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Regular Session, 2014
SENATE BILL NO. 468
BY SENATOR ADLEY
PUBLIC WORKS. Provides relative to contracts for public works. (8/1/14)
AN ACT1
To amend and reenact R.S. 38:2211(A)(1), (2), (3), (4), (5), (6), (7), (8), and (9), 2212,2
2212.5, 2212.10(C)(1) and (G), 2215, 2225, and 2241.1, relative to contracts for3
public works; to provide for definitions; to provide for advertisement and letting of4
bids; to provide for prequalification of bidders; to provide for verification of5
employees involved in contracts for public works; to provide relative to the time6
period to hold bids and to commence work; to provide relative to preferences; to7
provide for acceptance of work; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 38:2211(A)(1), (2), (3), (4), (5), (6), (7), (8), and (9), 2212, 2212.5,10
2212.10(C)(1) and (G), 2215, 2225, and 2241.1 are hereby amended and reenacted to read11
as follows:12
§2211. Definitions13
A. As used in this Chapter unless the context clearly indicates otherwise, the14
following terms shall mean:15
(1) "Alternate" means an item on the bid form that may either increase16
or decrease the quantity of work or change the type of work, material, or17 SB NO. 468
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equipment specified in the bidding documents, or both.1
(2) "Bidding documents" means the bid notice, plans and specifications,2
bidding bid form, bidding instructions, addenda, special provisions, and all other3
written instruments prepared by or on behalf of a public entity for use by prospective4
bidders on a public contract.5
(2) (3)(a) "Change order" means any contract modification that includes6
an alteration, deviation, addition, or omission as to a preexisting public work7
contract, which is mutually agreed upon by the contractor and public entity and8
authorizes an adjustment in the contract price, contract time, or an addition,9
deletion, or revision of work.10
(3) (b) "Change order outside the scope of the contract" means a change order11
which alters the nature of the thing to be constructed or which is not an integral part12
of the project objective.13
(4) (c) "Change order within the scope of the contract" means a change order14
which does not alter the nature of the thing to be constructed and which is an integral15
part of the project objective.16
(5)(4) "Contractor" means any person or other legal entity who enters into a17
public contract.18
(6)(5)(a) "Emergency" means an unforeseen mischance bringing with it19
destruction or injury of life or property or the imminent threat of such destruction or20
injury or as the result of an order from any judicial body to take any immediate21
action which requires construction or repairs absent compliance with the formalities22
of this Part, where the mischance or court order will not admit of the delay incident23
to advertising as provided in this Part. In regard to a municipally owned public24
utility, an emergency shall be deemed to exist and the public entity may negotiate as25
provided by R.S. 38:2212(D) R.S. 38:2212(P) for the purchase of fuel for the26
generation of its electric power where the public entity has first advertised for bids27
as provided by this Part but has failed to receive more than one bid.28
(b) An "extreme public emergency" means a catastrophic event which causes29 SB NO. 468
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the loss of ability to obtain a quorum of the members necessary to certify the1
emergency prior to making the expenditure to acquire materials or supplies or to2
make repairs necessary for the protection of life, property, or continued function of3
the public entity.4
(7)(6) "Licensed design professional" means the architect, landscape5
architect, or engineer who shall have the primary responsibility for the total design6
services performed in connection with a public works project. Such professional7
shall be licensed as appropriate and shall be registered under the laws of the state of8
Louisiana.9
(8)(7)(a) "Louisiana resident contractor", for the purposes of this Section10
Part, includes any person, partnership, association, corporation, or other legal entity11
and is defined as one that either:12
(i) Is an individual who has been a resident of Louisiana for two years or13
more immediately prior to bidding on work,14
(ii) Is any partnership, association, corporation, or other legal entity whose15
majority interest is owned by and controlled by residents of Louisiana, or16
(iii) For two years prior to bidding has maintained a valid Louisiana17
contractor's license and has operated a permanent facility in the state of Louisiana18
and has not had a change in ownership or control throughout those two years.19
(b) For the purposes of Item (7)(a)(ii) of this Section, ownership percentages20
shall be determined on the basis of:21
(i) In the case of corporations, all common and preferred stock, whether22
voting or nonvoting, and all bonds, debentures, warrants, or other instruments23
convertible into common and/or preferred stock.24
(ii) In the case of partnerships, capital accounts together with any and all25
other capital advances, loans, bonds, debentures, whether or not convertible into26
capital accounts.27
(9)(8) "Negotiate" means the process of making purchases and entering into28
contracts without formal advertising and public bidding with the intention of29 SB NO. 468
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obtaining the best price and terms possible under the circumstances.1
(9) "Probable construction costs" means the estimate for the cost of the2
project as designed that is determined by the public entity, the designer, or the3
designer's third-party estimator.4
* * *5
§2212. Advertisement and letting to lowest responsible and responsive bidder;6
public work; electronic bidding; participation in mentor-protégé7
program; exemptions8
A.(1)(a) All public work exceeding the contract limit as defined in this9
Section, including labor and materials, to be done by a public entity shall be10
advertised and let by contract to the lowest responsible and responsive bidder who11
had bid according to the contract, plans, and specifications bidding documents as12
advertised, and no such public work shall be done except as provided in this Part.13
(2) The term "bidding documents" is defined in R.S. 38:2211(A).14
(b)(i) B.(1) The provisions and requirement of this Section, and those stated15
in the advertisement for bids, and those required on the bid form bidding documents16
shall not be waived by any entity.17
(ii)(aa)(2) The Any public entity advertising for public work shall use18
only the Louisiana Uniform Bid Form as promulgated in accordance with the19
Administrative Procedure Act by the division of administration, office of facility20
planning and control, shall develop and prescribe through the promulgation of rules21
and regulations in accordance with the Administrative Procedure Act the bid form22
necessary to obtain the information and to implement the sections of the bid form23
provided for in this Item to be utilized for the public bid of public works projects.24
The bid form developed bidding documents shall require only the following25
information necessary to determine the lowest bidder and the following sections and26
information and documentation to be submitted by a bidder at the time27
designated in the advertisement for bid opening: Bid Security or Bid Bond,28
Acknowledgment of Addenda, Base Bid, Alternates, Signature of Bidder, Name,29 SB NO. 468
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Title, and Address of Bidder, Name of Firm or Joint Venture, Corporate Resolution1
or documentation of the authority of the person signing the bid, and Louisiana2
Contractors License Number, and on public works projects where unit prices are3
utilized, a section on the bid form where the unit price utilized in the bid shall be set4
forth including a description for each unit; however, unit prices shall not be5
utilized for the construction of building projects, unless the unit price is prices and6
their extensions are incorporated into the base bid.7
(3)(a) (bb) Other documentation and information required including but not8
limited to the low bidder's attestation pursuant to R.S. 38:2212.10 and 2227 shall be9
furnished by the low bidder within ten days after the bid opening The bidding10
documents shall not require any bidder, other than the apparent low bidder, to11
furnish any other information or documentation, including the Attestation12
Affidavit and the E-Verification Form, any sooner than ten days after the date13
bids are opened; however, the apparent low bidder may submit such14
information or documentation at any time prior to the expiration of the ten-day15
period. If the apparent low bidder does not submit the proper information or16
documentation as required by the bidding documents within the ten-day period,17
such bidder shall be declared non-responsive, and the public entity may award18
the bid to the next lowest bidder, and afford the next lowest bidder not less than19
ten days from the date the apparent low bidder is declared non-responsive, to20
submit the proper information and documentation as required by the bidding21
