HLS 14RS-1089 ORIGINAL
Page 1 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 927
BY REPRESENTATIVE TIM BURNS
PROCUREMENT: Provides for the merger of the office of contractual review and the
office of state purchasing
AN ACT1
To amend and reenact R.S. 36:4(B)(1)(b) and Chapter 17 of Subtitle I of Title 39 of the2
Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:1551 through 1758,3
and to repeal Chapter 16 of Subtitle I of Title 39 of the Louisiana Revised Statutes4
of 1950, to be comprised of R.S. 39:1481 through 1526, relative to state5
procurement; to provide for the structure of the executive branch of state6
government; to provide for the merger of the function and duties of the office of7
contractual review and the office of state purchasing into the office of state8
procurement; to provide terms, conditions, definitions, procedures and effects; to9
provide for changes in designations by the Louisiana State Law Institute; and to10
provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1.R.S. 36:4(B)(1)(b) is hereby amended and reenacted to read as follows:13
§4. Structure of executive branch of state government14
* * *15
B. The office of the governor shall be in the executive branch of state16
government.17
(1) The following agencies and their powers, duties, functions, and18
responsibilities are hereby transferred to the office of the governor:19
* * *20 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 2 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) Office of contractual review, division of administration (R.S. 39: 14811
et seq.) Office of state procurement, division of administration (R.S. 39:1551 et seq.)2
* * *3
Section 2. Chapter 17 of Subtitle I of Title 39 of the Louisiana Revised Statutes of4
1950, to be comprised of R.S. 39:1551 through 1758, is hereby amended and reenacted to5
read as follows: 6
CHAPTER 17. LOUISIANA PROCUREMENT CODE7
PART I. GENERAL PROVISIONS8
SUBPART A. SHORT TITLE, PURPOSES, CONSTRUCTION, AND APPLICATION9
§1551. Short title10
This Chapter shall be known as and may be cited as the Louisiana11
Procurement Code.12
§1552. Purposes; rules of construction13
A. Interpretation. This Chapter shall be construed and applied to promote14
its underlying purposes and policies.15
B. Purposes and policies. The underlying purposes and policies of this16
Chapter are:17
(1) To simplify, clarify, and modernize the law governing procurement by18
this state.19
(2) To permit the continued development of procurement policies and20
practices.21
(3) To provide for increased public confidence in the procedures followed22
in public procurement.23
(4) To ensure the fair and equitable treatment of all persons who deal with24
the procurement system of this state.25
(5) To provide increased economy in state procurement activities by26
fostering effective competition.27
(6) To provide safeguards for the maintenance of a procurement system of28
quality and integrity.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 3 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1553. Construction1
A. Supplementary general principles of law applicable. To the extent not2
inconsistent with the particular provisions of this Chapter, the principles of Louisiana3
law shall supplement its provisions.4
B. Obligation of good faith. Every contract or duty within this Chapter5
imposes an obligation of good faith in its performance or enforcement. "Good faith"6
means honesty in fact in the conduct or transaction concerned and the observance of7
reasonable commercial standards of fair dealing.8
§1554. Application of this Chapter9
A. General application. This Chapter applies only to contracts solicited or10
entered into after the effective date of this Chapter unless the parties agree to its11
application to a contract entered into prior to the effective date.12
B. Application to state procurement. Except as otherwise provided in13
Subsections C and D below, this Chapter shall apply to every expenditure of public14
funds irrespective of their source, including federal assistance monies except as15
otherwise specified in Subsection F below, by this state, acting through a16
governmental body defined herein, under any contract for supplies, services, or17
major repairs defined herein, except that this Chapter shall not apply to either grants18
or contracts between the state and its political subdivisions or other governments,19
except as provided in Part VII (Intergovernmental Relations). Notwithstanding any20
other provision of this Chapter, the provisions of R.S. 38:2181 through R.S. 38:231621
shall govern the procurement of construction and the selection of architects,22
engineers, and landscape architects by governmental bodies of this state, and R.S.23
38:2181 through R.S. 38:2316 shall not apply to any procurement of supplies,24
services, or major repairs by the state except that the provisions of R.S. 38:2301 shall25
be applicable to major repairs.26
C. Procurement by the governor. Notwithstanding any other provisions of27
this Chapter, the governor shall procure all materials, supplies, equipment, and28
contractual services required for the governor's mansion, the cafeteria operated in the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 4 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
state capitol, and similar agencies. The procurement shall, insofar as practicable, be1
in accordance with the provisions of this Chapter.2
D. Exclusions. (1) This Chapter shall not be construed to change, affect,3
increase, or relieve the requirements of:4
(a) R.S. 42:261 through R.S. 42:264, regarding the retaining and5
employment of lawyers.6
(b) R.S. 39:1481 through R.S. 39:1526, regarding the procurement of7
professional, personal, consulting, and social services.8
(c) Repealed by Acts 1983, No. 306, §3.9
(d) (b) R.S. 23:3025, as regarding the purchase of products or services from10
individuals who are blind.11
(2) This Chapter shall not be applicable to the legislative and judicial12
branches of state government or to any agency within the legislative branch of state13
government.14
(3) The office for citizens with developmental disabilities in the Department15
of Health and Hospitals shall be exempt from the requirements of R.S. 39:1643 in16
order to lease residential living options for mentally retarded or developmentally17
disabled individuals without carrying out the competitive sealed bidding requirement18
of this Chapter.19
(4) This Chapter shall not be applicable to any hospital owned or operated20
by the state through the Department of Health and Hospitals for the purchase of21
supplies, materials, and equipment from a qualified group purchasing organization22
if the Department of Health and Hospitals, with the concurrence of the division of23
administration, has determined that the cost is less than the state procurement prices,24
and that it is in the best interest of the state to purchase the supplies, materials, and25
equipment from the qualified group purchasing organization.26
(5) This Chapter shall not be applicable to the purchase of any medical27
supplies or medical equipment from a qualified group purchasing organization if the28
commissioner of administration has determined that it is in the best interest of the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 5 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
state to purchase the medical supply or medical equipment from the qualified group1
purchasing organization. An annual report on the number, type, and volume of such2
procurements shall be made to the commissioner of administration, the speaker of3
the House of Representatives, and the president of the Senate.4
(6) The provisions of this Chapter shall not be applicable to the State Bond5
Commission in the solicitation of bids for printing of financial documents. However,6
the State Bond Commission shall obtain a minimum of three written or telefaxed7
bids from separate vendors which meet the criteria required by the State Bond8
Commission for printing of financial documents.9
(7) The provisions of this Chapter shall not be applicable to interinstitutional10
agreements between co-owners of intellectual property when one co-owner is a11
Louisiana regionally accredited college, technical school, or university.12
(8) Contracts awarded by an agency for the benefit of an industry, payment13
of which comes from self-generated funds received from that industry, are exempt14
from the requirements of this Chapter provided that any such contract is awarded15
through a competitive process.16
E.(1) Political subdivisions authorized to adopt this Chapter. The17
procurement of supplies, services, major repairs, and construction by political18
subdivisions of this state shall be in accordance with the provisions of Chapter 10 of19
Title 38 of the Louisiana Revised Statutes of 1950, except that all political20
subdivisions are authorized to adopt all or any part of this Chapter and its21
accompanying regulations.22
(2) Additionally, all political subdivisions which are not subject to this23
Chapter may adopt the provisions of R.S. 39:1598.1 and its accompanying24
regulations.25
F. Compliance with federal requirements. Where a procurement involves26
the expenditure of federal assistance or contract funds, the procurement officer shall27
comply with such federal law and authorized regulations which are mandatorily28
applicable and which are not reflected in this Chapter.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 6 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
G. Applicable to Department of Public Safety and Corrections.1
(1) Repealed by Acts 1999, No. 1164, §5.2
(2) Because the prison enterprise system operates under the constraints of an3
income statement, the secretary of the Department of Public Safety and Corrections4
shall have the authority, notwithstanding any other provisions of law, to purchase for5
that system used agricultural and industrial equipment sold at public auction which6
shall result in savings to the correctional system, according to the following terms7
and conditions:8
(a) (1) The used agricultural and industrial equipment shall be purchased by9
the secretary within the price range set by the director of state purchasing chief10
procurement officer in his statement of written approval for the purchase which must11
be obtained by the secretary prior to purchase.12
(b) (2) The secretary shall certify in writing to the director of state purchasing13
chief procurement officer all of the following:14
(i) (a) The price for which the used equipment may be obtained.15
(ii) (b) The plan for maintenance and repair of the equipment and the cost16
thereof.17
(iii) (c) The savings that will accrue to the state because of the purchase of18
the used equipment.19
(iv) (d) The fact that following the procedures set out in the Louisiana20
Procurement Code will result in the loss of the opportunity to purchase the21
equipment.22
H. Exemption for inmate canteens and the employee commissary of the23
Louisiana State Penitentiary. Whenever, for sound economic reasons and improved24
administrative procedures, the secretary of the Department of Public Safety and25
Corrections certifies in writing that it is not practical to comply with the provisions26
of this Chapter, the Department of Public Safety and Corrections may procure the27
various items for resale to inmates at the inmate canteens in state correctional28
facilities and the various items for resale to employees of the department at the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 7 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
employee commissary of the Louisiana State Penitentiary, without competitive1
sealed bidding as required in R.S. 39:1594 and without complying with the2
requirements of R.S. 39:1597. Any procurement pursuant to this Subsection is3
exempt from the provisions of R.S. 39:1611. Any contract entered into pursuant to4
this Subsection must have prior written approval of the commissioner of5
administration, the Joint Legislative Committee on the Budget, and the attorney6
general, who shall only approve the contract if they determine in writing that it is in7
the best interest of the state to enter into the contract. All such information shall be8
of public record.9
I. Plasmapheresis programs. All plasmapheresis programs operated for and10
participated in by inmates in correctional facilities under the jurisdiction of the11
Department of Public Safety and Corrections, or its designees or assignees, such as12
private contractors operating correctional facilities under contract with the13
department, shall operate only pursuant to a contract entered into independent of any14
other contracts for prison management or operation, and only pursuant to competitive15
sealed bids on an individual basis at each penal institution and other facility in16
accordance with this Chapter. Contracts presently in existence affecting all17
plasmapheresis programs on site and off site shall be excluded and shall remain in18
effect for the duration of the contract.19
J. This Chapter shall not apply to the following procurements:20
(1) This Chapter shall not apply to professional services for engineering21
design contracts, construction contracts, or contracts for surveying pertaining to the22
maintenance and construction of roads and bridges, flood control, integrated coastal23
protection, aviation, public transportation, or public works entered into by the24
Department of Transportation and Development as provided in Part XIII-A of25
Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950.26
(2) This Chapter shall not apply to consulting service contracts with27
appraisers, foresters, economists, right-of-way agents, title abstractors, asbestos28
abatement inspectors, negotiators, accountants, and cost consultants relating to29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 8 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
acquisition of rights-of-way for maintenance and construction projects entered into1
by the Department of Transportation and Development.2
(3) This Chapter shall not apply to grants or contracts or like business3
agreements between the state and its political subdivisions or other governmental4
entities, or between higher education boards and institutions under their jurisdiction.5
(4) This Chapter shall not apply or affect licensed insurance agents appointed6
as agents of record on policies insuring any of the state's insurable interests. Nor7
shall it apply to or affect insurance consultants and actuaries when used in lieu of8
agents of record, so long as fees paid do not exceed the commission that would have9
been paid to said agents of record.10
(5) This Chapter shall not apply to those services performed by architects,11
engineers, or landscape architects as provided for in R.S. 38:2310-38:2316, nor shall12
the provisions of this Chapter affect or otherwise limit the duties, functions, and13
jurisdiction of the Louisiana Architect Selection Board, the Louisiana Engineer14
Selection Board, or the Louisiana Landscape Architect Selection Board.15
(6) This Chapter shall not apply to any contract or like business agreement16
to purchase professional, personal, consulting, or contract services required or17
utilized by the Louisiana Agricultural Finance Authority authorized under the18
provisions of Chapter 3-B of Title 3 of the Louisiana Revised Statutes of 1950.19
(7)(a) This Chapter shall not apply to those personal, professional, or social20
services provided to the clients of the Department of Health and Hospitals, the21
Department of Children and Family Services, the office of special education services22
within the Department of Education, provided that the expense for these special23
education services is five thousand dollars or less per child, corrections services24
within the Department of Public Safety and Corrections, or the office of juvenile25
justice, Department of Public Safety and Corrections, in the following circumstances:26
(i) When these services are accessed directly by clients through utilization27
of medical vendor cards, with the clients arranging services with providers and28
providers then billing the agency for payment.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 9 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(ii) When clients of a particular program area are guaranteed freedom of1
choice in selection of a provider of services.2
(iii) When personal and professional services are arranged on a case-by-case3
basis by a worker as the need arises.4
(iv) When social services are arranged on a case-by-case basis from a social5
service provider qualifying under R.S. 39:1494.1(A).6
(v) When the using agency arranging social services on a case-by-case basis7
makes no guarantee of specific sums of monthly or annual payment or referrals of8
clientele.9
(b) This Chapter shall not apply if personal, professional, or social services10
are provided for the primary benefit of a single using agency provided for in R.S.11
39:1482(F)(1), and said agency exhibits budgetary and programmatic control over12
the provider of the services, and the deliverables of the services are intended solely13
for the benefit of the using agency, the provisions of this Chapter shall apply.14
(c) This Chapter shall not apply to the use of professional services of15
physicians who provide consultative examinations regarding applicants for disability16
benefits under the Social Security act by the disability determinations service of the17
Department of Children and Family Services.18
(d) This Chapter shall not apply to the taking of Medicaid applications by19
certified Medicaid enrollment centers for prospective Medicaid clients pursuant to20
an agreement with the Department of Health and Hospitals and in accordance with21
federal regulations.22
(8) This Chapter shall not apply to any contract or like business agreement23
to hire professional, personal, consulting, or contract services required or utilized by24
the State Market Commission under the provisions of Part I-D of Chapter 5 of Title25
3 of the Louisiana Revised Statutes of 1950.26
(9) This Chapter shall not apply to any contract for a court reporter or expert27
witness utilized by a governmental body for the purpose of taking depositions, giving28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 10 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
expert testimony, or other related matters if such contract has a total amount of1
compensation of less than five thousand dollars.2
(10) This Chapter shall not apply to any contract for the procurement of3
individualized agreements for persons with developmental disabilities by the4
Department of Health and Hospitals.5
(11)(a) This Chapter shall not apply to contracts of an institution of higher6
education or other agency of higher education, hereinafter collectively referred to as7
"higher education entity", to which the state chief procurement officer has delegated8
authority to procure services with private grant funds or federal funds specifically9
provided for such purpose.10
(b) This Chapter shall not apply to procurements conducted by a higher11
education entity operating under delegation of authority as provided herein shall be12
made in accordance with all federal requirements necessary for the receipt and use13
of such private grant or federal funds, particularly with regard to competitive bidding14
requirements for procurement of research services. Further, in making such15
procurements, such entity may also consider factors such as quality, reliability,16
expected life span, and compatibility with existing equipment or research protocols,17
as permitted under federal guidelines.18
(12) This Chapter shall not apply to procurements conducted by a higher19
education entity operating under a pilot procurement code in accordance with Act20
418 of the 2011 Regular Session.21
(13) Additionally, all political subdivisions which are not subject to this22
Chapter may adopt the provisions of R.S. 39:1598.1 and its accompanying23
regulations.24
§1554.1. Federal block grants25
The provisions of this Part shall be applicable to any goods and services26
procured with funds pursuant to the federally enacted community services block27
grant or community development block grant.28
SUBPART B. DEFINITIONS29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 11 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1556. Definitions1
As used in this Chapter, the words defined in this Section shall have the2
meanings set forth below, unless the context in which they are used clearly requires3
a different meaning or a different definition is prescribed for a particular Part or4
provision:5
(1) "Agency" as used in this Chapter and in Part V of Chapter 1 of this Title6
shall have the same meaning ascribed to it as provided in R.S. 36:3(1).7
(2) "Assembled" means the process of putting together all component parts8
of an item of equipment by the manufacturer where the assembly plant is located9
within the territorial borders of the state of Louisiana. "Assembled" shall not mean10
the reassembly of parts packed for shipping purposes.11
(1) (3) "Business" means any corporation, partnership, individual, sole12
proprietorship, joint stock company, joint venture, or any other legal entity through13
which business is conducted.14
(4 ) "Central Purchasing Agency" means the office of state procurement.15
(2) (5) "Change order" means a written order signed by the chief16
procurement officer, directing the contractor to make changes which the changes17
clause of the contract authorizes the chief procurement officer to order without the18
consent of the contractor.19
(3) (6) "Chief procurement officer" means the state director of purchasing the20
person holding the position created in R.S. 39:1562 and the directors of purchasing21
of the departments exempt from central purchasing the office of state procurement22
by R.S. 39:1572.23
(7) "Claims adjuster" means an individual engaged in the investigation,24
evaluation, and negotiation of property, casualty, and worker's compensation25
insurance claims.26
(8) "Complex procurement" means that the procurement requires any27
combination of supplies, services, consulting services or major repairs to fulfill a28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 12 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
specified scope of work. The scope of work is so complicated or intricate that1
factors other than price must be evaluated in order to identify the best value.2
(9) "Consulting service" means work, other than professional, personal, or3
social service, rendered by either individuals or firms who possess specialized4
knowledge, experience, and expertise to investigate assigned problems or projects5
and to provide counsel, review, design, development, analysis, or advice in6
formulating or implementing programs or services, or improvements in programs or7
services, including but not limited to such areas as management, personnel, finance,8
accounting, planning, data processing, and advertising contracts, except for printing9
associated therewith.10
(4) (10) "Contract" means all types of state agreements, regardless of what11
they may be called, for the purchase of supplies, services, or major repairs. It12
includes awards and notices of award; contracts of a fixed-price, cost,13
cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job14
or task orders; leases; letter contracts; and purchase orders. It also includes15
supplemental agreements with respect to any of the foregoing. including orders and16
documents purporting to represent grants, which are for the purchase or disposal of17
supplies, services, major repairs or any other item. "Contract" also includes contract18
modifications.19
(5) (11) "Contract modification" means any written alteration in20
specifications, delivery point, rate of delivery, period of performance, price, quantity,21
or other provisions of any contract accomplished by mutual action of the parties to22
the contract.23
(6) (12) "Contractor" means any person having a contract with a24
governmental body.25
(13) "Cooperative purchasing" means procurement conducted by or on26
behalf of more than one public procurement unit or by a public procurement unit27
with an external procurement activity or by a private procurement unit.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 13 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(14) "Cost-reimbursement contract" means a contract under which a1
contractor is reimbursed for costs which are allowable and allocable in accordance2
with cost principles as provided for in regulations, and a fee, if any.3
( 15) "Court" means the Nineteenth Judicial District located in Baton Rouge4
and, in the event of an appeal from such a court, the First Circuit Court of Appeal5
located in Baton Rouge.6
(7) (16) "Data" means recorded information, regardless of form or7
characteristic.8
(8) (17) "Debarment" means the disqualification of a person to receive9
invitations for bids or requests for proposals, or the award of any contract by any10
governmental body, for a specified period of time commensurate with the11
seriousness of the offense or the failure or the inadequacy of performance.12
(9) (18) "Designee" means a duly authorized representative of a person13
holding a superior position.14
(19) "Electronic" means electrical, digital, magnetic, optical, electromagnet,15
or any other similar technology.16
(20) "Employee" means an individual drawing a salary from a governmental17
body, whether elected or not, and any nonsalaried individual performing personal18
services for any governmental body.19
(21) "Established catalog price" means the price included in a catalog, price20
list, schedule, or other form that:21
(a) Is regularly maintained by a manufacturer or contractor.22
(b) Is either published or otherwise available for inspection by customers.23
(c) States prices at which sales are currently or were last made to a24
significant number of buyers constituting the general buying public for the supplies25
or services involved.26
(22) "External procurement activity" means any buying organization not27
located in this state which, if located in this state, would qualify as a public28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 14 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
procurement unit. An agency of the United States government is an external1
procurement activity.2
(10) "Governmental body" means any department, office, division,3
commission, council, board, bureau, committee, institution, agency, government4
corporation, or other establishment or official of the executive or judicial branches5
of state government.6
(23) "Governmental body" means any department, commission, council,7
board, bureau, committee, institution, agency, government corporation, or other8
establishment or official of the executive branch of this state.9
(24) "Governmental entity" means any governmental unit which is not10
included in the definition of "governmental body" in R.S..11
(11) (25) "Grant" means the furnishing by the state of assistance, whether12
financial or otherwise, to any person to support a program authorized by law. It does13
not include an award whose primary purpose is to procure an end product, whether14
in the form of supplies, services, or major repairs; a contract resulting from such an15
award is not a grant but a procurement contract.16
(26) "Information technology", which includes telecommunications and shall17
mean those commodities subject to the authority of the Office of Information18
Technology.19
(12) (27) "Installment-purchase contract" means a contract which is utilized20
to procure supplies or equipment from a contractor where payment for the supplies21
or equipment is made in a set of installment payments over a fixed period of time in22
accordance with the provisions of the contract, and in which the contractor agrees to23
deliver title of the property to the governmental body in accordance with the terms24
and conditions of the contract.25
(28) "Invitation for bids" means all documents, whether attached or26
incorporated by reference, utilized for soliciting bids in accordance with the27
procedures set forth in R.S. 39:1594.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 15 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(29) "Interagency contract" means any contract in which each of the parties1
thereto is a "governmental body" as defined in R.S. 39:1484(11).2
(30) "Local public procurement unit" means any parish, city, town,3
governmental body, and any other subdivision of the state or public agency thereof,4
public authority, public educational, health, or other institution, and to the extent5
provided by law, any other entity which expends public funds for the acquisition or6
leasing of supplies, services, major repairs, and construction, and any nonprofit7
corporation operating a charitable hospital.8
(13) (31) "Major repairs" means those repairs payable with funds9
appropriated in the general appropriations act, except those funds transferred from10
the operating budget of one governmental body to supplement and complete a project11
under contract by the division of administration facility planning and control section.12
(14) (32) "May" denotes the permissive.13
(33) "Negotiation" means the formulation of a contractual relationship14
through discussions as may be allowed under this Chapter.15
(34) "Operating service" means routine operation of programs, existing16
facilities, structures, buildings or real property that are not considered to be17
professional, social, consulting, or personal services.18
(35) "Performance-based energy efficiency contract" means a contract for19
energy efficiency services and equipment in which the payment obligation for each20
year of the contract is either:21
(a) Set as a percentage of the annual energy cost savings attributable to the22
services or equipment under the contract, or23
(b) Guaranteed by the person under contract to be less than the annual energy24
cost savings attributable to the services or equipment under the contract.25
(15) (36) "Person" means any business, individual, union, committee, club,26
or other organization or group of individuals.27
(37) "Personal service" means work rendered by individuals which requires28
use of creative or artistic skills, such as but not limited to graphic artists, sculptors,29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 16 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
musicians, photographers, and writers, or which requires use of highly technical or1
unique individual skills or talents, such as but not limited to paramedicals, therapists,2
handwriting analysts, foreign representatives, and expert witnesses for adjudications3
or other court proceedings. A "foreign representative" shall mean a person in a4
foreign country whose education and experience qualify such person to represent the5
state in such foreign country.6
(16) (38) "Practicable" means that which can be done or put into practice;7
feasible.8
(39) "Private procurement unit" means any independent institution of higher9
education in this state.10
(17) (40) "Procurement" means the buying, purchasing, renting, leasing, or11
otherwise obtaining any supplies, services, or major repairs. It also includes all12
functions that pertain to the obtaining of any public procurement, including13
description of requirements, selection and solicitation of sources, preparation and14
award of contract, and all phases of contract administration.15
(18) (41) "Procurement officer" means any person authorized by a16
governmental body, in accordance with procedures prescribed by regulations, to17
enter into and administer contracts and make written determinations and findings18
with respect thereto. The term also includes an authorized representative acting19
within the limits of authority.20
(42) "Professional service" means work rendered by an independent21
contractor who has a professed knowledge of some department of learning or science22
used by its practical application to the affairs of others or in the practice of an art23
founded on it, which independent contractor shall include but not be limited to24
lawyers, doctors, dentists, psychologists, certified advanced practice nurses,25
veterinarians, architects, engineers, land surveyors, landscape architects, accountants,26
actuaries, and claims adjusters. A profession is a vocation founded upon prolonged27
and specialized intellectual training which enables a particular service to be28
rendered. The word "professional" implies professed attainments in special29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 17 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
knowledge as distinguished from mere skill. For contracts with a total amount of1
compensation of fifty thousand dollars or more, the definition of "professional2
service" shall be limited to lawyers, doctors, dentists, psychologists, certified3
advanced practice nurses, veterinarians, architects, engineers, land surveyors,4
landscape architects, accountants, actuaries, claims adjusters, and any other5
profession that may be added by regulations adopted by the office of state6
procurement.7
(43) "Public procurement unit" means either a local public procurement unit8
or a state public procurement unit.9
(44) "Purchase description" means specifications or any other document10
describing the supplies, services, or major repairs to be procured.11
(19) (45) "Purchase request" means that document whereby a using agency12
requests that a contract be obtained for a specified need, and may include, but is not13
limited to, the technical description of the requested item, delivery schedule,14
transportation, criteria for evaluation of solicitees, suggested sources of supply, and15
