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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2013
SENATE BILL NO. 172
BY SENATOR DONAHUE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TRANSPORTATION/DEV DEPT. Requires Department of Transportation and
Development to award contracts and issue a "notice to proceed" within sixty days of receipt
of bids. (8/1/13)
AN ACT1
To amend and reenact R.S. 48:255(B)(1) and (F)(1) and (2) and to repeal R.S. 48:255(B)(2)2
and (F)(3) and (4), relative to contracts of the Department of Transportation and3
Development; to require the department to award contracts and issue a work order4
within sixty calendar days of receipt of bids; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 48:255(B)(1) and (F)(1) and (2) are hereby amended and reenacted7
to read as follows:8
ยง255. Award of contract; time limitations and exceptions; bond of successful bidder;9
rejection of certain bidders10
A. * * *11
B.(1) For all construction, maintenance, or improvement projects for12
department facilities or other public facility projects, advertised and let by the13
department, the department or the contracting agency may reject any and all bids for14
just cause but otherwise shall act, with the concurrence of all funding sources, to15
award the contract to the lowest responsible bidder within forty-five thirty calendar16
days after receipt of bids or twenty calendar days after receipt by the department of17 SB NO. 172
SLS 13RS-276 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
concurrence in award from all project funding agencies, whichever occurs last,1
unless the department and the successful bidder mutually agree to extend the2
deadline. However, in cases where concurrence in award is required, the department3
shall award the contract no later than sixty calendar days after receipt of bids unless4
the department and the successful bidder mutually agree to extend the deadline.5
* * *6
F.(1) The contractor shall return the signed contracts along with good and7
solvent bond to the department or the contracting agency within fifteen ten calendar8
days following the transmittal of contracts for execution. After return of the surety9
bond and signed contracts from the contractor, the department or the contracting10
agency shall execute the contract documents within twenty ten calendar days.11
(2) The department or contracting agency shall issue a work order to the12
successful contractor within sixty calendar days following execution of the contract13
receipt of bids. However, upon mutual written consent by all parties, the notice to14
proceed may be extended beyond the sixty days. Should the contractor not wish to15
extend the period from contract execution to work order beyond sixty days, the16
contractor may demand contract cancellation.17
* * *18
Section 2. R.S. 48:255(B)(2) and (F)(3) and (4) are hereby repealed.19
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Present law provides that DOTD or the contracting agency may reject any and all bids for
just cause for all construction, maintenance, or improvement projects for DOTD facilities
or other public facility projects advertised and let by DOTD but otherwise requires contract
award to the lowest responsible bidder within 45 calendar days after receipt of bids or 20
days after receipt by DOTD of concurrence in award from all project funding agencies,
whichever occurs last, unless DOTD and the successful bidder mutually agree to extend
deadline.
Present law requires DOTD to award contract no later than 60 calendar days after receipt of
bids when concurrence in award is required unless DOTD and the successful bidder mutually
agree to extend the deadline.
Proposed law reduces the time period to award a contract to 30 calendar days. SB NO. 172
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law repeals authority for DOTD to award the contract to the next low bidder or
readvertise when a successful low bidder declines to extend the time period to award a
contract.
Present law requires a contractor to return signed contracts together with good and solvent
bond to DOTD or the contracting agency within 15 calendar days of transmittal of the
contract for execution. Proposed law reduces this time period to 10 calendar days.
Present law requires DOTD or the contracting agency to execute a returned contract within
20 calendar days. Proposed law reduces this time period to 10 calendar days.
Present law requires a work order to be issued to the successful contractor within 60 calendar
days following contract execution except when this time period is extended by mutual
written consent of all parties and allows a contractor who declines the extension to demand
contract cancellation.
Proposed law requires issuance of a work order within 60 calendar days of receipt of bids.
Further removes authority of parties to mutually extend the time for issuance of the work
order beyond 60 days and removes authority of the contractor to demand cancellation if he
does not wish to extend the period for issuance of the work order beyond 60 days.
Proposed law removes authority for DOTD, when the contract is canceled at the request of
the contractor, to award the contract to the next high bidder or, if the next higher bidder
agrees, to readvertise and relet the contract. Removes requirement for compensation to the
contractor for the cost of procuring the bonds required for the contract when the contract is
canceled at the request of the contractor.
Present law provides that if DOTD does not cancel the contract, when the contractor
demands its cancellation, then the contractor is entitled to an escalation of his bid prices for
the period between the lapse of the 60 day period and the actual work order to the extent that
the contractor proves the escalation during that period. Provides that in no event will the
escalation exceed the rate of inflation reflected by the U. S. Bureau of Labor Statistics
Wholesale Price Index for the relevant period. Proposed law repeals these provisions.
Effective August 1, 2013.
(Amends R.S. 48:255(B)(1) and (F)(1) and (2); repeals R.S. 48:255(B)(2) and (F)(3) and (4))