documents, and may continue such process until the public entity either22
determines the low bidder or rejects all bids. The ten-day period shall not be23
altered or waived by any public entity except the governing authority of any publicly24
owned commercial aviation airport, the Sewerage and Water Board of New Orleans,25
the Regional Transit Authority, and all agencies of the City of New Orleans,26
including but not limited to the Regional Transit Authority and the New Orleans27
Aviation Board, who shall require that the other documentation and information28
referred to in this Subitem Subparagraph be furnished by the two lowest bidders29 SB NO. 468
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no sooner than three days after the bid opening.1
(cc) (b) Notwithstanding any other provision of law to the contrary, all2
bidders shall submit all bid forms required by statute or by the Louisiana3
Administrative Code to the governing authority of East Baton Rouge Parish prior to4
the opening of all bids relative to a contract for public works.5
(iii) (c) The provisions of this Subparagraph Paragraph shall not apply to bid6
forms of the Department of Transportation and Development pursuant to Title 48 of7
the Louisiana Revised Statutes of 1950.8
(4) Notwithstanding any other provision of law to the contrary and in9
addition to any other requirements provided by this Subsection, the10
Acknowledgment of Addenda to the bid form provided for in this Section for11
the public bid of public works conducted by the New Orleans Sewerage and12
Water Board shall also include attachment of the addenda if pricing13
information is contained therein and the addenda specifies attachment.14
(c)(i) (5) Evidence Written evidence of agency, corporate, or partnership the15
authority of the person signing the bid for public works shall be required for16
submission of a bid to the division of administration or the state of Louisiana17
submitted at the time of bidding. The authority of the signature of the person18
submitting the bid shall be deemed sufficient and acceptable if any of the following19
conditions are met:20
(aa) (a)The signature on the bid is that of any corporate officer listed on the21
most current annual report on file with the secretary of state, or the signature on the22
bid is that of any member of a partnership or partnership in commendam, limited23
liability company, limited liability partnership, or other legal entity listed in the24
most current partnership records on file with the secretary of state .25
(bb) (b) The signature on the bid is that of an authorized representative of the26
corporation, partnership, or other legal entity and the bid is accompanied by a27
corporate resolution, certification as to the corporate principal, or other documents28
indicating authority which are acceptable to the public entity as documented by the29 SB NO. 468
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legal entity certifying the authority of the person.1
(cc) (c) The corporation, partnership, or other legal entity has filed in the2
appropriate records of the secretary of state in which the public entity is located, an3
affidavit, resolution, or other acknowledged or authentic document indicating the4
names of all parties authorized to submit bids for public contracts. Such document5
on file with the secretary of state shall remain in effect and shall be binding upon the6
principal until specifically rescinded and canceled from the records of the office.7
(ii) (6)(a) Except as provided in Subparagraph (f) of this Paragraph, each8
Each bid shall be either hand delivered by the bidder or his agent in which instance9
the deliverer shall be handed a written receipt, or such bid shall be sent by registered10
or certified mail with a return receipt requested, or shall be submitted11
electronically as provided in Subsection E of this Section. However, the12
requirement that all bids be sent by registered or certified mail shall not apply to bids13
received by municipal and parochial governing authorities. No public entity shall14
accept or take any bids, including receiving any hand delivered bids, on days which15
are recognized as holidays by the United States Postal Service. The Department of16
Transportation and Development and facility planning and control section under the17
division of administration shall keep on file a list of all states which have passed a18
bid preference law.19
(b) Only for the purpose of interpretation of the base bid total, written20
words shall govern if a conflict exists between words and numerals.21
(c) For public works that require unit price bids, the extension of the22
number of units multiplied by the price per unit shall govern if a discrepancy23
exists between the sum of the extended prices and the base bid total.24
(d) C. The term "contract limit" as used herein shall be equal to the sum of25
one hundred fifty thousand dollars per project, including labor, materials, and26
equipment as per the rates in the latest edition of the Associated Equipment Dealers27
Rental Rate Book and administrative overhead not to exceed fifteen percent;28
however:29 SB NO. 468
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(i) (1)When the Department of Public Safety and Corrections intends to use1
inmates as labor in connection with projects which occur on the grounds or to the2
buildings, structures, or facilities located on the grounds of prisons or correctional3
institutions, the term contract limit shall be fifty seventy-five thousand dollars per4
project, for the calendar year 1982 and for each succeeding calendar year, shall be5
increased by a factor equal to three percent per year for each of the next ten calendar6
years.7
(ii) Repealed by Acts 2011, 1
st
Ex. Sess., No. 5, §2, eff. June 12, 2011.8
(iii) Beginning September 1, 2005, when the Bossier Parish Police Jury9
intends to undertake a public works project with its own employees, the term10
"contract limit" shall be equal to the sum of one hundred thirty thousand dollars.11
Additionally, the police jury may adjust the contract limit provided for in this Item12
each year by an amount not to exceed the annual percentage increase in the13
Consumer Price Index in the preceding year. If the contract limit is increased, the14
Bossier Parish Police Jury shall publish the new contract limit for public works15
contracts in its official journal in February of each year.16
(iv) Repealed by Acts 2007, No. 336, §2, eff. July 31, 2008.17
(v)(aa) (2)(a) The annual limit by a public entity for any work to restore or18
rehabilitate a levee that is not maintained with federal funds, including mitigation on19
public lands owned by the state or a political subdivision, shall not exceed the sum20
of one million dollars, including labor, materials, and equipment, which is not21
publicly bid, as per the rates in the latest edition of the Associated Equipment22
Distributors Rental Rate Book, and administrative overhead not to exceed fifteen23
percent; provided that the work is undertaken by the public entity with its own24
resources and employees, or with the resources and employees of another public25
entity through a cooperative endeavor or other agreement with such entity.26
(bb) (b) The provisions of this Item Paragraph shall remain effective until27
December 31, 2018.28
(e)(i) D. Each public entity advertising and letting for bid a public works29 SB NO. 468
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contract under the provisions of this Section shall furnish, either electronically or1
by paper, all prime bidders who request bid bidding documents and who are2
properly licensed by the Louisiana State Licensing Board for Contractors with at3
least one set of complete bid bidding documents. The public entity may require a4
deposit on the bid bidding documents; however, the total cost of the deposit,5
including handling fees and other costs shall not exceed twice the actual cost of6
reproduction, whether furnished electronically or by paper. Deposits on the first7
set of documents furnished bona fide prime bidders will shall be fully refunded,8
either upon return of the documents no later than ten days after receipt of bids or9
upon electronic cancellation of the documents. On other sets of documents10
furnished to bidders, whether electronically or by paper, the deposit less actual11
cost of reproduction, will shall be refunded upon return of the documents no later12
than ten days after receipt of bids. Where the public entity, itself, prepares and13
distributes the contract bidding documents, whether electronically or by paper, the14
public entity may, in lieu of a deposit, charge a fee for the documents, which fee15
shall not exceed the actual cost of reproduction. Prime bidders shall obtain an16
original set of electronic or paper bidding documents either from the public17
entity, the design professional who prepared such documents, or a third party18
designated by the design professional. Bidding documents shall be distributed19
as the designer of record chooses when an electronic bid submittal system is20
used. The public entity or its design professional of record shall maintain a list21
of all prime bidders for the purpose of addenda distribution.22
(ii) Where the Sewerage and Water Board of New Orleans, itself, prepares23