information supplied for the making of any written determination and finding16
required by this Chapter.17
(20) (46) "Purchasing agency" means any governmental body which is18
authorized by this Chapter or its implementing regulations, or by way of delegation19
from the state director of purchasing state chief procurement officer, to contract on20
its own behalf rather than through the central contracting authority of the central21
purchasing agency office of state procurement.22
(21) (47) "Qualified group purchasing organization" means a service23
organization, whether for profit or not, with a membership of at least fifteen hospitals24
within the United States, which contracts with suppliers for supplies and materials25
used in hospitals and makes such contracts available to its members.26
(48) "Request for proposals" means all documents, whether attached or27
incorporated by reference, utilized for soliciting proposals in accordance with the28
procedures set forth in this Chapter.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 18 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(49) "Resident business" means one authorized to do and doing business1
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
(50) "Responsible bidder or offeror" means a person who has the capability5
in all respects to perform the contract requirements and the integrity and reliability6
which will assure good faith performance.7
(51) "Responsive bidder" means a person who has submitted a bid under8
R.S. 39:1594 which conforms in all substantive respects to the invitation for bids,9
including the specifications set forth in the invitation.10
(52) "Reverse auction" means a competitive online solicitation process on11
the internet for materials, supplies, services, products, or equipment in which12
vendors compete against each other online in real time and an open and interactive13
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)(a) "Services" means the furnishing of labor, time, or and effort by19
a contractor, not involving the delivery of a specific end product other than reports20
which are merely incidental to the required performance. whose primary purpose is21
to perform an identifiable task rather than to furnish an end item of supply, some of22
the areas of services include 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 services.27
(iv) Advisory and assistance services.28
(v) Operation of government-owned equipment, real property, and systems29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 19 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(vi) Information technology services1
(vii) Research and development2
(b) This term "Services" shall not include:3
(a) (i) Employment agreements or collective bargaining agreements.4
(b) (ii) Personal, professional, consultant, or social services as provided by5
R.S. 39:1481 through R.S. 39:1526.6
(c) (iii) Services performed by lawyers as provided by R.S. 42:261 through7
R.S. 42:264.8
(d) (iv) Services performed by an architect, engineer, or landscape architect9
as provided by R.S. 38:2310 through R.S. 38:2314.10
(24) (55) "Shall" denotes the imperative.11
(56) "Signature" means a manual or electronic signature as defined by R.S.12
9:2602(8).13
(22) (57) "Social service" means work rendered by any person, firm,14
corporation, organization, governmental body, or governmental entity in furtherance15
of the general welfare of the citizens of Louisiana, including but not limited to the16
objectives provided for in Subsection B of this Section.17
(58) "Specification" means any description of the physical or functional18
characteristics, or of the nature of a supply, service, or major repair. It may include19
a description of any requirement for inspecting, testing, or preparing a supply,20
service, or major repair for delivery.21
(25) "State director of purchasing" means the person holding the position22
created in R.S. 39:1562, as the head of the central purchasing office of Louisiana.23
(5) "State chief procurement officer" means the person holding the position24
created in R.S. 39:1562, as head of the central purchasing office of Louisiana.25
(60) "State public procurement unit" means the central purchasing agency26
and any other purchasing agency of this state.27
(61) "Supplemental agreement" means any contract modification which is28
accomplished by the mutual action of the parties.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 20 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(26) (62) "Supplies" means all property, including but not limited to1
equipment, materials, insurance, and leases on real property excluding land or a2
permanent interest in land.3
(27) (63) "Suspension" means the disqualification of a person to receive4
invitations for bids or requests for proposals, or the award of a contract by the state,5
for a temporary period pending the completion of an investigation and any legal6
proceedings that may ensue because a person is suspected upon probable cause of7
engaging in criminal, fraudulent, or seriously improper conduct or failure or8
inadequacy of performance which may lead to debarment.9
(28) (64) "Using agency" means any governmental body of the state which10
utilizes any supplies, services, or major repairs purchased under this Chapter.11
(29) (65) "Written" or "in writing" means the product of any method of12
forming characters on paper, other materials, or viewable screen, which can be read,13
retrieved, and reproduced, including information that is electronically transmitted14
and stored.15
SUBPART C. RECORDS; PUBLIC ACCESS16
§1557. Public access to procurement information17
Procurement information shall be a public record to the extent provided in18
Chapter 1 of Title 44 of the Louisiana Revised Statutes of 1950 and shall be19
available to the public as provided in such statute.20
§1557.1. Change orders; recordation21
Each change order to a contract which adds an amount of ten percent or more22
of the original contract amount and which additional amount is at least ten thousand23
dollars or all change orders to a contract aggregating to an amount of twenty percent24
or more of the original contract amount and which additional amount is at least ten25
thousand dollars shall be recorded by the governmental body which entered into the26
contract in the office of the recorder of mortgages in the parish where the work is to27
be done or where the entity is domiciled not later than thirty days after the date of the28
change order which requires that the recordation take place. In addition, the original29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 21 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
contract shall be recorded together with the amendments or other revisions if not1
previously recorded. The provisions of this Section shall not apply to the office of2
facility planning and control, and the office of state purchasing procurement.3
§1558. Determinations4
Written determinations and findings required by this Chapter shall be retained5
in an official contract file in the central purchasing agency or purchasing agency or6
by the governmental body administering the contract. Every determination required7
by this Chapter shall be in writing and based upon written findings of the public8
official making the determination. These determinations and written findings shall9
be retained in an official contract file in the office of state procurement and that of10
the governmental body administering the contract.11
PART II. PURCHASING ORGANIZATION12
SUBPART A. DIVISION OF ADMINISTRATION13
§1561. Authority and duties of the commissioner of administration14
A. Except as otherwise provided in this Chapter, the commissioner of15
administration, hereinafter referred to as "the commissioner," shall have the authority16
and responsibility to promulgate regulations, consistent with this Chapter, governing17
the procurement, management, and control of any and all supplies, services, and18
major repairs required to be procured by the state. However, the commissioner shall19
not require by rule or regulation any policy or management board of public higher20
education or any institution under their jurisdiction to prepare or submit a monthly21
report on items purchased from state contracts or on contract item usage to the22
Division of Administration. The quarterly report listing purchases for under five23
thousand dollars and the annual report for purchases above five thousand dollars on24
all items purchased from state contracts shall be sufficient to meet the requirements25
of this Chapter.26
B. The commissioner or designee shall consider and decide matters of policy27
within the provisions of this Chapter including those referred to him by the state28
director of purchasing state chief procurement officer. The commissioner or his29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 22 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
designee shall have the power to audit and review the implementation of the1
procurement regulations and the requirements of this Chapter.2
SUBPART B. CENTRAL PURCHASING AGENCY3
§1562. Central purchasing agency; creation4
There is hereby created, within the division of administration, the Central5
Purchasing Agency, headed by the State Director of Purchasing, hereinafter referred6
to as "the director" state chief procurement officer.7
§1563. Appointment and qualifications8
The director state chief procurement officer shall be in the classified service9
of the state and shall be appointed in accordance with the provisions of Article X,10
Section 7 of the Louisiana Constitution of 1974. The director state chief11
procurement officer shall have had a minimum of eight years experience in the large12
scale procurement of supplies, services, or construction, involving specification13
development, the preparation of bid proposals and bid evaluation and award,14
including at least three years of supervisory experience. Preference shall be given15
to such experience in governmental purchasing.16
§1564. Authority of the state director of purchasing state chief procurement officer17
A. Central procurement officer of the state. The director state chief18
procurement officer shall serve as the central procurement officer of the state.19
B. Power to adopt rules. Consistent with the provisions of this Chapter, the20
director state chief procurement officer may adopt rules governing the internal21
procedures of the central purchasing agency.22
C. Duties. Except as otherwise specifically provided in this Chapter, the23
director state chief procurement officer shall, within the limitations of regulations24
promulgated by the commissioner:25
(1) Procure or supervise the procurement of all supplies, services, and major26
repairs needed by the state.27
(2) Exercise supervision over all inventories of warehoused supplies28
belonging to the state.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 23 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) Establish and maintain programs for the inspection, testing, and1
acceptance of supplies, services, and major repairs.2
§1565. Duties of the attorney general3
The attorney general shall be the chief legal adviser to the director.4
§1566. Appointment of assistants and other employees; delegation of authority by5
the state director of purchasing state chief procurement officer6
Subject to the provisions of the Article X, Section 7 of the Louisiana7
Constitution of 1974, the director state chief procurement officer may employ and8
supervise such assistants and other persons as may be necessary and may delegate9
authority to such designees or to any governmental body as the director state chief10
procurement officer may deem appropriate within the limitations of state law and the11
state procurement regulations.12
§1567. Reporting requirements13
A. The director state chief procurement officer shall prepare any reports that14
the commissioner of administration may deem necessary and shall deliver such15
reports to such recipients as the commissioner may designate. As provided in R.S.16
44:1 et seq., such reports shall be available to the public upon request. However,17
nothing in this Section shall require any policy or management board of public18
higher education or any institution under their jurisdiction to prepare or submit a19
monthly report on items purchased from state contracts or on contract item usage to20
the director. The quarterly report listing purchases for under five thousand dollars21
and the annual report for purchases above five thousand dollars on all items22
purchased from state contracts, shall be sufficient to meet the requirements of this23
Section.24
B. The state chief procurement officer shall prepare such reports as he finds25
necessary for the proper conduct of his duties, to include an annual report of all26
professional, personal, consulting, social services, and other contracts over which the27
office of state procurement has power and authority under the provisions of this28
Chapter or through administrative rules and regulations. The annual report shall be29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 24 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
compiled on a fiscal year basis and consist, at a minimum, of summary descriptive1
and statistical data regarding the number and amounts of such contracts by type of2
service. The annual report shall be submitted to the president of the Senate and3
speaker of the House of Representatives not later than January first of the year4
following the end of the fiscal year for which the report is prepared.5
C. Reporting of suspected collusive negotiations6
(1) When for any reason collusion is suspected among any proposers, a7
written notice of the facts giving rise to such suspicion shall be transmitted to the8
state chief procurement officer and the attorney general.9
(2) All documents involved in any procurement in which collusion is10
suspected shall be retained until the office of state procurement gives notice that they11
may be destroyed. All retained documents shall be made available to the12
commissioner of administration or his designee upon request.13
§1567.1. Mandatory information requirement for contracts let without14
competition under the authority of an executive order pursuant to executive orders15
related to Hurricane Katrina or Rita.16
A. The provisions of this Section shall apply to any contract for state17
procurement of goods or services which is subject to the provisions of this Chapter,18
which contract is let without competition pursuant to an executive order issued by19
authority granted under the Louisiana Homeland Security and Emergency Assistance20
and Disaster Act, which order grants exceptions to the requirements of state21
procurement law. Such provisions shall apply to contracts which have been or will22
be let without competition pursuant to executive orders related to Hurricane Katrina23
or Rita which granted exceptions to the requirements of state procurement law.24
B.(1) For any contract subject to the provisions of this Section, the25
information cited in Subparagraphs (a) through (d) of this Paragraph shall be26
submitted by the primary contractor to the office of state procurement. The27
following information shall be submitted, in a format to be determined by such28
agencies no later than forty-five days after the effective date of the contract:29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 25 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(a) The name of the primary contractor.1
(b) The amount of the contract.2
(c) The name of each subcontractor.3
(d) The amount of each subcontract.4
(2) Any change in subcontractors, or in the amount of a subcontract which5
exceeds twenty-five percent in the aggregate of the original subcontracted amount,6
shall necessitate the submission of updated information as required in Paragraph (1)7
of this Subsection.8
(3) The primary contractor for each contract subject to the provisions of this9
Section shall be notified of the requirements of this Section by the contracting state10
agency. The notification shall be made prior to execution of the contract.11
C. The office of state procurement shall maintain a listing or registry of all12
information reported to it pursuant to the provisions of this Section.13
D. Failure to submit all of the information required as provided in Subsection14
B of this Section shall be grounds for debarment. It shall be unlawful for any person15
to intentionally fail to submit such information, which failure is hereby deemed to16
be a violation of the duty to provide the mandatory information. Whomever violates17
such provisions of Subsection B of this Section shall be fined in an amount not to18
exceed one-half of the contract amount and imprisoned for not more than six months,19
or both.20
E. The provisions of this Section shall not be subject to suspension pursuant21
to the authority granted to the governor by R.S. 29:721 et seq., the Louisiana22
Homeland Security and Emergency Assistance and Disaster Act.23
§1567.2. Collection of data concerning public procurement24
The using agencies shall cooperate with the office of state procurement in the25
preparation of statistical data concerning the acquisition, usage, and disposition of26
all professional, personal, consulting, and social services, and may employ trained27
personnel, as necessary, to carry out this function. All using agencies shall furnish28
such reports as the office of state procurement may require concerning usage and29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 26 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
needs, and the office of state procurement shall have authority to prescribe forms to1
be used by the using agencies in the reporting of professional, personal, consulting,2
and social services.3
§1567.3. Use of other types of contracts4
Subject to the limitations of R.S. 39:1611 and R.S. 39:1612, any type of5
contract, including brand name and multiple award contracts, which will promote the6
best interests of the state may be used, provided that the chief procurement officer7
must make a written determination justifying the type of contract used. An annual8
report on the number, type, and volume of such procurements shall be made to the9
commissioner or cabinet department head within ninety days after the end of the10
fiscal year.11
§1567.4. The Road Home Program; reporting on certain contract payments,12
subcontractors, and performance for professional, personal, consulting, and13
social service contracts14
Notwithstanding any other provision of law to the contrary, the division of15
administration, office of community development, shall report monthly to the16
Legislative Audit Advisory Council with respect to the contract between the office17
of community development and ICF Emergency Management Services dated June18
30, 2006, as amended. The report shall contain information relating to19
subcontractors, inclusive of subcontractors of subcontractors, payments made to any20
contractor or subcontractor, the value of the contract, contractor performance in the21
achievement of goals and objectives of the contract, and any penalties which have22
been assessed for insufficient performance. The information shall be compiled by23
the office of community development and delivered to the Legislative Audit24
Advisory Council on a monthly basis, on a date to be established by the chairman of25
the council. The commissioner of administration shall consult with the chairman of26
the Legislative Audit Advisory Council to develop the format in which the27
information will be presented to the council.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 27 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1567.5. Reports of procurement actions related to professional, personal,1
consulting, and social service contracts2
A. A written report shall be compiled annually, within one hundred twenty3
days after the close of the fiscal year, of professional, personal, consulting, and social4
service contracts entered into during that preceding fiscal year. The report shall5
include all of the following:6
(1) Name of each contract.7
(2) The amount and type of each contract.8
(3) Description of the services purchased by each contract.9
(4) As attachments, copies of all determinations and findings required to be10
made by provisions of this Part and implementing rules and regulations.11
B.(1) A central file or listing of all architects, engineers, clerk of the works,12
attorneys, including bond attorneys or counsel, and public relations persons or firms13
employed or retained by each state agency, board, commission, or department,14
including nonbudget units shall be compiled and updated annually, within one15
hundred twenty days after the close of the fiscal year, of contracts made during that16
preceding year. Each such list shall be kept separately by profession and shall17
contain information relative to such employment or retention, including a detailed18
description of the nature of services rendered to the agency, the extent and duration19
of such services, the amount of the fee or other compensation paid in return for such20
services, and any other information deemed pertinent by the commissioner of the21
division of administration.22
(2) Notwithstanding any other provisions of this Chapter to the contrary,23
each state agency, board, commission, or department, including nonbudget units,24
shall forward on an annual basis on forms to be supplied by the office of state25
procurement, a report containing the data and information on all professional26
services retained or employed which are required to be listed in a central listing as27
provided in Subsection B of this Section.28
C. The reports required by this Section shall be retained as public records.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 28 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1568. Contract Administration1
A. Upon entering into a professional, personal, consulting, or social service2
contract, the using agency shall have full responsibility for the diligent3
administration and monitoring of the contract. The chief procurement officer may4
require the using agency to report at any time on the status of any such outstanding5
contracts to which the using agency is a party.6
B. After completion of performance under a professional, personal,7
consulting, or social service contract, the using agency shall prepare a final report on8
the contract which shall include an evaluation of contract performance and an9
assessment of the utility of the final product. This report shall be delivered to the10
chief procurement officer within sixty days after completion of performance and11
shall be retained in the official contract file. Reports not submitted to the office of12
state procurement within the sixty-day period shall be delinquent. The report shall13
include at least the following:14
(1) The name of the agency official or officials responsible for monitoring15
the contract and for final agency acceptance of the contract deliverables.16
(2) The contractor, contract amount, contract cost basis, and contract17
timetable which shall reflect both the proposed and actual work initiation and18
completion dates.19
(3) Any contract modifications.20
(4) A listing of the contract deliverables, inclusive of specific products and21
services, and whether all such deliverables were satisfactorily and timely completed.22
(5) An itemization of any problems encountered with respect to the23
execution of the contract.24
(6) An assessment of the utility of the contract deliverables.25
C. Final evaluation reports required by this Section for contracts in amounts26
of two hundred fifty thousand dollars or greater shall also be submitted to the27
legislative auditor.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 29 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D. No contract shall be entered into by a using agency with any contractor1
for which a delinquent final evaluation report remains outstanding for a contract with2
such using agency.3
E. A report of all multiyear contracts shall be provided to the Joint4
Legislative Committee on the Budget no later than ninety days after the end of each5
fiscal year.6
SUBPART C. CENTRALIZATION OF PUBLIC PROCUREMENT7
§1571. Centralization of procurement authority8
Except as otherwise provided in this Subpart, all rights, powers, duties, and9
authority relating to the procurement of supplies, services, and major repairs now10
vested in or exercised by any state governmental body under the several statutes11
relating thereto are hereby transferred to the central purchasing agency.12
§1572. Exemptions13
A. Exemption from central purchasing agency and procurement regulations14
of commissioner. Procurement of the following items or by the following15
governmental bodies shall not be required to conduct procurement through the16
central purchasing agency, and shall not be required to follow the procurement17
regulations of the commissioner, or the office of state procurement, but shall18
nevertheless be subject to the requirements of this Chapter and such regulations as19
may be promulgated by the head of such governmental body:20
(1) The Department of Transportation and Development, for procurement21
of materials, services, and supplies that will become a component part of any road,22
highway, bridge, or appurtenance thereto, and ; and23
(2) Textbooks, scientific and laboratory equipment, teaching materials,24
teaching devices, and teaching supplies procured by the Department of Education.25
(3), (4) Repealed by Acts 2008, No. 62, §3, eff. June 5, 2008.26
B. Exemptions from central purchasing only. Exemptions do not apply to27
professional, personal, consulting, social services, information technology or28
vehicles unless otherwise provided for in R.S. 39:1554. Unless otherwise ordered29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 30 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
by regulation of the commissioner with approval of the governor, the following1
governmental bodies shall not be required to conduct procurement through the2
central purchasing agency, but shall nevertheless be subject to the requirements of3
this Chapter and the regulations promulgated by the commissioner:4
(1) Louisiana State University System.5
(2) Southern University System.6
(3) Board of Trustees of State Colleges and Universities System. University7
of Louisiana Systems.8
(4) Special schools and other institutions under the supervision of the State9
Board of Elementary and Secondary Education.10
(5) Department of Education for items other than those exempted in11
Paragraph A(2) of this Section.12
(6) (5) The office of the state bond commission in the Department of the13
Treasury for printing only.14
(7) (6) Louisiana Community and Technical College System.15
C. Use of central purchasing by exempt agencies. A governmental body16
exempted from centralized purchasing may use the central purchasing facilities17
whenever the best interests of such governmental body and the state may be served.18
SUBPART D. STATE PROCUREMENT REGULATI ONS19
§1581. State procurement regulations20
A. Regulations. Regulations promulgated by the commissioner in21
accordance with the Administrative Procedure Act shall govern all procurements by22
all governmental bodies except for:23
(1) Regulations promulgated by the secretary of the Department of24
Transportation and Development governing procurement by that department, for25
procurement of materials and supplies that will become a component part of any26
road, highway, bridge, or appurtenance thereto.27
(2) Regulations promulgated by the State Superintendent of Education28
governing the procurement of textbooks, scientific and laboratory equipment,29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 31 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
teaching materials, teaching devices, and teaching supplies by the Department of1
Education.2
B. Exempted departments. Secretaries of departments exempted under3
Subsection A of this Section shall promulgate regulations for the purposes set forth4
in accordance with the Administrative Procedure Act. Such regulations shall not be5
inconsistent with the provisions of this Chapter.6
C. Power to promulgate regulations shall not be delegated. The7
commissioner or secretary shall not delegate his power to promulgate regulations.8
D. Regulations shall not change existing contract rights. No regulation shall9
change any commitment, right, or obligation of the state or of a contractor under a10
contract in existence on the effective date of such regulation.11
E. Incorporation of required clauses into contracts by operation of law only12
with consent of both parties. No clause which is required by regulation to be13
included shall be considered to be incorporated by operation of law in any state14
contract without the consent of both parties to the contract to such incorporation;15
provided, however, that the parties to the contract may give such consent to16
incorporation by reference at any time after the contract has been entered into and17
without the necessity of consideration passing to either party.18
SUBPART E. COORDINATION, TRAINING, AND EDUCATION19
§1586. Relationship with using agencies20
The commissioner and the director state chief procurement officer shall21
maintain a close and cooperative relationship with the using agencies. The director22
state chief procurement officer shall afford each using agency reasonable opportunity23
to participate in and make recommendations with respect to matters affecting such24
using agency. Any using agency may at any time make recommendations to the25
commissioner or the director state chief procurement officer, and the commissioner26
or director state chief procurement officer may at any time make recommendations27
to any using agency.28
§1587. Procurement advisory council; other advisory groups29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 32 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. Procurement advisory council. The commissioner may establish a1
Procurement Advisory Council. If created, such council, upon adequate public2
notice, shall meet at least once a year for the discussion of problems and3
recommendations for improvement in the procurement process. When requested by4
the commissioner, the procurement advisory council may conduct studies, research,5
and analyses and make such reports and recommendations with respect to such6
subjects or matters within the jurisdiction of the commissioner. The procurement7
advisory council shall consist of such qualified persons as the commissioner may8
deem desirable.9
B. Other advisory groups. The director state chief procurement officer may10
appoint advisory groups to assist with respect to specifications and procurement in11
specific areas and with respect to any other matters within the authority of the12
director state chief procurement officer.13
C. Drug procurement advisory council. The commissioner shall establish14
a Drug Procurement Advisory Council which shall be composed of persons from the15
division of administration and from using agencies of drugs procured by the division16
and persons qualified in the fields of medicine and pharmacy. The council shall17
advise the commissioner with respect to the procurement of drugs for any using18
agency by generic contract, as further provided in R.S. 39:1594.1.19
PART III. SOURCE SELECTION AND CONTRACT FORMATION20
SUBPART A. DEFINITIONS21
§1591. Definitions of terms used in this Part22
(1) "Cost-reimbursement contract" means a contract under which a23
contractor is reimbursed for costs which are allowable and allocable in accordance24
with cost principles as provided for in regulations, and a fee, if any.25
(2) "Established catalog price" means the price included in a catalog, price26
list, schedule, or other form that:27
(a) Is regularly maintained by a manufacturer or contractor.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 33 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) Is either published or otherwise available for inspection by customers,1
and2
(c) States prices at which sales are currently or were last made to a3
significant number of buyers constituting the general buying public for the supplies4
or services involved.5
(3) "Invitation for bids" means all documents, whether attached or6
incorporated by reference, utilized for soliciting bids in accordance with the7
procedures set forth in R.S. 39:1594.8
(4) "Purchase description" means specifications or any other document9
describing the supplies, services, or major repairs to be procured.10
(5) "Request for proposals" means all documents, whether attached or11
incorporated by reference, utilized for soliciting proposals in accordance with the12
procedures set forth in R.S. 39:1595, R.S. 39:1596, R.S. 39:1597, or R.S. 39:1598.13
(6) "Resident business" means one authorized to do and doing business14
under the laws of this state, which either:15
(a) Maintains its principal place of business in the state; or16
(b) Employs a minimum of two employees who are residents of the state.17
(7) "Responsible bidder or offeror" means a person who has the capability18
in all respects to perform the contract requirements and the integrity and reliability19
which will assure good faith performance.20
(8) "Responsive bidder" means a person who has submitted a bid under R.S.21
39:1594 which conforms in all substantive respects to the invitation for bids,22
including the specifications set forth in the invitation.23
(9) "Assembled" means the process of putting together all component parts24
of an item of equipment by the manufacturer where the assembly plant is located25
