change order, or4
contract price adjustment shall not be made, executed or approved unless5
sufficient funds are available therefor, or the scope of the project or contract is6
adjusted so as to permit the degree of completion that is feasible within the total7
project budget and/or total contract budget as it existed prior to the contract8
modification, change order, or adjustment in contract price under9
consideration. However, with respect to the validity, as the contractor, of any10
executed contract modification, change order, or adjustment in contract price11
which the contractor has reasonably relied upon, it shall be presumed that there12
has been compliance with the provisions of the Section.13
PART VI. LEGAL AND CONTRACTUAL REMEDIES14
SUBPART A. PRE-LITIGATION RESOLUTION OF CONTROVERSIES15
§1671. Authority to resolve protested solicitations and awards16
A. Right to protest. Any person who is aggrieved in connection with the17
solicitation or award of a contract shall protest to the chief procurement officer or18
his designee. Protests with respect to a solicitation shall be submitted received in19
writing at least two seven calendar days prior to the opening of bids or proposals20
on all matters except housing of state agencies, their personnel, operations,21
equipment, or activities pursuant to R.S. 39:1643 for which such protest shall be22
submitted at least ten days prior to the opening of bids small purchases and23
emergency procurements. Protests with respect to the award of a contract shall be24
submitted received in writing within fourteen days after contract award or notice of25
intent to award, whichever comes first.26
B. Authority to resolve protests. The chief procurement officer or his27
designee shall have authority, prior to the commencement of an action in court28
concerning the controversy, to settle and resolve a protest of an aggrieved person29 SB NO. 727
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concerning the solicitation or award of a contract. This authority shall be exercised1
in accordance with regulations.2
C. Decision. If the protest is not resolved by mutual agreement, the chief3
procurement officer or his designee shall, within fourteen days, issue a decision in4
writing. The decision shall:5
(1) State the reasons for the action taken; and6
(2) Inform the protestant of its right to administrative and judicial review as7
provided in this Part.8
D. Notice of decision. A copy of the decision under Subsection C of this9
Section shall be mailed or otherwise furnished immediately to the protestant and any10
other party intervening.11
E. Finality of decision. A decision under Subsection C of this Section shall12
be final and conclusive unless:13
(1) The decision is fraudulent; or14
(2) The person adversely affected by the decision has timely appealed15
administratively to the Commissioner commissioner in accordance with R.S.16
39:1683.17
F. Stay of procurements during protests. In the event of a timely protest under18
Subsection A of this Section, the state shall not proceed further with the solicitation19
or with the awarding of the contract unless the chief procurement officer or his20
designee makes a written determination that the awarding of the contract is21
necessary without delay to protect the substantial interests of the state. Upon such22
determination by the chief procurement officer, no court shall enjoin progress under23
the award except after notice and hearing.24
G. Award of costs to protestants. In addition to any other relief, when the25
protest is administratively or judicially sustained and the protesting bidder or offeror26
proposer should have been awarded the contract but is not, the protesting bidder or27
offeror proposer shall be entitled to the reasonable costs incurred in connection with28
the solicitation, including bid or proposal preparation costs other than attorney's29 SB NO. 727
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fees, provided that any administrative determination of such costs shall be subject1
to the written concurrence of the attorney general.2
§1672. Authority to debar or suspend3
A. Applicability. This Section applies to a debarment for cause from4
consideration for award of contracts or a suspension from such consideration during5
an investigation where there is probable cause for such a debarment.6
B. Authority. After reasonable notice to the person involved and reasonable7
opportunity for that person to be heard, the chief procurement officer or his designee8
shall have authority to suspend or debar a person for cause from consideration for9
award of contracts, provided that doing so is in the best interests of the state. The10
causes for debarment are set forth in Subsection C of this Section. The chief11
procurement officer or his designee may suspend a person from consideration for12
award of contracts if he determines that there is probable cause to believe that such13
person has engaged in any activity which might lead to debarment. The suspension14
shall not be for a period exceeding six months. The authority to debar or suspend15
shall be exercised in accordance with regulations.16
C. Causes for debarment. The causes for debarment include the following:17
(1) Conviction for commission of a criminal offense as an incident to18
obtaining or attempting to obtain a public or private contract or subcontract, or in the19
performance of such contract or subcontract; .20
(2) Conviction under state or federal statutes of embezzlement, theft, forgery,21
bribery, falsification or destruction of records, receiving stolen property, or any other22
offense indicating a lack of business integrity or business honesty which currently,23
seriously, and directly affects responsibility as a state contractor	;.24
(3) Conviction under state or federal antitrust statutes arising out of the25
submission of bids or proposals; .26
(4) Violation of contract provisions, as set forth below, of a character which27
is regarded by the chief procurement officer to be so serious as to justify debarment28
action:29 SB NO. 727
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(a) Deliberate failure without good cause to perform in accordance with the1
specifications or within the time limit provided in the contract; or .2
(b) A recent record of failure to perform or of unsatisfactory performance in3
accordance with the terms of one or more contracts; provided that failure to perform4
or unsatisfactory performance caused by acts beyond the control of the contractor5
shall not be considered to be a basis for debarment.6
(5) Any other cause the chief procurement officer determines to be so serious7
and compelling as to affect responsibility as a state contractor, including debarment8
by another governmental entity for any cause listed in regulations	; and.9
(6) Violation of the ethical standards set forth in Chapter 15 of Title 42.10
D. Decision. The chief procurement officer shall issue a written decision to11
debar or suspend. The decision shall include each of the following:12
(1) State the reasons for the action taken; and .13
(2) Inform the debarred or suspended person involved of its rights to14
administrative and judicial review as provided in this Part.15
E. Notice of decision. A copy of the decision under Subsection D of this16
Section shall be mailed or otherwise furnished immediately to the debarred or17
suspended person and any other party intervening.18
F. Finality of decision. A decision under Subsection D of this Section shall19
be final and conclusive unless either of the following occurs:20
(1) The decision is fraudulent; or .21
(2) The debarred or suspended person has timely appealed administratively22
to the commissioner in accordance with R.S. 39:1684.23
§1673. Authority to resolve contract and breach of contract controversies24
A. Applicability. This Section applies to controversies between the state and25
a contractor and which arise under or by virtue of a contract between them. This26
includes without limitation controversies based upon breach of contract, mistake,27
misrepresentation, or other cause for contract modification or rescission. Any28
contractor who seeks a remedy with regard to such controversy shall file a complaint29 SB NO. 727
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with the chief procurement officer.1
B. Authority. The chief procurement officer or his designee is authorized,2
prior to the commencement of an action in court concerning the controversy, to settle3
and resolve, with the approval of the attorney general, a controversy described in4
Subsection A of this Section. This authority shall be exercised in accordance with5
regulations.6
C. Decision. If such a claim or controversy is not resolved by mutual7
agreement, the chief procurement officer or his designee shall promptly issue a8
decision in writing. The decision shall include each of the following:9
(1) State the reasons for the action taken; and .10
(2) Inform the contractor of its right to administrative and judicial review as11
provided in this Part.12
D. Notice of decision. A copy of the decision under Subsection C of this13
Section shall be mailed or otherwise furnished immediately to the contractor.14
E. Finality of decision. The decision under Subsection C of this Section shall15
be final and conclusive unless either of the following occurs:16
(1) The decision is fraudulent; or .17
(2) The contractor has timely appealed administratively to the commissioner18
in accordance with R.S. 39:1685.19
F. Failure to render timely decision. If the chief procurement officer or his20
designee does not issue the written decision required under Subsection C of this21
Section within sixty days after written request for a final decision, or within such22
longer period as may be agreed upon by the parties, then the contractor may proceed23
as if an adverse decision had been received.24
§1524. §1674. Authority of the commissioner of administration25
Prior to the institution of any action in a court concerning any contract, claim26
or controversy relating to a professional, personal, consulting, or social service27
contract, the commissioner of administration with the concurrence of the attorney28
general is authorized to compromise, pay, or otherwise adjust the claim by or against29 SB NO. 727
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or a controversy with a contractor entered into with the state under their respective1
authority, including a claim or controversy based on breach of contract, mistake,2
misrepresentation, or other cause for contract modification or rescission. Nothing3
herein shall limit the authority of the commissioner of administration, pursuant to4
rules and regulations to issue, negotiate, or accept changes in the terms and5
conditions of a contract. When authorized, such compromise, payments, or6
adjustments shall be promptly paid; however, subject to any limitations or conditions7
imposed by rule or regulation, the commissioner of administration shall charge back8
all or any portion of such payments to the department or departments for whose9
benefit the contract was let.10
SUBPART B. SOLICITATIONS OR AWARDS IN VIOLATION OF LAW11
§1676. Applicability of this Subpart12
The provisions of this Subpart apply where it is determined administratively,13
or upon administrative or judicial review, that a solicitation or award of a contract14
is in violation of law.15
§1677. Remedies prior to an award16
If it is determined prior to award that a solicitation or proposed award of a17
contract is in violation of law, then the solicitation or proposed award shall be18
cancelled.19
§1678. Remedies after an award20
If it is determined after an award that a solicitation or award of a contract is21
in violation of law, then:22
(1) If the person awarded the contract has not acted fraudulently or in bad23
faith:24
(a) The contract may be ratified and affirmed, provided it is determined in25
writing by the commissioner that doing so is in the best interests of the state and the26
law violation had no significant effect on the outcome of the contract award; or27
(b) The contract may be terminated and the person awarded the contract shall28
be compensated for the actual expenses reasonably incurred under the contract prior29 SB NO. 727
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to the termination, provided that any administrative determination of such costs shall1
be subject to the written concurrence of the attorney general.2
(2) If the person awarded the contract has acted fraudulently or in bad faith,3
the contract shall be declared null and void.4
§1678.1. Damages5
A. Damages recoverable by any aggrieved person in any action brought6
pursuant to the provisions of R.S. 39:1671 or otherwise asserted at law, shall be7