and distributes electronic contract documents, the Sewerage and Water Board of24
New Orleans may, in lieu of a deposit, charge a fee for each paper document, which25
shall not exceed the actual cost of reproduction.26
(f)(i) E. (1) Contractors shall be provided the option to submit bids for public27
contracts through Public entities shall provide, as an additional bidding option,28
a uniform and secure electronic interactive system for the submittal of bids for29 SB NO. 468
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public works requiring competitive bidding. Political subdivisions Any public1
entity providing such system shall follow the standards for the receipt of electronic2
bids adopted by the office of the governor, division of administration, and the office3
of information technology as provided for in LAC 4:XV.701 , and shall make the4
appropriate provisions necessary for the acceptance of electronic bids for all5
purchases requiring competitive bidding as required by this Section. Any special6
condition or requirement for the submission shall be specified in the advertisement7
for bids required by this Section.8
(ii) (2) Public entities that are currently without available high speed Internet9
access will shall be exempt from this requirement until such time that high speed10
Internet access becomes available.11
(iii) (3) Any parish with a police jury form of government and a population12
of less than twenty thousand shall be exempt from the provisions of this13
Subparagraph Subsection.14
(iv) (4) Any city or municipality with a population of less than ten thousand15
shall be exempt from the provisions of this Subparagraph Subsection.16
(v) (5) Any special service district created by a police jury form of17
government and other public entity which is unable to comply with R.S.18
38:2212(A)(1)(f)(i) the electronic bidding provisions of this Subsection without19
securing and expending additional funding shall be exempt from its requirements.20
The special service district shall be exempted from any expenditures for high speed21
Internet access, software, personnel costs, training, or other office equipment directly22
relating to the receipt of bids via high speed Internet access.23
(vi) (6) Public entities shall have the option to require that all bids be24
submitted electronically for any competitive bid let out for public bid.25
(vii) (7) Public entities must shall include all bid bidding documents as26
defined in R.S. 38:2211(A)(1) 38:2211(A)(2), on the electronic website accepting27
the electronic bids.28
(g) Repealed by Acts 1999, No. 768, §2.29 SB NO. 468
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(2) F. The bid specification may contemplate a fixed escalation or de-1
escalation in accordance with the United States Bureau of Labor Statistic's Consumer2
Price Index and/or or the Wholesale Price Index. Bids based on specifications which3
are subject to a recognized escalation index shall be legal and valid for any item of4
a public work, at the discretion of the public entity.5
(3)(a) G. (1) The advertisement required by this Section for any contract for6
public works shall be published once a week for three different weeks in a newspaper7
in the locality, and the first advertisement shall appear at least twenty-five days8
before the opening of bids. In addition to the newspaper advertisement, a public9
entity may also publish an advertisement by electronic media available to the general10
public.11
(b) (2) The first publication of the advertisement shall not occur on a12
Saturday, Sunday, or legal holiday. Plans and specifications All bidding documents13
shall be available to bidders on the day of the first advertisement and shall be14
available until twenty-four hours before the bid opening date.15
(c)(i) If at the end of the contract document phase, it is determined that the16
designer's estimate is more than the funds budgeted by the public entity for the17
project, the project shall not be advertised for bid. The designer's estimate shall be18
read aloud upon opening bids.19
(ii) The bid form shall contain Bid Security or Bid Bond, Acknowledgment20
of Addenda, Base Bid, Alternates, Signature of Bidder, Name, Title, and Address of21
Bidder, Name of Firm or Joint Venture Corporate Resolution, and Louisiana22
Contractors License Number, and on public works projects where unit prices are23
utilized, their inclusion in the bid form; however, unit prices shall not be utilized for24
the construction of building projects, unless the unit price is incorporated into the25
base bid. Other documentation required shall be furnished by the low bidder within26
ten days after the bid opening. The governing authority of any publicly owned27
commercial aviation airport, the Sewerage and Water Board of New Orleans, and all28
agencies of the City of New Orleans, including but not limited to the Regional29 SB NO. 468
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Transit Authority and the New Orleans Aviation Board shall require that the other1
documentation referred to above shall be furnished by the two lowest bidders three2
days after the bid opening. The division of administration, office of facility planning3
and control, shall develop and prescribe the necessary bid form for public works4
projects for public bid purposes and implement the provisions of this Section of the5
bid form in accordance with the Administrative Procedure Act.6
(iii) The provisions of this Subparagraph shall not apply to bid forms of the7
Department of Transportation and Development pursuant to Title 48 of the Louisiana8
Revised Statutes of 1950.9
H. Every public entity intending to advertise a public work for bids shall10
obtain an estimate of the probable construction costs of such public work from11
the project designer or the designer's third-party estimator prior to advertising12
such public work for bids. No public entity shall advertise a public work for13
bids unless the funds have been budgeted by the public entity for the project.14
The estimate of probable construction costs for the project shall be made15
available at the time of bid opening, either by posting such estimate16
electronically or announcing aloud such estimate at the bid opening. All other17
bid information shall be available upon request forty-eight hours following the18
opening of bids by the public entity.19
(d)(i) I. When a design professional or public entity mandates attendance by20
prospective bidders at pre-bid conferences as a prerequisite to bid on a public21
works project, the date, place, and time of the pre-bid conference shall be stated in22
the first each advertisement notice. (ii) All prospective bidders in the orphan well23
plug and abandonment program within the Louisiana Department of Natural24
Resources shall be present at the beginning of the pre-bid conference and shall25
remain in attendance for the duration of the conference. Any prospective bidder who26
fails to attend the conference or remain for the duration shall be prohibited from27
submitting a bid for the project.28
(e) J. Any proposal Bidding documents shall include no more than three29 SB NO. 468
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alternates. An alternate bid by any name is still an alternate. Alternates, if accepted,1
shall be accepted in the order in which they are listed on the bid form. Determination2
of the low bidder shall be on the basis of the sum of the base bid and any alternates3
accepted. However, the public entity shall reserve the right to accept alternates in any4
order which does not affect determination of the low bidder.5
(f) K. Use of allowances in proposals bidding documents shall be restricted6
to minor items and shall be limited to hardware, face brick, landscaping, electric7
light fixtures, miscellaneous steel, tile, wallpaper and other exterior finishes,8
fixtures and furnishings, and carpeting. Allowances may not be utilized by the9
design professional or public entity to control the selection of a subcontractor or10
supplier.11
(g)(i) L.(1) No construction manager or any other third-party consultant12
employed by a public entity may manage a construction project as a general13
contractor or act in the role of the general contractor to oversee, direct, or coordinate14
individual trade contractors on behalf of the public entity, or accept bids or itself bid15
on the public work or components of the public work with respect to which the16
manager or consultant is employed or contracted to manage or consult.17
(ii) (2) The provisions of Item (i) Paragraph (1) of this Subparagraph18
Subsection shall not apply to the initial construction of a hospital, medical facility,19
or a combination of both, constructed by the Orleans Hospital Service District, but20
shall apply to the construction of any additions or modifications of a hospital,21
medical facility, or a combination of both, constructed by the Orleans Hospital22
Service District following the completion of the initial construction. The provisions23
of this Item Paragraph shall not relieve the Orleans Hospital Service District from24
complying with all other applicable provisions of this Title.25
(iii) All construction contracts on public works shall be opened in a public26
meeting. All subcontractors bidding on the project shall be invited to the meeting and27