within the territorial borders of the state of Louisiana. "Assembled" shall not mean26
the reassembly of parts packed for shipping purposes.27
SUBPART B. A. METHODS OF SOURCE SELECTI ON28
§1593. Methods of source selection29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 34 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. Unless otherwise authorized by law, all state contracts shall be awarded1
by competitive sealed bidding, pursuant to R.S. 39:1594, except as provided in R.S.2
39:1593.1 and R.S. 39:1595 through 1598 a method as provided for in this Subpart.3
B. Notwithstanding any other provisions of this Section to the contrary and4
in accordance with rules and regulations promulgated by the commissioner in5
accordance with the Administrative Procedure Act, the directors of state purchasing6
or directors of purchasing at a college or university, with the approval of the7
commissioner, may procure by solicitation requiring written response from at least8
three bona fide bidders under the provisions of this Subsection, when it is determined9
that market conditions are unstable and the competitive bid process is not conducive10
for best pricing for products, supplies and other materials. The provisions of this11
Subsection shall be applicable only if the value of the contract is fifty thousand12
dollars or less and only after sufficient documentation is provided to the13
commissioner by the director to substantiate the unstable market.14
C.(1) Notwithstanding any other provision of this Section to the contrary,15
with the approval of the commissioner and the written determination by the director16
of state purchasing that the best interests of the state would be served, a competitive17
request for proposals process as provided in this Subsection may be used in the18
following circumstances:19
(a) For the procurement of supplies, services, or major repairs, including but20
not limited to the procurement of high technology acquisitions or of complex21
services.22
(b) Through a contract with a group purchasing organization, for the23
procurement of medical and laboratory supplies and medical equipment required for24
the purpose of diagnosis or direct treatment of a patient by a health care provider in25
a hospital or clinical setting, provided the commissioner determines the total cost to26
be less than the state procurement prices and in the best interest of the state.27
(2)(a)(i) For a contract to be let under the provisions of this Subsection, the28
agency shall give adequate public notice of the request for proposals by advertising29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 35 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
in the official journal of the state at least thirty days before the last day that proposals1
will be accepted. In addition, the agency shall mail written notice to persons, firms,2
or corporations who are known to be in a position to furnish the required services at3
least thirty days before the last day that proposals will be accepted.4
(ii) All requests for proposals shall be advertised through a centralized5
electronic interactive environment administered by the division of administration as6
provided in this Section. The advertisement or written notice required by this7
Section shall contain the name and address of the using agency and shall establish8
the specific date, time, and place by which the request for proposals must be9
received.10
(b) The request for proposals shall clearly state the technological or other11
outcome desired from the procurement of the technological or complex systems12
and/or services, if applicable, and shall indicate the relative importance of price and13
other evaluation factors, the criteria to be used in evaluating the proposals, and the14
time frames within which the work must be completed.15
(c) Written or oral discussions shall be conducted with all responsible16
offerers who submit proposals determined in writing to be reasonably susceptible of17
being selected for award. Discussions shall not disclose any information derived18
from proposals submitted by competing offers. Discussions need not be conducted:19
(i) If prices are fixed by law or regulation, except that consideration shall be20
given to competitive terms and conditions.21
(ii) If time of delivery or performance will not permit discussions.22
(iii) If it can be clearly demonstrated and documented from the existence of23
adequate competition or accurate prior cost experience with the particular service24
that acceptance of an initial offer without discussion would result in fair and25
reasonable prices and the request for proposals notifies all offerers of the possibility26
that award may be made on the basis of the initial offers.27
(d)(i) Award shall be made to the responsible offerer whose proposal is28
determined in writing by the agency to be the most advantageous to the state, taking29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 36 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
into consideration review of price and the evaluation factors set forth in the request1
for proposals.2
(ii) A request for proposals or other solicitation may be cancelled or all3
proposals may be rejected only if it is determined, based on reasons provided in4
writing, that such action is taken in the best interest of the state.5
(e) Each contract entered into pursuant to this Subsection shall contain as a6
minimum:7
(i) Description of the work to be performed and/or objectives to be met,8
when applicable.9
(ii) Amount and time of payments to be made.10
(iii) Description of reports or other deliverables to be received, when11
applicable.12
(iv) Date of reports or other deliverables to be received, when applicable.13
(v) Responsibility for payment of taxes, when applicable.14
(vi) Circumstances under which the contract can be terminated either with15
or without cause.16
(vii) Remedies for default.17
(viii) A statement giving the legislative auditor the authority to audit records18
of the individual(s) or firm(s).19
(f)(i) Upon entering into a contract, the using agency shall have full20
responsibility for the diligent administration and monitoring of the contract. The21
director of state purchasing may require the using agency to report at any time on the22
status of any such outstanding contracts to which the using agency is a party. After23
completion of performance under a contract, the using agency shall evaluate contract24
performance and the utility of the final product. This evaluation shall be delivered25
to the director of state purchasing within one hundred twenty days after completion26
of performance and shall be retained in the official contract file.27
(ii)(aa) No contract shall be valid, nor shall the state be bound by the28
contract, until it has first been executed by the head of the using agency, or his29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 37 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
designee, which is a party to the contract and the contractor and has been approved1
in writing by the director of state purchasing.2
(bb) In cases where the head of the using agency wants to delegate authority3
to one or more of his subordinates to sign contracts on behalf of the agency, this4
delegation shall be made in accordance with regulations of the commissioner and5
shall be subject to the approval of the director of state purchasing.6
§1593.1. Group purchasing7
A. The Louisiana State University Health Sciences Center may contract with8
a group purchasing organization through a competitive request for proposals process9
for medical and laboratory supplies and medical equipment required for the purpose10
of diagnosis or direct treatment of a patient by a health care provider in a hospital or11
clinic setting.12
B. Prior to the award of such contract, the proposed contract shall be13
approved by the commissioner of administration provided he determines the total14
cost to be less than the state procurement prices and that the contract is in the best15
interest of the state.16
C. No later than sixty days after a purchasing agency submits a proposed17
contract to the commissioner for approval, the commissioner shall notify the18
purchasing agency in writing as to whether the proposed contract has been approved19
or rejected. If the commissioner does not timely notify the purchasing agency of his20
decision, the request for approval on the proposed contract shall be deemed to have21
been approved. The commissioner shall not unreasonably withhold his approval.22
§1594. §1593.1. Competitive sealed bidding23
A. Conditions for use. Contracts exceeding the amount provided by R.S.24
39:1596 shall be awarded by competitive sealed bidding.25
B. Invitation for bids. Competitive sealed bidding shall be initiated by the26
issuance of an invitation for bids containing a description of the supplies, services,27
or major repairs to be procured and all contractual terms and conditions applicable28
to the procurement.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 38 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
C. Public notice.1
(1) Adequate public notice of the invitation for bids shall be given at least2
ten days prior to the date set forth therein for the opening of bids on all matters3
except those made for housing of state agencies, their personnel, operations,4
equipment, or activities pursuant to R.S. 39:1643, for which such notice shall be5
given at least twenty days prior to the opening of bids. Notice shall be in writing and6
to persons in a position to furnish the supplies, services, or major repairs required,7
as shown by its records, and by advertising if the amount of the purchase is8
twenty-five thousand dollars or more.9
(2) The advertisements or written notices shall contain general descriptions10
of the supplies, services, or major repairs for which bids are wanted and shall state:11
(a) The names and locations of the departments or institutions for which the12
purchases are to be made.13
(b) Where and how specifications and quotation forms may be obtained, and14
(c) The date and time not later than which bids must be received and will be15
opened.16
(3) Each advertisement shall be published in the official journal of the state.17
In the case of any purchase to meet the needs of a single budget unit the18
advertisement shall be published also in a newspaper of general circulation printed19
in the parish in which the budget unit is situated or, if there is no newspaper printed20
in the parish, in a newspaper printed in the nearest parish, that has a general21
circulation in the parish in which the budget unit is situated.22
(4) Evidence of agency, corporate, or partnership authority shall be required23
for submission of a bid to the division of administration or the state of Louisiana24
purchasing agencies of the state. The authority of the signature of the person25
submitting the bid shall be deemed sufficient and acceptable if any of the following26
conditions is met:27
(a) The signature on the bid is that of any corporate officer listed on the most28
current annual report on file with the secretary of state, or the signature on the bid29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 39 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
is that of any member of a partnership or partnership in commendam listed in the1
most current partnership records on file with the secretary of state.2
(b) The signature on the bid is that of an authorized representative of the3
corporation, partnership, or other legal entity and the bid is accompanied by bidder4
submits or provides upon request a corporate resolution, certification as to the5
corporate principal, or other documents indicating authority which are acceptable to6
the public entity.7
(c) The corporation, partnership, or other legal entity has filed in the8
appropriate records of the secretary of state in which the public entity is located, an9
affidavit, resolution, or other acknowledged or authentic document indicating the10
names of all parties authorized to submit bids for public contracts. Such document11
on file with the secretary of state shall remain in effect and shall be binding upon the12
principal until specifically rescinded and canceled from the records of the respective13
offices.14
(5) All bids shall be advertised by a using agency through a centralized15
electronic interactive environment administered by the division of administration as16
provided in this Section. The advertisement or written notice required by this17
Section shall contain the name and address of the using agency and shall establish18
the specific date, time, and place by which the bids must be received.19
D. Bid opening. Bids shall be opened publicly in the presence of one or20
more 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 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 40 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(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 made14
by 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 with severe disabilities in state-operated and state-supported22
sheltered workshops as defined in R.S. 39:1595.4 shall be exempt from the23
provisions of this Section. This exemption shall also apply to goods and services24
procured by purchase order directly from a central nonprofit agency contracting25
under R.S. 39:1595.4 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 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 41 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) Purchases of raw materials and supplies used in the manufacturing1
process by the Department of Public Safety and Corrections, division of prison2
enterprises, with the approval of the director of state purchasing state chief3
procurement officer, shall be exempt from the provisions of this Section and shall4
be procured through the use of written bids.5
§1593.2. Competitive Sealed Proposals6
A. Notwithstanding any other provision of this Section to the contrary, with7
the approval of the commissioner and the written determination by the state chief8
procurement officer that the best interests of the state would be served, a competitive9
request for proposals process as provided in this Subsection may be used in the10
following circumstances:11
(1) For the procurement of supplies, services, or major repairs, including but12
not limited to the procurement of high technology acquisitions or of complex13
services.14
(2) Through a contract with a group purchasing organization, for the15
procurement of medical and laboratory supplies and medical equipment required for16
the purpose of diagnosis or direct treatment of a patient by a health care provider in17
a hospital or clinical setting, provided the commissioner determines the total cost to18
be less than the state procurement prices and in the best interest of the state.19
(3) The approval and written documentation requirements of this Paragraph20
shall not apply to a request for proposal for professional, personal, consulting or21
social services.22
(4) For a contract to be let under the provisions of this Subsection, the agency23
shall give adequate public notice of the request for proposals by advertising in the24
official journal of the state at least thirty days before the last day that proposals will25
be accepted. In addition, the agency shall mail written notice to persons, firms, or26
corporations who are known to be in a position to furnish the required services at27
least thirty days before the last day that proposals will be accepted.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 42 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B.(1) For consulting service contracts with a total maximum compensation1
of fifty thousand dollars or more, except for such contracts entered into by the2
Department of Transportation and Development, adequate public notice of the3
request for proposals shall be given by advertising in the official journal of the state4
and in one or more newspapers of general circulation in the state at least once. The5
advertisement shall appear at least thirty days before the last day that proposals will6
be accepted. When available, advertisements shall be placed in those national trade7
journals which serve the particular type of contractor desired. In addition, written8
notice shall be provided to persons, firms, or corporations who are known to be in9
a position to furnish such services, at least thirty days before the last day that10
proposals will be accepted.11
(2) For social service contracts not qualifying under R.S. 39:1494.1(A),12
adequate public notice of the request for proposals shall be given by advertising in13
the official journal of the state, in the official journal of the parish in which the14
services are to be performed and such other newspapers, bulletins, or other media as15
are appropriate in the circumstances. Such advertisements shall appear at least once16
in the official journal of the state and once in the official journal of the parish. If the17
services are to be performed in or made available to residents of a multi parish area,18
advertising in the official journal of the state and in one or more newspapers of19
general circulation in the state at least once shall be sufficient to meet this20
requirement. In all cases, the advertisement shall appear at least fourteen days before21
the last day that the proposals will be accepted. In addition, written notice shall be22
provided to persons, firms, or corporations who are known to be in a position to23
furnish such services, at least fourteen days before the last day that proposals will be24
accepted. This last requirement is subject to reasonable limitation at the discretion25
of the using agency.26
(3) For consulting service contracts entered into by the Department of27
Transportation and Development with a total maximum compensation of fifty28
thousand dollars or more, adequate public notice of the request for proposals shall29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 43 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
be given by advertising in the official journal of the state at least once. The first1
advertisement shall appear at least fifteen days before the last day that proposals will2
be accepted. In addition, written notice shall be provided to persons, firms, or3
corporations who are known to be in a position to furnish such services, at least4
fifteen days prior to the last day that proposals will be accepted.5
(4) All requests for proposals shall be advertised through a centralized6
electronic interactive environment administered by the division of administration as7
provided in this Section. The advertisement or written notice required by this8
Section shall contain the name and address of the using agency and shall establish9
the specific date, time, and place by which the request for proposals must be10
received.11
C. (1) The request for proposals for consulting, social and some professional12
services shall indicate the relative importance of price and other evaluation factors,13
shall clearly define the tasks to be performed under the contract, the criteria to be14
used in evaluating the proposals and the time frames within which the work must be15
completed.16
(2) For all others, it shall clearly state the technological or other outcome17
desired from the procurement of the technological or complex systems and/or18
services, if applicable, and shall indicate the relative importance of price and other19
evaluation factors, the criteria to be used in evaluating the proposals, and the time20
frames within which the work must be completed.21
D. Written or oral discussions shall be conducted with all responsible22
proposers who submit proposals determined in writing to be reasonably susceptible23
of being selected for award. Discussions shall not disclose any information derived24
from proposals submitted by competing offers. Discussions need not be conducted:25
(1) If prices are fixed by law or regulation, except that consideration shall26
be given to competitive terms and conditions.27
(2) If time of delivery or performance will not permit discussions.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 44 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) If it can be clearly demonstrated and documented from the existence of1
adequate competition or accurate prior cost experience with the particular service2
that acceptance of an initial offer without discussion would result in fair and3
reasonable prices and the request for proposals notifies all offerers of the possibility4
that award may be made on the basis of the initial offers.5
E.(1) Award shall be made to the responsible proposer whose proposal is6
determined in writing by the agency to be the most advantageous to the state, taking7
into consideration review of price and the evaluation factors set forth in the request8
for proposals.9
(2) A request for proposals or other solicitation may be cancelled or all10
proposals may be rejected only if it is determined, based on reasons provided in11
writing, that such action is taken in the best interest of the state.12
F.(1) Each contract entered into pursuant to this Subsection shall contain as13
a minimum:14
(a) Description of the work to be performed and/or objectives to be met,15
when applicable.16
(b) Amount and time of payments to be made.17
(c) Description of reports or other deliverables to be received, when18
applicable.19
(d) Date of reports or other deliverables to be received, when applicable.20
(e) Responsibility for payment of taxes, when applicable.21
(f) Circumstances under which the contract can be terminated either with or22
without cause.23
(g) Remedies for default.24
(h) A statement giving the legislative auditor the authority to audit records25
of the individual(s) or firm(s).26
(i) Performance measurements.27
(j) Monitoring plan28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 45 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2)(a) Upon entering into a contract, the using agency shall have full1
responsibility for the diligent administration and monitoring of the contract. The2
state chief procurement officer may require the using agency to report at any time3
on the status of any such outstanding contracts to which the using agency is a party.4
After completion of performance under a contract, the using agency shall evaluate5
contract performance and the utility of the final product. This evaluation shall be6
delivered to the state chief procurement officer or designee or the directors of7
purchasing at a college or university within one hundred twenty days after8
completion of performance and shall be retained in the official contract file.9
(b)(i) No contract shall be valid, nor shall the state be bound by the contract,10
until it has first been executed by the head of the using agency, or his designee,11
which is a party to the contract and the contractor and has been approved in writing12
by the state chief procurement officer or designee or the directors of purchasing at13
a college or university.14
(ii) In cases where the head of the using agency wants to delegate authority15
to one or more of his subordinates to sign contracts on behalf of the agency, this16
delegation shall be made in accordance with regulations of the commissioner and17
shall be subject to the approval of the state chief procurement officer.18
G. Requests for proposals shall not be required for "interagency contracts"19
as defined in R.S. 39:1490(C).20
H. Notwithstanding the provisions of this Chapter, all relevant federal21
statutes and regulations shall be followed by the using agency in procuring services.22
The burden of complying with these federal statutes and regulations shall rest with23
the using agency and shall be documented in the contract record submitted to the24
office of contractual review.25
§1593.3. Validity of professional, personal, consulting, and social service contracts26
A. No contact shall be valid, not shall the state be bound by the contract,27
until it has first been executed by the head of the using agency, or his designee,28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 46 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
which is a party to the contract and contractor, and has been approved in writing by1
the office of state procurement.2
B. In cases where the head of the using agency wants to delegate authority3
to one or more of his subordinates to sign contracts on behalf of the agency, this4
delegation must be made in accordance with regulations of the office of contractual5
review and shall be subject to the approval of the office of contractual review.6
§1593.4. Small purchases7
Procurements not exceeding the amounts established by executive order of8
the governor may be made in accordance with small purchase procedures prescribed9
by such executive order, except that procurement requirements shall not be10
artificially divided so as to constitute a small purchase under this Section.11
§1593.5. Sole source procurements12
A contract may be awarded for a required supply, service, or major repair13
without competition when, under regulations, the state chief procurement officer or14
his designee above the level of procurement officer determines in writing that there15
is only one source for the required supply, service, or major repair item.16
§1593.6. Emergency procurements17
A. Conditions for use. The chief procurement officer or his designee above18
the level of procurement officer may make or authorize others to make emergency19
procurements when there exists an imminent threat to the public health, welfare,20
safety, or public property under emergency conditions as defined in accordance with21
regulations.22
B. Written quotations. Every effort shall be made to obtain quotations from23
three or more vendors when supplies, services, or major repairs are to be purchased24
on an emergency basis, except for standard equipment parts for which prices are25
established. Immediate purchasing shall be discouraged as much as is practicable.26
When supplies, services, or major repairs are urgently required and time does not27
permit the obtaining of written quotations, the procurement officer may obtain28
quotations by telephoning or otherwise, but such quotations shall be made on the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 47 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
relative purchase requisitions. So far as practicable, quotations shall be secured from1
institutions of the state as provided by law.2
C. Determination required. The state chief procurement officer shall make3
a written determination of the basis of the emergency that includes the facts and4
circumstances leading to the conclusion that such procurement was necessary as well5
as a written determination detailing the steps taken prior to selecting a particular6
contractor and the basis for the final selection. The written determination shall be7
included in the contract file either prior to contracting or as soon thereafter as8
practicable.9
§1593.7. Procurement of used equipment10
A. Any agency covered by this Chapter may procure any equipment which11
is used or which has been previously purchased by an individual or corporation12
where the agency proposing to make such procurement can present satisfactory13
information to the procurement officer to illustrate that the procurement of said14
equipment is cost effective to the state.15
B.(1) The used equipment shall be purchased by the head of the agency,16
college, or university, within the price range set by the state chief procurement17
officer, or the directors of purchasing at colleges and universities, in a statement of18
written approval for the purchase which must be obtained by the head of the agency,19
college, or university, prior to the purchase.20
(2) The head of the agency, college, or university, shall certify in writing to21
the state chief procurement officer, or the directors of purchasing at colleges and22
universities, all of the following:23
(a) The price for which the used equipment may be obtained.24
(b) The plan for maintenance and repair of the equipment and the cost25
thereof.26
(c) The savings that will accrue to the state because of the purchase of the27
used equipment.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 48 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(d) The fact that following the procedures set out in the Louisiana1
Procurement Code will result in the loss of the opportunity to purchase the2
equipment.3
§1593.8. Reverse auction4
A. Notwithstanding any other provision of law to the contrary, with the5
approval of the state chief procurement officer and the determination of the head of6
the using agency that the best interests of the state would be served and that7
electronic online bidding is more advantageous than other procurement methods8
provided in this Chapter, a reverse auction may be utilized for the acquisition of9
materials, supplies, services, products, or equipment.10
B. Prior to the implementation of this Section, the state chief procurement11
officer shall develop policies, procedures, and promulgate regulations, in accordance12
with the Administrative Procedure Act. Such policies and procedures may require13
that:14
(1) Vendors shall register before the opening date and time, and as part of15
the registration, require that the vendors agree to any terms and conditions and other16
requirements of the solicitation.17
(2) Vendors shall be prequalified prior to placing bids and allow only bidders18
who are prequalified to submit bids.19
(3) The solicitation shall designate an opening date and time and the closing20
date and time. The closing date and time may be fixed or remain open depending on21
the nature of the item being bid.22
(4) At the opening date and time, the using agency shall begin accepting23
online bids and continue accepting bids until the bid is officially closed. Registered24
bidders shall be allowed to lower the price of their bid below the lowest bid posted25
on the Internet until the closing date and time.26
(5) Bidders' identities shall not be revealed during the bidding process; only27
the successively lower prices, ranks, scores, and related bid details shall be revealed.28
(6) All bids shall be posted electronically and updated on a real-time basis.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 49 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(7) The using agency shall retain the right to cancel the solicitation if it1
determines that it is in the agency's or the state's best interest.2
(8) The using agency shall retain its existing authority to determine the3
criteria that shall be used as a basis for making awards.4
C. Adequate public notice for the purchase of materials, supplies, services,5
or equipment using a reverse auction shall be given as follows:6
(1) The advertisement or notice shall be published one time in the official7
journal of the state at least twenty days before the opening date of the reverse8
auction.9
(2) In the case of any purchase to meet the needs of a single budget unit, the10
advertisement shall be published also in a newspaper of general circulation printed11
in the parish in which the budget unit is situated, or, if there is not a newspaper12
printed in the parish, in a newspaper printed in the nearest parish that has a general13
circulation in the parish in which the budget unit is situated.14
§1593.9. Other Procurement Methods15
A. Unstable Market Conditions. Notwithstanding any other provisions of this16
Section to the contrary and in accordance with rules and regulations promulgated by17
the commissioner in accordance with the Administrative Procedure Act, the state18
chief procurement officer or directors of purchasing at a college or university, with19
the approval of the commissioner, may procure by solicitation requiring written20
response from at least three bona fide bidders under the provisions of this21
Subsection, when it is determined that market conditions are unstable and the22
competitive bid process is not conducive for best pricing for products, supplies and23
other materials. The provisions of this Subsection shall be applicable only if the24
value of the contract is fifty thousand dollars or less and only after sufficient25
documentation is provided to the commissioner by the director to substantiate the26
unstable market.27
B. Group Purchasing.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 50 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(1) The Louisiana State University Health Sciences Center may contract with1
a group purchasing organization through a competitive request for proposals process2
for medical and laboratory supplies and medical equipment required for the purpose3
of diagnosis or direct treatment of a patient by a health care provider in a hospital or4
clinic setting.5
(2) Prior to the award of such contract, the proposed contract shall be6
approved by the commissioner of administration provided the Louisiana State7
University Health Sciences Center makes a written determination that prices from8
the group purchasing organization are fair market prices and that the contract is in9
the best interest of the state.10
(3) No later than sixty days after a purchasing agency submits a proposed11
contract to the commissioner for approval, the commissioner shall notify the12
purchasing agency in writing as to whether the proposed contract has been approved13
or rejected. If the commissioner does not timely notify the purchasing agency of his14
decision, the request for approval on the proposed contract shall be deemed to have15
been approved. The commissioner shall not unreasonably withhold his approval.16
§1593.10.Negotiation17
The head of the using agency or the agency procurement officer shall18