limited exclusively to reasonable costs incurred in connection with the solicitation8
including bid preparation costs other than attorney's fees.9
B. Except as provided in Subsection E of this Section and R.S. 39:1678(1),10
damages recoverable by any contractor under any contract entered into pursuant to11
the provisions of this Chapter, shall be limited exclusively to the actual expenses12
reasonably incurred in performance of the contract.13
C. The provisions of R.S. 49:965.1 shall not apply to actions instituted14
pursuant to the provisions of this Chapter.15
D. Any administrative determination of costs or expenses recoverable by a16
contractor or aggrieved person under Subsections A and B of this Section shall be17
subject to the written concurrence of the attorney general.18
E. In no event shall damages awarded by the chief procurement officer, his19
designee, any hearing officer or any court include attorney's fees or any incidental,20
indirect, special, or consequential damages, including but not limited to loss of use,21
revenue or profit whether reasonably certain or not.22
§1679. Violations; penalties23
A. No person shall intentionally violate the Louisiana Procurement Code or24
any rule or regulation promulgated by the commissioner of administration with25
respect to purchasing procurement.26
B. Any person who intentionally violates such law, rule or regulation shall27
be fined not more than five hundred dollars, or imprisoned for not more than six28
months, or both.29 SB NO. 727
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SUBPART C. ADMINISTRATIVE APPEALS PROCEDURES1
§1681. Authority of the commissioner of administration2
The commissioner of administration shall have the authority to review and3
determine any appeal by an aggrieved person from a determination by the state4
director of purchasing chief procurement officer or his designee which is5
authorized by R.S. 39:1671, R.S. 39:1672, or R.S. 39:1673.6
§1682. Exempted departments7
The secretary who is vested with authority to promulgate regulations by R.S.8
39:1581 shall have, within his department, the same authority and responsibilities to9
review and determine appeals of decisions of the chief procurement officer of his10
department as are vested in the commissioner of administration by this Subpart.11
§1683. Protest of solicitations or awards12
A. Scope. This Section applies to an appeal addressed to the commissioner13
of a decision under R.S. 39:1671(C).14
B. Time limitation on filing an appeal. The aggrieved person shall file an15
appeal within seven days of receipt of a decision under R.S. 39:1671(C).16
C. Decision. On any appeal under Subsection A of this Section, the17
commissioner shall decide within fourteen days whether the solicitation or award18
was in accordance with the constitution, statutes, regulations, and the terms and19
conditions of the solicitation. Any prior determinations by the director chief20
procurement officer or his designee shall not be final or conclusive.21
D. Notice of decision. A copy of the decision under Subsection C of this22
Section shall be mailed or otherwise furnished immediately to the protestant or any23
other party intervening.24
E. Finality of decision. A decision under Subsection C of this Section shall25
be final and conclusive unless either of the following occurs:26
(1) The decision is fraudulent; or.27
(2) The person adversely affected by the decision has timely appealed to the28
court in accordance with R.S. 39:1691(A).29 SB NO. 727
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§1684. Suspension or debarment proceedings1
A. Scope. This Section applies to a review by the commissioner of a decision2
under R.S. 39:1672.3
B. Time limitation on filing an appeal. The aggrieved person shall file its4
appeal with the commissioner within fourteen days of the receipt of a decision under5
R.S. 39:1672(D).6
C. Decision. The commissioner shall decide within fourteen days whether,7
or the extent to which, the debarment or suspension was in accordance with the8
constitution, statutes, regulations, and the best interests of the state, and was fair.9
Any prior determination by the director chief procurement officer or his designee10
shall not be final or conclusive.11
D. Notice of decision. A copy of the decision under Subsection C of this12
Section shall be mailed or otherwise furnished immediately to the debarred or13
suspended person or any other party 	interviewing intervening.14
E. Finality of decision. A decision under Subsection C of this Section shall15
be final and conclusive unless either of the following occurs:16
(1) The decision is fraudulent; or .17
(2) The debarred or suspended person has timely appealed an adverse18
decision of the Commissioner to the court in accordance with R.S. 39:1691(B).19
§1685. Contract and breach of contract controversies20
A. Scope. This Section applies to a review by the commissioner of a decision21
under R.S. 39:1673.22
B. Time limitation on filing an appeal. The aggrieved contractor shall file its23
appeal with the commissioner within fourteen days of the receipt of the24
determination under R.S. 39:1673(C).25
C. Decision. The commissioner shall decide within fourteen days the contract26
or breach of contract controversy. Any prior determination by the director chief27
procurement officer or his designee shall not be final or conclusive.28
D. Notice of decision. A copy of the decision under Subsection C of this29 SB NO. 727
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Section shall be mailed or otherwise furnished immediately to the contractor.1
E. Finality of decision. A decision under Subsection C of this Section shall2
be final and conclusive unless either of the following occurs:3
(1) The decision is fraudulent; or .4
(2) The contractor has timely appealed an adverse decision of the5
commissioner to the court in accordance with R.S. 39:1691(C).6
SUBPART D. ACTIONS BY OR AGAINST THE STATE; PRESCRIPTION7
§1691. Actions by or against the state in connection with contracts8
A. Solicitation and award of contracts. The Nineteenth Judicial District Court9
shall have exclusive venue over an action between the state and a bidder, offeror10
proposer, or contractor, prospective or actual, to determine whether a solicitation11
or award of a contract is in accordance with the constitution, statutes, regulations,12
and the terms and conditions of the solicitation. Such actions shall extend to all kinds13
of actions, whether for monetary damages or for declaratory, injunctive, or other14
equitable relief.15
B. Debarment or suspension. The Nineteenth Judicial District Court shall16
have exclusive venue over an action between the state and a person who is subject17
to a suspension or debarment proceeding, to determine whether the debarment or18
suspension is in accordance with the constitution, statutes, and regulations. Such19
actions shall extend to actions for declaratory, injunctive, or other equitable relief.20
C. Actions under contracts or for breach of contract. The Nineteenth Judicial21
District Court shall have exclusive venue over an action between the state and a22
contractor who contracts with the state, for any cause of action which arises under23
or by virtue of the contract, whether the action is on the contract or for a breach of24
the contract or whether the action is for declaratory, injunctive, or other equitable25
relief.26
D. Limited finality for administrative determinations. In any judicial action27
under this Section, factual or legal determination by employees, agents, or other28
persons appointed by the state shall have no finality and shall not be conclusive,29 SB NO. 727
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notwithstanding any contract provision, regulation, or rule of law to the contrary,1
except to the extent provided in: R.S. 39:1625, R.S. 39:1671(E), R.S. 39:1672(F),2
R.S. 39:1673(E), R.S. 39:1683(E), R.S. 39:1684(E), and R.S. 39:1685(E).3
E. Writs or appeals; district court decisions. Any party aggrieved by a final4
judgment or interlocutory order or ruling of the Nineteenth Judicial District Court5
may appeal or seek review thereof, as the case may be, to the Court of Appeal, First6
Circuit, or the Supreme Court of Louisiana, as otherwise permitted in civil cases by7
law and the constitution.8
§1692. Commencement of actions9
A. Protested solicitations and awards. Any action under R.S. 39:1691(A)10
shall be commenced within fourteen days after receipt of the decision of the11
commissioner under R.S. 39:1683(C).12
B. Debarments and suspension for cause. Any action under R.S. 39:1691(B)13
shall be commenced within sixty days after receipt of the decision of the14
commissioner under R.S. 39:1684(C).15
C. Actions under contracts or for breach of contract controversies. Any action16
under R.S. 39:1691(C) shall be commenced within sixty days after receipt of the17
decision of the commissioner under R.S. 39:1685(C).18
SUBPART E. DAMAGES19
§1678.1. §1693. Damages20
A. Damages recoverable by any aggrieved person in any action brought21
pursuant to the provisions of R.S. 39:1671 or otherwise asserted at law, shall be22
limited exclusively to reasonable costs incurred in connection with the solicitation23
including bid preparation costs other than attorney's fees.24
B. Except as provided in Subsection E of this Section and R.S. 39:1678(1),25
damages recoverable by any contractor under any contract entered into pursuant to26
the provisions of this Chapter, shall be limited exclusively to the actual expenses27
reasonably incurred in performance of the contract.28
C. The provisions of R.S. 49:965.1 shall not apply to actions instituted29 SB NO. 727
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pursuant to the provisions of this Chapter.1
D. Any administrative determination of costs or expenses recoverable by a2
contractor or aggrieved person under Subsections A and B of this Section shall be3
subject to the written concurrence of the attorney general.4
E. In no event shall damages awarded by the chief procurement officer, his5
designee, any hearing officer or any court include attorney's fees or any incidental,6
indirect, special, or consequential damages, including but not limited to loss of use,7
revenue or profit whether reasonably certain or not.8
§1526(B) F. In any action by a contractor based upon any express or implied9
contract or breach thereof, no action shall be maintained based upon any contract or10
any act of any state officer which the officer is not authorized to make or do by the11
laws of this state, unless the contractor, acting in good faith and without actual or12
constructive knowledge of the lack of authorization, has commenced performance13
under the apparent contract. In that event, the court may (1) cancel the contract and14
reimburse the contractor only for the actual expenses incurred in performing the15
work already performed or (2) where the best interests of the state require, allow the16
performance of the contract to continue.17
SUBPART E. F. DELINQUENT PAYMENT PENALTIES18
§1695. Late payment to business; penalty paid by state agency19
A. If a state agency without reasonable cause fails to make any payment due20
within ninety days of the due date prescribed by contract, to a business awarded a21
contract with the state agency to supply equipment, supplies, materials, or textbooks,22
or to provide services, the state agency shall pay, in addition to the payment, interest23
on the amount due at the rate established pursuant to Civil Code Article 2924(B)(3)24
the judicial interest rate referenced in R.S. 13:4202(B) per year, from the25
ninety-first day after the due date prescribed by the contract. In applying this Section26
to a claim related in any way to an entitlement program, payment for claims shall be27
due ninety days after a claim is received by the state.28
B. If it is determined by the state agency that additional evidence of the29 SB NO. 727
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validity of the claim for payment is required, such evidence shall be requested within1
ten working days from the date the bill is received by the state agency. In instances2
where additional evidence is required, the bill shall be reviewed and payment or3
rejection made within thirty days from receipt of the evidence requested in the office4
of the paying agency.5
C. Any penalty required to be paid by a state agency pursuant to this Section6
shall be disbursed upon warrants drawn by the state agency upon that agency's7
operating expenses budget.8
§1696. Reporting requirements9
A. Whenever a state agency is required by R.S. 39:1695 to pay a penalty, it10
shall be presumed that the fault is that of the head of the state agency and, in such11
cases, the head of the state agency shall submit to the Joint Legislative Committee12