the general contractor shall list in the bid documents who the subcontractors will be28
on the project.29 SB NO. 468
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(4) M. (1) All public work contracts shall contain provisions authorizing the1
issuance of change orders within the scope of the contract.2
(5) (2) All change orders shall be in writing or in electronic format if the3
public entity has the capability to receive change orders electronically. All4
change orders shall be signed by the contractor and the public entity or its5
design representative.6
(3) The public entity shall pay the contractor for work performed by7
change order not later than forty-five days after completion of the work8
described in the change order.9
(6) (4) Any change order outside the scope of the contract in excess of the10
contract limit as defined herein shall be let out for public bid as provided by this Part.11
(7) (5) Any change order pertaining to public work, not required by this Part12
to be put let out for public bid, shall either be negotiated in the best interest of the13
public entity or let out for public bid as provided by this Part. Where the change14
order is negotiated, the public entity shall require that said such change order be15
fully documented and itemized as to costs, including material quantities, material16
costs, taxes, insurance, employee benefits, other related costs, profit, and overhead.17
Where certain unit prices are contained in the initial contract, no deviations shall be18
allowed in computing negotiated change order costs.19
(8)(a) Notwithstanding any other law to the contrary and in addition to any20
other requirements provided for in this Subsection, the Acknowledgment of Addenda21
of the bid form provided for in R.S. 38:2212(A)(1)(b)(ii) for the public bid of public22
works projects conducted by the New Orleans Sewerage and Water Board shall also23
include attachment of the addenda if pricing information is contained therein and the24
addenda specifies attachment.25
(b) Notwithstanding any other law to the contrary and in addition to any other26
requirements provided for in this Subsection, the Acknowledgment of Addenda of27
the bid form for public works projects conducted by the New Orleans Sewerage and28
Water Board shall also include attachment of the addenda if pricing information is29 SB NO. 468
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contained therein and the addenda specifies attachment.1
B. N. Those contracts let by any public entity for public works estimated to2
cost in excess of the contract limit shall be advertised and let by contract to the3
lowest responsible and responsive bidder. Public works which are estimated to cost4
less than the contract limit, may be undertaken by the public entity with its own5
employees.6
C. O. (1) Except as provided by Paragraph (2) of this Subsection, the public7
entity may, through the issuance of an addendum, extend the bid period for up to8
thirty days, without the requirement of readvertising as provided by Subsection A of9
this Section.10
(2)(a) If a public entity issues or causes to be issued on a public work11
exceeding the contract limit any addendum modifying plans and specifications the12
bidding documents within a period of seven days prior to the advertised time, or the13
time extended as provided for in this Section, for the opening of bids, excluding14
Saturdays, Sundays, and any other legal holidays, then the public entity shall15
transmit a copy of the addendum to all prime bidders who have requested bid16
bidding documents pursuant to Subparagraph (A)(1)(e) Subsection D of this17
Section. This shall be completed within twenty-four hours of the issuance of the18
addendum and may be delivered by either facsimile transmission, e-mail, other19
electronic means, or by hand, or by special delivery mail provided the prime bidder20
has supplied the facsimile transmission number or e-mail address to the public entity.21
In addition to the transmission required in this Paragraph, a copy of the addendum22
shall be sent by regular mail to all prime bidders who have requested bid documents23
pursuant to Subparagraph (A)(1)(e) of this Section. If the addendum cannot be24
transmitted by facsimile transmission, e-mail, or other electronic means, special25
delivery mail, or otherwise effected by hand delivery, the public entity shall26
postpone the bid opening by at least seven days.27
(b) No public entity shall issue or cause to be issued any addenda modifying28
plans and specifications the bidding documents within a period of seventy-two29 SB NO. 468
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hours prior to the advertised time for the opening of bids, excluding Saturdays,1
Sundays, and any other legal holidays; however, if the necessity arises to issue an2
addendum modifying plans and specifications the bidding documents within the3
seventy-two-hour period prior to the advertised time for the opening of bids, then the4
opening of bids shall be extended for at least seven but not more than twenty-one5
working days, without the requirement of readvertising as provided by Subsection6
A of this Section. The addendum shall state the revised time and date for the opening7
of bids.8
D. P. (1)(a) This Section shall not apply in cases of public emergency where9
such emergency has been certified to by the public entity and notice of such public10
emergency shall, within ten days thereof, be published in the official journal of the11
public entity proposing or declaring such public emergency.12
(b)(i) This Section shall not apply in the event that an extreme public13
emergency occurs.14
(ii) The president of the police jury, the president of the parish council, the15
mayor of the municipality, or a person designated to act on behalf of the governing16
authority of any other political subdivision, shall declare that an extreme emergency17
exists and shall cause such declaration to be published in the official journal within18
ten days or as soon as practicable thereafter.19
(c) This Section shall not apply with respect to repairs administered by the20
office of facility planning and control for addressing damage caused by Hurricanes21
Katrina and Rita. However, the office of facility planning and control shall not be22
allowed to negotiate such projects, but shall be required to publicly advertise such23
projects in the official journal of the locality of the project and in the state's official24
journal. Public bids may be taken in a minimum of ten days after advertisement of25
such projects. However, if there are no bidders for such projects, the office of facility26
planning and control may enter into competitive bidding negotiations with no fewer27
than two contractors.28
(2) Limitations. (a) Every contract negotiated by a public entity under the29 SB NO. 468
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authority of this Subsection shall be supported by a written determination and1
findings by the public entity justifying use of the authority.2
(b) When contract action under this authority is taken pursuant to telephone3
or other oral offers, a written confirmation of the accepted offer shall be obtained and4
made a part of the contract case file. In addition, whenever contract action is taken5
as authorized by this Subsection, a record shall be established by the public entity6
which shall contain, as a minimum, the following information with respect to each7
offer: a description of the work to be performed, the name and address of each8
offeror quoting, and the performance time and terms of each offer. If quotations9
lower than the accepted quotation are received, the reasons for their rejection shall10
be recorded and made a part of the contract case file. Such records shall be retained11
for a minimum of six years following the purchase or completion of the public work.12
(3) Notwithstanding any other law to the contrary, for the project to enclose13
approximately five hundred feet of Corporation Canal that runs adjacent to the14
University Laboratory School on the Baton Rouge campus, which has been funded15
as an emergency through appropriation of funds by the Interim Emergency Board to16
Louisiana State University, East Baton Rouge Parish shall be authorized to assist in17
the project through use of its own employees to undertake such project.18
E. Q. (1) A publicly owned utility, as recognized by the Louisiana Public19
Service Commission, may undertake a public works project, other than construction20
of a building, for the contract limit or less by either of the following methods:21
(a) (1) Entry into contracts with or without public bid.22
(b) (2) Use of the employees of the public entity owning the utility.23
R.(2) Such public Public entities are herein prohibited from owning or24
operating manufacturing facilities or plants whereby such public entities that25
produce or manufacture construction materials. Any such facilities owned or26
operated prior to September 11, 1981, are excluded from these provisions.27
S. (3) The provisions of this Section shall not prevent public entities from28
using their regular maintenance employees for labor necessary in the maintenance,29 SB NO. 468
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construction, or extension of publicly owned and operated electric public utilities.1