negotiate with the highest qualified persons for all contracts for professional,19
personal, or those consulting services for less than fifty thousand dollars, or those20
social services qualifying under R.S. 39:1494.1(A) at compensation which the head21
of the using agency determines in writing to be fair and reasonable to the state. In22
making this determination, the head of the using agency shall take into account, in23
the following order of importance, the professional or technical competence of24
offerers, the technical merits of offers, and the compensation for which the services25
are to be rendered, including fee. Negotiation of consulting services for fifty26
thousand dollars or more or social services not qualifying under R.S. 39:1494.1(A)27
shall be conducted in accordance with Part II, Subpart B hereof.28
§1594.1. Contracts for drugs29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 51 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Multisource generic drug contracts shall be used for the procurement of drugs1
approved by the Federal Drug Administration and listed in the Federal Drug2
Administration Prescription Drug Products with Therapeutic Equivalence3
Evaluations Compendium and Supplements for all using agencies. Such contracts4
shall be competitively bid at the lowest available price. However, a brand name5
contract may be used if there is only one source of supply for a particular drug or if6
the using agency certifies to the chief procurement officer that a justifiable medical7
reason exists for the use of a particular brand name drug. The chief procurement8
officer shall seek the advice of the Drug Procurement Advisory Council on all such9
requests other than declared emergencies.10
§1594.2. Right to reject bids from Communist countries11
In awarding contracts for supplies, any public entity is authorized to reject12
the lowest bid if received from a bidder domiciled in a Communist country, or if the13
supplies are manufactured in a Communist country, including but not limited to the14
Soviet Union, China, North Korea, and Vietnam, and to award the contract to the15
next lowest bidder, provided this Section shall not apply to any country having16
established trade relations agreements or approvals from the government of the17
United States.18
§1594.3. Limitations on consultants competing for contracts19
A. Any person contracting with an agency for the purposes of developing20
bidding documents, requests for proposals, or any other type of solicitation related21
to a specific procurement shall be prohibited from bidding, proposing, or otherwise22
competing for award of that procurement. Such persons shall further be prohibited23
from participating as subcontractors related to the award of that procurement.24
B. For the purposes of this Section, the following activities shall not be25
considered "developing bidding documents, requests for proposals, or any other type26
of solicitation":27
(1) Architectural and engineering programming.28
(2) Master planning.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 52 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) Budgeting.1
(4) Feasibility analysis.2
(5) Constructability review.3
(6) Furnishing specification data or other product information.4
(7) Any other services that do not establish selection qualifications or5
evaluation criteria for the procurement of an architect or engineer.6
SUBPART B. METHODS OF SOURCE SELECTI ON FOR PROFESSIONAL,7
PERSONAL, CONSULTING, AND SOCIAL SERVICES CONTRACTS 8
§1595. Professional service contracts9
Contracts for professional services may be awarded without the necessity of10
competitive bidding or competitive negotiation.11
§1595.1. Contractual attorney's fees; affidavit12
Each attorney hired on a contractual basis for professional services shall13
submit his fee by sworn affidavit. The affidavit shall contain a detailed statement of14
the number of hours actually worked, giving the dates and time of day, and a15
description of the work performed. No contract fee shall be paid unless submitted16
by affidavit as provided herein.17
§1595.2. Social service contracts18
A. Social Services include:19
(1) Rehabilitation and health supports include services rendered by a20
contractor with special knowledge or service available to assist individuals in21
attaining or maintaining a favorable condition of physical and mental health. These22
services include but are not limited to:23
(a) Health-related counseling.24
(b) Alcohol or drug abuse training and treatment.25
(c) Training to support emergency medical services.26
(d) Services to support family planning.27
(e) Counseling, delinquency prevention.28
(f) Genetic disease evaluation and counseling.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 53 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(g) Community-based medical support services.1
(h) Evaluation and training for persons with physical or intellectual2
disabilities.3
(i) Other services in support of same.4
(2) Habilitation and socialization include services rendered by a contractor5
with special knowledge to assist specified client groups to enhance their self-6
sufficiency or alleviate their dependency or isolation from the community. These7
services include but are not limited to:8
(a) Day care.9
(b) Work and training.10
(c) Early intervention for persons with intellectual disabilities,11
developmental delays, or physical disabilities.12
(d) Transportation for service access.13
(e) Homemaker, home management, and housing improvement services.14
(f) In-home and out-of-home respite care.15
(g) Socialization services for low income and other special needs groups.16
(h) Nursing home ombudsman.17
(i) Nutritional, employment, case management, senior center activities, or18
other services to aid independent living by the elderly.19
(j) Training and community planning services for same.20
(3) Protection for adults and children include services rendered by a21
contractor to provide therapeutic intervention for adults or children who are in22
danger or threatened with danger of physical or mental injury, neglect, maltreatment,23
extortion, or exploitation, including victims of family violence. These services24
include but are not limited to:25
(a) Community planning for neglect/abuse.26
(b) Adoption.27
(c) Substitute care.28
(d) Education and training.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 54 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(e) Crisis intervention type services.1
(f) Emergency shelter for victims of rape/family violence or services in2
support of same.3
(g) Training and evaluation services for same.4
(4) Improvement of living conditions and health include services rendered5
by an authorized contractor with special knowledge or services available to assist6
individuals to attain or maintain favorable conditions in which to live. These7
services include but are not limited to:8
(a) Distribution of foodstuffs either purchased or that are made available9
from government-owned commodities.10
(b) Determining the needs of the poor, and development of programs to11
distribute the available resources.12
(c) Determining the needs of the poor and identifying programs to alleviate13
these poverty conditions.14
(d) Providing services to respond to the educational/employment needs of15
eligible individuals in the communities needing these services. The primary purpose16
of this services is to provide the participating individuals with the skills necessary17
for them to advance socially, academically, and occupationally.18
(e) Providing training and evaluation of services for any of the above19
services.20
(5) Evaluation, testing, and remedial educational services for nonpublic21
school students with physical or learning disabilities include services rendered by a22
contractor with special knowledge or services available to provide special23
educational and related services for exceptional students or students with disabilities24
voluntarily enrolled in approved nonpublic schools of Louisiana who are not25
otherwise provided with such services through either their local school program or26
through other services afforded to them by local school boards or other public27
agencies. These services include but are not limited to:28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 55 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(a) Identification, assessment, appraisal, and evaluation of exceptional1
children and children with disabilities.2
(b) Development of individualized educational programs.3
(c) The providing of instructional and supportive services to such eligible4
students in accordance with the provisions of R.S. 17:1941, et seq. and P.L. 94-1425
and their regulations.6
B. Contracts for social services may be awarded without the necessity of7
competitive bidding or competitive negotiation only if the state chief procurement8
officer determines that any one of the following conditions is present. The using9
agency shall document the condition present and such documentation shall be part10
of the contract record submitted to the office of state procurement.11
(1) The services are available only from a single source (sole source). Sole12
source procurement shall be determined by the state chief procurement officer. A13
contract shall also be considered as sole source if a request for proposals is issued in14
accordance with R.S. 39:1503 and only one or no proposals are received.15
(2) The state legislature has made an appropriation for that particular16
contractor or contractors via the appropriation bill or other statutes.17
(3) A quasi-public and/or nonprofit corporation, such as a parish voluntary18
council on aging, an area agency on aging, an affiliate of The Arc or equivalent19
organization serving persons with intellectual or developmental disabilities, an20
organization serving children, youth, and/or families, or an organization promoting21
independence from public assistance has been established in coordination with the22
state to provide the particular service involved in the contract.23
(4) Local matching funds of greater than ten percent of the contract amount24
are required to be contributed by the contractor. Such matching funds may be in the25
form of cash, certified expenditures or in-kind contributions, where applicable to the26
funding source.27 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 56 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(5) The nature of the services being provided necessitates that a continuity1
of contractors be maintained as in but not limited to therapeutic and crisis support2
to clients and employment and training programs.3
(6) All emergency exists which will not permit the delay in procurement4
necessitated by the request for proposal procedure given in R.S. 39:1503. Such5
emergency shall be determined by the state chief procurement officer.6
(7) The total contract amount is less than two hundred fifty thousand dollars7
per twelve-month period. Service requirements shall not be artificially divided so8
as to exempt contracts from the request for proposal process.9
(8) The contract is with another governmental entity or governmental body.10
(9) Funds are specifically designated by the federal government for a11
particular private or public contractor or political subdivision.12
(10) The contract is with a social service contractor who supplies services13
under a contract in existence as of November 30, 1985, as long as such contractor14
continues to supply substantially the same services and the using agency certifies:15
(a) The services are satisfactory.16
(b) They intend to continue contracting with that contractor.17
C. If none of the conditions given in R.S. 39:1494.1(A) are determined by18
the state chief procurement officer to be present in a contract for social service, then19
that contract shall be awarded through a request for proposal process in accordance20
with R.S. 39:1503 under rules and regulations issued by the office of state21
procurement.22
D. This chapter shall apply to interagency contracts as defined in R.S.23
39:1490(c) and to contracts or grants between the state and its political subdivision24
to procure social services.25
§1595.3. Personal service contracts26
Contracts for personal services may be awarded without the necessity of27
competitive bidding or competitive negotiation.28
§1595.4. Consulting service contracts29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 57 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. Contracts for consulting services which have a total maximum amount1
of compensation less than fifty thousand dollars for a 12 month period may be2
awarded without the necessity of competitive bidding or competitive negotiation.3
B. Contracts for consulting services which have a total maximum amount of4
compensation of fifty thousand dollars or more for a 12 month period shall be5
awarded through a request for proposal process under rules and regulations issued6
by the office of state procurement. Service requirements shall not be artificially7
divided so as to exempt contracts from the request for proposal process.8
C.(1) All contracts for consulting services which have a total maximum9
amount of compensation of one hundred forty thousand dollars or more may be10
entered into with the assistance of a procurement support team as provided herein,11
and in accordance with guidelines promulgated and published by the office of state12
procurement.13
(2) For each such consulting contract the office of contractual review may14
establish a procurement support team which shall include one or more15
representatives from each of the following:16
(a) The office of state procurement.17
(b) The using agency initiating the contract.18
(c) The office of the attorney general.19
(d) The legislative fiscal office.20
(3) Participation of the procurement support team must include, at a21
minimum, assistance in development or review of the request for proposals,22
evaluation of responses received to the request for proposals, and formulation of23
recommendations to be submitted to the director of the office of state procurement24
concerning the final contract.25
§1595.5. Performance-based energy efficiency contracts26
A. Any state agency as defined in R.S. 39:2 may enter into a performance-27
based energy efficiency contract for services and equipment as provided in this28
Section. The commissioner of administration shall adopt and promulgate rules and29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 58 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
regulations necessary to implement the provisions of this Section, which rules shall1
be consistent with the Energy Management Act of 2001. Any such rules and2
regulations shall be adopted and promulgated only after the review and approval of3
the Joint Legislative Committee on the Budget. The commissioner of administration4
shall submit the proposed rules and regulations to the Joint Legislative Committee5
on the Budget thirty days prior to the review and approval of such rules and6
regulations by the committee.7
B. The contract shall be considered a consulting services contract under the8
provisions of this Chapter. Performance-based energy efficiency contracts shall be9
awarded through a request for proposal process under the provisions of this Chapter10
and specifically the provisions of Subsection E of this Section.11
C.(1) Notwithstanding the requirements of R.S. 39:1514(A), any12
performance-based energy efficiency contract entered into shall be for a period equal13
to the lesser of twenty years or the average life of the equipment installed by the14
performance contractor and shall contain a guarantee of energy savings. The15
guarantee of energy savings shall, at a minimum, ensure a total annual savings16
sufficient to fully fund any financing arrangement entered into to fund the contract.17
In addition, any performance-based energy efficiency contract shall contain the18
following clause: "The continuation of this contract is contingent upon the19
appropriation of funds by the legislature to fulfill the requirements of the contract.20
If the legislature fails to appropriate sufficient monies to provide for the continuation21
of the contract, the contract shall terminate on the last day of the fiscal year for22
which funds have been appropriated. Such termination shall be without penalty or23
expense to the agency, board, or commission except for payments which have been24
earned prior to the termination date."25
(2) Any contract entered into pursuant to this Section shall include the total26
units of energy saved, the method, device or financial arrangement to establish a firm27
amount for the savings, the cost per unit of energy, and, if applicable, the basis for28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 59 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
any adjustment in the stated cost for the term of the contract, and for each energy1
saving measure included in the contract, provide the following:2
(a) Detailed scope of work.3
(b) Price to be paid by the state agency as the initial cost.4
(c) Annual energy cost savings.5
(d) Annual maintenance savings including any maintenance and operational6
savings associated with installation; including but not limited to, services, parts,7
materials, labor, and equipment.8
(e) Annual new maintenance cost including operating expenses added as a9
result of new equipment installed or services performed by the contractor.10
(f) Total annual savings by adding annual energy cost savings to annual11
maintenance savings minus any annual new maintenance costs.12
(3) No payment shall be made by a state agency pursuant to a contract13
entered into in accordance with this Section, until there is compliance with Paragraph14
(2). However, Paragraph (2) and this Paragraph shall not invalidate nor require the15
reissuance of a request for proposal for which notice was given pursuant to this16
Chapter prior to June 17, 2004.17
D. When calculating "annual energy cost savings attributable to the services18
or equipment" installed pursuant to a performance-based energy efficiency contract19
as defined in R.S. 39:1484(14), maintenance savings shall be included.20
"Maintenance savings" means operating expenses eliminated and future capital21
replacement expenditures avoided as a result of new equipment installed or services22
performed by the performance contractor.23
E.(1) Prior to award of any performance-based energy efficiency contract,24
the response to the requests for proposals shall be evaluated as follows:25
(a) A state agency that seeks to enter into a contract pursuant to this Section26
shall conduct an initial evaluation of proposals submitted to it. Such evaluation shall27
be consistent with the provisions of this Chapter, except that a state agency shall not28
make a final selection from among submitted proposals.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 60 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) A state agency shall forward the results of its evaluation of each such1
proposal to the commissioner of administration. The commissioner of administration2
may select an independent third-party evaluation consultant to review and evaluate3
the submitted proposals. The consultant shall submit the result of his evaluation to4
the Energy Efficiency Procurement Support Team and to the commissioner of5
administration. The Energy Efficiency Procurement Support Team shall review the6
evaluation of the independent third-party evaluation consultant. Upon completion7
of such review, the Energy Efficiency Procurement Support Team shall submit its8
recommendation to the commissioner of administration. The commissioner of9
administration shall review the evaluation of the independent third-party evaluation10
consultant and the recommendation of the Energy Efficiency Procurement Support11
Team and shall notify the agency as to whether it may proceed with negotiation of12
the contract in accordance with the provisions of this Chapter. The commissioner13
of administration may require that the consultant selected pursuant to this Section14
participate on behalf of the agency in the negotiation of the contract. Upon the15
completion of the negotiation of the contract by the agency, the commissioner of16
administration shall review the negotiated contract. If the commissioner of17
administration approves the contract then the contract shall be submitted by the18
commissioner of administration to the Joint Legislative Committee on the Budget for19
review and approval.20
(c) Notwithstanding any other provision of this Chapter, no proposer shall21
be selected pursuant to this Section nor shall any contract be awarded pursuant to this22
Section, except by the approval of both the commissioner of administration and the23
Joint Legislative Committee on the Budget.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 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 61 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(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 of performance-4
based energy efficiency contracts. The legislative auditor shall establish a written5
schedule for execution of such performance audits, and the schedule shall be posted6
on the website of the legislative auditor no later than February first of each year.7
Such schedule shall provide for periodic audits during the term of such contracts and8
for an audit upon the completion of any such contract. The legislative auditor shall9
coordinate with the commissioner of administration to develop a description of10
information to be included as part of each performance audit. The results of any11
such performance audits shall be published no later than thirty days prior to the12
commencement of each Regular Session of the Legislature. Audits shall be13
conducted on each performance-based energy efficiency contract in effect on and14
after January 1, 2010.15
(3)(a)(i) In order to fund the cost of the evaluation, review, approval,16
oversight, and performance audits as provided in this Section, the request for17
proposal for the award of a performance-based energy efficiency contract shall18
require the proposer to pay a sum not to exceed two and one-half percent of the total19
value of the performance-based energy efficiency contract at the time that a contract20
is executed by that proposer.21
(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, where22
a request for proposal or a proposed contract is exempt from the application of23
Subparagraphs (a) through (d) of Paragraph (1) of this Subsection, the proposer shall24
be required to pay a sum not to exceed one percent of the total value of the25
performance-based energy efficiency contract at the time that a contract is executed26
by that proposer.27 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 62 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) The determination of the sum to be paid shall be made by the1
commissioner of administration according to the rules and regulations adopted2
pursuant to this Section.3
(c) The "Energy Performance Contract Fund", hereinafter referred to as the4
"fund", is hereby created in the state treasury. After compliance with the provisions5
of Article VII, Section 9(B) of the Constitution of Louisiana relative to the allocation6
of monies to the Bond Security and Redemption Fund, the treasury shall deposit into7
the fund an amount equal to the amount collected pursuant to Subparagraphs (a) and8
(b) of this Paragraph. The monies in the fund shall be used only to fund the9
requirements of this Section and the rules promulgated pursuant thereto. Monies in10
the fund shall be invested in the same manner as monies in the state general fund and11
any interest earned on the investment of monies in the fund shall be credited to the12
fund. Unexpended and unencumbered monies in the fund at the end of the fiscal13
year shall remain in the fund.14
F. For the purposes of this Section, any appropriation to an agency shall not15
be deemed an appropriation of funds by the legislature to fulfill the requirements of16
a performance-based energy efficiency contract awarded on or after January 1, 2010,17
unless and until such contract has been approved in accordance with the provisions18
of this Section.19
G. For the purposes of this Section, the Energy Efficiency Procurement20
Support Team shall consist of an attorney chosen jointly by the speaker of the House21
of Representatives and the president of the Senate from the legislative services staff22
of the House of Representatives or the staff of the Senate and one or more23
representatives chosen by each of the following: the division of administration,24
facility planning and control; the using agency initiating the procurement action; and25
the legislative fiscal office. At least four members, one from each office or agency26
designated, must be present to constitute a quorum. The Energy Efficiency27
Procurement Support Team shall evaluate the submitted proposal in accordance with28
guidelines to be published by the division of administration.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 63 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1595.6. Certification by using agency1
A. Upon seeking approval to enter into a proposed professional, personal,2
consulting, or social service contract valued in excess of five thousand dollars, an3
individual or individuals specifically designated by the head of the using agency for4
such purpose shall certify to the director of the office of contractual review that:5
(1) Either no employee of that agency is both competent and available to6
perform the services called for by the proposed contract or the services called for are7
not the type readily susceptible of being performed by persons who are employed by8
the state on a continuing basis.9
(2) The services are not available as a product of a prior or existing10
professional, personal, consulting, or social service contract.11
(3) The requirement for consultant and social services contracts, when12
applicable, have been publicized pursuant to R.S. 39:1503.13
(4) The using agency has developed and fully intends to implement a written14
plan providing for:15
(a) The assignment of specific using agency personnel to a monitoring and16
liaison function.17
(b) The periodic review of interim reports or other indicia of performance18
to date.19
(c) The ultimate use of the final product of the services.20
(5) The cost basis for the proposed contract.21
(6) A description of the specific objectives or deliverables associated with22
the proposed contract and the monitoring plan therefor.23
(7) Methods to be used to measure and determine contract performance.24
B. In addition to the certifications required in Subsection A herein, for any25
proposed professional, personal, consulting, or social service contract that exceeds26
fifty thousand dollars and has a term of more than six months, a cost-benefit analysis27
shall be conducted which indicates that obtaining such services from the private28
sector is more cost-effective than providing such services by the using agency itself29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 64 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
or by an agreement with another state agency, to include both a short-term and long-1
term analysis. The office of contractual review shall promulgate, as necessary, rules2
and regulations relative to the form and content of a cost-benefit analysis.3
§1595.7. Approval of contract; penalties4
A. Before approving a proposed contract for professional, personal,5
consulting, or social services, the director of the office of contractual review or an6
assistant shall have determined that:7
(1) All provisions of R.S. have been complied with.8
(2) The using agency has statutory authority to enter into the proposed9
contract.10
(3) The contract will not establish an employer/employee relationship11
between the state or the using agency and any prospective contractor.12
(4) No current state employee will engage in the performance of the13
proposed contract except as provided for in R.S..14
(5) No using agency has previously performed or contracted for the15
performance of tasks which would be substantially duplicated under the proposed16
contract without appropriate written justification.17
(6) There has been appropriated or otherwise lawfully made available and18
ready for expenditure sufficient monies for payment of the services called for in the19
contract, at least for the applicable fiscal year.20
(7) The contracting using agency has specified the purpose, duration,21
specific goals and objectives, measures of performance, and a plan for monitoring22
the services to be provided under the contract.23
(8) The using agency has a written plan for the monitoring of the contract24
and such monitoring plan has been submitted in accordance with rules and25
regulations adopted by the office of state procurement.26
(9) The provisions of R.S. 12:25(E) have been complied with, if the contract27
is with a business corporation, the provisions of R.S. 12:205(E) have been complied28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 65 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
with, if the contract is with a nonprofit corporation, or the provisions of R.S.1
12:304(A)(11) have been complied with, if the contract is with a foreign corporation.2
B. Any corporation which fails to make complete disclosure of ownership,3
directors, and officers as required by law shall be required, as a penalty, to refund4
any funds received by that corporation from the state for the contract.5
§1595.8. Professional, personal, consulting, or social service contract6
content7
Each contract for professional, personal, consulting, or social services entered8
into by a governmental body as defined in R.S. shall contain as a minimum:9
description of the work to be performed and objectives to be met; amount and time10
of payments to be made; description of reports or other deliverables to be received,11
when applicable; date of reports or other deliverables to be received, when12
applicable; responsibility for payment of taxes, when applicable; circumstances13
under which the contract can be terminated either with or without cause; remedies14
for default; and a statement giving the legislative auditor the authority to audit15
records of the individual or firm.16
§1595.9. Professional, personal, and consulting service contracts with state17
employees18
A. State agency personnel in the medical, nursing or allied health fields, state19
employees who are qualified to serve as interpreters for the deaf, faculty members20
of public institutions of higher education, and state employees selected to serve as21
instructors in the paralegal studies course of the division of continuing education at22
a state college or university may be employed by other state agencies through a23
contract for professional, personal, consulting, or social services in accordance with24
rules and regulations adopted by the office of state procurement. No such faculty25
member, except those who are also employed by private firms, may contract for the26
design or redesign of a state-owned facility in which the services of a professional27
architect or engineer, or both, are required.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 66 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B. Additionally, each professional, personal, consulting, and social service1
agreement between a governmental body as defined in R.S. and a faculty member2
of any state college or state university shall be subject to the policies and procedures3
promulgated by each respective state college and university and the management4
boards having authority over the respective institution of higher education in which5
the faculty member is a member and the Board of Regents. Notwithstanding any6
other provision of law, each such agreement shall be subject to the written approval7
of the president of the college or university which employs the faculty member, and8
written notification of agreement and approval shall be given to the appropriate9
management board.10
C. The list of occupations exempted in this Section from the provision of11
R.S. may be increased by rules adopted by the chief procurement officer.12
D. Notwithstanding any other provisions of law to the contrary, the13
Louisiana School for the Deaf is hereby authorized to enter into professional,14
personal, consulting, and social services contracts with an employee of the school to15
provide sign language and interpreting services which are independent of the16
employee's assigned duties and regular work hours, and for which compensation may17
be paid.18
E. Notwithstanding any other provisions of law to the contrary, the Louisiana19
Commission for the Deaf is hereby authorized to enter into professional, personal,20
consulting, and social services contracts with an employee of the commission to21
provide sign language and interpreting services which are independent of the22
employee's assigned duties and regular work hours, and for which compensation may23
be paid; however, such contract is authorized only if a person who is not an24
employee of the commission is unavailable for such services.25
SUBPART C. PREFERENCES FOR PRODUCTS AND SERVI CES26
§1595. §1596. Preference for all types of products produced, manufactured,27
assembled, grown, or harvested in Louisiana; exceptions28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 67 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. As used in this Section, the following terms shall have the following1
meanings ascribed to them:2
(1) "Meat" and "meat product" means beef, veal, pork, mutton, poultry, and3
other meats, and products made from those meats.4
(2) "Other products" includes "other meat", "other meat products", "other5