on the Budget at its next regular meeting following the payment of such a penalty a13
report on the actions taken to correct the problem.14
B. Any state agency which requests that the legislature make a supplemental15
appropriation for the agency shall identify at the time of the request what part of the16
amount is necessitated because of any penalties imposed by R.S. 39:1695.17
§1697. Disputed claims18
A. In cases where a state agency states that payment is late due to reasonable19
cause, and said claim is disputed by the business owed payment, upon the request of20
a representative of the business the Joint Legislative Committee on the Budget shall21
determine whether or not the circumstances constitute "reasonable cause" as used in22
R.S. 39:1695.23
B. No state agency shall be required to pay a penalty if it has submitted a24
warrant to the state treasurer at least thirty days prior to the due date prescribed by25
the contract.26
PART VII. INTERGOVERNMENTAL RELATIONS27
SUBPART A. DEFINITIONS28
§1701. Definitions of terms used in this Part29 SB NO. 727
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(1) "Cooperative purchasing" means procurement conducted by or on behalf1
of more than one public procurement unit or by a public procurement unit with an2
external procurement activity or by a private procurement unit.3
(2) "External procurement activity" means any buying organization not4
located in this state which, if located in this state, would qualify as a public5
procurement unit. An agency of the United States government is an external6
procurement activity.7
(3) "Local public procurement unit" means any parish, city, town,8
governmental body, and any other subdivision of the state or public agency thereof,9
public authority, public educational, health, or other institution, and to the extent10
provided by law, any other entity which expends public funds for the acquisition or11
leasing of supplies, services, major repairs, and construction, and any nonprofit12
corporation operating a charitable hospital.13
(4) "Private procurement unit" means any independent institution of higher14
education in this state.15
(5) "Public procurement unit" means either a local public procurement unit16
or a state public procurement unit.17
(6) "State public procurement unit" means the central purchasing agency and18
any other purchasing agency of this state.19
SUBPART B. SUBPART A. COOPERATIVE PURCHASING20
§1702. Cooperative purchasing authorized; participation in federal General Services21
Administration vendor list22
A.(1) Any public procurement unit may either participate in, sponsor,23
conduct, or administer a cooperative purchasing agreement for the acquisition of any24
supplies, or operating services, major repairs, or construction with one or more25
public procurement units or external procurement activities or one or more private26
procurement units in accordance with an agreement entered into between the27
participants. Such cooperative purchasing may include but is not limited to joint or28
multi-party contracts between public procurement units and open-ended state public29 SB NO. 727
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procurement unit contracts which are made available to local public procurement1
units.2
(2) Any public procurement unit may procure materials, supplies, and3
equipment from federal General Services Administration supply schedules in4
accordance with rules and regulations which may be adopted by the central5
purchasing agency of the division of administration. Such purchases need not comply6
with the competitive bidding requirements of this Chapter. However, such materials,7
supplies, or equipment shall not be purchased at a price higher than the price of the8
same item listed on any available state 	purchasing procurement contract.9
(3) Any public procurement unit may procure materials, supplies, equipment,10
and services related to homeland security from federal General Services11
Administration supply schedules. Such purchases shall:12
(a) Utilize a Louisiana distributor.13
(b) Use the competitive ordering procedures of the federal General Services14
Administration.15
(c) Receive prior approval from the director of the Governor's Office of16
Homeland Security and Emergency Preparedness, or his designee.17
B.(1) A private procurement unit acquiring supplies through cooperative18
purchasing shall acquire such supplies for its own use and not for the purpose of19
resale in competition with private enterprise.20
(2) A private procurement unit shall certify to the vendor with each order that21
the supplies covered thereby are to be acquired for its own use and not for the22
purpose of resale in competition with private enterprise and shall provide a copy of23
such certification to the Central Purchasing Agency central purchasing agency24
within the Division of Administration division of administration.25
(3) Upon certification by the Commissioner of Administration commissioner26
of administration that the purchase of one or more types of supplies by a private27
procurement unit under this Section may adversely affect the interests of the state by28
impeding the ability of the Division of Administration division of administration29 SB NO. 727
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to attract responsible bidders for such supplies, the governor shall have the authority1
to limit or eliminate the right of a private procurement unit to purchase such types2
of supplies to the extent necessary to eliminate the adverse affect effect on the state.3
C. No use shall be made of federal General Services Administration supply4
schedules under the provisions of this Section without the participation of a5
Louisiana licensed dealer or distributor.6
D. All cooperative purchasing conducted under this Part shall be7
through contracts awarded through full and open competition, including use of8
source selection methods substantially equivalent to those specified in Part III9
(Source Selection and Contract Formation) of this Chapter.10
§1703. Sale, acquisition, or use of supplies by a public procurement unit11
Any public procurement unit may sell to, acquire from, or use any supplies12
belonging to another public procurement unit or external procurement activity13
independent of the requirements of Part III of this Chapter or of Title 38.14
§1704. Cooperative use of supplies or operating services15
Any public procurement unit may enter into an agreement, independent of the16
requirements of Part III of this Chapter or Title 38, with any other public17
procurement unit or external procurement activity for the cooperative use of supplies18
or operating services, under the terms agreed upon between the parties.19
§1705. Joint use of facilities20
Any public procurement unit may enter into agreements for the common use21
or lease of warehousing facilities, capital equipment, and other facilities with another22
public procurement unit or an external procurement activity under the terms agreed23
upon between the parties.24
§1706. Supply of personnel, information, and technical services25
A. Supply of personnel. Any public procurement unit is authorized, in its26
discretion, upon written request from another public procurement unit or external27
procurement activity, to provide personnel to the requesting public procurement unit28
or external procurement activity. The public procurement unit or external29 SB NO. 727
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procurement activity making the request shall pay the public procurement unit1
providing the personnel the direct and indirect cost of furnishing the personnel, in2
accordance with an agreement between the parties.3
B. Supply of services. The informational, technical, and other services of any4
public procurement unit may be made available to any other public procurement unit5
or external procurement activity provided that the requirements of the public6
procurement unit tendering the services shall have precedence over the requesting7
public procurement unit or external procurement activity. The requesting public8
procurement unit or external procurement activity shall pay for the expenses of the9
services so provided, in accordance with an agreement between the parties.10
C. State information services. Upon request, the chief procurement officer11
may make available to public procurement units the following services, among12
others:13
(1) Standard forms.14
(2) Printed manuals.15
(3) Product specifications and standards.16
(4) Quality assurance testing services and methods.17
(5) Qualified products lists.18
(6) Source information.19
(7) Common use commodities listings.20
(8) Supplier prequalification information.21
(9) Supplier performance ratings.22
(10) Debarred and suspended bidders lists.23
(11) Forms for invitations for bids, requests for proposals, instructions to24
bidders, general contract provisions, and other contract forms; and25
(12) Contracts or published summaries thereof, including price and time of26
delivery information.27
D. State technical services. The state, through the chief procurement officer28
may provide the following technical services, among others:29 SB NO. 727
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(1) Development of products specifications.1
(2) Development of quality assurance test methods, including receiving,2
inspection, and acceptance procedures.3
(3) Use of state product testing and inspection facilities; and4
(4) Use of state personnel training programs.5
E. Fees. The chief procurement officer may enter into contractual6
arrangements and publish a schedule of fees for the services provided under7
Subsections C and D of this Section.8
§1707. Use of payments received by a supplying public procurement unit9
All payments from any public procurement unit or external procurement10
activity received by a public procurement unit supplying personnel or services shall11
be available to the supplying public procurement unit as authorized by law.12
§1708. Public procurement units in compliance with code this Chapter's13
requirements14
Where the public procurement unit or external procurement activity15
administering a cooperative purchase complies with the requirements of this Chapter,16
any public procurement unit participating in such a purchase shall be deemed to have17
complied with this Chapter. Public procurement units may not enter into a18
cooperative purchasing agreement for the purpose of circumventing this Chapter.19
§1709. Review of procurement requirements20
To the extent possible, the chief procurement officer shall collect information21
concerning the type, cost, quality, and quantity of commonly used supplies	, or22
operating services, major repairs, or construction being procured or used by state23
public procurement units. The chief procurement officer may also collect such24
information from local public procurement units.25
§1710. Local governing authorities; purchases from local vendors, payment of26
certain costs27
When a local governing authority purchases an item at the state bid price28
through a local vendor, the local governing authority may pay to the local vendor the29 SB NO. 727
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costs for shipping, preparation, and delivery of the item, provided that these costs1
shall not exceed the state bid price by seven percent on purchases up to ten thousand2
dollars, five percent on purchases over ten thousand dollars and up to twenty3
thousand dollars, and three percent on purchases over twenty thousand dollars.4
SUBPART C. SUBPART B. CONTRACT CONTROVERSI ES5
§1716. Contract controversies6
Under a cooperative purchasing agreement, controversies arising between an7
administering public procurement unit and its bidders, offerors proposers, or8
contractors shall be resolved in accordance with Part VI of this Chapter, where the9
administering public procurement unit is a state public procurement unit or otherwise10
subject to Part VI.11
Section 2. R.S. 39:1540, Part V-A of Chapter 1 of Subtitle I of Title 39 of the12
Louisiana Revised Statutes of 1950, comprised of R.S. 39:196 through 200, and Chapter 1613
of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S.14
39:1481 through 1526, are hereby repealed.15
Section 3. In the event of any conflict between the provisions of this Act and those16
of an Act or Acts which originated as Senate Bill No. 365, House Bill No. 582, or House Bill17
No. 1198 of this 2010 Regular Session, regardless of which Act is adopted later or signed18
later by the governor, the provisions of the Act which originated as Senate Bill No. 365,19
House Bill No. 582, or House Bill No. 1198 of this 2010 Regular Session shall prevail.20
Section 4. This Act shall become effective on January 1, 2011.21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Thomas F. Wade.