With respect to the construction or extension of all other public utilities, the2
provisions of this Section shall not prevent public entities from using their regular3
maintenance employees when the cost of the work per project does not exceed one4
hundred fifty thousand dollars, including labor and materials. All purchases of5
materials or supplies exceeding the sum contract limit provided for in Subsection6
A of this Section shall be let by public bid as provided in this Part.7
F. T. (1) Whenever a public entity desires to purchase technical equipment,8
apparatus, machinery, materials, or supplies of a certain type and such purchases are9
clearly in the public interest, the public entity may specify a particular brand, make,10
or manufacturer in the specifications bidding documents let out for public bid as11
provided by this Part. If a particular brand, make, or manufacturer is specified, the12
model or catalog number also shall be specified.13
(2) Wherever in specifications a public entity specifies the name of a certain14
brand, make, manufacturer, or uses a definite specification is utilized, the15
specifications bidding documents shall state clearly that they are used only to16
denote the quality standard of product desired and that they do not restrict bidders17
to the specific brand, make, manufacturer, or specification named; that they are used18
only to set forth and convey to prospective bidders the general style, type, character,19
and quality of product desired; and that equivalent products will shall be acceptable.20
It shall be the responsibility of the professionally employed architect or engineer to21
determine what is considered an equivalent product on any and all projects in which22
he has been legally employed to perform his professional services.23
U. G. Notwithstanding the provisions of Subsection M of this Section relative24
to the financing of public works contracts by a contractor, public Public entities are25
hereby authorized to may enter into professional maintenance contracts for the repair26
and maintenance of water storage tanks public facilities owned, controlled, or27
operated by a public entity for a fixed annual fee. Such contracts shall extend for a28
duration of not less than two years. Any such contract entered into by a public entity29 SB NO. 468
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shall include a nonappropriation clause and shall not be considered a debt of the1
public entity. Such a professional maintenance contract shall not be considered a2
public works contract.3
H. V. Under no circumstances shall there be a division or separation of any4
public work project into smaller projects which division or separation would have5
the effect of avoiding the requirement that public work be advertised and let by6
contract to the lowest responsible and responsive bidder as provided in this Section.7
I. W. (1) This Section shall not apply to labor necessary for the maintenance8
of public works built and completed.9
(2) Volunteer citizen labor used for the construction of a project which is10
funded by the Louisiana Community Development Block Grant Louisiana Small11
Town Environment Program shall not be subject to the requirements of this Section.12
However, the value of the donated volunteer service shall not be used as a13
component of any bid if the public work has to be bid or to determine which is the14
lowest responsible and responsive bid.15
J. X.(1) If the public entity letting the contract proposes to reject or to16
disqualify any bidder, on grounds that such bidder is not a "responsible bidder" such17
public entity shall:18
(1) (a) Give written notice of the proposed disqualification action to such19
bidder and include in the written notice all reasons for the proposed disqualification20
action; and21
(2) (b) Give such bidder, who is proposed to be rejected or disqualified, or22
both, the opportunity to be heard at an informal hearing at which such bidder is23
afforded the opportunity to refute the reasons for the disqualification proposed24
action.25
(2) The informal hearing shall be conducted prior to award of the public26
work.27
(3) The informal hearing shall be a condition precedent to any action by28
the bidder adverse to the public entity, its representatives, employees, and29 SB NO. 468
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designers.1
(4) The informal hearing shall be conducted before the highest ranking2
official of the public entity or his designee who has no previous involvement3
with the proposed disqualification. The presiding official shall issue a ruling in4
writing and deliver same to the affected bidder in the manner agreed upon by5
the presiding hearing official and bidder.6
(5) No award of the contract for the public work shall be made by the7
public entity prior to the expiration of at least five working days following the8
date of issuance of the decision by the hearing official.9
K. Repealed by Acts 1999, No. 768, §2.10
L. Repealed by Acts 1999, No. 768, §2.11
M Y. No public entity shall enter into a contract for the purpose of public12
works with a contractor who then finances the project. Under no circumstances shall13
the agreement of a contractor to finance a public works project be used in any way14
to avoid the requirement that public work be advertised and let by contract to the15
lowest responsible and responsive bidder as provided in this Section.16
N. Repealed by Acts 1999, No. 768, §2.17
O. Whenever evidence of agency, corporate, or partnership authority is18
required for submission of a bid to a public entity, such fact shall be contained in the19
bid documents and such proof shall be provided in accordance with the provisions20
of this Section. The authority of the signature of the person submitting the bid shall21
be deemed sufficient and acceptable if any of the following conditions are met:22
(1) The signature on the bid is that of any corporate officer listed on the most23
current annual report on file with the secretary of state, or the signature on the bid24
is that of any member of a partnership or partnership in commendam listed in the25
most current partnership records on file with the secretary of state.26
(2) The signature on the bid is that of an authorized representative of the27
corporation, partnership, or other legal entity and the bid is accompanied by a28
corporate resolution, certification as to the corporate principal, or other documents29 SB NO. 468
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indicating authority which are acceptable to the public entity.1
(3) The corporation, partnership, or other legal entity has filed in the2
appropriate records of the secretary of state or the clerk of court of the parish in3
which the public entity is located, an affidavit, resolution, or other acknowledged or4
authentic document indicating the names of all parties authorized to submit bids for5
public contracts. Such document on file with the secretary of state or the clerk of6
court shall remain in effect and shall be binding upon the principal until specifically7
rescinded and canceled from the records of the respective offices.8
P. Repealed by Acts 1999, No. 768, §2.9
Q. Repealed by Acts 1999, No. 768, §2.10
R.(1) In the bid selection process for any contract for a public work or for all11
purchases of materials and supplies exceeding the sum of fifteen thousand dollars to12
be paid out of public funds under the provisions of this Chapter, any public entity13
may include bid selection provisions in bid documents relative to participation in a14
mentor-protégé program as provided by R.S. 51:1753.1.15
(2) In determination of compensation, the agency may provide for additional16
incentives for mentor-protégé participants for any contract which provides incentives17
for work performed or deliveries completed ahead of schedule. Incentives for18
mentor-protégé participants shall be not less than five percent greater than incentives19
awarded to persons who are not participants in the program.20
(3) Advertisements for bids must specify bid selection and incentive21
provisions for mentor-protégé participation.22
(4) Political subdivisions may participate in the mentor-protégé program as23
provided by R.S. 51:1753.1 or may adopt a program to provide for incentives in the24
bid selection process or incentives for participation.25
S. Z. The provisions of this Section shall not apply to purchases of materials26
and supplies by contractors awarded public works contracts by a public entity; or to27
subcontractors of said such contractors, who have been appointed or designated28
agents for the purchase of materials and supplies to be incorporated into a public29 SB NO. 468
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work pursuant to a contract properly bid in accordance with this Chapter when acting1
pursuant to said appointment or designation.2
* * *3
§2212.5. Prequalified bidders4
Except for construction or repair of roads and bridges and those contractors5
providing materials and supplies for construction or repair of roads and bridges, the6
division of administration may prequalify bidders for historic restoration projects7
funded by the state. The division of administration shall promulgate rules and8