seafood", and "other seafood products" and means products which are produced,6
manufactured, grown, processed, and harvested outside the state.7
(3) "Seafood" means crawfish, catfish, other fish, shrimp, oysters, crabs,8
underutilized species, and other seafood and freshwater food.9
(4) "Processed" means the alteration of any raw product altered from its10
original state to enhance its value or render it suitable for further refinement or11
marketing.12
B. Notwithstanding any other provision of this Section to the contrary, each13
procurement officer, purchasing agent, or similar official who procures or purchases14
agricultural or forestry products, including meat, seafood, produce, eggs, paper or15
paper products under the provisions of this Chapter shall procure or purchase16
Louisiana products provided all of the following conditions are met:17
(1) The bidder certifies in the bid submitted that the product meets the18
criteria of a Louisiana product.19
(2) The product is equal to or better than equal in quality to other products.20
(3) The cost of the Louisiana product shall not exceed the cost of other21
products by more than ten percent, except as otherwise provided in this Chapter as22
a specific exception.23
C. In order to qualify as Louisiana products for the purpose of this Section,24
the following products shall meet the following requirements:25
(1) Produce shall be produced in Louisiana and produce products shall be26
produced and processed in Louisiana.27
(2) Eggs shall be laid in Louisiana and egg products shall be processed from28
eggs laid in Louisiana.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 68 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) Meat and meat products shall be processed in Louisiana from animals1
which are alive at the time they enter the processing plant.2
(4)(a) Seafood shall be:3
(i) Harvested in Louisiana seas or other Louisiana waters; or4
(ii) Harvested by a person who holds a valid appropriate commercial fishing5
license issued under R.S. 56:1 et seq.6
(b) Products produced from such seafood shall be processed in Louisiana.7
(5) Domesticated catfish shall be processed in Louisiana from animals which8
were grown in Louisiana.9
(6) Paper and paper products shall be manufactured or converted in10
Louisiana. For the purposes of this Paragraph, "manufactured" shall mean the11
process of making a product suitable for use from raw materials by hand or by12
machinery, and "converted" shall mean the process of converting roll stock into a13
sheeted and fully packaged product in a full-time converting operation. For paper14
supplied in wrapped reams, each carton and each individual ream shall be clearly15
labeled with the name of the manufacturer or converter and the location within16
Louisiana where such paper is manufactured or converted. For paper and paper17
products supplied in bulk or in other forms, the smallest unit of packaging shall be18
clearly labeled with the name of the manufacturer or converter and the location19
within Louisiana where such paper or paper product is manufactured or converted.20
(7) All other agricultural or forestry products shall be produced,21
manufactured, or processed in Louisiana.22
D. Notwithstanding any other provision of this Section to the contrary, each23
procurement officer, purchasing agent, or similar official who procures or purchases24
products under the provisions of this Chapter shall procure or purchase meat and25
meat products which are further processed in Louisiana under the grading and26
certification service of the Louisiana Department of Agriculture and Forestry and27
which are equal in quality to other meat and meat products, provided the cost of the28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 69 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
further processed meat and meat products does not exceed the cost of other meat or1
meat products by more than seven percent.2
E. Notwithstanding any other provision of this Section to the contrary, each3
procurement officer, purchasing agent, or similar official who procures or purchases4
products under the provisions of this Part shall procure or purchase domesticated or5
wild catfish which are processed in Louisiana but grown outside of Louisiana and6
which are equal in quality to domesticated or wild catfish which are processed7
outside of Louisiana provided the cost of the domesticated or wild catfish which are8
processed in Louisiana does not exceed the cost of the domesticated or wild catfish9
which are processed outside of Louisiana by more than seven percent.10
F. Notwithstanding any other provision of this Section to the contrary, each11
procurement officer, purchasing agent, or similar official who procures or purchases12
products under the provisions of this Part shall procure or purchase produce13
processed in Louisiana but grown outside of Louisiana and which is equal in quality14
to produce processed and grown outside of Louisiana, provided the cost of the15
produce processed in Louisiana does not exceed the cost of the produce processed16
outside of Louisiana by more than seven percent.17
G. Notwithstanding any other provision of this Section to the contrary, each18
procurement officer, purchasing agent, or similar official who procures or purchases19
products under the provisions of this Chapter shall procure or purchase eggs or20
crawfish which are further processed in Louisiana under the grading service of the21
Louisiana Department of Agriculture and Forestry and which are equal in quality to22
other eggs or crawfish, provided the cost of the further processed eggs or crawfish23
does not exceed the cost of other eggs or crawfish by more than seven percent.24
H. Except as otherwise provided in this Section, each procurement officer,25
purchasing agent, or similar official who procures or purchases materials, supplies,26
products, provisions, or equipment under the provisions of this Chapter may27
purchase such materials, supplies, products, provisions, or equipment which are28
produced, manufactured, or assembled in Louisiana, as defined in R.S. 38:2251(A),29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 70 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
and which are equal in quality to other materials, supplies, products, provisions, or1
equipment, provided that all of the following conditions are met:2
(1) The cost of such items does not exceed the cost of other items which are3
manufactured, processed, produced, or assembled outside the state by more than ten4
percent.5
(2) The vendor of such Louisiana items agrees to sell the items at the same6
price as the lowest bid offered on such items.7
(3) In cases where more than one bidder offers Louisiana items which are8
within ten percent of the lowest bid, the bidder offering the lowest bid on Louisiana9
items is entitled to accept the price of the lowest bid made on such items.10
I. Notwithstanding any other provision of this Section to the contrary, such11
preferences shall only apply to bidders whose Louisiana business workforce is12
comprised of a minimum of fifty percent Louisiana residents.13
J. Notwithstanding any other provision of this Section to the contrary, such14
preference shall not apply to Louisiana products whose source is a clay which is15
mined or originates in Louisiana, and which is manufactured, processed or refined16
in Louisiana for sale as an expanded clay aggregate form different than its original17
state. No provision of this Subsection shall affect the preferences applicable to brick18
manufacturers.19
K. The provisions of this Section shall not apply to treated wood poles and20
piling.21
§1595.1. §1596.1. Preference in awarding contracts22
A. In the awarding of contracts by any public entity, except contracts for the23
construction, maintenance, or repair of highways and streets, and contracts financed24
in whole or in part by contributions or loans from any agency of the United States25
government, where both in-state and out-of-state vendors are bidding, in-state26
vendors shall be given a preference in the same manner that any of the out-of-state27
vendors would be given on a comparative bid in their own state. If one party to a28
joint venture is qualified under this Section as a vendor domiciled in Louisiana, this29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 71 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
qualification shall extend to all parties to the joint venture. For the purpose of this1
Section, a foreign corporation which was qualified to do business in the state of2
Louisiana in the manner required by law more than six months prior to the3
advertising of bids on a contract shall be considered to be a vendor domiciled in the4
state of Louisiana for the purpose of awarding the contract.5
B. For purposes of determination of the lowest responsible bidder, when6
letting contracts where bids are received from in-state vendors and out-of-state7
vendors, local sales and use taxes shall be excluded from the bid.8
C. The provisions and requirements of this Section shall not be waived by9
any public entity.10
§1595.2. §1596.2. Preference in letting contracts for public work11
A.(1) In the letting of contracts for public work by any public entity, except12
contracts financed in whole or in part by contributions or loans from any agency of13
the United States government:14
(a) Preference shall be given to contractors domiciled in the state of15
Louisiana over contractors domiciled in a state that provides for a preference in favor16
of contractors domiciled in that state over contractors domiciled in the state of17
Louisiana for the same type of work; and18
(b) Contractors domiciled in the state of Louisiana are to be granted the same19
preference over contractors domiciled in such state favoring contractors domiciled20
therein with a preference over contractors domiciled in the state of Louisiana in the21
same manner and on the same basis and to the same extent that such preference may22
be granted in letting contracts for the same type of work by such other state to23
contractors domiciled therein over contractors domiciled in the state of Louisiana.24
(2) If one party to a joint venture is qualified under this Section as a25
contractor domiciled in Louisiana, this qualification shall extend to all parties to the26
joint venture.27
(3) For the purpose of this Section, a foreign corporation that has qualified28
to do business in the state of Louisiana in the manner required by law more than six29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 72 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
months prior to the advertising for bids on a contract for public work shall be1
considered to be a contractor domiciled in the state of Louisiana for the purpose of2
letting the contract for such public work.3
B. The provisions and requirements of this Section shall not be waived by4
any public entity.5
§1595.3. §1596.3. Preference in awarding contracts for certain services6
In the awarding of contracts by any public entity, for services to organize or7
administer rodeos and livestock shows, where state-owned facilities will be used to8
house or contain such activities, and where both in-state and out-of-state vendors are9
bidding, in-state vendors shall be given preference, provided such services are equal10
in quality and do not exceed in cost by more than ten percent those services available11
from outside the state.12
§1595.4. §1596.4 Preference for goods manufactured, or services performed, by13
sheltered workshops; definitions; coordinating council14
A. Every governmental body shall give a preference in its purchasing15
practices to goods manufactured and services performed by severely handicapped16
individuals with severe disabilities in state-operated and state-supported sheltered17
workshops.18
B. The provisions of this Section shall not be construed to limit or otherwise19
affect the provisions of R.S. 23:3024 and 3025 regarding the sheltered industries20
program for individuals who are blind.21
C. There is hereby created within the Department of Health and Hospitals22
a council whose function shall be to coordinate and facilitate the carrying out of23
provisions of this Section. The membership of this council shall be determined by24
the secretary of the Department of Health and Hospitals. It shall have authority to25
designate and contract with a central nonprofit agency to assist sheltered workshops26
in submitting applications for the selection of suitable goods and services, to27
facilitate the allocation of orders among qualified sheltered workshops, and28
otherwise to assist the council in performing its functions.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 73 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D. The Department of Health and Hospitals may adopt, promulgate, and1
enforce such rules and regulations as are necessary and appropriate to implement the2
provisions of this Section. The regulations shall be promulgated in accordance with3
the Administrative Procedure Act, R.S. 49:950 et seq.4
E. For the purposes of this Section, the following terms are defined as5
follows:6
(1) "Direct labor" means all labor involved in the manufacture of goods or7
the performance of services except for supervision, instruction, administration, and8
shipping.9
(2) "Goods manufactured and services performed by severely handicapped10
individuals with severe disabilities" means goods and services for which not less11
than seventy-five percent of the man-hours of direct labor required for manufacture12
or performance is provided by severely handicapped individuals with severe13
disabilities.14
(3) "Qualified nonprofit agency for the severely handicapped with severe15
disabilities" means an agency that:16
(a) Is incorporated under the Louisiana Nonprofit Corporation Law and17
operated in the interests of severely handicapped individuals with severe disabilities,18
and the income of which does not inure in whole or in part to the benefit of any19
shareholder or other private individual, and20
(b) Complies with any applicable occupational health and safety standards21
provided by the statutes or regulations of this state or of the United States.22
(4) "Severely handicapped individuals" "Individuals with severe disabilities"23
means individuals with a physical, mental, or substance abuse disability which24
constitutes a substantial obstacle to their employm ent and is of such a nature as to25
prevent an individual from engaging in normal competitive employment.26
(5) "Sheltered workshop" means a facility designed to provide gainful27
employment for severely handicapped individuals with severe disabilities who28
cannot be absorbed into the competitive labor market or to provide interim29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 74 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
employment for such individuals when employment opportunities for them in the1
competitive labor market do not exist.2
(6) "State-operated sheltered workshop" means a sheltered workshop staffed3
by state agency personnel.4
(7) "State-supported sheltered workshop" means a sheltered workshop5
funded in whole or in part by the state and staffed by personnel from a qualified6
nonprofit agency for the severely handicapped individuals with severe disabilities.7
§1595.5. §1596.5. Preference for items purchased from Louisiana retailers8
A. When purchasing items at retail, every procurement officer under the9
provisions of this Chapter or other person acting as purchasing agent shall purchase10
items from a retail dealer located in the state of Louisiana which items are equal in11
quality to items purchased from a retail dealer located outside the state, provided the12
cost of items purchased from a retail dealer located in this state does not exceed by13
more than ten percent the cost of items purchased from a retail dealer located outside14
the state.15
B. A retail dealer shall qualify for the preference if the dealer can show that16
he has paid Louisiana corporate income, corporate franchise, and inventory taxes or17
any combination thereof during the previous twelve-month period.18
C. Retailers domiciled in the state of Louisiana are to be granted the same19
preference over retailers domiciled in the state favoring retailers domiciled therein20
with a preference over retailers domiciled in the state of Louisiana in the same21
manner and on the same basis and to the same extent that such preference may be22
granted in purchasing items of the same type by such other state to retailers23
domiciled therein over retailers domiciled in the state of Louisiana.24
§1595.6. §1596.6 Preference for steel rolled in Louisiana25
A. When purchasing steel, every person acting as purchasing agent for any26
agency, board, commission, department, or other instrumentality of the state or of27
a parish, municipality, or other unit of local government, including a levee board,28
drainage district, school board, or special district, shall purchase steel rolled in this29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 75 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
state which is equal in quality to steel rolled outside the state, provided the cost of1
steel rolled in this state does not exceed by more than ten percent the cost of steel2
which is rolled outside the state.3
B. The provisions of this Section shall not apply when sufficient quantities4
of steel rolled in Louisiana are not available.5
§1595.7. §1596.7. Preference for items manufactured in the United States;6
definitions7
A. This Section may be cited as the "Procurement of Domestic Products8
Act".9
B. As used in this Section, the following definitions shall apply:10
(1) "Manufactured in the United States" means produced by a process in11
which the manufacturing, final assembly, processing, packaging, testing, and any12
other process that adds value, quality, or reliability to assembled articles, materials,13
or supplies, occur in the United States.14
(2) "United States" means the United States and any place subject to the15
jurisdiction of the United States.16
C. In the event a contract is not entered into for products purchased under the17
provisions of R.S. 39:1595, each procurement officer, purchasing agent, or similar18
official who procures or purchases materials, supplies, products, provisions, or19
equipment under the provisions of this Chapter may purchase such materials,20
supplies, products, provisions, or equipment which are manufactured in the United21
States, and which are equal in quality to other materials, supplies, products,22
provisions, or equipment, provided that all of the following conditions are met:23
(1) The cost of such items does not exceed the cost of other items which are24
manufactured outside the United States by more than five percent.25
(2) The vendor of such items agrees to sell the items at the same price as the26
lowest bid offered on such items.27
(3) In cases where more than one bidder offers items manufactured in the28
United States which are within five percent of the lowest bid, the bidder offering the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 76 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
lowest bid on such items is entitled to accept the price of the lowest bid made on1
such items.2
(4) The vendor certifies that such items are manufactured in the United3
States.4
D. The office of state purchasing may promulgate rules and regulations for5
the implementation of this Section in accordance with the Administrative Procedure6
Act.7
§1596. Small purchases8
Procurements not exceeding the amounts established by executive order of9
the governor may be made in accordance with small purchase procedures prescribed10
by such executive order, except that procurement requirements shall not be11
artificially divided so as to constitute a small purchase under this Section.12
§1597. Sole source procurements13
A contract may be awarded for a required supply, service, or major repair14
without competition when, under regulations, the chief procurement officer or his15
designee above the level of procurement officer determines in writing that there is16
only one source for the required supply, service, or major repair item.17
§1598. Emergency procurements18
A. Conditions for use. The chief procurement officer or his designee above19
the level of procurement officer may make or authorize others to make emergency20
procurements when there exists an imminent threat to the public health, welfare,21
safety, or public property under emergency conditions as defined in accordance with22
regulations.23
B. Written quotations. Every effort shall be made to obtain quotations from24
three or more vendors when supplies, services, or major repairs are to be purchased25
on an emergency basis, except for standard equipment parts for which prices are26
established. Immediate purchasing shall be discouraged as much as is practicable.27
When supplies, services, or major repairs are urgently required and time does not28
permit the obtaining of written quotations, the procurement officer may obtain29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 77 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
quotations by telephoning or otherwise, but such quotations shall be made on the1
relative purchase requisitions. So far as practicable, quotations shall be secured from2
institutions of the state as provided by law.3
C. Determination required. The Chief Procurement Officer shall make a4
written determination of the basis of the emergency that includes the facts and5
circumstances leading to the conclusion that such procurement was necessary as well6
as a written determination detailing the steps taken prior to selecting a particular7
contractor and the basis for the final selection.8
The written determination shall be included in the contract file either prior9
to contracting or as soon thereafter as practicable.10
SUBPART B-1. CERTAIN AUCTION METHODS11
§1598.1. Reverse auction12
A.(1) Notwithstanding the provisions of Subpart B of this Part, with the13
approval of the state director of purchasing and the determination of the head of the14
using agency that the best interests of the state would be served and that electronic15
online bidding is more advantageous than other procurement methods provided in16
this Chapter, a reverse auction may be utilized for the acquisition of materials,17
supplies, services, products, or equipment.18
(2) For purposes of this Subpart, "reverse auction" means a competitive19
online solicitation process on the Internet for materials, supplies, services, products,20
or equipment in which vendors compete against each other online in real time in an21
open and interactive environment.22
B. Prior to the implementation of this Subpart, the state director of23
purchasing shall develop policies, procedures, and promulgate regulations, in24
accordance with the Administrative Procedure Act. Such policies and procedures25
may require that:26
(1) Vendors shall register before the opening date and time, and as part of27
the registration, require that the vendors agree to any terms and conditions and other28
requirements of the solicitation.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 78 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) Vendors shall be prequalified prior to placing bids and allow only bidders1
who are prequalified to submit bids.2
(3) The solicitation shall designate an opening date and time and the closing3
date and time. The closing date and time may be fixed or remain open depending on4
the nature of the item being bid.5
(4) At the opening date and time, the using agency shall begin accepting6
online bids and continue accepting bids until the bid is officially closed. Registered7
bidders shall be allowed to lower the price of their bid below the lowest bid posted8
on the Internet until the closing date and time.9
(5) Bidders' identities shall not be revealed during the bidding process; only10
the successively lower prices, ranks, scores, and related bid details shall be revealed.11
(6) All bids shall be posted electronically and updated on a real-time basis.12
(7) The using agency shall retain the right to cancel the solicitation if it13
determines that it is in the agency's or the state's best interest.14
(8) The using agency shall retain its existing authority to determine the15
criteria that shall be used as a basis for making awards.16
C. Adequate public notice for the purchase of materials, supplies, services,17
or equipment using a reverse auction shall be given as follows:18
(1) The advertisement or notice shall be published one time in the official19
journal of the state at least twenty days before the opening date of the reverse20
auction.21
(2) In the case of any purchase to meet the needs of a single budget unit, the22
advertisement shall be published also in a newspaper of general circulation printed23
in the parish in which the budget unit is situated, or, if there is not a newspaper24
printed in the parish, in a newspaper printed in the nearest parish that has a general25
circulation in the parish in which the budget unit is situated.26
SUBPART C. D. CANCELLATION OF INVITATIONS27
FOR BIDS OR REQUESTS FOR PROPOSALS28
§1599. Cancellation of invitations for bids or requests for proposals29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 79 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
An invitation for bids, a request for proposals, or other solicitation may be1
cancelled, or all bids or proposals may be rejected, only if it is determined in writing2
by the chief procurement officer or his designee that such action is taken in the best3
interests of the state.4
SUBPART D. E. QUALIFICATIONS AND DUTIES5
§1601. Responsibility of bidders and offerors proposers6
A. A reasonable inquiry to determine the responsibility of a bidder or offeror7
proposer may be conducted. The unreasonable failure of a bidder or offeror proposer8
promptly to supply information in connection with such an inquiry may be grounds9
for a determination of nonresponsibility with respect to such bidder or offeror.10
B. Whenever the Chief Procurement Officer, Commissioner state chief11
procurement officer, commissioner of administration, or head of a governmental12
body with such authority proposes to disqualify the lowest bidder on bids of $5,00013
or more such individual shall:14
1) (1) Give written notice of the proposed disqualification to such bidder and15
include in the written notice all reasons for the proposed disqualification; and16
2) (2) Give such bidder who is proposed to be disqualified, a reasonable17
opportunity to be heard at an informal hearing at which such bidder is afforded the18
opportunity to refute the reasons for the disqualification.19
C. Except as otherwise provided by law, information furnished by a proposer20
pursuant to this Section may not be disclosed outside of the user agency or the state21
central purchasing agency without prior written notice to the proposer.22
§1602. Prequalification of suppliers23
Prospective suppliers may be prequalified for particular types of supplies and24
services.25
§1603. Cost or pricing data26
A. Contractor certification. A contractor shall submit cost or pricing data27
and shall certify that, to the best of its knowledge and belief, the cost or pricing data28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 80 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
submitted was accurate, complete, and current as of a mutually determined specified1
date prior to the date of:2
(1) Pricing of any contract awarded by other than competitive sealed3
bidding, as provided in R.S. 39:1594, or small purchase procedures, as provided in4
R.S. 39:1596, where the total contract price is expected to exceed an amount5
established by regulations; or6
(2) Pricing of any change order or contract modification which is expected7
to exceed an amount established by regulations.8
B. Price adjustment. Any contract, change order, or contract modification9
under which a certificate is required shall contain a provision that the price to the10
state, including profit or fee, shall be adjusted to exclude any significant sums by11
which the procurement officer finds that such price was increased because the12
contractor-furnished cost or pricing data was inaccurate, incomplete, or not current13
as of the date agreed upon between the parties.14
C. Cost or pricing data not required. The requirements of this Section need15
not be applied to contracts:16
(1) Where the contract price is based on adequate price competition;17
(2) Where the contract price is based on established catalog or market prices18
of commercial items sold in substantial quantities to the general public;19
(3) Where contract prices are set by law or regulation; or20
(4) In exceptional cases where it is determined in writing in accordance with21
regulations that the requirements of this Section may be waived, and the reasons for22
such waiver are stated in writing.23
SUBPART E. F. TYPES OF CONTRACTS24
§1611. Cost-plus-a-percentage-of-cost contracts25
The cost-plus-a-percentage-of-cost system of contracting shall not be used26
except in case of a disaster or emergency declared by the governor.27
§1612. Cost-reimbursement contracts28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 81 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. Determination required prior to use. No cost-reimbursement prime1
contract may be made unless it is determined in writing in accordance with2
regulations that such contract is likely to be less costly to the state than any other3
type of contract or that it is impracticable to obtain supplies, services, or major4
repairs of the kind or quality required except under such a contract.5
B. Reimbursement of costs. All cost-reimbursement contracts shall contain6
a provision that only costs recognized as allowable in accordance with cost principles7
set forth in regulations will be reimbursable.8
C. Prior notice requirement concerning use of cost-reimbursement type9
subcontract. Each contractor under a cost-reimbursement type contract shall give10
notice, as provided for in the contract, before entering into either of the following:11
(1) A cost-reimbursement type subcontract.12
(2) Any other type of subcontract involving more than ten thousand dollars13
or ten percent of the estimated cost of the prime contract.14
§1613. Use of other types of contracts15
Subject to the limitations of R.S. 39:1611 and R.S. 39:1612, any type of16
contract, including brand name and multiple award contracts, which will promote the17
best interests of the state may be used, provided that the chief procurement officer18
must make a written determination justifying the type of contract used. An annual19
report on the number, type, and volume of such procurements shall be made to the20
commissioner or cabinet department head within ninety days after the end of the21
fiscal year.22
§1613. Reimbursement of costs for professional, personal, consulting, and23
social service contracts24
A. All cost-reimbursement type contracts shall contain a provision that only25
costs recognized as allowable in accordance with cost principles set forth in rules and26
regulations, issued pursuant to Part IV hereof will be reimbursable.27 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 82 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B. Payments may be made to the contractor for professional, personal,1
consulting, and social service contracts in advance of services being performed if the2
following conditions are met:3
(1) The using agency has submitted, in writing, to the office of state4
procurement, a certification that an advance is necessary in order to provide the5
services at the lowest total cost and that there is no other cost effective source of6
such advance funding. The certification shall include a narrative setting out the facts7
which necessitate the advance funding.8
(2) The advance is approved by the chief procurement officer.9
(3) Except as may be otherwise provided by law, the amount of such advance10
shall be limited to a sum not to exceed twenty percent of the total contract amount,11
excluding travel advances which shall be governed by applicable regulations.12
(4) The contractor is a nonprofit corporation.13
C. If local matching funds are available to fund the advance, no state monies14
shall be advanced through the contract.15
D. If federal funds are used for the advance, federal regulations and statutes16
shall govern the use and amounts of advance payments made.17
E. Interagency contracts as defined in R.S. 39: are exempt from the18
provisions of Subsections B and C of this Section.19
F. The provisions of this Section shall not be construed to authorize20
payments in advance of services to be performed pursuant to a professional service21
contract.22
G. State funds may be expended to fund the advance only in the same fiscal23
year in which the funds are appropriated.24
§1614. Approval of accounting system25
Except with respect to firm fixed-price contracts, no contract type shall be26
used unless it has been determined in writing by the chief procurement officer or his27
designee that:28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 83 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(1) The proposed contractor's accounting system will permit timely1
development of all necessary cost data in the form required by the specific contract2
type contemplated; and3
(2) The contractor's accounting system is adequate to allocate costs in4
accordance with generally accepted accounting principles.5
§1615. Multiyear contracts6
A. Specified Period. Unless otherwise provided by law, a contract for7
supplies or services may be entered into for periods of not more than five years, if8