DIGEST
Present law provides for procurement by public bodies, including provisions for a central
purchasing agency, for procurement regulations, source selection for items to be purchased
and methods for such purchases, for bid procedures, for types of contracts, for specifications,
for contract modification, termination and contract clauses, for legal and contractual
remedies and for administrative appeals, and for cooperative purchasing. 
Present law sets forth the underlying purposes and policies of the procurement code, as well
as the rules of construction and application to be used in interpreting the provisions of the
code. Proposed law retains present law. Proposed law further provides that contracts
awarded by an agency for the benefit of an industry, payment of which comes from SB NO. 727
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self-generated funds received from that industry, are exempt from the requirements of the
procurement code provided that any such contract is awarded through a competitive process.
Proposed law also repeals certain provisions exempting aspects of the operation of the prison
enterprise system, as well as the inmate canteens and the employee commissary of the
Louisiana State Penitentiary, from the procurement code. 
Proposed law authorizes the use of electronic transmissions in connection with the
procurement process.
Present law provides numerous definitions for purposes of the procurement code. Proposed
law adds definitions for the following for following terms and phrases: "central purchasing
agency", "complex procurement", "electronic", "information technology", "operating
service", "public notice", "reverse auctions", "services", and "state chief procurement
officer". 
Present law provides for public access to procurement information. Proposed law retains
present law.
Present law authorizes the commissioner of administration to promulgate regulations
governing the procurement, management, and control of any and all supplies, services, and
major repairs required to be procured by the state.  Proposed law retains these provisions but
repeals present law that provides the commissioner shall not require by rule or regulation any
policy or management board of public higher education or any institution under their
jurisdiction to prepare or submit a monthly report on items purchased from state contracts
or on contract item usage to the division of administration.
Present law provides for the central purchasing agency within the division of administration,
to be headed by a director. Proposed law retains provisions of present law but provides that
it is to be headed by the state chief procurement officer. Further provides for his
qualifications, appointment, and authority, including the appointment of assistants and other
employees, and adds to the present law the duty to ensure compliance with the procurement
code and implementing regulations by reviewing and monitoring procurements. 
Present law provides that the chief legal adviser to the state director of purchasing shall be
the attorney general.  Proposed law retains present law. 
Present law provides mandatory information requirements for contracts let without
competition under the authority of an executive order. 	Proposed law retains present law.
Present law provides for collection of data concerning public procurement, reports of
procurement actions, and contract performance reports. Proposed law retains present law.
However, present law provides that no contract for professional, personal, consulting, or
social services shall be entered into by a using agency with any contractor for which a
delinquent final evaluation report remains outstanding for a contract with such using agency.
Proposed law provides that in cases where the using agency fails to submit a final evaluation
report and the report remains delinquent, the state chief procurement officer may refuse to
approve any future contract for professional, personal, consulting, or social services.
Present law provides for centralization of procurement authority and for certain exemptions.
Proposed law retains present law and further provides that the procurement of professional,
consulting, social services, information technology, or vehicles is not exempt from central
purchasing unless otherwise provided for in the chapter application provisions.
Present law authorizes the commissioner of administration to promulgate regulations to
govern all procurements by all governmental bodies. Provides exceptions for the Department
of Transportation and Development and Department of Education.  Proposed law retains
present law. SB NO. 727
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Present law requires the commissioner of administration to maintain a close and cooperative
relationship with the using agencies. Further provides for the Procurement Advisory Council
and other advisory groups, including the Drug Procurement Advisory Council. Proposed law
retains present law but repeals the provisions relative to the Drug Procurement Advisory
Council.
Present law provides that all state contracts shall be awarded by competitive sealed bidding
unless otherwise authorized by law.  Proposed law provides for the following methods of
source selection:
(1)Competitive sealed bids.
(2)Competitive sealed proposals.
(3)Small purchases.
(4)Sole source.
(5)Emergency procurements.
(6)Other procurement methods.
(a)Unstable market conditions.
(b)Group purchasing organizations.
(c)Fiscal intermediary services.
(d)Master agreements.
(e)Volume pricing agreements.
(f)Multi-step bids or proposals.
(g)Used equipment.
(h)Reverse auctions.
(i)Negotiation of non-competitive contracts.
(j)Maintenance services for information technology equipment.
(k)Software and software maintenance.
Proposed law also provides an exception for unusual or unique situations making use of the
methods listed above impracticable.
Present law provides that contracts exceeding the amount established by executive order for
small purchases shall be awarded by competitive sealed bidding.  Proposed law retains
present law but also provides for additional exceptions. Present law further provides that
competitive sealed bidding be initiated by the issuance of an invitation for bids containing
a description of the supplies, services, or major repairs to be procured and all contractual
terms and conditions applicable to the procurement. Proposed law retains present law.
Present law further provides that adequate public notice of the invitation for bids be given
at least 10 days prior to the date set forth therein for the opening of bids on all matters except
those made for housing of state agencies, their personnel, operations, equipment, or
activities, for which such notice shall be given at least 20 days prior to the opening of bids.
Proposed law retains present law but change the 20 day notice requirement to 15 days. SB NO. 727
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Present law also provides that notice shall be in writing and to persons in a position to
furnish the supplies, services, or major repairs required, as shown by records of the
procuring agency, and by advertising if the amount of the purchase is $25,000 or more.
Proposed law changes the threshold amount of purchase for the public notice requirement
from $25,000 to $50,000.  Present law further provides with respect to the requirements for
bid opening and evaluation, for corrections or withdrawal of bids, for awarding of bids, and
for preferences and exemptions. Proposed law retains present law.
Proposed law repeals provisions of present law relative to multisource generic drug
contracts.
Present law provides that with the approval of the commissioner and the written
determination by the director of state purchasing that the best interests of the state would be
served, a competitive request for proposals process may be used for the procurement of
supplies, services, or major repairs, including the procurement of high technology
acquisitions, or of complex services, and also through a contract with a group purchasing
organization, for the procurement of medical and laboratory supplies and medical equipment
required for the purpose of diagnosis or direct treatment of a patient by a health care provider
in a hospital or clinical setting, provided the commissioner determines the total cost to be
less than the state procurement prices and in the best interest of the state.  Proposed law
provides that a competitive request for proposals process may be used for the procurement
of information technology acquisitions, consulting services, social services or complex
procurements without such approval and written determination, and places a $50,000
threshold on such contracts, which threshold applies to consulting services contracts under
present law. 
Present law with respect to a competitive request for proposals process further provides that
the agency shall give adequate public notice of the request for proposals by advertising in
the official journal of the state at least 30 days before the last day that proposals will be
accepted. In addition, the agency shall mail written notice to persons, firms, or corporations
who are known to be in a position to furnish the required services at least 30 days before the
last day that proposals will be accepted. Present law also requires all such requests for
proposals to be advertised through a centralized electronic interactive environment
administered by the division of administration. The advertisement or written notice must
contain the name and address of the using agency and establish the specific date, time, and
place by which the request for proposals must be received. The request for proposals must
clearly state the technological or other outcome desired from the procurement of the
technological or complex systems and/or services, if applicable, and must indicate the
relative importance of price and other evaluation factors, the criteria to be used in evaluating
the proposals, and the time frames within which the work must be completed. Present law
requires that written or oral discussions must be conducted with all responsible offerers who
submit proposals determined in writing to be reasonably susceptible of being selected for
award. Discussions must not disclose any information derived from proposals submitted by
competing offers. Discussions need not be conducted in the following situation:
(1)If prices are fixed by law or regulation, except that consideration shall be given to
competitive terms and conditions.
(2)If time of delivery or performance will not permit discussions.
(3)If it can be clearly demonstrated and documented from the existence of adequate
competition or accurate prior cost experience with the particular service that
acceptance of an initial offer without discussion would result in fair and reasonable
prices and the request for proposals notifies all offerers of the possibility that award
may be made on the basis of the initial offers.
Proposed law retains present law but further provides that, as provided in the request for
proposals, and under regulations, discussions may be conducted with responsible proposers SB NO. 727
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who submit proposals determined to be reasonably susceptible of being selected for award
for the purpose of clarification to assure full understanding of, and responsiveness to, the
solicitation requirements. Proposers must be accorded fair and equal treatment with respect
to any opportunity for discussion and revision of proposals, and such revisions may be
permitted after submissions and prior to award for the purpose of obtaining best and final
offers. In conducting discussions, there must be no disclosure of any information derived
from proposals submitted by competing proposers. 
Present law provides that the award must be made to the responsible offerer whose proposal
is determined in writing by the agency to be the most advantageous to the state, taking into
consideration review of price and the evaluation factors set forth in the request for proposals.
Further provides that a request for proposals or other solicitation may be cancelled or all
proposals may be rejected only if it is determined, based on reasons provided in writing, that
such action is taken in the best interest of the state.
Present law provides that each contract entered into with respect to a competitive request for
proposals process shall contain as a minimum:
(1)Description of the work to be performed and/or objectives to be met, when
applicable.
(2)Amount and time of payments to be made.
(3)Description of reports or other deliverables to be received, when applicable.
(4)Date of reports or other deliverables to be received, when applicable.
(5)Responsibility for payment of taxes, when applicable.
(6)Circumstances under which the contract can be terminated either with or without
cause.
(7)Remedies for default.
(8)A statement giving the legislative auditor the authority to audit records of the
individual or firm.
Proposed law retains present law and adds to this list (9) performance measurements and
(10) monitoring plan.
Present law further provides that upon entering into a contract, the using agency shall have
full responsibility for the diligent administration and monitoring of the contract. Provides
that the director of state purchasing may require the using agency to report at any time on
the status of any such outstanding contracts to which the using agency is a party. After
completion of performance under a contract, the using agency shall evaluate contract
performance and the utility of the final product, which evaluation shall be delivered to the
director of state purchasing within 120 days after completion of performance and shall be
retained in the official contract file. Proposed law retains present law and adds language to
require the deliver of the evaluation to the director of purchasing at a college or university.
Also requires the final report to be prepared in accordance with R.S. 39:1567.
