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Regular Session, 2011 ENROLLED
SENATE RESOLUTION NO. 106
BY SENATOR JACKSON
A RESOLUTION
To urge and request the Louisiana State University Board of Supervisors to design and
implement a reverse auction pilot program to be utilized by state hospitals which are
managed by the Louisiana State University Board of Supervisors.
WHEREAS, it is in the best interest of the state to pursue the most cost-effective
method available for the procurement of goods and services; and
WHEREAS, a reverse auction is a competitive online solicitation process on the
Internet for equipment, supplies, and other materials in which vendors compete against one
another online in real time in an open and interactive environment; and
WHEREAS, in many instances the use of a reverse auction can lead to substantial
savings in the procurement of goods and services when compared to more traditional
procurement methods.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
urge and request the Louisiana State University Board of Supervisors to design and
implement a reverse auction pilot program to be utilized by state hospitals which are
managed by the Louisiana State University Board of Supervisors by no later than October
1, 2011.
BE IT FURTHER RESOLVED that the Louisiana State University Board of
Supervisors shall only design and implement a reverse auction pilot program in the event
that Senate Bill No. 83 of the 2011 Regular Session is enacted into law.
BE IT FURTHER RESOLVED that in the event that the Louisiana State University
Board of Supervisors chooses to implement a pilot program, the pilot program shall be
designed and implemented pursuant to the following parameters:
(1) As soon as practical after the enactment of Senate Bill No. 83 of the 2011 Regular
Session, the Louisiana State University hospitals shall release a solicitation to engage a
reverse auction technology provider that also offers healthcare consulting services under the
following terms and conditions: SR NO. 106 ENROLLED
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(a) The reverse auction vendor shall offer technology that is certified by a third party
to be HIPAA compliant as of the date of the release of the solicitation.
(b) The reverse auction technology vendor shall also offer healthcare consultants
with experience in running reverse auctions with and for a large university-based hospital
group.
(c) The reverse auction technology vendor must be willing to provide the reverse
auction software and consulting services without receiving any up-front payment of fees for
their services and out-of-pocket expenses, and the reverse auction technology vendor should
be paid for their software and consulting services on a gain-share only basis to ensure a cost
savings for LSU hospitals.
(d) The reverse auction vendor shall assist LSU hospitals with selecting product
categories that are most likely to result in the most significant and easily identifiable cost
savings.
(e) A bidding credit shall be granted to any reverse auction technology vendor with
offices located within the state of Louisiana.
(f) The Louisiana State University Board of Supervisors shall submit to the Joint
Legislative Committee on the Budget an implementation plan by October 15, 2011, and an
annual report which details the results of the activities pursuant to the pilot program.
(g) The Louisiana State University Health Care Services Division shall establish
annual savings goals in the pilot program.
(2) To ensure that LSU hospitals receive the most favorable pricing in the market,
all group purchasing organizations shall be excluded from participating in this solicitation.
(3) One of the purposes of this pilot program shall be to assist the state director of
purchasing to promulgate regulations governing reverse auction activities across all political
subdivisions within the state and commencement of this pilot program shall not be delayed
by any rulemaking activities of the state director of purchasing or for any other reason.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
chairman of the Louisiana State University Board of Supervisors.
PRESIDENT OF THE SENATE