regulations setting forth procedures for such prequalification. Historic restoration9
projects as used herein means repairs, renovations, or reconstruction of state-owned10
structures which are listed on the National Register of Historic Places or state-owned11
structures which are eligible for inclusion on the National Register and shall also12
include the renovation of the Louisiana State University Student Union on the Baton13
Rouge campus, which has been acknowledged as a Nationally Recognized14
Architectural Building that is recognized by the American Institute of Architects as15
having received an Honor Award from the Gulf States Region. After the division of16
administration has prequalified such bidders, only prequalified bidders may submit17
bids on those designed projects, and the contracts on those designated projects shall18
be awarded to the prequalified bidder submitting the lowest responsible and19
responsive bid, which bid for the renovation project of the Louisiana State20
University Student Union on the Baton Rouge campus only may be for overhead and21
profit or lump sum. Prior to the execution of the contract for the renovation project22
of the Louisiana State University Student Union on the Baton Rouge campus, it shall23
be submitted to the Joint Legislative Committee on the Budget for review and24
approval.25
* * *26
§2212.10. Verification of employees involved in contracts for public works27
* * *28
C. A private employer shall not bid on or otherwise contract with a public29 SB NO. 468
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entity for the physical performance of services within the state of Louisiana unless1
the private employer verifies in a sworn affidavit attesting to both of the following:2
(1) The private employer is registered and participates in a status verification3
system to verify that all new employees in the state of Louisiana are legal citizens4
of the United States or are legal aliens.5
* * *6
G. In the event the status verification system expires and extensions are not7
approved by the federal government, the provisions of this Section shall no longer8
apply. The executive director of the Louisiana Workforce Commission shall9
provide written notification to the Louisiana State Law Institute if the status10
verification system expires and extensions are not approved by the federal11
government.12
* * *13
§2215. Time period for holding bids; issuance of work orders to commence work;14
exceptions15
A. The state or any state agency upon receipt of bids for the undertaking of16
any public works contract A public entity shall act within thirty not later than17
forty-five calendar days of such receipt after the date of opening bids to award said18
such public works contract to the lowest responsible and responsive bidder or to19
reject all bids. A political subdivision upon receipt of bids for the undertaking of any20
public works contract shall act within forty-five calendar days of such receipt to21
award said contract to the lowest responsible bidder or reject all bids. However, the22
public entity and the lowest responsible and responsive bidder, by mutually written23
consent, may agree to extend the deadline for award by one or more extensions of24
thirty calendar days.25
B. If the low bidder has timely provided all documents required by R.S.26
38:2212, and no bid challenge has been submitted to the public entity, the low27
bidder and the public entity shall execute the contract not later than forty-five28
calendar days after the date of the public entity's award of the contract to the29 SB NO. 468
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lowest responsible and responsive bidder.1
C. The public entity shall issue to the contractor a notice to proceed with2
the project or work order not later than thirty calendar day following the date3
of execution of the contract by both parties, whichever execution date is later.4
D. The provisions of this Section shall not be applicable when the contract5
is to be financed by bonds which are required to be sold after receipt opening of bids6
on the contract, or when the contract is to be financed in whole or in part by federal7
or other funds which will not be readily available at the time bids are received8
opened, or on contracts which require a poll of the legislature of Louisiana before9
funds are available to fund the contract. In the event the If any time limit stipulated10
herein in this Section is not applicable because of one of the exceptions outlined11
above in this Subsection, this fact shall be mentioned in the specifications bidding12
documents for the project and in the official advertisement for bids required in13
accordance with R.S. 38:2212.14
C. If the contractor has provided all necessary documents to the public entity15
within ten days of the opening of bids and no bid challenge has been submitted to the16
public entity, the contractor and public entity shall execute the contract not later than17
forty-five days from the public entity's acceptance of the lowest responsible bid.18
D. Upon the execution of the contract, the public entity, within thirty days19
thereafter, shall issue to the contractor a notice to proceed with the project. However,20
upon mutual consent by both parties, the notice to proceed may be extended.21
E. These provisions shall not be subject to waiver.22
* * *23
§2225. Preference in letting contracts for public work24
A. Repealed by Acts 1984, No. 894, §3, eff. July 1, 1987.25
B. If a nonresident contractor bidding on public work in the state of Louisiana26
is domiciled in a state that provides a percentage preference in favor of contractors27
domiciled in that state over Louisiana resident contractors for the same type of work,28
then every Louisiana resident contractor shall be granted the same preference over29 SB NO. 468
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contractors domiciled in the other state favoring contractors domiciled therein1
whenever the nonresident contractor bids on public work in Louisiana.2
C. B. Any local law, either by legislative act or otherwise, ordinance, or3
executive order enacted prior to the effective date of this Act, or enacted hereinafter4
in conflict with this Section, or granting any local contractor or subcontractor5
preference over other Louisiana resident contractors shall be contrary to the6
provision of this Section.7
C. The Department of Transportation and Development and the office8
of facility planning and control within the division of administration shall keep9
on file a list of all states with a bid preference.10
D. The provisions and requirements of this Section shall not be waived by11
any public entity.12
* * *13
§2241.1. Acceptance of governing authority14
A. Whenever the When any public entity enters into a written contract for15
the construction, alteration, or repair of any public works, in accordance with the16
provisions of R.S. 38:2241, the official representative of the public entity shall have17
recorded in the office of the recorder of mortgages, in the parish where the work has18
been done, an acceptance of said such work or of any specified area thereof of such19
work, upon not later than thirty calendar day after the date of completion or20
substantial completion of the such work. Those public entities which do not file said21
recordation, shall require the contractor to have recorded in the office of the recorder22
of mortgages, in the parish where the work has been done, an acceptance of said23
work or of any specified area thereof upon substantial completion of the work. This24
acceptance shall not be executed except upon the recommendation of the architect25
or engineer of the public entity whose recommendation may be made upon26
completion or substantial completion of said public works within thirty days of27
completion of the project.28
B. "Substantial completion" is defined for the purpose of this Chapter, as the29 SB NO. 468
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finishing of construction, in accordance with the contract documents as modified by1
any change orders agreed to by the parties, to the extent that the public entity can use2
or occupy the public works or use or occupy the specified area of the public works3
for the use for which it was intended. The recordation of an acceptance in accordance4
with the provisions of this Section upon substantial completion shall be effective as5
an acceptance for all purposes under this Chapter.6
C. Any public entity that does not file for recordation an acceptance of7
public work, shall require the contractor to have recorded in the office of the8
recorder of mortgages, in the parish where the work has been done, an9
acceptance of such work or of any specified area of such work, not later than10
forty-five calendar days after the date of completion or substantial completion11
of the work. This acceptance shall not be executed except upon the12
recommendation of the architect or engineer of the public entity whose13
recommendation may be made not later than thirty calendar days after the date14
of completion or substantial completion of such public work.15
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Adley (SB 468)
Present law (R.S. 38:2211) defines terms used in the public bid law.