Present law further provides that no contract shall be valid, nor shall the state be bound by
the contract, until it has first been executed by the head of the using agency, or his designee,
which is a party to the contract and the contractor and has been approved in writing by the
director of state purchasing. In cases where the head of the using agency wants to delegate
authority to one or more of his subordinates to sign contracts on behalf of the agency, this
delegation shall be made in accordance with regulations of the commissioner and shall be
subject to the approval of the director of state purchasing. SB NO. 727
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Present law provides that all contracts for consulting services which have a total maximum
amount of compensation of $140,000 or more may be entered into with the assistance of a
procurement support team as provided herein, and in accordance with guidelines
promulgated and published by the office of contractual review. Proposed law adds contracts
for information technology systems and services and requires the assistance of a
procurement support team, and changes the references to rules promulgated by the
commissioner and published by the office of state procurement.
Present law provides that for each such consulting contract the office of contractual review
may establish a procurement support team which shall include one or more representatives
from each of the following:
(1)The office of contractual review.
(2)The using agency initiating the contract.
(3)The Legislative Fiscal Office.
Proposed law adds to the membership of the procurement support team a person chosen
jointly by the speaker of the House of Representatives and the president of the Senate from
among the attorneys on the legislative services staff of the House of Representatives or the
staff of the Senate or a representative of the office of the attorney general, and further adds
the requirement that at least two members of the team should have received formal training
in contract negotiations and at least four members must be present to constitute a quorum.
Present law further provides that participation of the procurement support team shall include,
at a minimum, assistance in development or review of the request for proposals, evaluation
of responses received to the request for proposals, and formulation of recommendations to
be submitted to the director of the office of contractual review concerning the final contract.
Proposed law provides that participation of the procurement support team must include,
where applicable, assistance in development and/or review of the bid or request for
proposals, review of the evaluation of responses received to the bid or request for proposals,
and negotiation of contracts.
Present law provides that procurements not exceeding the amounts established by executive
order of the governor may be made in accordance with small purchase procedures prescribed
by such executive order, except that procurement requirements shall not be artificially
divided so as to constitute a small purchase. Proposed law retains present law.
Present law provides that a contract may be awarded for a required supply, service, or major
repair without competition when, under regulations, the chief procurement officer or his
designee above the level of procurement officer determines in writing that there is only one
source for the required supply, service, or major repair item. Proposed law retains present
law.
Present law provides that the chief procurement officer or his designee above the level of
procurement officer may make or authorize others to make emergency procurements when
there exists an imminent threat to the public health, welfare, safety, or public property under
emergency conditions as defined in accordance with regulations. Requires that every effort
be made to obtain quotations from three or more vendors when supplies, services, or major
repairs are to be purchased on an emergency basis, except for standard equipment parts for
which prices are established. Provides that immediate purchasing be discouraged as much
as is practicable, and further provides that when supplies, services, or major repairs are
urgently required and time does not permit the obtaining of written quotations, the
procurement officer may obtain quotations by telephoning or otherwise, but such quotations
shall be made on the relative purchase requisitions. Further provides that so far as
practicable, quotations must be secured from institutions of the state as provided by law.
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of the emergency that includes the facts and circumstances leading to the conclusion that
such procurement was necessary as well as a written determination detailing the steps taken
prior to selecting a particular contractor and the basis for the final selection. Also provides
that the written determination shall be included in the contract file either prior to contracting
or as soon thereafter as practicable.
Proposed law places much of present law into specific categories for purposes of
organization and clarity and places them in the category of "other procurement methods".
Present law provides that the directors of state purchasing or directors of purchasing at a
college or university, with the approval of the commissioner, may procure by solicitation
requiring written response from at least three bona fide bidders, when it is determined that
market conditions are unstable and the competitive bid process is not conducive for best
pricing for products, supplies and other materials. The provisions are applicable only if the
value of the contract is $50,000 or less and only after sufficient documentation is provided
to the commissioner by the director to substantiate the unstable market. Proposed law retains
present law and places these provisions in the category of "unstable market conditions," with
appropriate changes to references from "director of state purchasing" to "state chief
procurement officer".
Present law provides the Louisiana State University Health Sciences Center may contract
with a group purchasing organization through a competitive request for proposals process
for medical and laboratory supplies and medical equipment required for the purpose of
diagnosis or direct treatment of a patient by a health care provider in a hospital or clinic
setting. Further provides that, prior to the award of the such contract, the proposed contract
shall be approved by the commissioner of administration provided he determines the total
cost to be less than the state procurement prices and that the contract is in the best interest
of the state. Further provides that no later than 60 days after a purchasing agency submits
a proposed contract to the commissioner for approval, the commissioner shall notify the
purchasing agency in writing as to whether the proposed contract has been approved or
rejected. If the commissioner does not timely notify the purchasing agency of his decision,
the request for approval on the proposed contract shall be deemed to have been approved.
Provides that the commissioner shall not unreasonably withhold his approval. Proposed law
retains present law but provides that LSUHSC make a written determination that prices from
the group purchasing organization are fair market prices.
Present law provides generally for fiscal intermediary services (R.S. 39:198(D)), master
agreements (R.S. 39:198(E)), volume pricing agreements (R.S. 39:200(L)), and used
equipment (R.S. 39:1645).  Proposed law retains present law and includes software and
software maintenance within the provisions of volume pricing agreements.
Proposed law provides that when it is considered impractical to initially prepare a purchase
description to support an award based on price, an invitation for bids or request for proposal
may be issued requesting the submission of unpriced offers to be followed by an invitation
for bids limited to those bidders whose offers have been qualified under the criteria set forth
in the first solicitation. Further provides that when determined in writing by the state chief
procurement officer to be in the state's best interest, an invitation for bids or request for
proposals may be issued through the following multi-step bid or proposal process. Provides
that upon issuance of public notice, step one may consist of an invitation for bids or request
for proposals, responses thereto, evaluation of the responses, and, if necessary, discussion
of a technical proposal, to determine the acceptability of the supplies or services bid or
offered proposed, with appropriate regard given, where applicable, to the proposer's
maximum submitted price, and to establish the terms and conditions governing contracts to
be awarded during a given period. Provides that multiple contracts may be awarded as stated
in the solicitation documents to acceptable proposers or bidders, and that upon completion
of step one, step two shall involve the submission of sealed priced bids or proposals in
response to a specified statement of work from those who submitted acceptable responses
and have been awarded a contract in step one. SB NO. 727
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Proposed law provides for reverse auctions when determined in writing by the state chief
procurement officer to be in the state's best interest.
Present law provides that the head of the using agency or the agency procurement officer
shall negotiate with the highest qualified persons for all contracts for professional, personal,
or those consulting services for less than $50,000, or those social services qualifying under
provisions of present law at compensation which the head of the using agency determines
in writing to be fair and reasonable to the state. Further provides that in making the
determination, the head of the using agency shall take into account, in the following order
of importance, the professional or technical competence of offerers, the technical merits of
offers, and the compensation for which the services are to be rendered, including fee.
Negotiation of consulting services for $50,000 or more or social services not qualifying
under provisions of present law shall be conducted in accordance with other provisions of
present law. Proposed law retains present law for contracts exempt from competitive source
selection as provided in proposed law.
Present law provides for agencies to procure maintenance services for data processing
equipment without the need for competitive bidding with advance written approval of the
state central purchasing agency when not for a price greater than the vendor's published
price. Further provides for the duties of the procurement support team. Proposed law retains
present law but changes the reference from "data processing" to "information technology
equipment and software".
Present law authorizes any public entity to reject the lowest bid on contracts for supplies if
received from a bidder domiciled in a Communist country, or if the supplies are
manufactured in a Communist country.  	Proposed law retains present law.
Present law provides certain limitations on consultants competing for contracts, which
prohibit any person who has contracted with an agency for the purpose of developing
bidding documents, requests for proposals, or any other type of solicitation related to a
specific procurement from bidding, proposing, or otherwise competing for award of that
procurement.  Proposed law retains present law.
Present law provides certain preferences for all types of products produced, manufactured,
assembled, grown, or harvested in Louisiana.  Proposed law retains present law.
Present law, with certain exceptions, provides certain preferences in awarding contracts and
letting contracts where both in-state and out-of-state vendors are bidding, where the in-state
vendors are given a preference in the same manner that any of the out-of-state vendors
would be given such preference on a comparative bid in their own state. Proposed law
retains present law.
Present law provides certain preferences in awarding contracts for certain services; for goods
manufactured, or services performed, by sheltered workshops; for items purchased from
Louisiana retailers; and for steel rolled in Louisiana.  Proposed law retains present law.
Present law provides that an invitation for bids, a request for proposals, or other solicitation
may be cancelled, or all bids or proposals may be rejected, only if it is determined in writing
by the chief procurement officer or his designee that such action is taken in the best interests
of the state. Proposed law retains present law but states that some but not all of the bids or
proposals may be rejected in whole or in part and further deletes the requirement that the
cancellation take place only if it is determined in writing by the chief procurement officer
that such action is taken in the best interests of the state and replaces it with the provision
that the reasons for the cancellation or rejection be made a part of the contract file. 
Present law with regard to the responsibility of bidders authorizes a reasonable inquiry to
determine the responsibility of a bidder or offerer.  Further provides that the unreasonable
failure of a bidder or offerer promptly to supply information in connection with such an SB NO. 727
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inquiry may be grounds for a determination of nonresponsibility with respect to such bidder
or offerer. Proposed law retains present law but changes "offerer" to "proposer".
Present law further provides that whenever the chief procurement officer, commissioner or
head of a governmental body with such authority proposes to disqualify the lowest bidder
on bids of $5,000 or more such individual shall give written notice of the proposed
disqualification and the reasons, and give such bidder a reasonable opportunity to be heard
on the issue. Also provides that information furnished by the offerer may not be disclosed
outside of the user agency or the state central purchasing agency without prior written
consent of the offerer.  Proposed law retains present law but deletes the $5,000 threshold
amount set forth in present law. Also requires notice to the offerer, rather than his consent,
prior to disclosure of information furnished by the offerer pursuant to the provision.
Present law provides that prospective suppliers may be prequalified for particular types of
supplies and services. Proposed law adds that the information required in order to be
prequalified and the method of submitting prequalification information shall be determined
by the chief procurement officer.