funds for the first fiscal year of the contemplated contract are available at the time9
of contracting. Payment and performance obligations for succeeding fiscal years10
shall be subject to the availability and appropriation of funds therefor. No contract11
shall be entered into for more than one year unless the length of the contract was12
clearly stated in the specifications. Any lease or similar agreement affecting the13
allocation of space in the state capitol shall have the prior approval of the Legislative14
Budgetary Control Council if it extends for more than one year. A report of all15
multiyear contracts shall be provided to the Joint Legislative Committee on the16
Budget no later than ninety days after the end of each fiscal year.17
B. Determination prior to use. Prior to the utilization of a multiyear contract,18
it shall be determined in writing:19
(1) That estimated requirements cover the period of the contract and are20
reasonably firm and continuing; and21
(2) That such a contract will serve the best interests of the state by22
encouraging effective competition or otherwise prompting economies in state23
procurement.24
A written resume of the supportive underlying facts for the foregoing25
determinations shall be included in the determination, and the resume shall state the26
estimated savings to be obtained by entering into a multiyear contract.27
C. Termination due to unavailability of funds in succeeding years. When28
funds are not appropriated to support continuation of performance in a subsequent29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 84 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
year of a multiyear contract, the contract for such subsequent year shall be1
terminated. When a contract is terminated under these conditions, no additional2
funds shall be paid to the contractor as a result of such action.3
D. Educational institutions excepted. (1) An educational institution may4
enter into a multiyear nonexclusive contract, not to exceed ten years, with a vendor5
who has made a gift to the institution of equipment utilized for promoting products6
and university activities at a cost to the vendor in excess of fifty thousand dollars.7
Further, for this exception to be applicable, the contract shall cover products for8
resale within the institution.9
(2) The state superintendent of education may enter into a multiyear contract,10
not to exceed ten years, with any public or private agency to act as the depository in11
the state for school books.12
E. With respect to all multiyear contracts, there shall be no provisions for a13
penalty to the state for the cancellation or early payment of the contract.14
F. The Department of Environmental Quality may enter into a multiyear15
contract, not to exceed seven years, for the operation of privately operated vehicle16
emission inspection facilities pursuant to R.S. 30:2054(B)(8). The secretary shall17
seek and consider proposals for an enhanced inspection maintenance program to be18
implemented no sooner than January 1, 1995, from contractors proposing to19
implement currently evolving, cost-effective technologies, presenting minimal public20
inconvenience, designed to bring Louisiana into compliance with federal ambient air21
quality standards and meeting EPA required program standards.22
G.(1) Unless otherwise provided in the statutes making appropriations23
therefor, a contract for professional, personal, consulting, or social services may be24
entered into for periods of not more than five years, except that:25
(a) Contracts for management of food services at public universities and26
colleges, contracts of retirement systems for investment management services and27
investment advisory services, contracts for electronic disbursement services for child28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 85 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
support payments, contracts for prisoner dialysis, and contracts for central banking1
services for the state may be entered into for periods of up to five years.2
(b) Contracts for electronic benefits issuance system services as required3
under R.S. 46:450.1 may be entered into for periods of up to ten years. The contracts4
shall be for an initial contract period of six years with the state having two options5
for two-year extensions up to a maximum of ten years.6
(c) Contracts for national norm-referenced testing or other testing services7
which are to be used as part of the school and district accountability system as8
provided in R.S. 17:10.1 et seq. may be entered into for a period of up to twelve9
years. Modifications to existing contracts may be made in order to ensure the10
acquisition and usage of the most current tests offered by the contractor.11
(d)(i) Contracts or amendments to existing contracts issued to institutions of12
higher education under the authority of grants or joint agreements between the Board13
of Regents and federal agencies for research, educational, or infrastructure14
development activities, and contracts or amendments to existing contracts issued by15
such institutions under the authority of grants or joint agreements issued by federal16
agencies or private grants, may be entered into for a period corresponding to the17
performance period of the grant or agreement.18
(ii) Contracts or amendments to existing contracts issued to institutions of19
higher education under the authority of the Board of Regents to award grants for20
educational and research purposes with funds available from the Louisiana Quality21
Education Support Fund, the Louisiana Fund, and the Health Excellence Fund may22
be entered into for periods of not more than six years. However, such contracts may23
be extended beyond the six-year limit up to an additional two years provided no24
additional costs are incurred.25
(e) Contracts for the administration of the Medicaid early periodic screening26
diagnosis and treatment program (EPSDT), primary care case management (PCCM),27
and home and community-based services waivers may be entered into by the28
Department of Health and Hospitals for periods of up to five years.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 86 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) Any such contract may be cancelled by the governmental body, provided1
the governmental body gives thirty days notice of such cancellation. If funds for the2
first fiscal year of the contemplated contract are available at the time of contracting,3
payment and performance obligations for succeeding fiscal years shall be subject to4
the availability of funds therefor.5
H. Prior to the utilization of a multi-year contract, it shall be determined in6
writing by the commissioner of administration that:7
(1) Estimated requirements cover the period of the contract and are8
reasonably firm and continuing; and 9
(2) Such a contract will serve the best interests of the state by encouraging10
effective competition or otherwise promoting economies in state procurement.11
I. When funds are not appropriated or otherwise made available to support12
continuation of performance in a subsequent year of a multi-year contract, the13
contract for such subsequent year shall be cancelled and the contractor shall be14
reimbursed in accordance with the terms of the contract for the reasonable value of15
any nonrecurring costs incurred but not amortized in the price of the services16
delivered under the contract. The cost of cancellation may be paid from (1)17
appropriations currently available for performance of the contract; (2) appropriations18
currently available for procurement of similar services and not otherwise obligated,19
or (3) appropriations made specifically for the payment of such cancellation costs.20
§1616. Installment-purchase contract21
The central purchasing agency may, on behalf of any governmental body,22
enter into contracts for the installment purchase of supplies or equipment, including23
but not limited to data processing equipment and telecommunications equipment,24
procured under the Louisiana Procurement Code this Chapter and any other25
applicable laws on the procurement of supplies or equipment, in accordance with the26
following provisions:27
(1) All installment-purchase contracts shall be entered into utilizing the28
requisite procedures applicable to the particular supply or equipment being procured.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 87 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) The term of such contract shall not exceed the economic life to the item1
or items being procured, which shall be established by the central purchasing agency2
and shall be set forth in the invitation to bid or request for proposal, but in no case3
shall the term of the contract exceed five years.4
(3) Each contract shall contain an annual appropriation dependency clause5
which shall provide that the continuation of the contract is contingent upon the6
continuation of an appropriation of funds by the legislature to fulfill the requirements7
of the contract. If the legislature fails to appropriate sufficient monies to provide for8
the continuation of the contract or if a veto or reduction of appropriation of funds9
necessitates the discontinuance of the contract, the contract shall terminate on the last10
day of the fiscal year for which funds were appropriated, in accordance with R.S.11
39:1615(C).12
(4) Such contracts shall also conform to any other requirements which may13
be established by the central purchasing agency through rules and regulations,14
promulgated in accordance with law.15
SUBPART F. G. INSPECTION OF PLANT AND AUDIT OF RECORDS16
§1621. 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. 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 to the extent that such books24
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 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 88 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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. H. DETERMINATIONS AND REPORTS4
§1625. Finality of determinations5
The determinations required by R.S. 39:1595(A),
1
R.S. 39:1595(E),
1
R.S.6
39:1597, R.S. 39:1598(C), R.S. 39:1599, R.S. 39:1601, R.S. 39:1603(C), R.S.7
39:1612(A), R.S. 39:1613, and R.S. 39:1614 are final and conclusive unless they are8
clearly erroneous, arbitrary, capricious, or contrary to law.9
§1626. Reporting of suspected collusive bidding or negotiations10
A. Notification to the attorney general. When for any reason collusion is11
suspected among any bidders or offerors, a written notice of the relevant facts shall12
be transmitted to the attorney general.13
B. Retention of all documents. All documents involved in any procurement14
in which collusion is suspected shall be retained for a minimum of six years or until15
the attorney general gives written notice that they may be destroyed, whichever16
period is longer. All retained documents shall be made available to the attorney17
general or a designee upon request and proper receipt therefor.18
§1627. §1626. Record of certain procurement actions19
The chief procurement officer shall retain all contracts made under R.S.20
39:1597 or R.S. 39:1598 for a minimum of six years.21
SUBPART H. I. INSURANCE22
§1631. Direct purchase of insurance23
Notwithstanding the provisions of R.S. 22:1171 or any other law to the24
contrary, the state may purchase insurance policies covering any property or25
insurable interests or activities of the state directly from insurers or underwriters,26
without the necessity for signature or countersignature of such policies as provided27
by R.S. 22:1171, and in lieu thereof such policy shall be signed by an official or28
designated representative of the company issuing the policy. The insurers or29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 89 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
underwriters making such direct sales to the state shall reduce the policy premiums1
by the amount of the commissions, which would have been paid, as required by R.S.2
22:1171, but for the provisions of this Section. However, if any such insurance3
policy is purchased in accordance with the provisions of R.S. 22:1171, the agent may4
credit any portion of the commission to the state, through the division of5
administration. The state shall be advised of the amount of any such rebate at the6
time the agent furnishes a bid for such policy to the state, and the amount of such7
rebate shall be taken into consideration in determining the cost of such policy.8
§1632. Splitting of commissions prohibited9
It shall be unlawful for an agent to split, pass on, or share with any person,10
group, organization, or other agent, except the state of Louisiana, all or any portion11
of the commission derived from the sale of insurance to the state; except that on12
policies involving properties or exposure in more than one geographic area of the13
state, said commission may be split, shared, or passed on if authorized in writing by14
the commissioner of administration. In any such instance where the sharing of a15
commission on state insurance is authorized, it shall be only with a bona fide16
insurance agent. Whoever violates the provisions of this Section shall, upon17
conviction, be fined not less than one thousand dollars nor more than five thousand18
dollars and shall be imprisoned for not more than two years.19
§1633. Authorization constitutes public record20
Such written authorization as required by R.S. 39:1632 above shall constitute21
a public record as defined in Chapter 1 of Title 44 of the Louisiana Revised Statutes22
of 1950.23
SUBPART I. J. ACQUISITION OF HOUSING SPACE24
§1641. Budget for acquisition of housing space and leases by budget units25
A. Contracts and agreements by and in name of state agencies. All contracts26
and agreements for the lease or rental of space for the housing of state agencies, their27
personnel, operations, equipment, or activities shall be made in the name of and by28
the authorized representative or representative body of the state agency but shall be29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 90 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
made and entered into only with the approval of the commissioner of administration.1
The cost of such housing shall be provided for in and defrayed from the budgets of2
the using agencies.3
B. Contracts and agreements by and in name of the state, executed by the4
commissioner. 5
(1) When a contract or agreement for the lease or rental of space for the6
housing of state agencies, their personnel, operation, equipment, or activities, shall7
pertain to more than one building or facility or shall pertain to a building or facility8
which is to house more than one state agency, their personnel, operation, equipment,9
or activities, such contract or agreement may be made in the name of the state and10
executed by the commissioner of administration, rather than in the name of and by11
an authorized representative or a representative body of the state agency or agencies12
to be housed in such building or buildings or facility or facilities.13
(2) The commissioner of administration shall allocate space to one or more14
state agencies in the building or buildings or facility or facilities to which such15
contract or agreement pertains and shall allocate the cost of such housing to or16
among such using agency or agencies, which cost shall be provided for in and17
defrayed from the budgets of the using agency or agencies. The commissioner shall18
determine the amount of the allocations of the costs of such housing to the various19
agencies using such building or buildings and facility or facilities in such manner so20
that the aggregate of the amount so allocated equals the total cost of such housing.21
C. Definition of "agency." The definition of "agency" stated in R.S. 39:2(1)22
shall be the sole definition of the term "state agency" employed in connection with23
the acquisition of housing space in this and following Sections, and the fact that an24
agency is supported by fees or taxes collected by, or dedicated to, the agency or25
which otherwise receives its operating funds through means other than direct26
appropriations, shall not be a test as to whether this Section shall be applicable to an27
agency of the state.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 91 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D. Applicability. The provisions of this Subpart shall be applicable to all1
agencies meeting the definition of R.S. 39:2(1) established by the laws of Louisiana.2
E. Repealed by Acts 1988, No. 919, §3.3
F. Repealed by Acts 1997, No. 600, §1.4
§1642. Uniform space standards; inventory and evaluation of budget unit space5
utilization6
A. Uniform space standards. The division of administration shall prepare7
and utilize a uniform set of standards for determining space needs for state agencies.8
These standards shall also provide for a uniform method of measuring square footage9
or other measurements used as the basis for lease payments or other charges.10
B. Inventory of state space. The division of administration shall conduct and11
maintain a complete inventory of state space, both owned and leased.12
C. Evaluation of space utilization. The division of administration shall13
evaluate the utilization of all leased space on a continuing basis to determine the14
feasibility of locating state agencies in buildings to be purchased and/or constructed15
by the state.16
§1643. Advertisement and award of lease bids17
A. Every lease for the use of five thousand square feet or more of space in18
a privately owned building entered into by a state agency as lessee shall be awarded19
pursuant to R.S. 39:1594 in accordance with the conditions for use set forth in that20
Section and only after evaluation of the bids in accordance with the specific criteria21
contained in the invitation for bids as authorized by R.S. 39:1594(E)(2). No such22
lease shall extend beyond a period of ten years.23
B. The ten-year limitation shall not be applicable to the management boards24
created under Article VIII, Sections 6 and 7 of the 1974 Louisiana Constitution.25
§1644. Amendment of leases26
A.(1) An existing lease for office or warehouse space may be renegotiated27
with the present lessor, but only after the division of administration has entered into28
a competitive negotiation process involving discussions with at least three, unless29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 92 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
there are less than three, offerors who submit written proposals. Such proposals shall1
be solicited by advertising as in R.S. 39:1594(C).2
(2) If it is determined by the commissioner of administration or his designee,3
after the evaluation of these proposals and discussions with the current lessor, that4
to renew the present lease would be in the best interest of the state, the renewal of an5
existing lease may be renegotiated or the commissioner may enter into a lease with6
one of these offerors proposers if determined to be in the state's best interest. In7
making such a determination the commissioner, or his designee, shall take into8
consideration, over the duration of the lease, rental rates, the amount of funds9
necessary to relocate, any geographical considerations particular to that state10
program, the amount of disruption to state business that may be incurred in moving11
to a new location, and any other relevant factors presented.12
B. Any lease for office or warehouse space for under five thousand square13
feet may be amended up to but not to exceed a maximum of four thousand nine14
hundred ninety-nine square feet.15
C. Existing leases for office or warehouse space between a single state16
agency, a single lessor and affecting a single building or buildings immediately17
adjacent to each other which leases have different termination dates, may be18
renegotiated by the division of administration to perfect a single lease for the whole19
of the office or warehouse space utilized under the existing leases. The renegotiated20
lease shall not extend beyond the termination date of the latest existing lease, nor21
shall the price per square foot paid under the new lease result in a total payment in22
excess of the total of the combined payments under the preexisting leases.23
D. In the event alterations or modifications of space currently under lease are24
required to meet changed operating requirements, a lease may be amended. Such25
lease amendment may, with approval of the division of administration, provide an26
adjustment in monthly lease payments not to exceed twenty-five percent of the27
original annual lease price per square foot, sufficient to reimburse the lessor for28
paying for the leasehold improvements; provided, however, that any adjustment in29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 93 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
monthly lease payments shall also require the approval of the Joint Legislative1
Committee on the Budget and the continuance of an adjustment in excess of the2
current lease shall be further contingent on the appropriation of funds therefor in the3
following fiscal year.4
E. A lease may be amended, with approval of the division of administration,5
to provide an adjustment in monthly lease payments not to exceed ten percent of the6
original annual lease price per square foot and not to exceed ten thousand dollars per7
year.8
SUBPART J. ACQUISITION OF USED EQUIPMENT9
§1645. Procurement of used equipment10
A. Any agency covered by this Chapter may procure any equipment which11
is used or which has been previously purchased by an individual or corporation12
where the agency proposing to make such procurement can present satisfactory13
information to the procurement officer to illustrate that the procurement of said14
equipment is cost effective to the state.15
B.(1) The used equipment shall be purchased by the head of the agency,16
college, or university, within the price range set by the director of state purchasing,17
or the directors of purchasing at colleges and universities, in a statement of written18
approval for the purchase which must be obtained by the head of the agency, college,19
or university, prior to the purchase.20
(2) The head of the agency, college, or university, shall certify in writing to21
the director of state purchasing, or the directors of purchasing at colleges and22
universities, all of the following:23
(a) The price for which the used equipment may be obtained.24
(b) The plan for maintenance and repair of the equipment and the cost25
thereof.26
(c) The savings that will accrue to the state because of the purchase of the27
used equipment.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 94 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(d) The fact that following the procedures set out in the Louisiana1
Procurement Code will result in the loss of the opportunity to purchase the2
equipment.3
SUBPART K. ACQUISITION OF MOTOR VEHICLES4
§1646. Acquisition of motor vehicles; minimum requirements for fuel efficiency;5
exceptions6
A. Any purchase or lease of a motor vehicle by an agency which is covered7
by this Chapter shall be made in accordance with the provisions of this Subpart.8
Such vehicles shall have, at the time of acquisition, a fuel efficiency rating of no less9
than eighteen miles per gallon for city driving and no less than twenty-eight miles10
per gallon for highway driving, or a combined city/highway average of twenty-four11
miles per gallon.12
B. For purposes of this Subpart, "motor vehicle" shall include the following13
vehicles as they are specified or defined in administrative rule or regulation14
prescribed by the commissioner of administration pursuant to Part XIII of Chapter15
1 of Title 39 of the Louisiana Revised Statutes of 1950: alternative fuel vehicle,16
sedan, and station wagon.17
C. For purposes of this Subpart, "motor vehicle" shall not include the18
following:19
(1) A vehicle to be used by law enforcement personnel, certified first20
responders and emergency personnel when required for the performance of their21
duties, or a vehicle used in the conduct of military activities.22
(2) A vehicle to be used by any state employee when written authorization23
for such purchase has been provided by the department head to the commissioner of24
administration and approved by him, or a vehicle to be used by an employee of a25
political subdivision of the state when the governing authority of the political26
subdivision authorizes such purchase.27
PART IV. SPECIFICATIONS28
SUBPART A. SPECIFICATIONS29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 95 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1651. Duties of the commissioner of administration1
A. The commissioner shall promulgate regulations governing the preparation,2
maintenance, and content of specifications for supplies, services, and major repairs3
required by the state.4
B. As used in this Part, the term "specification" means any description of the5
physical or functional characteristics, or of the nature of a supply, service, or major6
repair. It may include a description of any requirement for inspecting, testing, or7
preparing a supply, service, or major repair for delivery.8
§1651.1. Shrimp specifications9
Notwithstanding any other provision of law to the contrary, regulations10
promulgated by the commissioner of administration or other purchasing entity,11
governing the purchase or use of shrimp shall require that the bid specify the count12
size of such shrimp and not specify size as "jumbo", "extra large", "medium",13
"small" or any other similar term or nomenclature used in the shrimping industry.14
§1652. Duties of the chief procurement officer15
The chief procurement officer shall prepare, issue, revise, and monitor the use16
of specifications for required supplies, services, and major repairs.17
§1653. Exempted items18
Specifications for supplies, services, or major repairs exempted pursuant to19
R.S. 39:1572 may be prepared by a purchasing agency in accordance with the20
provisions of this Part and regulations promulgated hereunder by the head of the21
governmental body granted authority to promulgate regulations by R.S. 39:1581.22
§1654. Relationship with using agencies23
The director state chief procurement officer shall obtain advice and assistance24
from personnel of using agencies in the determination of needs and development of25
specifications and may delegate in writing to a using agency the authority to prepare26
and utilize its own specifications, subject to regulations.27
§1655. Maximum practicable competition28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 96 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
A. All specifications shall seek to promote overall economy for the purposes1
intended and encourage competition in satisfying the needs of the state, and shall not2
be unduly restrictive. A specification may be drafted which describes a product3
which is proprietary to one company only where:4
(1) No other kind of specification is reasonably available for the state to5
describe its requirements; or6
(2) There is a requirement for specifying a particular design or make of7
product due to factors of compatibility, standardization, or maintainability; or8
(3) Such specification includes language which specifically permits an9
equivalent product to be supplied. Such specification shall include a description of10
the essential characteristics of the product.11
(4) Such specification is determined to be in the best interest of the state as12
provided for by R.S. 39:1613.13
B. Except in Paragraph (2) of this Section, whenever such proprietary14
specifications are used, the specifications shall clearly state that they are used only15
to denote the quality standard of supplies, services, or major repairs desired and that16
they do not restrict bidders to the specific brand, make, manufacturer, or17
specification named; that they are used only to set forth and convey to prospective18
bidders the general style, type, character, and quality of supplies, services, or major19
repairs desired; and that equivalent supplies, services, or major repairs will be20
acceptable.21
§1656. Escalation clause22
Bid specifications may contemplate a fixed escalation or deescalation in23
accordance with a recognized price index. Such index may include, but are not24
limited to, the United States Bureau of Labor Statistics, Consumer Price Index and25
Wholesale Price Index. Bids based on specifications which are subject to a26
recognized escalation index shall be legal and valid.27
§1657. Specifications prepared by architects and engineers28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 97 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
The requirements of this Part regarding the purposes and nonrestrictiveness1
of specifications shall apply to all specifications, including but not limited to those2
proposed by architects, engineers, designers, and draftsmen for public contracts.3
§1658. Mandatory information requirement for contracts let without competition4
under the authority of an executive order5
A. The provisions of this Section shall apply to any contract for state6
procurement of goods or services which is subject to the provisions of Chapter 17 of7
this Title, hereinafter referred to as "state procurement law", which contract is let8
without competition pursuant to an executive order issued by authority granted under9
the Louisiana Homeland Security and Emergency Assistance and Disaster Act,10
which order grants exceptions to the requirements of state procurement law. Such11
provisions shall apply to contracts which have been or will be let without12
competition pursuant to executive orders related to Hurricane Katrina or Rita which13
granted exceptions to the requirements of state procurement law.14
B.(1) For any contract subject to the provisions of this Section, the15
information cited in Subparagraphs (a) through (d) of this Paragraph shall be16
submitted by the primary contractor to the office of state purchasing. The following17
information shall be submitted, in a format to be determined by such agencies, no18
later than forty-five days after the effective date of the contract, or forty-five days19
after June 29, 2006, whichever is later:20
(a) The name of the primary contractor.21
(b) The amount of the contract.22
(c) The name of each subcontractor.23
(d) The amount of each subcontract.24
(2) Any change in subcontractors, or in the amount of a subcontract which25
exceeds twenty-five percent in the aggregate of the original subcontracted amount,26
shall necessitate the submission of updated information as required in Paragraph (1)27
of this Subsection.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 98 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) The primary contractor for each contract subject to the provisions of this1
Section shall be notified of the requirements of this Section by the contracting state2
agency. Such notification shall be made no later than ten days after June 29, 2006,3
for contracts which are currently in effect. Otherwise, the notification shall be made4
prior to execution of the contract.5
C. The office of state purchasing shall maintain a listing or registry of all6
information reported to it pursuant to the provisions of this Section.7
D. Failure to submit all of the information required as provided in Subsection8
B of this Section shall be grounds for debarment. It shall be unlawful for any person9
to intentionally fail to submit such information, which failure is hereby deemed to10
be a violation of the duty to provide the mandatory information. Whomever violates11
such provisions of Subsection B of this Section shall be fined in an amount not to12
exceed one-half of the contract amount and imprisoned for not more than six months,13
or both.14
E. The provisions of this Section shall not be subject to suspension pursuant15
to the authority granted to the governor by R.S. 29:721 et seq., the Louisiana16
Homeland Security and Emergency Assistance and Disaster Act.17
§1659. Purchase of prostheses, orthoses, prosthetic services, and orthotic services18
by a state agency from an accredited facility19
Notwithstanding any other provision of law to the contrary, regulations20
promulgated by the commissioner of administration or other purchasing entity21
governing the purchase of prostheses, orthoses, prosthetic services, or orthotic22
services shall require that such services shall be purchased only from an accredited23
facility as provided in R.S. 40:1300.281; however, nothing in this Section shall24
prohibit a licensed occupational therapist or a licensed physical therapist from25
practicing within his scope of practice. In addition, the provisions of this Section26
shall not apply to a licensed optometrist, ophthalmologist, podiatrist, or orthopedist.27
PART V. MODIFICATION AND TERMINATION OF CONTRACTS28
FOR SUPPLIES, SERVICES, AND MAJOR REPAIRS29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 99 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1661. Contract clauses; administration1
A. Contract clauses. Regulations may permit or require the inclusion of2
clauses providing for equitable adjustments in prices, time for performance, or other3
contract provisions, as appropriate, covering including but not limited to the4
following subjects:5
(1) The unilateral right of the state to order in writing changes in the work6
within the general scope of the contract in any one or more of the following:7
(a) Drawings, designs, or specifications, if the supplies to be furnished are8
to be specially manufactured for the state in accordance therewith;9
(b) Method of shipment or packing; or10
(c) Place of delivery.11