Proposed law retains present law definition of the terms "Bidding documents", "Change
order outside the scope of the contract", "Change order within the scope of the contract",
"Contractor", "Emergency", "Licensed design professional", "Louisiana resident contractor",
and "Negotiate"; adds definitions for the terms "Alternate" and "Probable construction
costs"; amends the definition of "Change order"; and renumbers Paragraphs (1) through (9)
of Subsection A.
Proposed law adds definition of "Alternate" to mean an item on the bid form that may
increase or decrease either the quantity of work or change the type of work, materials, or
equipment specified in the bidding documents, or both.
Proposed law amends definition of "Change order" to mean any contract modification that
includes an alteration, deviation, addition, or omission as to a preexisting public work
contract, which is mutually agreed upon by the contractor and public entity and authorizes
an adjustment in the contract price, contract time, or an addition, deletion, or revision of
work.
Proposed law adds definition of "Probable construction costs" to mean the estimate for the
cost of the project as designed that is determined by the public entity, the designer, or the SB NO. 468
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designer's third-party estimator.
Present law (R.S. 38:2212) requires that public work, including labor and materials,
exceeding $150,000 undertaken by a public entity to be advertised and let by written contract
to the lowest responsible bidder who bids according to the contract, plans, and specifications.
Proposed law requires contract be let to the lowest responsible and responsive bidder.
Proposed law substitutes the term "bidding documents" for the phrase "contract, plans, and
specifications" wherever it occurs in present law.
Present law requires the office of facility planning and control to develop a bid form
necessary to obtain information and to implement use of such form to bid for public works
projects through promulgation of rules and regulations in accord with the Administrative
Procedure Act. Requires the bid form request only information necessary to determine the
low bidder and certain listed information: Bid Security or Bid Bond, Acknowledgment of
Addenda, Base Bid, Alternates, Signature of Bidder, Name, Title, and Address of Bidder,
Name of Firm or Joint Venture, Corporate Resolution, and Louisiana Contractors License
Number, and on public works projects that use unit prices, a section to set forth such prices,
provided such unit prices shall not be used to construct building projects, unless the unit is
incorporated into the base bid.
Proposed law requires all public entities to use the Louisiana Uniform Bid Form
promulgated by the office.
Present law requires the low bidder to furnish within 10 days of bid opening other
documentation and information required including but not limited to the low bidder's
attestations pursuant to R.S. 38:2212.10 (E-verify) and 2227 (certain criminal convictions).
Proposed law retains present law and authorizes the apparent low bidder to submit such
information and documentation any time prior to expiration of the 10 day period.
Proposed law requires a public entity to declare non-responsive an apparent low bidder who
fails to submit information required by bidding documents in 10 days; authorizes a public
entity to award the bid to the next lowest bidder and to afford such bidder 10 days to furnish
required information; and authorizes a public entity to continue such process until the public
entity either determines the low bidder or rejects all bids.
Proposed law retains present law that requires the public entity shall not waive or alter the
10 day period except for the governing authority of any publicly owned commercial aviation
airport, the Sewerage and Water Board of New Orleans, the Regional Transit Authority, and
all agencies of the City of New Orleans, including but not limited to the New Orleans
Aviation Board shall require information and documentation from the two lowest bidders
three days after bid opening.
Proposed law retains present law that provides that, notwithstanding any other provision of
law to the contrary, all bidders shall submit all bid forms required by statute or by the La.
Administrative Code to the governing authority of East Baton Rouge Parish prior to the
opening of all bids relative to a contract for public works.
Proposed law retains present law that excepts the Department of Transportation and
Development from its requirements.
Proposed law reorganizes but retains present law that requires a bidder on a public works
project conducted by the New Orleans Sewerage and Water Board to include
Acknowledgment of Addenda to the bid form and to attach the addenda if pricing
information is contained therein and the addenda specifies its attachment. SB NO. 468
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Present law requires a bidder who submits a bid to the division of administration or the state
of Louisiana to submit evidence of authority of the person who signs the bid for public
works.
Proposed law expands present law to apply to any public entity. Adds that such evidence
shall be written.
Present law requires delivery of each bid by the bidder or his agent either by hand delivery,
electronic delivery, or registered or certified mail with return receipt requested, except that
registered or certified mail with return receipt requested delivery do not apply to municipal
and parochial governing authorities. Requires written receipt of hand delivered bids to the
deliverer. Prohibits a public entity from accepting a bid on days recognized as holidays by
the U.S. Postal Service.
Proposed law removes exception applicable to municipal and parochial governing authorities
in present law for delivery of bids by registered and certified mail.
Proposed law retains but moves present law [R.S. 38:2212(A)(1)(c)(ii)] to proposed law
[R.S. 38:2225(C)] that requires the Department of Transportation and the office of facility
planning and control to keep on file a list of all states with a bid preference.
Proposed law provides that for the purpose of interpretation of the base bid total, written
words govern if a conflict exists between words and numerals. Provides that extension of the
number of units multiplied by the price per unit governs if a discrepancy exists between the
sum of the extended prices and the base bid total on public works projects that require unit
price bids.
Present law defines the term "contract limit" as equal to the sum of $150,000, including
labor, materials, and equipment as per the rates in the latest edition of the Associated
Equipments Dealers Rate Book and administrative overhead not to exceed 15% except that
the contract limit is $50,0000 per project for the Department of Public Safety and
Corrections (DPSC) when it intends to use inmates as labor for projects on the grounds of
prisons and correctional institutions for the calendar year 1982, and provides that such
contract limit increases for each succeeding calendar year, increases such contract limit by
a factor equal to 3% per year for each of the next 10 calendar years (1983-1993).