Present law provides with respect to cost or pricing data that a contractor shall submit cost
or pricing data and shall certify that, to the best of its knowledge and belief, the cost or
pricing data submitted was accurate, complete, and current as of a mutually determined
specified date prior to the specific date. Further provides for price adjustments and for when
such cost or pricing data are not required.  Proposed law retains present law.
Present law prohibits cost-plus contracts. Proposed law retains present law but authorizes
such contracts in case of a disaster or emergency declared by the governor.
Present law prohibits cost-reimbursement prime contracts but authorizes them if it is
determined in writing in accordance with regulations that such contract is likely to be less
costly to the state than any other type of contract or that it is impracticable to obtain supplies,
services, or major repairs of the kind or quality required except under such a contract.
Further provides that all such contracts shall contain a provision that only costs recognized
as allowable in accordance with cost principles set forth in regulations will be reimbursable.
Proposed law retains present law but provides that the cost principles are reasonable and set
forth in the specifications.
Present law also provides that each contractor under a cost-reimbursement type contract shall
give notice, as provided for in the contract, before entering into a cost-reimbursement type
subcontract or any other type of subcontract involving more than $10,000 or 10% of the
estimated cost of the prime contract. 
Present law provides that all cost-reimbursement type contracts shall contain a provision that
only costs recognized as allowable in accordance with cost principles set forth in rules and
regulations will be reimbursable. Proposed law deletes these provisions.
Present law provides that with respect to cost-reimbursement type contracts payments may
be made to the contractor in advance of services being performed if the following conditions
are met:
(1)The using agency has submitted, in writing, to the Division of Administration, office
of contractual review, a certification that an advance is necessary in order to provide
the services at the lowest total cost and that there is no other cost effective source of
such advance funding. The certification shall include a narrative setting out the facts
which necessitate the advance funding.
(2)The advance is approved by the director of the office of contractual review.
(3)Except as may be otherwise provided by law, the amount of such advance shall be SB NO. 727
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limited to a sum not to exceed twenty percent of the total contract amount, excluding
travel advances which shall be governed by applicable regulations.
(4)The contractor is a nonprofit corporation.
Present law further provides that if local matching funds are available to fund the advance,
no state monies shall be advanced through the contract.  If federal funds are used for the
advance, federal regulations and statutes shall govern the use and amounts of advance
payments made. Further provides that interagency contracts are exempt from those
provisions. Further provides that it shall not be construed to authorize payments in advance
of services to be performed pursuant to a professional service contract, and that state funds
may be expended to fund the advance only in the same fiscal year in which the funds are
appropriated.
Present law with regard to types of contracts that may be used authorizes the use of any type
of contract which will promote the best interests of the state provided there is written
determination by the chief procurement officer justifying the type of contract used. Provides
for an annual report to the commissioner. Proposed law retains present law but deletes the
provisions for the annual report.
Present law provides that, except with respect to firm fixed-price contracts, no contract type
shall be used unless it has been determined in writing by the chief procurement officer or his
designee that the proposed contractor's accounting system will permit timely development
of all necessary cost data in the form required by the specific contract type contemplated;
and the contractor's accounting system is adequate to allocate costs in accordance with
generally accepted accounting principles.  Proposed law retains present law.
Present law with respect to multiyear contracts provides that unless otherwise provided by
law, a contract for supplies or services may be entered into for periods of not more than five
years, if funds for the first fiscal year of the contemplated contract are available at the time
of contracting. Provides that payment and performance obligations for succeeding fiscal
years shall be subject to the availability and appropriation of funds therefor. Further
provides that no contract shall be entered into for more than one year unless the length of the
contract was clearly stated in the specifications, and that any lease or similar agreement
affecting the allocation of space in the state capitol shall have the prior approval of the
Legislative Budgetary Control Council if it extends for more than one year.  Present law
further requires that a report of all multiyear contracts be provided to the Joint Legislative
Committee on the Budget no later than 90 days after the end of each fiscal year. Proposed
law retains present law.
Present law provides that the following be determined in writing prior to utilization of a
multiyear contract:
(1)That estimated requirements cover the period of the contract and are reasonably firm
and continuing; and
(2)That such a contract will serve the best interests of the state by encouraging effective
competition or otherwise prompting economies in state procurement.
Present law further provides that a written resume of the supportive underlying facts for the
foregoing determinations shall be included in the determination, and the resume shall state
the estimated savings to be obtained by entering into a multiyear contract.
Present law provides that when funds are not appropriated to support continuation of
performance in a subsequent year of a multiyear contract, the contract for such subsequent
year shall be terminated. When a contract is terminated under these conditions, no additional
funds shall be paid to the contractor as a result of such action. Proposed law incorporates
herein the present law provisions that the contract may be cancelled by the governmental SB NO. 727
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body provided it gives 30 days notice of such cancellation, and the contractor shall be
reimbursed for the reasonable value of any non-recurring costs incurred but not amortized
in the price of the supplies or services delivered under the contract. Further provides that the
cost of cancellation may be paid from any appropriations available for such purposes.
Proposed law further provides that unless otherwise provided by law, the use of a multi-year
contract shall be in accordance with rules and regulations and under the following
conditions:
(1)The head of the department shall approve in writing the use of a multi-year contract
over one year, not to exceed three years.
(2)The state chief procurement officer or his designee shall approve in writing the use
of a multi-year contract over three years, not to exceed five years.
(3)The commissioner of administration, or his designee, shall approve in writing the use
of a multi-year contract over five years, not to exceed 10 years.
(4)The Joint Legislative Committee on Budget shall approve in writing the use of a
multi-year contract over 10 years.
Present law provides an exception from the provisions related to multiyear contracts.
Provides that an educational institution may enter into a multiyear nonexclusive contract, not
to exceed 10 years, with a vendor who has made a gift to the institution of equipment utilized
for promoting products and university activities at a cost to the vendor in excess of $50,000.
Also provides that for this exception to be applicable, the contract shall cover products for
resale within the institution. Further provides that the state superintendent of education may
enter into a multiyear contract, not to exceed 10 years, with any public or private agency to
act as the depository in the state for school books. Proposed law retains present law.  Present
law further provides that with respect to all multiyear contracts, there shall be no provisions
for a penalty to the state for the cancellation or early payment of the contract. Proposed law
removes this provision of present law.
Present law provides that the Department of Environmental Quality may enter into a
multiyear contract, not to exceed seven years, for the operation of privately operated vehicle
emission inspection facilities.  Proposed law retains present law.
Present law authorizes the Department of Public Safety and Corrections to enter into a
multiyear contract not to exceed 10 years when contracting for the Video Gaming
Monitoring System and provides for the contract to be awarded by the competitive request
for proposal procedures.  Proposed law retains present law.
Present law authorizes the Department of Wildlife and Fisheries to enter into a multiyear
contract not to exceed 10 years when contracting for the issuance of hunting and fishing
licenses through an electronic issuance system and provides for the contract to be awarded
by the competitive request for proposal procedures.  Proposed law retains present law.
Present law authorizes the use of a multi-year contract for telecommunications systems and
telecommunications services in accordance with rules and regulations and under the
following conditions:
(1)The director of the office of telecommunications management shall approve in
writing the use of a multi-year contract over one year, not to exceed three years.
(2)The director of the state purchasing office shall approve in writing the use of a
multi-year contract over three years, not to exceed five years.
(3)The commissioner of administration, or his designee, shall approve in writing the use SB NO. 727
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of a multi-year contract over five years.
Proposed law retains present law except for appropriate changes in references to certain
officers.
Present law provides that contracts for management of food services at public universities
and colleges, contracts of retirement systems for investment management services and
investment advisory services, contracts for electronic disbursement services for child support
payments, contracts for prisoner dialysis, and contracts for central banking services for the
state may be entered into for periods of up to five years. Proposed law retains present law.
Present law provides that contracts for electronic benefits issuance system services as
required under R.S. 46:450.1 may be entered into for periods of up to 10 years. Provides that
the contracts shall be for an initial contract period of six years with the state having two
options for two-year extensions up to a maximum of ten years.  Proposed law retains present
law.
Present law provides that contracts for national norm-referenced testing or other testing
services which are to be used as part of the school and district accountability system as
provided in R.S. 17:10.1 et seq. may be entered into for a period of up to 12 years. Provides
that modifications to existing contracts may be made in order to ensure the acquisition and
usage of the most current tests offered by the contractor. Proposed law retains present law.
Present law provides that contracts or amendments to existing contracts issued to
institutions of higher education under the authority of grants or joint agreements between the
Board of Regents and federal agencies for research, educational, or infrastructure
development activities, and contracts or amendments to existing contracts issued by such
institutions under the authority of grants or joint agreements issued by federal agencies or
private grants, may be entered into for a period corresponding to the performance period of
the grant or agreement. Provides that contracts or amendments to existing contracts issued
to institutions of higher education under the authority of the Board of Regents to award
grants for educational and research purposes with funds available from the Louisiana Quality
Education Support Fund, the Louisiana Fund, and the Health Excellence Fund may be
entered into for periods of not more than six years. Present law provides that such contracts
may be extended beyond the six-year limit up to an additional two years provided no
additional costs are incurred. Proposed law retains present law.
Present law provides that contracts for the administration of the Medicaid early periodic
screening diagnosis and treatment program (EPSDT), primary care case management
(PCCM), and home and community-based services waivers may be entered into by the
Department of Health and Hospitals for periods of up to five years. 	Proposed law retains
present law.
Present law provides that the central purchasing agency may, on behalf of any governmental
body, enter into contracts for the installment purchase of supplies or equipment, including
but not limited to data processing equipment and telecommunications equipment, procured
under the Louisiana Procurement Code and any other applicable laws on the procurement
of supplies or equipment, in accordance with the following provisions:
(1)All installment-purchase contracts shall be entered into utilizing the requisite
procedures applicable to the particular supply or equipment being procured.
(2)The term of such contract shall not exceed the economic life to the item or items
being procured, which shall be established by the central purchasing agency and
shall be set forth in the invitation to bid or request for proposal, but in no case shall
the term of the contract exceed five years.
(3)Each contract shall contain an annual appropriation dependency clause which shall SB NO. 727
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provide that the continuation of the contract is contingent upon the continuation of
an appropriation of funds by the legislature to fulfill the requirements of the contract.