(2) The unilateral right of the state to order in writing temporary stopping of12
the work or delaying of performance; and13
(3) Variations between estimated quantities of work in a contract and actual14
quantities.15
B. Additional contract clauses. Regulations may permit or require the16
inclusion in state contracts of clauses providing for appropriate remedies and17
covering remedies, including but not limited to the following subjects:18
(1) Liquidated damages as appropriate.19
(2) Specified excuses for delay or nonperformance.20
(3) Termination of the contract for default, and21
(4) Termination of the contract in whole or in part for the convenience of the22
state.23
(5) Manufacturers' design drawings shall be supplied in duplicate for all state24
buildings, to the appropriate state agency at the conclusion of contract.25
(6) Security for contract performance.26
(7) Insurance requirements including, but not limited to, general liability,27
automobile coverage, workers compensation, and errors and omissions.28
(8) Beginning and ending date of the contract29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 100 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(9) Maximum compensation to be paid by the contractor.1
C. In the event any contractor fails to fulfill or comply with the terms of any2
contract, the chief procurement officer may award the contract to the next lowest3
responsible bidder subject to acceptance by that bidder and charge the difference in4
cost to the defaulting vendor.5
D. Regulations may permit or require the inclusion in state contracts of6
clauses relative to reverse auctions pursuant to the implementation of the provisions7
of R.S. 39:1598.1.8
§1662. Modification of contracts9
The office of state procurement may adopt and promulgate rules and10
regulations permitting or requiring the insertion in contracts for the procurement of11
professional, personal, consulting, and social services appropriate clauses to enable12
the state to effect desired changes and modifications to such contracts.13
§1663. Termination of contracts14
A. The office of state procurement may adopt and promulgate rules and15
regulations relating to the termination of contracts for the procurement of16
professional, personal, consulting, and social services for the default of the17
contractor.18
B. The office of state procurement is authorized to issue rules and19
regulations relating to the termination of contracts for the procurement of20
professional, personal, consulting, and social services for the convenience of the21
state.22
§1664. Cost principles rules and regulations required23
The office of state procurement shall issue rules and regulations setting forth24
cost principles which shall be used: 25
(1) As guidelines in the negotiation of: 26
(a) Equitable adjustments for state directed changes or modifications in27
contract performance; and28
(b) Settlements of contracts which have been terminated;29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 101 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) To determine the allowability of incurred costs for the purpose of1
reimbursing costs under contract provisions which provide for the reimbursement of2
costs.3
(3) As appropriate in any other situation where the determination of the4
estimated or the incurred costs of performing contracts may be required.5
PART VI. LEGAL AND CONTRACTUAL REMEDIES6
SUBPART A. PRE-LITIGATION RESOLUTION7
OF CONTROVERSIES8
§1671. Authority to resolve protested solicitations and awards9
A. Right to protest. Any person who is aggrieved in connection with the10
solicitation or award of a contract issued by the office of state procurement shall11
protest to the chief procurement officer. Protests with respect to a solicitation shall12
be submitted in writing at least two days prior to the opening of bids on all matters13
except housing of state agencies, their personnel, operations, equipment, or activities14
pursuant to R.S. 39:1643 for which such protest shall be submitted at least ten days15
prior to the opening of bids. Protests with respect to the award of a contract shall be16
submitted in writing within fourteen days after contract award.17
B. Authority to resolve protests. The chief procurement officer or his18
designee shall have authority, prior to the commencement of an action in court19
concerning the controversy, to settle and resolve a protest of an aggrieved person20
concerning the solicitation or award of a contract. This authority shall be exercised21
in accordance with regulations.22
C. Decision. If the protest is not resolved by mutual agreement, the chief23
procurement officer or his designee shall, within fourteen days, issue a decision in24
writing. The decision shall:25
(1) State the reasons for the action taken; and26
(2) Inform the protestant of its right to administrative and judicial review as27
provided in this Part Chapter.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 102 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D. Notice of decision. A copy of the decision under Subsection C of this1
Section shall be mailed or otherwise furnished immediately to the protestant and any2
other party intervening.3
E. Finality of decision. A decision under Subsection C of this Section shall4
be final and conclusive unless:5
(1) The decision is fraudulent; or6
(2) The person adversely affected by the decision has timely appealed7
administratively to the Commissioner in accordance with R.S. 39:1683.8
F. Stay of procurements during protests. In the event of a timely protest9
under Subsection A of this Section, the state shall not proceed further with the10
solicitation or with the awarding of the contract unless the chief procurement officer11
makes a written determination that the awarding of the contract is necessary without12
delay to protect the substantial interests of the state. Upon such determination by the13
chief procurement officer, no court shall enjoin progress under the award except after14
notice and hearing.15
G. Award of costs to protestants. In addition to any other relief, when the16
protest is administratively or judicially sustained and the protesting bidder or offeror17
proposer should have been awarded the contract but is not, the protesting bidder or18
offeror proposer shall be entitled to the reasonable costs incurred in connection with19
the solicitation, including bid or proposal preparation costs other than attorney's fees,20
provided that any administrative determination of such costs shall be subject to the21
written concurrence of the attorney general.22
H. Promulgation of regulations. The state director of purchasing chief23
procurement officer is hereby authorized to promulgate regulations relative to24
protests, in accordance with the Administrative Procedure Act, to implement the25
provisions of R.S. 39:1598.1.26
§1671.1. Resolution of disputes between the chief procurement officer and using27
agencies28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 103 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
If a dispute arises between the chief procurement officer and a using agency1
as to any items required to be certified by the using agency to the chief procurement2
officer pursuant to R.S. 39:1497 and R.S. 39:1494.1, or any items that must be3
determined by the chief procurement officer pursuant to the provisions of R.S.4
39:1498, either the chief procurement officer or the using agency may request the5
commissioner of administration to make a final determination on the matter.6
§1672. Authority to debar or suspend7
A. Applicability. This Section applies to a debarment for cause from8
consideration for award of contracts or a suspension from such consideration during9
an investigation where there is probable cause for such a debarment.10
B. Authority. After reasonable notice to the person involved and reasonable11
opportunity for that person to be heard, the chief procurement officer shall have12
authority to suspend or debar a person for cause from consideration for award of13
contracts, provided that doing so is in the best interests of the state. The causes for14
debarment are set forth in Subsection C of this Section. The chief procurement15
officer may suspend a person from consideration for award of contracts if he16
determines that there is probable cause to believe that such person has engaged in17
any activity which might lead to debarment. The suspension shall not be for a period18
exceeding six months. The authority to debar or suspend shall be exercised in19
accordance with regulations.20
C. Causes for debarment. The causes for debarment include the following:21
(1) Conviction for commission of a criminal offense as an incident to22
obtaining or attempting to obtain a public or private contract or subcontract, or in the23
performance of such contract or subcontract;24
(2) Conviction under state or federal statutes of embezzlement, theft, forgery,25
bribery, falsification or destruction of records, receiving stolen property, or any other26
offense indicating a lack of business integrity or business honesty which currently,27
seriously, and directly affects responsibility as a state contractor;28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 104 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3) Conviction under state or federal antitrust statutes arising out of the1
submission of bids or proposals;2
(4) Violation of contract provisions, as set forth below, of a character which3
is regarded by the chief procurement officer to be so serious as to justify debarment4
action:5
(a) Deliberate failure without good cause to perform in accordance with the6
specifications or within the time limit provided in the contract; or7
(b) A recent record of failure to perform or of unsatisfactory performance in8
accordance with the terms of one or more contracts; provided that failure to perform9
or unsatisfactory performance caused by acts beyond the control of the contractor10
shall not be considered to be a basis for debarment.11
(5) Any other cause the chief procurement officer determines to be so serious12
and compelling as to affect responsibility as a state contractor, including debarment13
by another governmental entity for any cause listed in regulations; and14
(6) Violation of the ethical standards set forth in Chapter 15 of Title 42.15
D. Decision. The chief procurement officer shall issue a written decision to16
debar or suspend. The decision shall:17
(1) State the reasons for the action taken; and18
(2) Inform the debarred or suspended person involved of its rights to19
administrative and judicial review as provided in this Part Chapter.20
E. Notice of decision. A copy of the decision under Subsection D of this21
Section shall be mailed or otherwise furnished immediately to the debarred or22
suspended person and any other party intervening.23
F. Finality of decision. A decision under Subsection D of this Section shall24
be final and conclusive unless:25
(1) The decision is fraudulent; or26
(2) The debarred or suspended person has timely appealed administratively27
to the commissioner in accordance with R.S. 39:1684.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 105 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
SUBPART B. SETTLEMENT OF CONTROVERSI ES LEGAL AND1
CONTRACTUAL REMEDI ES FOR CONTRACTS OTHER THAN PROFESSI ONAL,2
PERSONAL, CONSULTING, AND SOCIAL SERVICES CONTRACTS3
§1673. Authority to resolve contract and breach of contract controversies other than4
professional, personal, consulting, and social service contracts5
A. Applicability. This Section applies to controversies between the state and6
a contractor and which arise under or by virtue of a contract between them. This7
includes without limitation controversies based upon breach of contract, mistake,8
misrepresentation, or other cause for contract modification or rescission. Any9
contractor who seeks a remedy with regard to such controversy shall file a complaint10
with the chief procurement officer.11
B. Authority. The chief procurement officer or his designee is authorized,12
prior to the commencement of an action in court concerning the controversy, to settle13
and resolve, with the approval of the attorney general, a controversy described in14
Subsection A of this Section. This authority shall be exercised in accordance with15
regulations.16
C. Decision. If such a claim or controversy is not resolved by mutual17
agreement, the chief procurement officer or his designee shall promptly issue a18
decision in writing. The decision shall:19
(1) State the reasons for the action taken; and20
(2) Inform the contractor of its right to administrative and judicial review as21
provided in this Part.22
D. Notice of decision. A copy of the decision under Subsection C of this23
Section shall be mailed or otherwise furnished immediately to the contractor.24
E. Finality of decision. The decision under Subsection C of this Section25
shall be final and conclusive unless:26
(1) The decision is fraudulent; or27
(2) The contractor has timely appealed administratively to the commissioner28
in accordance with R.S. 39:1685.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 106 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
F. Failure to render timely decision. If the chief procurement officer or his1
designee does not issue the written decision required under Subsection C of this2
Section within sixty days after written request for a final decision, or within such3
longer period as may be agreed upon by the parties, then the contractor may proceed4
as if an adverse decision had been received.5
SUBPART C. SETTLEMENT OF CONTROVERSI ES FOR PROFESSIONAL,6
PERSONAL, CONSULTING, AND SOCIAL SERVICE CONTRACTS7
§1674. Applicability of Subpart8
This Subpart applies only to those contracts solicited and entered into after9
the effective date of this Chapter, unless the parties agree in writing to its application10
to a contract entered into prior to that effective date.11
§1675. Authority of the commissioner of administration12
Prior to the institution of any action in a court concerning any contract, claim13
or controversy, the commissioner of administration with the concurrence of the14
attorney general is authorized to compromise, pay, or otherwise adjust the claim by15
or against or a controversy with a contractor relating to a professional, personal,16
consulting, or social service contract entered into with the state under their respective17
authority, including a claim or controversy based on breach of contract, mistake,18
misrepresentation, or other cause for contract modification or rescission. Nothing19
herein shall limit the authority of the commissioner of administration, pursuant to20
rules and regulations to issue, negotiate, or accept changes in the terms and21
conditions of a contract. When authorized, such compromise, payments, or22
adjustments shall be promptly paid; however, subject to any limitations or conditions23
imposed by rule or regulation, the commissioner of administration shall charge back24
all or any portion of such payments to the department or departments for whose25
benefit the contract was let.26
§1675.1. Action on contract claims27
This Section applies to a claim by or controversy between the state and a28
contractor arising out of a contract for professional, personal, consulting, or social29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 107 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
services. If such a claim or controversy is not resolved by mutual agreement, the1
commissioner of administration, or his designee, shall promptly issue a decision in2
writing. A copy of that decision shall be mailed or otherwise furnished to the3
contractor, shall state the reasons for the action taken, and shall inform the contractor4
of his right to judicial relief as provided in this Part. The decision shall be final and5
conclusive unless fraudulent, or unless the contractor institutes suit pursuant to R.S.6
39:1526. If the commissioner of administration, or his designee, does not issue a7
written decision within one hundred twenty days after written request for a final8
decision, or within such longer period as may be established in writing by the parties9
to the contract, then the contractor may proceed as if an adverse decision had been10
received.11
§1675.2. Jurisdiction; actions in certain cases12
A. The Nineteenth Judicial District Court, subject to appeal or review by the13
First Circuit Court of Appeal or by the supreme court, as otherwise permitted in civil14
cases by law and the state constitution, shall have jurisdiction over any claims arising15
out of a request for proposal or award of a contract, any controversies involving the16
state, or any other matters in connection with a petition for review of a decision17
made pursuant to this Chapter, following the exhaustion of administrative remedies18
as provided by law or regulation.19
B. In any action by a contractor based upon any express or implied contract20
or breach thereof, no action shall be maintained based upon any contract or any act21
of any state officer which the officer is not authorized to make or do by the laws of22
this state, unless the contractor, acting in good faith and without actual or23
constructive knowledge of the lack of authorization, has commenced performance24
under the apparent contract. In that event, the court may (1) cancel the contract and25
reimburse the contractor only for the actual expenses incurred in performing the26
work already performed or (2) where the best interests of the state require, allow the27
performance of the contract to continue.28
SUBPART B. D. SOLICITATIONS OR AWARDS29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 108 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
IN VIOLATION OF LAW1
§1676. Applicability of this Subpart2
The provisions of this Subpart apply where it is determined administratively,3
or upon administrative or judicial review, that a solicitation or award of a contract4
is in violation of law.5
§1677. Remedies prior to an award6
If it is determined prior to award that a solicitation or proposed award of a7
contract is in violation of law, then the solicitation or proposed award shall be8
cancelled.9
§1678. Remedies after an award10
If it is determined after an award that a solicitation or award of a contract is11
in violation of law, then:12
(1) If the person awarded the contract has not acted fraudulently or in bad13
faith:14
(a) The contract may be ratified and affirmed, provided it is determined in15
writing by the commissioner of administration that doing so is in the best interests16
of the state and the law violation had no significant effect on the outcome of the17
contract award; or18
(b) The contract may be terminated and the person awarded the contract shall19
be compensated for the actual expenses reasonably incurred under the contract prior20
to the termination, provided that any administrative determination of such costs shall21
be subject to the written concurrence of the attorney general.22
(2) If the person awarded the contract has acted fraudulently or in bad faith,23
the contract shall be declared null and void.24
§1678.1. Damages25
A. Damages recoverable by any aggrieved person in any action brought26
pursuant to the provisions of R.S. 39:1671 or otherwise asserted at law, shall be27
limited exclusively to reasonable costs incurred in connection with the solicitation28
including bid preparation costs other than attorney's fees.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 109 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
B. Except as provided in Subsection E of this Section and R.S. 39:1678(1),1
damages recoverable by any contractor under any contract entered into pursuant to2
the provisions of this Chapter, shall be limited exclusively to the actual expenses3
reasonably incurred in performance of the contract.4
C. The provisions of R.S. 49:965.1 shall not apply to actions instituted5
pursuant to the provisions of this Chapter.6
D. Any administrative determination of costs or expenses recoverable by a7
contractor or aggrieved person under Subsections A and B of this Section shall be8
subject to the written concurrence of the attorney general.9
E. In no event shall damages awarded by the chief procurement officer, his10
designee, any hearing officer or any court include attorney's fees or any incidental,11
indirect, special, or consequential damages, including but not limited to loss of use,12
revenue or profit whether reasonably certain or not.13
§1679. Violations; penalties14
A. No person shall intentionally violate the Louisiana Procurement Code or15
any rule or regulation promulgated by the commissioner of administration with16
respect to purchasing.17
B. Any person who intentionally violates such law, rule or regulation shall18
be fined not more than five hundred dollars, or imprisoned for not more than six19
months, or both.20
SUBPART C. E. ADMINISTRATIVE APPEALS PROCEDURES21
§1681. Authority of the commissioner of administration22
The commissioner of administration shall have the authority to review and23
determine any appeal by an aggrieved person from a determination by the state24
director of purchasing state chief procurement officer or his designee which is25
authorized by R.S. 39:1671, R.S. 39:1672, or R.S. 39:1673.26
§1682. Exempted departments27
The secretary who is vested with authority to promulgate regulations by R.S.28
39:1581 shall have, within his department, the same authority and responsibilities to29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 110 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
review and determine appeals of decisions of the chief procurement officer of his1
department as are vested in the commissioner of administration by this Subpart.2
§1683. Protest of solicitations or awards3
A. Scope. This Section applies to an appeal addressed to the commissioner4
of administration of a decision under R.S. 39:1671(C).5
B. Time limitation on filing an appeal. The aggrieved person shall file an6
appeal within seven days of receipt of a decision under R.S. 39:1671(C).7
C. Decision. On any appeal under Subsection A of this Section, the8
commissioner shall decide within fourteen days whether the solicitation or award9
was in accordance with the constitution, statutes, regulations, and the terms and10
conditions of the solicitation. Any prior determinations by the director state chief11
procurement officer or his designee shall not be final or conclusive.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 protestant or any14
other party intervening.15
E. Finality of decision. A decision under Subsection C of this Section shall16
be final and conclusive unless:17
(1) The decision is fraudulent; or18
(2) The person adversely affected by the decision has timely appealed to the19
court in accordance with R.S. 39:1691(A).20
§1684. Suspension or debarment proceedings21
A. Scope. This Section applies to a review by the commissioner of a22
decision under R.S. 39:1672.23
B. Time limitation on filing an appeal. The aggrieved person shall file its24
appeal with the commissioner of administration within fourteen days of the receipt25
of a decision under R.S. 39:1672(D).26
C. Decision. The commissioner of administration shall decide within27
fourteen days whether, or the extent to which, the debarment or suspension was in28
accordance with the constitution, statutes, regulations, and the best interests of the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 111 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
state, and was fair. Any prior determination by the director state chief procurement1
officer or his designee shall not be final or conclusive.2
D. Notice of decision. A copy of the decision under Subsection C of this3
Section shall be mailed or otherwise furnished immediately to the debarred or4
suspended person or any other party interviewing.5
E. Finality of decision. A decision under Subsection C of this Section shall6
be final and conclusive unless:7
(1) The decision is fraudulent; or8
(2) The debarred or suspended person has timely appealed an adverse9
decision of the Commissioner commissioner of administration to the court in10
accordance with R.S. 39:1691(B).11
§1685. Contract and breach of contract controversies12
A. Scope. This Section applies to a review by the commissioner of13
administration of a decision under R.S. 39:1673.14
B. Time limitation on filing an appeal. The aggrieved contractor shall file15
its appeal with the commissioner of administration within fourteen days of the16
receipt of the determination under R.S. 39:1673(C).17
C. Decision. The commissioner of administration shall decide within18
fourteen days the contract or breach of contract controversy. Any prior19
determination by the director state chief procurement officer or his designee shall not20
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 contractor.23
E. Finality of decision. A decision under Subsection C of this Section shall24
be final and conclusive unless:25
(1) The decision is fraudulent; or26
(2) The contractor has timely appealed an adverse decision of the27
commissioner to the court in accordance with R.S. 39:1691(C).28
SUBPART D. F. ACTIONS BY OR AGAINST29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 112 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
THE STATE; PRESCRIPTION1
§1691. Actions by or against the state in connection with contracts2
A. Solicitation and award of contracts. The Nineteenth Judicial District3
Court shall have exclusive venue over an action between the state and a bidder,4
offeror proposer, or contractor, prospective or actual, to determine whether a5
solicitation or award of a contract is in accordance with the constitution, statutes,6
regulations, and the terms and conditions of the solicitation. Such actions shall7
extend to all kinds of actions, whether for monetary damages or for declaratory,8
injunctive, or other equitable relief.9
B. Debarment or suspension. The Nineteenth Judicial District Court shall10
have exclusive venue over an action between the state and a person who is subject11
to a suspension or debarment proceeding, to determine whether the debarment or12
suspension is in accordance with the constitution, statutes, and regulations. Such13
actions shall extend to actions for declaratory, injunctive, or other equitable relief.14
C. Actions under contracts or for breach of contract. The Nineteenth Judicial15
District Court shall have exclusive venue over an action between the state and a16
contractor who contracts with the state, for any cause of action which arises under17
or by virtue of the contract, whether the action is on the contract or for a breach of18
the contract or whether the action is for declaratory, injunctive, or other equitable19
relief.20
D. Limited finality for administrative determinations. In any judicial action21
under this Section, factual or legal determination by employees, agents, or other22
persons appointed by the state shall have no finality and shall not be conclusive,23
notwithstanding any contract provision, regulation, or rule of law to the contrary,24
except to the extent provided in: R.S. 39:1625, R.S. 39:1671(E), R.S. 39:1672(F),25
R.S. 39:1673(E), R.S. 39:1683(E), R.S. 39:1684(E), and R.S. 39:1685(E).26
E. Writs or appeals; district court decisions. Any party aggrieved by a final27
judgment or interlocutory order or ruling of the Nineteenth Judicial District Court28
may appeal or seek review thereof, as the case may be, to the Court of Appeal, First29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 113 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Circuit, or the Supreme Court of Louisiana, as otherwise permitted in civil cases by1
law and the constitution.2
§1692. Commencement of actions3
A. Protested solicitations and awards. Any action under R.S. 39:1691(A)4
shall be commenced within fourteen days after receipt of the decision of the5
commissioner under R.S. 39:1683(C).6
B. Debarments and suspension for cause. Any action under R.S. 39:1691(B)7
shall be commenced within sixty days after receipt of the decision of the8
commissioner under R.S. 39:1684(C).9
C. Actions under contracts or for breach of contract controversies. Any10
action under R.S. 39:1691(C) shall be commenced within sixty days after receipt of11
the decision of the commissioner under R.S. 39:1685(C).12
SUBPART E. G. DELINQUENT PAYMENT PENALTIES13
§1695. Late payment to business; penalty paid by state agency14
A. If a state agency without reasonable cause fails to make any payment due15
within ninety days of the due date prescribed by contract, to a business awarded a16
contract with the state agency to supply equipment, supplies, materials, or textbooks,17
or to provide services, the state agency shall pay, in addition to the payment, interest18
on the amount due at the rate established pursuant to Civil Code Article 2924(B)(3)19
the judicial interest rate referenced in R.S. 13:4202(B) per year, from the ninety-first20
day after the due date prescribed by the contract. In applying this Section to a claim21
related in any way to an entitlement program, payment for claims shall be due ninety22
days after a claim is received by the state.23
B. If it is determined by the state agency that additional evidence of the24
validity of the claim for payment is required, such evidence shall be requested within25
ten working days from the date the bill is received by the state agency. In instances26
where additional evidence is required, the bill shall be reviewed and payment or27
rejection made within thirty days from receipt of the evidence requested in the office28
of the paying agency.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 114 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
C. Any penalty required to be paid by a state agency pursuant to this Section1
shall be disbursed upon warrants drawn by the state agency upon that agency's2
operating expenses budget.3
§1696. Reporting requirements4
A. Whenever a state agency is required by R.S. 39:1695 to pay a penalty, it5
shall be presumed that the fault is that of the head of the state agency and, in such6
cases, the head of the state agency shall submit to the Joint Legislative Committee7
on the Budget at its next regular meeting following the payment of such a penalty a8
report on the actions taken to correct the problem.9
B. Any state agency which requests that the legislature make a supplemental10
appropriation for the agency shall identify at the time of the request what part of the11
amount is necessitated because of any penalties imposed by R.S. 39:1695.12
§1697. Disputed claims13
A. In cases where a state agency states that payment is late due to reasonable14
cause, and said claim is disputed by the business owed payment, upon the request of15
a representative of the business the Joint Legislative Committee on the Budget shall16
determine whether or not the circumstances constitute "reasonable cause" as used in17
R.S. 39:1695.18
B. No state agency shall be required to pay a penalty if it has submitted a19
warrant to the state treasurer at least thirty days prior to the due date prescribed by20
the contract.21
PART VII. INTERGOVERNMENTAL RELATIONS22
SUBPART A. DEFINITIONS23
§1701. Definitions of terms used in this Part24
(1) "Cooperative purchasing" means procurement conducted by or on behalf25
of more than one public procurement unit or by a public procurement unit with an26
external procurement activity or by a private procurement unit.27
(2) "External procurement activity" means any buying organization not28
located in this state which, if located in this state, would qualify as a public29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 115 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
procurement unit. An agency of the United States government is an external1
procurement activity.2
(3) "Local public procurement unit" means any parish, city, town,3
governmental body, and any other subdivision of the state or public agency thereof,4
public authority, public educational, health, or other institution, and to the extent5
provided by law, any other entity which expends public funds for the acquisition or6
leasing of supplies, services, major repairs, and construction, and any nonprofit7
corporation operating a charitable hospital.8
(4) "Private procurement unit" means any independent institution of higher9
education in this state.10
(5) "Public procurement unit" means either a local public procurement unit11
or a state public procurement unit.12
(6) "State public procurement unit" means the central purchasing agency and13
any other purchasing agency of this state.14
SUBPART B. A. COOPERATIVE PURCHASING15
§1702. Cooperative purchasing authorized; participation in federal General Services16
Administration vendor list17
A.(1) Any public procurement unit may either participate in, sponsor,18
conduct, or administer a cooperative purchasing agreement for the acquisition of any19
supplies, services, major repairs, or construction with one or more public20
procurement units or external procurement activities or one or more private21
procurement units in accordance with an agreement entered into between the22
participants. Such cooperative purchasing may include but is not limited to joint or23
multi-party contracts between public procurement units and open-ended state public24
procurement unit contracts which are made available to local public procurement25
units.26
(2) Any public procurement unit may procure materials, supplies, and27
equipment from federal General Services Administration supply schedules in28
accordance with rules and regulations which may be adopted by the central29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 116 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
purchasing agency of the division of administration. Such purchases need not1
