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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 409
BY SENATOR MILLS
PROCUREMENT CODE. Provides for lowest available price for certain software
procurement contracts. (7/1/14)
AN ACT1
To amend and reenact R.S. 39:199(D), relative to methods of procurement; to provide for2
the lowest available price for certain software procurement contracts; to provide for3
an effective date; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 39:199(D) is hereby amended and reenacted to read as follows:6
ยง199. Methods of procurement7
* * *8
D.(1) Method for procuring software and software maintenance and support9
services. Notwithstanding any other provisions of this Part, any agency may procure10
data processing software, software maintenance, and support services without the11
need for competitive bidding. Such procurement must have the written advance12
approval of the state central purchasing agency and shall not be for a price greater13
than the vendor's published price.14
(2) Additionally, any agency seeking to procure a new contract, a15
contract extension of an existing contract, or any other contract modification16
for software, software maintenance, and support services shall show evidence17 SB NO. 409
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
that the price received or negotiated is the lowest available price by exhibiting1
prices that may appear in a catalog, price list, schedule, on the Internet, or other2
form that:3
(a) Is regularly maintained by a vendor or other contractor.4
(b) Is either published or otherwise available for inspection by5
customers.6
(c) Is available through inquiries with other states or local governments7
using similar products and services.8
(d) Is available through statements of prices on the Internet and are9
currently or were last made to a significant number of buyers constituting the10
general buying public for the software or services involved.11
(3) In the event that the lowest available price can not be obtained in the12
form or source as specified in Subparagraphs (a) through (d) of this Paragraph,13
the agency seeking to procure a new contract, a contract extension of an existing14
contract, or any other contract modification for software, software15
maintenance, and support services shall require the vendor to certify in writing16
that the price received is the lowest price available to other states or local17
governments for similar products and services at the time the quote is18
submitted.19
(4) The procurement support team shall develop and deliver to the office of20
state purchasing and the office of information technology proposed rules establishing21
guidelines for procurement activities under this Part. Upon approval of the office of22
information technology, the office of state purchasing shall promulgate rules in23
accordance with the Administrative Procedure Act.24
Section 2. This Act shall become effective on July 1, 2014; if vetoed by the25
governor and subsequently approved by the legislature, this Act shall become26
effective on July 1, 2014, or on the day following such approval by the legislature,27
whichever is later.28 SB NO. 409
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The original instrument was prepared by Jay Lueckel. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Kari B. Couvillon.
DIGEST
Mills (SB 409)
Present law provides for methods of data processing procurement.
Present law provides that any state agency may procure data processing software, software
maintenance, and support services without competitive bidding, provided such procurement
has written advance approval from the state central purchasing agency and is not for a price
greater than the vendor's published price. Also provides for the use of a procurement support
team in the promulgation of rules relative to such procurement.
Proposed law retains present law and further provides that any agency seeking to procure a
new contract, a contract extension, or any other contract modification for software, software
maintenance, and support services must show that the price received or negotiated is the
lowest available price by exhibiting prices that may appear in a catalog, price list, schedule,
Internet, or other form.
Proposed law further provides that such prices must be from a source that is regularly
maintained by a vendor or other contractor, is either published or otherwise available for
inspection by customers, is available through inquiries with other state or local governments
using similar products and services, and is available through statements of prices on the
Internet and are currently or were last made to a significant number of buyers constituting
the general buying public for the software or services involved.
Proposed law further provides that in the event the lowest available price can not be obtained
in the form or source specified in the proposed law, the agency seeking to procure a new
contract, a contract extension of an existing contract, or any other contract modification for
software, software maintenance, and support services shall require the vendor to certify in
writing that the price received is the lowest price available to other states or local
governments for similar products and services at the time the quote is submitted.
Effective July 1, 2014.
(Amends R.S. 39:199(D))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Adds stipulation that in the event the lowest available price can not be
obtained in the form or source specified in the proposed law, the agency
seeking to procure a new contract, a contract extension of an existing
contract, or any other contract modification for software, software
maintenance, and support services shall require the vendor to certify in
writing that the price received is the lowest price available to other states or
local governments for similar products and services at the time the quote is
submitted.
2. Corrects paragraph numbering.