Further provides that if the legislature fails to appropriate sufficient monies to
provide for the continuation of the contract or if a veto or reduction of appropriation
of funds necessitates the discontinuance of the contract, the contract shall terminate
on the last day of the fiscal year for which funds were appropriated.
(4)Such contracts shall also conform to any other requirements which may be
established by the central purchasing agency through rules and regulations,
promulgated in accordance with law.
Proposed law retains present law.
Present law provides that contracts for professional services may be awarded without the
necessity of competitive bidding or competitive negotiation. Proposed law retains present
law.
Present law provides that each attorney hired on a contractual basis for professional services
shall submit his fee by sworn affidavit. Provides that the affidavit contain a detailed
statement of the number of hours actually worked, giving the dates and time of day, and a
description of the work performed. Provides that no contract fee shall be paid unless
submitted by affidavit. Proposed law retains present law.
Present law provides that contracts for social services may be awarded without the necessity
of competitive bidding or competitive negotiation only if the director of the office of
contractual review determines that any one of the following conditions is present. Provides
that the using agency shall document the condition present and such documentation shall be
part of the contract record submitted to the office of contractual review.
(1)The services are available only from a single source.
(2)The state legislature has made an appropriation for that particular contractor or
contractors via the appropriation bill or other statutes.
(3)A quasi-public and/or nonprofit corporation, such as a parish voluntary council on
aging, an area agency on aging, an association of retarded citizens or equivalent, an
organization serving children, youth, and/or families, or an organization promoting
independence from public assistance has been established in coordination with the
state to provide the particular service involved in the contract.
(4)Local matching funds of greater than 10% of the contract amount are required to be
contributed by the contractor. Such matching funds may be in the form of cash,
certified expenditures or in-kind contributions, where applicable to the funding
source.
(5)The nature of the services being provided necessitates that a continuity of contractors
be maintained as in but not limited to therapeutic and crisis support to clients and
employment and training programs.
(6)An emergency exists which will not permit the delay in procurement necessitated by
the request for proposal procedure.
(7)The total contract amount is less than $250,000 per 12-month period. Service
requirements shall not be artificially divided so as to exempt contracts from the
request for proposal process.
(8)The contract is with another governmental entity or governmental body. SB NO. 727
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(9)Funds are specifically designated by the federal government for a particular private
or public contractor or political subdivision.
(10)The contract is with a social service contractor who supplies services under a
contract in existence as of November 30, 1985, as long as such contractor continues
to supply substantially the same services and the using agency certifies:
(a) The services are satisfactory.
(b) They intend to continue contracting with that contractor.
Further provides that if none of those conditions are determined by the director of the office
of contractual review to be present in a contract for social service, then that contract shall
be awarded through a request for proposal process under rules and regulations issued by the
office of contractual review. Also defines "social services" for purposes of present law.
Proposed law retains present law.
Present law provides that contracts for personal services may be awarded without the
necessity of competitive bidding or competitive negotiation.  Proposed law retains present
law.
Present law provides that contracts for consulting services which have a total maximum
amount of compensation less than $50,000 dollars may be awarded without the necessity of
competitive bidding or competitive negotiation. Proposed law retains present law and adds
a time period requirement of 12 months. Present law further provides that contracts for
consulting services which have a total maximum amount of compensation of $50,000 or
more shall be awarded through a request for proposal process under rules and regulations
issued by the office of contractual review. Provides that service requirements shall not be
artificially divided so as to exempt contracts from the request for proposal process. Proposed
law retains present law.
Proposed law deletes the provisions of present law which require that all contracts for
consulting services which have a total maximum amount of compensation of $140,000 or
more may be entered into with the assistance of a procurement support team as provided
herein, and in accordance with guidelines promulgated and published by the office of
contractual review state procurement. Also deletes the provisions that for each such
consulting contract the office of contractual review may establish a procurement support
team.
Present law provides requirements for performance-based energy efficiency contracts.
Proposed law retains present law.
Present law provides requirements and limitations for professional, personal, and consulting
service contracts with state employees.  	Proposed law retains present law.
Present law provides that upon seeking approval to enter into a proposed professional,
personal, consulting or social service contract valued in excess of $5,000 an individual shall
certify certain information. Proposed law retains present law but deletes the threshold
amount of $5,000 and replaces it with a reference to the amount specified in the small
purchase executive order issued by the governor.  Present law further provides that for such
contracts that exceed $50,000 and have a term of more than six months, a cost-benefit
analysis must be conducted. Proposed law retains present law.
Present law requires that certain determinations be made by the director of the office of
contractual services before a proposed contract for professional, personal, consulting, or
social services is approved.  Further provides that any corporation which fails to make
complete disclosure of ownership, directors, and officers as required by law shall be
required, as a penalty, to refund any funds received by that corporation from the state for the SB NO. 727
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contract.  Proposed law retains present law. 
Present law requires that each contract for professional, personal, consulting, or social
services entered into by a governmental body shall contain as a minimum: description of the
work to be performed and objectives to be met; amount and time of payments to be made;
description of reports or other deliverables to be received, when applicable; date of reports
or other deliverables to be received, when applicable; responsibility for payment of taxes,
when applicable; circumstances under which the contract can be terminated either with or
without cause; remedies for default; and a statement giving the legislative auditor and other
appropriate entities the authority to audit records of the individual or firm. Proposed law
retains present law. 
Present law requires that no contract shall be valid, nor shall the state be bound by the
contract, until it has first been executed by the head of the using agency, or his designee,
which is a party to the contract and the contractor, and has been approved in writing by the
director. Proposed law retains present law but changes the reference from the director to the
state chief procurement officer.
Present law provides for the right of the state to inspect the part of the plant or place of
business of a contractor or any subcontractor which is related to the performance of any
contract awarded or to be awarded by the state, and to audit the books and records of any
person who has submitted cost or pricing data to the extent that such books and records
relate to such cost or pricing data, as well as to audit the books and records of a contractor
or any subcontractor under any negotiated contract or subcontract other than a firm
fixed-price contract to the extent that such books and records relate to the performance of
such contract or subcontract. Proposed law retains present law. 
Present law provides for reporting of suspected collusive bidding or negotiations to the
attorney general and for retention of all documents for a minimum of six years or until the
attorney general gives written notice that they may be destroyed, whichever is longer.
Proposed law deletes these provisions. 
Present law provides for retention of certain contracts for a minimum of six years. Proposed
law retains present law.
Present law provides that the state may purchase insurance policies covering any property
or insurable interests or activities of the state directly from insurers or underwriters, without
the necessity for signature or countersignature of such policies as provided by R.S. 22:1171,
and in lieu thereof such policy shall be signed by an official or designated representative of
the company issuing the policy. 	Proposed law retains present law.
Present law further provides that the insurers or underwriters making such direct sales to the
state shall reduce the policy premiums by the amount of the commissions, which would have
been paid, as required by R.S. 22:1171, but for the provisions of this Section. Provides,
however, if any such insurance policy is purchased in accordance with the provisions of R.S.
22:1171, the agent may credit any portion of the commission to the state, through the
division of administration. Provides that the state shall be advised of the amount of any such
rebate at the time the agent furnishes a bid for such policy to the state, and the amount of
such rebate shall be taken into consideration in determining the cost of such policy. Proposed
law deletes these provisions of present law.
Present law prohibits the splitting of all or any portion of the commission derived from the
sale of insurance to the state. Proposed law retains present law.
Present law provides that every contract entered into by the state for the purchase of
insurance or for obtaining services relating to the operation of the insurance program shall
be awarded by either competitive sealed bidding or competitive negotiation. Further provides
that competitive negotiation shall be initiated by the issuance of a request for proposals SB NO. 727
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containing a description of the coverage required and the factors to be used in evaluating the
proposals. Where there is more than one offerer, written or oral discussions shall be
conducted with at least the three, or two if there are only two, highest qualified offerers who
submit proposals determined in writing to be reasonably susceptible of being selected for
award. Requires the contract to be awarded with reasonable promptness by written notice
to the responsible offerer whose proposal meets the requirements and criteria set forth in the
request for proposals and whose proposal is most beneficial to the state, considering the
price and the evaluation factors set forth in the request for proposal. Requires public notice
of the request for proposal. Proposed law deletes these provisions and provides that such
contracts shall be awarded in accordance with the proposed law.
Present law provides for the acquisition of housing space, allocation of space to state
agencies, uniform space standards, awarding of leases, and amendment of leases.  Proposed
law retains present law.
Present law provides for the acquisition of used equipment. Proposed law repeals present
law.
Present law provides for the acquisition of motor vehicles, requiring certain fuel efficiency
ratings. Proposed law retains present law.
Present law authorizes the commissioner to promulgate regulations governing the
preparation, maintenance, and content of specifications for supplies, services, and major
repairs for the state. Proposed law retains present law but deletes the present law definition
of "specification".
Present law provides that the director shall obtain advice and assistance from personnel of
using agencies in the determination of needs and development of specifications and may
delegate in writing to a using agency the authority to prepare and utilize its own
specifications, subject to regulations.  Proposed law retains present law.
Present law provides for maximum practicable competition. Proposed law retains present
law.
Present law provides that bid specifications may contemplate a fixed escalation or
deescalation in accordance with the United States Bureau of Labor Statistics, Consumer
Price Index and Wholesale Price Index. Bids based on specifications which are subject to
a recognized escalation price index shall be legal and valid. Proposed law retains present law
and adds that the fixed escalation or deescalation be in accordance with a recognized price
index and allows for additional indexes in addition to those set forth in present law.
Present law provides that regulations promulgated by the commissioner of administration
or other purchasing entity governing the purchase of prostheses, orthoses, prosthetic
services, or orthotic services shall require that such services shall only be purchased from
an accredited facility as provided in R.S. 40:1300.281. Further provides an exception for
licensed occupational therapist or a licensed physical therapists and licensed optometrists
or ophthalmologists. Proposed law retains present law.