comply with the competitive bidding requirements of this Chapter. However, such2
materials, supplies, or equipment shall not be purchased at a price higher than the3
price of the same item listed on any available state purchasing procurement contract.4
(3) Any public procurement unit may procure materials, supplies, equipment,5
and services related to homeland security from federal General Services6
Administration supply schedules. Such purchases shall:7
(a) Utilize a Louisiana distributor.8
(b) Use the competitive ordering procedures of the federal General Services9
Administration.10
(c) Receive prior approval from the director of the Governor's Office of11
Homeland Security and Emergency Preparedness, or his designee.12
B.(1) A private procurement unit acquiring supplies through cooperative13
purchasing shall acquire such supplies for its own use and not for the purpose of14
resale in competition with private enterprise.15
(2) A private procurement unit shall certify to the vendor with each order16
that the supplies covered thereby are to be acquired for its own use and not for the17
purpose of resale in competition with private enterprise and shall provide a copy of18
such certification to the Central Purchasing Agency within the Division of19
Administration office of state procurement.20
(3) Upon certification by the Commissioner of Administration commissioner21
of administration that the purchase of one or more types of supplies by a private22
procurement unit under this Section may adversely affect the interests of the state by23
impeding the ability of the Division of Administration division of administration to24
attract responsible bidders for such supplies, the governor shall have the authority25
to limit or eliminate the right of a private procurement unit to purchase such types26
of supplies to the extent necessary to eliminate the adverse affect on the state.27 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 117 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
C. No use shall be made of federal General Services Administration supply1
schedules under the provisions of this Section without the participation of a2
Louisiana licensed dealer or distributor.3
§1703. Sale, acquisition, or use of supplies by a public procurement unit4
Any public procurement unit may sell to, acquire from, or use any supplies5
belonging to another public procurement unit or external procurement activity6
independent of the requirements of Part III of this Chapter or of Title 38.7
§1704. Cooperative use of supplies or services8
Any public procurement unit may enter into an agreement, independent of the9
requirements of Part III of this Chapter or Title 38, with any other public10
procurement unit or external procurement activity for the cooperative use of supplies11
or services, under the terms agreed upon between the parties.12
§1705. Joint use of facilities13
Any public procurement unit may enter into agreements for the common use14
or lease of warehousing facilities, capital equipment, and other facilities with another15
public procurement unit or an external procurement activity under the terms agreed16
upon between the parties.17
§1706. Supply of personnel, information, and technical services18
A. Supply of personnel. Any public procurement unit is authorized, in its19
discretion, upon written request from another public procurement unit or external20
procurement activity, to provide personnel to the requesting public procurement unit21
or external procurement activity. The public procurement unit or external22
procurement activity making the request shall pay the public procurement unit23
providing the personnel the direct and indirect cost of furnishing the personnel, in24
accordance with an agreement between the parties.25
B. Supply of services. The informational, technical, and other services of26
any public procurement unit may be made available to any other public procurement27
unit or external procurement activity provided that the requirements of the public28
procurement unit tendering the services shall have precedence over the requesting29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 118 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
public procurement unit or external procurement activity. The requesting public1
procurement unit or external procurement activity shall pay for the expenses of the2
services so provided, in accordance with an agreement between the parties.3
C. State information services. Upon request, the chief procurement officer4
may make available to public procurement units the following services, among5
others:6
(1) Standard forms.7
(2) Printed manuals.8
(3) Product specifications and standards.9
(4) Quality assurance testing services and methods.10
(5) Qualified products lists.11
(6) Source information.12
(7) Common use commodities listings.13
(8) Supplier prequalification information.14
(9) Supplier performance ratings.15
(10) Debarred and suspended bidders lists.16
(11) Forms for invitations for bids, requests for proposals, instructions to17
bidders, general contract provisions, and other contract forms; and18
(12) Contracts or published summaries thereof, including price and time of19
delivery information.20
D. State technical services. The state, through the chief procurement officer21
may provide the following technical services, among others:22
(1) Development of products specifications.23
(2) Development of quality assurance test methods, including receiving,24
inspection, and acceptance procedures.25
(3) Use of state product testing and inspection facilities; and26
(4) Use of state personnel training programs.27 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 119 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
E. Fees. The chief procurement officer may enter into contractual1
arrangements and publish a schedule of fees for the services provided under2
Subsections C and D of this Section.3
§1707. Use of payments received by a supplying public procurement unit4
All payments from any public procurement unit or external procurement5
activity received by a public procurement unit supplying personnel or services shall6
be available to the supplying public procurement unit as authorized by law.7
§1708. Public procurement units in compliance with code requirements8
Where the public procurement unit or external procurement activity9
administering a cooperative purchase complies with the requirements of this Chapter,10
any public procurement unit participating in such a purchase shall be deemed to have11
complied with this Chapter. Public procurement units may not enter into a12
cooperative purchasing agreement for the purpose of circumventing this Chapter.13
§1709. Review of procurement requirements14
To the extent possible, the chief procurement officer shall collect information15
concerning the type, cost, quality, and quantity of commonly used supplies, services,16
major repairs, or construction being procured or used by state public procurement17
units. The chief procurement officer may also collect such information from local18
public procurement units.19
§1710. Local governing authorities; purchases from local vendors, payment of20
certain costs21
When a local governing authority purchases an item at the state bid price22
through a local vendor, the local governing authority may pay to the local vendor the23
costs for shipping, preparation, and delivery of the item, provided that these costs24
shall not exceed the state bid price by seven percent on purchases up to ten thousand25
dollars, five percent on purchases over ten thousand dollars and up to twenty26
thousand dollars, and three percent on purchases over twenty thousand dollars.27
SUBPART C. B. CONTRACT CONTROVERSI ES28
§1716. Contract controversies29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 120 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Under a cooperative purchasing agreement, controversies arising between an1
administering public procurement unit and its bidders, offerors proposers, or2
contractors shall be resolved in accordance with Part VI of this Chapter, where the3
administering public procurement unit is a state public procurement unit or otherwise4
subject to Part VI.5
PART VIII. ASSISTANCE TO SMALL AND DISADVANTAGED6
BUSINESSES AND WOMEN OWNED BUSI NESSES7
§1731. Short title8
The provisions of this Part shall be known and may be cited as the Louisiana9
Small Business Procurement Act.10
§1732. Definitions of terms used in this Part11
As used in this Part, the following words and phrases shall have the meaning12
ascribed to them in this Section, except as otherwise may be provided or unless a13
different meaning is plainly required by the context:14
(1) "Small business" means a small business as defined by the Small15
Business Administration of the United States Government which for purposes of size16
eligibility or other factors meets the applicable criteria set forth in 13 Code of17
Federal Regulations, Part 121, as amended, and which has its principal place of18
business in Louisiana.19
(2) "Dominant in its field of operation" means exercising a controlling or20
major influence in a business activity in which a number of businesses are engaged.21
In determining if a business is dominant, the following criteria, among others, shall22
be considered: number of employees; volume of business; financial resources;23
competitive status or position; ownership or control of materials, processes, patents,24
license agreements, and facilities; sales territory; and nature of business activity.25
(3) "Affiliate or subsidiary of a business dominant in its field of operation"26
means a business which is at least twenty percent owned by a business dominant in27
that field of operation, or by partners, officers, directors, majority shareholders, or28
their equivalent of a business dominant in that field of operation.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 121 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(4) "Socially or economically disadvantaged person" means a person who1
has been deprived of the opportunity to develop and maintain a competitive position2
in the economy because of social or economic disadvantage. This disadvantage may3
arise from cultural, social or economic circumstances or background or physical4
location.5
(5) "Women owned business" means a business that is at least 51 fifty-one6
percent owned by a woman or women who also control and operate it. "Control" in7
this context means exercising the power to make policy decisions. "Operate" in this8
context means being actively involved in the day-to-day management. In9
determining whether a business is 51 fifty-one percent owned by a woman or10
women, the percent ownership of the woman or women shall not be diminished11
because she is part of a community property regime.12
(6) "Services" means the furnishing of labor, time, or effort by a contractor,13
not involving the delivery of a specific end product other than reports which are14
merely incidental to the required performance. This term shall include those services15
covered by Chapter 16 of Title 39 of the Louisiana Revised Statutes of 1950 and16
services performed by an architect, engineer, or landscape architect as provided by17
Part VII of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950. This18
term shall not include collective bargaining agreements.19
§1733. Procurement from small businesses20
A. Set aside. The commissioner of the division of administration shall for21
each fiscal year designate and set aside for awarding to small businesses, an amount22
not to exceed ten percent of the value of anticipated total state procurement of goods23
and services excluding construction. The commissioner shall divide the24
procurements so designated into contract award units of economically feasible25
production runs in order to facilitate offers or bids from small businesses. In making26
his annual designation of set aside procurements the commissioner shall attempt to27
vary the included procurements so that a variety of goods and services produced by28
different small businesses shall be set aside each year. The failure of the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 122 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
commissioner to set aside particular procurements shall not be deemed to prohibit1
or discourage small businesses from seeking the procurement award through the2
normal solicitation and bidding processes.3
B. Contract procedure. The commissioner shall establish a contract4
procedure in accordance with law, for the awarding of a procurement contract under5
the set aside program established in this Part. Surety bonds guaranteed by the federal6
small business administration shall be acceptable security for a construction award7
under this Part.8
C. Responsibility of bidder or offeror. Before making a set aside award, the9
commissioner shall evaluate whether the small business scheduled to receive the10
award is able to perform the set aside contract. This determination shall include11
consideration of production and financial capacity and technical competence.12
D. Preference to disadvantaged persons. At least ten percent of the value of13
the procurements designated for set aside awards shall be awarded, if possible to14
businesses owned and operated by socially or economically disadvantaged persons.15
In the event small businesses owned and operated by socially or economically16
disadvantaged persons are unable to perform at least ten percent of the set aside17
awards, then the commissioner shall award the balance of the set aside contracts to18
other small businesses.19
E. Preference to women. At least ten percent of the value of the20
procurements designated for set aside awards shall be awarded, if possible, to21
businesses owned and operated by women. In the event small businesses owned and22
operated by women are unable to perform at least ten percent of the set aside awards,23
then the commissioner shall award the balance of the set aside contracts to other24
small businesses.25
F. Award of contracts after unsuccessful set aside procedures. In the event26
that the provisions of this Part do not operate to extend a contract award to a small27
business, the award shall be placed pursuant to the existing solicitation and award28
provisions established by law. The commissioner shall thereupon designate and set29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 123 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
aside for small businesses additional state procurements corresponding in1
approximate value to the contract unable to be awarded pursuant to the provisions2
of this Part.3
G. Conflict with other code provisions. All laws and rules pertaining to4
solicitations, bid evaluations, contract awards, and other procurement matters shall5
apply as consistent to procurements set aside for small businesses. In the event of6
conflict with other rules, the provisions of this Part shall govern.7
§1734. Assistance to small businesses8
The commissioner of administration and the executive director of the9
Louisiana division of minority and women's business enterprise in the Department10
of Economic Development shall publicize the provisions of the set-aside program,11
attempt to locate small businesses able to perform set-aside procurement awards, and12
encourage participation. When the commissioner of administration determines that13
a small business is unable to perform under a set-aside contract, he shall so inform14
the secretary of economic development, who shall assist the small business in15
attempting to remedy the causes of the inability to perform a set-aside award. In16
assisting the small business, the executive director of the Louisiana division of17
minority and women's business enterprise, in cooperation with the commissioner of18
administration, shall use any management or financial assistance programs that may19
be available by or through the Louisiana division of minority and women's business20
enterprise or other state or governmental agencies.21
§1735. Determination of disadvantaged22
The commissioner of administration shall promulgate regulations, rules,23
standards, and procedures for certifying that small businesses and small businesses24
owned and operated by socially or economically disadvantaged persons are eligible25
to participate under the requirements of R.S. 39:1733 and 1734. The procedure for26
determination of eligibility may include self certification by a business, provided that27
the commissioner retains the ability to verify a self certification. The commissioner28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 124 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
shall promulgate other regulations and rules as may be necessary to carry out the1
duties set forth in this Part.2
§1736. Reports3
The commissioner of administration shall submit an annual report to the4
governor and the legislature, with a copy thereof going to the Louisiana division of5
minority and women's business enterprise, indicating the progress being made6
toward the objectives and goals of this Part during each fiscal year. This report shall7
include the following information:8
(1) The total dollar value and number of potential set-aside awards identified9
during this period and the percentage of total state procurement this figure reflects.10
(2) The number of small businesses identified by and responding to the11
set-aside contracts actually awarded to small businesses, with appropriate12
designation as to the total number and value of set-aside contracts awarded to each13
small business, and the total number of small businesses that were awarded set-aside14
contracts.15
(3) The total dollar value and number of set-aside contracts awarded to small16
businesses owned and operated by economically or socially disadvantaged persons,17
with appropriate designation as to the total number and value of set-aside contracts18
awarded to each small business, and the percentages of the total state procurements19
the figures of total dollar value and the number of set asides reflect.20
(4) The total dollar value and number of set-aside contracts awarded to small21
businesses owned and operated by women, with appropriate designation as to the22
total number and value of set-aside contracts awarded to each small business, and the23
percentages of the total state procurements the figures of total dollar value and the24
number of set asides reflect.25
(5) The number of contracts which were designated and set aside but which26
were not awarded to a small business, the estimated total dollar value of these27
awards, the lowest offer or bid on each of these awards made by the small business,28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 125 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
and the price at which these contracts were awarded pursuant to the normal1
procurement procedures.2
PART IX. TELECOMMUNICATIONS PROCUREMENT3
§1751. Application4
A. The provisions of this Part shall be applicable to any agency, as defined5
in R.S. 36:3(1), within the executive branch of state government with respect to the6
procurement of all telecommunications systems and telecommunications services.7
However, nothing provided in this Part shall be construed to preempt the authorities8
granted to the higher education boards in Article VIII of the Constitution of9
Louisiana.10
B. The office of telecommunications management shall, subject to the11
provisions of this Part, have sole authority and responsibility for defining the specific12
telecommunications systems and telecommunications services to which the13
provisions of this Part shall be applicable. Rules and regulations shall be14
promulgated as may be necessary to carry out the provisions of this Part.15
§1752. Definitions16
For the purposes of this Part, the following words and phrases shall be17
defined as follows:18
(1) "Agency" as used in this Part and in Part V of Chapter 1 of this Title shall19
have the same meaning ascribed to it as provided in R.S. 36:3(1).20
(2) "Competitive sealed bidding" means a method of procurement which21
strictly follows the requirements set forth in this Chapter except for such variations22
as are specifically established in this Part.23
(3) "Local area network" means a limited distance data24
processing/communications network or system used to link computers and peripheral25
devices.26
(4) "Multi-year contracts" are contracts for a term of more than one year, not27
to exceed ten years.28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 126 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(5) "Procurement" means the selling, buying, purchasing, renting, leasing,1
or otherwise obtaining telecommunications systems, telecommunications services,2
or their related software as well as all activities engaged in, resulting in, or expected3
to result in the selling, buying, purchasing, renting, leasing, or otherwise obtaining4
telecommunications systems, telecommunications services, or their related software5
by the state or its agencies.6
(6) "Software" means computer programs and documentation essential to7
and necessary for a telecommunications system or telecommunications service to8
perform productive operations.9
(7) "Telecommunications service contract" means a contract for the10
procurement of telecommunications services to include but not be limited to long11
distance, pay telephone, radio paging, and utility-typ e services such as local dial12
tone.13
(8) "Telecommunications systems", which shall include telecommunications14
equipment and related services, and "telecommunications services" are limited to the15
equipment and services and means to provide:16
(a) Telecommunications transmission facilities and services.17
(b) Voice telecommunications systems and services.18
(c) Local area network systems and services.19
(d) Wide area network systems and services.20
(e) Video systems and services, except those video systems and services21
specifically reserved to the Louisiana Educational Television Authority pursuant to22
R.S. 17:2501.23
(f) Wireless systems and services to include, but not be limited to, cellular24
and personal communications systems.25
(g) Radio systems, to include but not be limited to two-way radio systems;26
however, the operational abilities and priorities of two-way communications of the27
departments in the executive branch shall not be impeded.28
(h) Intercom and electro-mechanical paging systems.29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 127 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(i) Any and all systems and services based on emerging and future1
telecommunications technologies relating to Subparagraphs (a) through (h) of this2
Paragraph.3
(9) "Telecommunications systems contract" means a contract for the4
procurement of telecommunications systems including equipment and related5
services to include but not be limited to installation and maintenance.6
(10) "Telecommunications systems lease contract" means a contract between7
a supplier of telecommunications systems and the division of administration, office8
of telecommunications management, or the procuring agency, through which9
telecommunications systems may be procured for a term which shall not exceed ten10
years. The contract may be either an operating lease, installment purchase, or a11
financed lease without a balloon payment.12
(11) "Telecommunications transmission facility" means any transmission13
medium, switch, instrument, wiring system, or other facility which is used, in whole14
or in part, to provide any transmission.15
(12) "Utility" means any telecommunications service provided by the office16
of telecommunications management and used in the essential operations of a state17
agency, such as local dial tone, wide area network, and local area network.18
(13) "Wide area network" means a data processing/communications network19
or system generally utilizing common carrier facilities to link geographically20
dispersed local area networks to other local area networks or computer systems.21
§1753. Types of contracts permitted22
A. The types of contracts permitted in the procurement of23
telecommunications systems and telecommunications services are defined in this24
Part, and the provisions of this Part supplement the provisions of R.S. 39:155125
through 1736.26
B. The office of telecommunications management, through the state27
purchasing office office of state procurement, may, on behalf of any state agency,28 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 128 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
enter into telecommunications systems contracts in accordance with the following1
provisions:2
(1) Contracts of this type shall be entered into through a request for3
proposals as defined in this Part. An invitation to bid format may be utilized with4
written approval from the director of the office of telecommunications management.5
(2) The term of such contracts shall not exceed five years.6
C. The office of telecommunications management, through the state7
purchasing office office of state procurement, may on behalf of any state agency,8
enter into telecommunications services contracts in accordance with the following9
provisions:10
(1) Contracts of this type shall be entered into through a request for11
proposals as defined in this Part. An invitation to bid format may be utilized with12
written approval from the director of the office of telecommunications management.13
(2) The term of such contracts shall not exceed ten years.14
D. The office of telecommunications management, through the state15
purchasing office office of state procurement, may on behalf of any state agency,16
enter into a telecommunications systems lease contract for an operating lease,17
installment purchase, or financed lease for telecommunications systems in18
accordance with the following provisions:19
(1) All contracts of this type shall be entered into through a request for20
proposals as defined in this Part.21
(2) The justification of such contracts must be approved by the office of22
telecommunications management prior to issuance of a request for proposals. Such23
justification shall identify and consider all cost factors relevant to that contract.24
(3) The term of such contracts shall not exceed ten years, except financed25
contracts shall be for a term not to exceed the economic life of the system or ten26
years, whichever is less.27
(4) Upon the advance written approval of the office of telecommunications28
management, state agencies may extend operating leases of telecommunications29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 129 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
systems on a month-to-month basis for a period not to exceed one calendar year for1
the stated lease prices.2
E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the use3
of a multi-year contract for telecommunications systems and telecommunications4
services shall be in accordance with rules and regulations and under the following5
conditions:6
(1) The director of the office of telecommunications management shall7
approve in writing the use of a multi-year contract over one year, not to exceed three8
years.9
(2) The director of the state purchasing office state chief procurement officer10
shall approve in writing the use of a multi-year contract over three years, not to11
exceed five years.12
(3) The commissioner of administration, or his designee, shall approve in13
writing the use of a multi-year contract over five years.14
§1754. Methods of procurement15
A. The office of telecommunications management, through the state16
purchasing office office of state procurement, may procure telecommunications17
systems and telecommunications services by a request for proposals to conform with18
the following requirements:19
(1) Public notice of the request for proposals shall be the same as for an20
invitation to bid as provided in R.S. 39:1594(C).21
(2)(a) The request for proposals shall indicate the relative importance of all22
evaluation factors and shall clearly define the work, service, or solution to be23
provided under the contract, the functional specifications, the criteria to be used in24
evaluating the proposals, and the time frames within which the work must be25
completed or the service provided.26
(b) For telecommunications systems lease contracts, the request for27
proposals shall require that proposals contain a declaration as to the maximum price28
for which the system may be purchased following the termination of the lease29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 130 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
contract. No other basis of evaluation shall be used except that set out in the request1
for proposals.2
(3) The office of telecommunications management shall evaluate all3
proposals to determine the proposal most advantageous to the state, taking into4
consideration all evaluation criteria set forth in the request for proposals, and shall5
make a recommendation of award to the state purchasing office office of state6
procurement.7
(4) The office of telecommunications management may request that the state8
purchasing office office of state procurement reject all proposals when it is deemed9
that such action is in the best interest of the state.10
B. The office of telecommunications management may procure11
telecommunications systems and telecommunications services in accordance with12
the law or regulations, or both, which govern the state purchasing office, the division13
of administration office of state procurement.14
§1755. General provisions15
The following general provisions shall apply to all procurements under this16
Part:17
(1) No contracts entered into shall have an initial effective date earlier than18
the date on which such contract receives approval as required by this Part.19
(2) All changes, modifications, and amendments to any contract hereunder20
shall be approved in advance by the director of the office of telecommunications21
management and the state purchasing office state chief procurement officer, in22
addition to any other approvals required by law.23
(3) Where written proposals or bids are submitted by vendors, the proposal24
or bid of the successful vendor shall be incorporated into the final contract25
consummated with that vendor.26
(4) All contracts must contain the following annual appropriation27
dependency clause: "The continuation of this contract is contingent upon the28
continuation of an appropriation of funds by the Legislature to fulfill the29 HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 131 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
requirements of the contract. If the Legislature fails to appropriate sufficient monies1
to provide for the continuation of a contract or if such appropriation is reduced by2
the veto of the governor or by any means provided in the appropriations act to3
prevent the total appropriations for the year from exceeding revenues for that year4
or for any other lawful purpose and the effect of such reduction is to provide5
insufficient monies for the continuation of the contract, the contract shall terminate6
on the last day of the fiscal year for which funds were appropriated."7
(5) The provisions of this Part shall, with respect to the procurement of8
telecommunications systems or telecommunications services, supersede9
specifications of any contradictory or conflicting provisions of the following statutes:10
R.S. 38:2211 et seq. with respect to awarding of public contracts, and R.S. 39:155111
through 1736. The provisions of this Part do not relate to the procurement of12
services covered by R.S. 39:1481 through 1526.13
PART X. REQUIREMENTS OF CONTRACTS14
§1758. Repealed by Acts 2011, No. 343, §5.15
Section 3. Chapter 16 of Subtitle I of Title 39 of the Louisiana Revised Statutes of16
1950, to be comprised of R.S. 39:1481 through 1526, is hereby repealed in its entirety.17
Section 4. The Louisiana State Law Institute is hereby authorized and requested to18
review all statutes which contain the name of the office of contractual review and the office19
of state purchasing, changed in this Act, and in all locations it deems appropriate change said20
references to the office of state procurement. 21
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Tim Burns HB No. 927
Abstract: Provides for the merger of the functions of the office of contractual review and
the office of state purchasing into the office of state procurement.
Present law provides for the creation of the office of contractual review in the division of
administration headed by the director of contractual review. Present law further provides
for the functions of the office in entering into state professional, personal, consulting, and
social services contracts. HLS 14RS-1089 ORIGINAL
HB NO. 927
Page 132 of 132
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law repeals present law including the office of contractual review and provides for
administration of state professional, personal consulting, and social services contracts
through the office of state procurement created in proposed law.
Present law provides for the creation of the central purchasing agency in the division of
administration headed by the state director of purchasing. Present law further provides for
the functions of the office in entering into contracts for the procurement of materials,
services, and major repairs.
Proposed law provides for a merger of the functions of the office of contractual review and
the central purchasing agency into the office of state procurement created in proposed law
headed by the state chief procurement officer.
(Amends R.S. 36:4(B)(1)(b) and R.S. 39:1551 through 1758; Repeals R.S. 39:1481 through
1526)