Present law provides that regulations may permit or require the inclusion of clauses
providing for equitable adjustments in prices, time for performance, or other contract
provisions, as appropriate, covering the following subjects:
(1)The unilateral right of the state to order in writing changes in the work within the
general scope of the contract in any one or more of the following:
(a)Drawings, designs, or specifications, if the supplies to be furnished are to be
specially manufactured for the state in accordance therewith; SB NO. 727
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(b)Method of shipment or packing; or
(c)Place of delivery.
(2)The unilateral right of the state to order in writing temporary stopping of the work
or delaying of performance; and
(3)Variations between estimated quantities of work in a contract and actual quantities.
Proposed law retains present law but makes the list non-exclusive and adds to the list
adjustments in price in accordance with rules promulgated by the commissioner.
Present law provides that regulations may permit or require the inclusion in state contracts
of clauses providing for appropriate remedies and covering including but not limited to the
following subjects:
(1)Liquidated damages as appropriate.
(2)Specified excuses for delay or nonperformance.
(3)Termination of the contract for default, and
(4)Termination of the contract in whole or in part for the convenience of the state.
(5)Manufacturers' design drawings shall be supplied in duplicate for all state buildings,
to the appropriate state agency at the conclusion of contract.
Proposed law retains present law and adds the following to the list:
(6)Security for contract performance.
(7)Insurance requirements including as appropriate but not limited to general liability,
automobile coverage, workers compensation, and errors and omissions.
(8)Beginning and ending date of the contract.
(9)Maximum compensation to be paid to the contractor.
Present law provides that in the event any contractor fails to fulfill or comply with the terms
of any contract, the chief procurement officer may award the contract to the next lowest
responsible bidder subject to acceptance by that bidder and charge the difference in cost to
the defaulting vendor.
Proposed law provides that every contract modification, change order, or contract price
adjustment under a public contract in excess of small purchase executive order shall be
subject to prior written certification by the fiscal officer of the entity responsible for funding
the project or the contract, or other official responsible for monitoring and reporting upon
the status of costs of the total project budget or contract budget, as to the effect of the
contract modification, change order, or adjustment in contract price on the total project
budget or the total contract budget. Provides requirements should the certification disclose
a resulting increase in the total project budget and/or the total contract budget.
Present law provides for the authority to resolve protested solicitations and awards, and
provides for the right to protest, authority to resolve protests, form of the decision, notice
requirements, stay of procurements during the protest, and award of costs to protestants.
Proposed law retains present law.
Present law provides for the authority to debar or suspend, and provides for causes for SB NO. 727
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debarment, form of the decision, notice requirements, and consequences of failure to render
a timely decision.  Proposed law retains present law.
Present law provides that prior to the institution of any action in a court concerning any
contract, claim or controversy relating to a professional, personal, consulting, or social
service contract, the commissioner of administration with the concurrence of the attorney
general is authorized to compromise, pay, or otherwise adjust the claim by or against or a
controversy with a contractor entered into with the state under their respective authority,
including a claim or controversy based on breach of contract, mistake, misrepresentation,
or other cause for contract modification or rescission. Further provides that nothing shall
limit the authority of the commissioner of administration, pursuant to rules and regulations
to issue, negotiate, or accept changes in the terms and conditions of a contract. When
authorized, such compromise, payments, or adjustments shall be promptly paid; however,
subject to any limitations or conditions imposed by rule or regulation, the commissioner of
administration shall charge back all or any portion of such payments to the department or
departments for whose benefit the contract was let. Proposed law retains present law.
Present law provides that if it is determined prior to award that a solicitation or proposed
award of a contract is in violation of law, then the solicitation or proposed award shall be
cancelled. Proposed law retains present law.
Present law provides that if it is determined after an award that a solicitation or award of a
contract is in violation of law, then:
(1)If the person awarded the contract has not acted fraudulently or in bad faith:
(a)The contract may be ratified and affirmed, provided it is determined in
writing by the commissioner that doing so is in the best interests of the state
and the law violation had no significant effect on the outcome of the contract
award; or
(b)The contract may be terminated and the person awarded the contract shall be
compensated for the actual expenses reasonably incurred under the contract
prior to the termination, provided that any administrative determination of
such costs shall be subject to the written concurrence of the attorney general.
(2)If the person awarded the contract has acted fraudulently or in bad faith, the contract
shall be declared null and void.
Present law also provides for damages which are recoverable in connection with claims for
solicitations and awards which are protested. Proposed law deletes these provisions.
Present law provides penalties for violations of the procurement code or any rule or
regulation promulgated under the code. Proposed law retains present law.
Present law provides that the commissioner of administration shall have the authority to
review and determine any appeal by an aggrieved person from a determination by the state
director of purchasing or his designee which is authorized by present law. Proposed law
retains present law.
Present law provides that the secretary who is vested with authority to promulgate
regulations by present law shall have, within his department, the same authority and
responsibilities to review and determine appeals of decisions of the chief procurement
officer of his department as are vested in the commissioner of administration by present law.
Proposed law retains present law.
Present law provides the process and procedure for protest or solicitations or awards.
Proposed law retains present law. SB NO. 727
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Present law provides the process and procedure for suspension or debarment proceedings.
Proposed law retains present law.
Present law provides the process and procedure for contract and breach of contract
controversies. Proposed law retains present law.
Present law provides that proper venue for actions by or against the state in connection with
contracts shall be the 19
th
 Judicial District Court. Also provides for limited finality for
administrative determinations in such actions. Proposed law retains present law.
Present law provides that any action involving protested solicitations and awards shall be
commenced within 14 days after receipt of the decision of the commissioner under R.S.
39:1683(C). Further provides that any action involving debarments or suspension for cause
shall be commenced within 60 days after receipt of the decision of the commissioner under
R.S. 39:1684(C). Further provides that any action involving contracts or for breach of
contract controversies shall be commenced within 60 days after receipt of the decision of the
commissioner under R.S. 39:1685(C).  Proposed law retains present law.
Present law limits damages recoverable by any aggrieved person in any action brought
pursuant to the provisions of R.S. 39:1671, or otherwise asserted at law, to reasonable costs
incurred in connection with the solicitation including bid preparation costs other than
attorney fees. Proposed law retains present law.
Present law provides that damages recoverable by any contractor under any contract entered
into pursuant to the provisions of the procurement code shall be limited exclusively to the
actual expenses reasonably incurred in performance of the contract. Proposed law retains
present law.
Present law provides that any administrative determination of costs or expenses recoverable
by a contractor or aggrieved person under present law shall be subject to the written
concurrence of the attorney general. 	Proposed law retains present law.
Present law provides that in no event shall damages awarded by the chief procurement
officer, his designee, any hearing officer or any court include attorney fees or any incidental,
indirect, special, or consequential damages, including but not limited to loss of use, revenue
or profit whether reasonably certain or not. 	Proposed law retains present law.
Present law provides that in any action by a contractor based upon any express or implied
contract or breach thereof, no action shall be maintained based upon any contract or any act
of any state officer which the officer is not authorized to make or do by the laws of this state,
unless the contractor, acting in good faith and without actual or constructive knowledge of
the lack of authorization, has commenced performance under the apparent contract. Further
provides that, in that event, the court may (1) cancel the contract and reimburse the
contractor only for the actual expenses incurred in performing the work already performed
or (2) where the best interests of the state require, allow the performance of the contract to
continue. Proposed law retains present law.
Present law provides that if a state agency without reasonable cause fails to make any
payment due within ninety days of the due date prescribed by contract, to a business awarded
a contract with the state agency to supply equipment, supplies, materials, or textbooks, or
to provide services, the state agency shall pay, in addition to the payment, interest on the
amount due at the rate established pursuant to Civil Code Article 2924(B)(3) per year, from
the ninety-first day after the due date prescribed by the contract. Proposed law retains
present law but changes the reference from the Civil Code interest provision to the judicial
interest rate referenced in R.S. 13:4202(B).
Present law further provides that if it is determined by the state agency that additional
evidence of the validity of the claim for payment is required, such evidence shall be SB NO. 727
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requested within 10 working days from the date the bill is received by the state agency. In
instances where additional evidence is required, the bill shall be reviewed and payment or
rejection made within 30 days from receipt of the evidence requested in the office of the
paying agency. Proposed law retains present law.
Present law further provides that whenever a state agency is required by R.S. 39:1695 to pay
a penalty, it shall be presumed that the fault is that of the head of the state agency and, in
such cases, the head of the state agency shall submit to the Joint Legislative Committee on
the Budget at its next regular meeting following the payment of such a penalty a report on
the actions taken to correct the problem. Also provides that any state agency which requests
that the legislature make a supplemental appropriation for the agency shall identify at the
time of the request what part of the amount is necessitated because of any penalties imposed
by R.S. 39:1695.  Proposed law retains present law.
Present law further provides that in cases where a state agency states that payment is late due
to reasonable cause, and said claim is disputed by the business owed payment, upon the
request of a representative of the business the Joint Legislative Committee on the Budget
shall determine whether or not the circumstances constitute "reasonable cause" as used in
R.S. 39:1695. Further provides that no state agency shall be required to pay a penalty if it
has submitted a warrant to the state treasurer at least thirty days prior to the due date
prescribed by the contract.  Proposed law retains present law.
Present law provides for cooperative purchasing. Proposed law retains present law but adds
that all cooperative purchasing be through contracts awarded through full and open
competition, including use of source selection methods.
Proposed law repeals provisions related to data processing procurement as those provisions
are incorporated into the procurement code by 	proposed law.
Proposed law repeals provisions related to professional, personal, consulting, and social
services procurement as those provisions are incorporated into the procurement code by
proposed law.
Proposed law replaces all references to the "director of the office of contractual review" and
the "director of the state purchasing office" with "state chief procurement officer". 
Proposed law provides in the event of any conflict between the provisions of this Act and
those of an Act or Acts which originated as Senate Bill No. 365, House Bill No. 582, or
House Bill No. 1198 of this 2010 Regular Session, regardless of which Act is adopted later
or signed later by the governor, the provisions of the Act which originated as Senate Bill No.
365, House Bill No. 582, or House Bill No. 1198 of this 2010 Regular Session shall prevail.
Effective January 1, 2011.
(Amends R.S. 39:1551-1716 ; repeals R.S. 39:1540, 196-200, and 1481-1526)