Proposed law increases the contract limit for such DPSC projects to $75,000 and removes
provision for 3% per year increases.
Proposed law deletes present law that authorizes the Bossier Parish Police Jury to undertake
a public works project with its own employees; sets its contract limit at $130,000; authorizes
the police jury to adjust the contract limit annually by an amount not to exceed the annual
percentage increase in the Consumer Price Index in the preceding year; and requires the
police jury to publish the new contract limit for public works contracts in its official journal
in February of each year.
Proposed law retains present law that provides an annual limit of $1,000,000, including
labor, materials, and equipment, per the latest edition of the Associated Equipment
Distributors Rental Rate Book, and administrative overhead not to exceed 15%, for public
work, which is not publicly bid, to restore or rehabilitate a non-federally maintained levee,
including mitigation on public lands owned by the state or a political subdivision provided
such work is undertaken by the public entity with its own resources and employees, or the
resources and employees of another public entity through a cooperative endeavor or other
agreement. Provides that these provisions expire December 31, 2018.
Proposed law retain present law that requires public entities to furnish at least one complete
set of bid documents to prime bidders who request bid documents and who are properly
licensed by the Louisiana State Licensing Board for Contractors. Authorizes public entities SB NO. 468
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to require a deposit for bid documents but requires the total deposit, including handling fees
and other costs, not to exceed twice the actual cost of reproduction. Provides that a deposit
on the first set of documents is fully refundable upon return of the documents no later than
10 days after receipt of bids. Provides for refund of deposit less actual reproduction cost on
other sets of documents upon return no later than 10 days after receipt of bids. Authorizes
public entities that itself prepares and distributes contract documents to charge a fee not to
exceed its actual reproduction cost in lieu of a deposit.
Proposed law changes present law to authorize either electronic or paper bidding documents.
Proposed law requires prime bidders to obtain an original set of bidding documents from the
public entity, the design professional who prepared such documents, or a third party
designated by such design professional. Requires distribution of bidding documents as the
designer of record chooses if an electronic bid submittal is used. Requires the public entity
or its design professional to maintain a list of all prime bidders for addenda distribution.
Proposed law deletes present law that authorized the Sewerage and Water Board of New
Orleans to charge a fee, in lieu of a deposit, for paper documents when it prepares and
distributes electronic contract documents itself.
Proposed law retains present law that requires public entities to provide contractors a
uniform and secure electronic interactive system for submittal of bids as an additional
bidding option. Requires public entities that provide such system to follow the standards for
receipt of electronic bids adopted by the office of the governor, division of administration,
and the office of information technology as provided in LAC 4:XV.701.
Proposed law deletes provision in present law requiring acceptance of electronic bids for all
purchases requiring competitive bidding.
Proposed law retains present law that exempts public entities currently without available
high speed Internet access from providing for electronic bidding until such time such access
becomes available.
Proposed law retains present law that exempts any parish with a police jury form of
government and a population less than 20,000 from electronic bidding.
Proposed law retains present law that exempts any other public entity from electronic
bidding without securing and expending additional funding.
Proposed law retains present law that gives public entities the option to require submittal of
electronic bids on any competitive bid let out for public bid.
Proposed law retains present law that requires public entities to include all bidding
documents on the electronic website accepting electronic bids.
Proposed law retains present law that authorizes a bid specification to contemplate a fixed
escalation or de-escalation according to the U.S. Bureau of Labor Statistic's Consumer Price
Index or the Wholesale Price Index. Provides that bids based on specifications that are
subject to such escalation index are legal and valid. Proposed law adds that such escalation
index is valid for any item of a public work at the public entity's discretion.
Proposed law retains present law that requires the advertisement for public work to be
published once a week for three different weeks in a newspaper in the locality, requires the
first advertisement to appear at least 25 days before opening of bids, and authorizes
advertisement by electronic media available to the general public in addition to such
newspaper advertisement.
Proposed law retains present law that prohibits the first publication of the advertisement on SB NO. 468
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a Saturday, Sunday, or legal holiday, and requires all bidding documents to be available on
the day of first advertisement and until 24 hours before the bid opening date.
Proposed law revises present law that prohibits advertisement of the project if the designer's
estimate is more than the funds budgeted by the public entity for the projects and requires
the designer's estimate to be read aloud upon opening bids. Proposed law requires the public
entity to obtain an estimate of probable construction costs from its designer or the designer's
third party estimator prior to advertisement for bids. Prohibits advertisement of a public
work unless the funds have been budgeted for the project by the public entity. Requires the
estimate of probable construction to be made available either by electronic posting or by
announcing it aloud at bid opening. Requires all bid information to be available upon request
48 hours following opening of bids.
Proposed law retains present law that requires the date, place, and time of a required pre-bid
conference to be advertised in the advertisement notice. Proposed law requires pre-bid
conference information to be contained in all three advertisements for bid.
Proposed law requires all prospective bidders to be present at the beginning of the pre-bid
conference and to remain in attendance for the duration of the conference and prohibits any
prospective bidder who fails to attend the conference or remain for the duration from
submitting a bid for the project. Proposed law removes limited application to the orphan well
plug and abandonment program within the Louisiana Department of Natural Resources.
Proposed law retains present law that prohibits no more than three alternates in bidding
documents and requires acceptance of alternates in the order listed on the bid form. Requires
determination of the low bidder on the basis of the sum of the base bid and any alternates
accepted but gives the public entity the right to accept alternates in any order that does affect
determination of the low bidder.
Proposed law retains present law that restricts the use of allowances to minor items and
limits them to hardware, face brick, landscaping, electric light fixtures, and carpeting. Adds
miscellaneous steel, tile, wallpaper and other exterior finishes, fixtures and furnishings to
list of allowances. Prohibits use of allowances to control selection of a subcontractor or
supplier.
Proposed law retains present law that prohibits a construction manager or any other third-
party consultant employed by a public entity to manage a construction project as a general
contractor or to act in the role of the general contractor to oversee, direct, or coordinate
individual trade contractors on behalf of the public entity, or to accept bids or itself bid on
the public work or components of the public work with respect to which the manager or
consultant is employed or contracted to manage or consult. Proposed law retains exception
in present law for initial construction of a hospital, medical facility, or both, constructed by
the Orleans Hospital Service District.
Proposed law deletes present law that requires construction contracts to be opened in a
public meeting, that all subcontractors bidding the project be invited to the meeting, and that
the general contractor list subcontractors in the bid documents.
Proposed law retains present law that requires public works contracts to contain provisions
for "change orders within the scope" of the contract and for change order to be in writing.
Proposed law provides option for change orders in electronic format and requires execution
of the change order by the contractor and the public entity or its design representative.
Proposed law requires the public entity to pay the contractor for work performed by change
order not later than 45 days after completion of such work.
Proposed law retains present law that requires any "change order outside the scope" of the SB NO. 468
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contract in excess of the contract limit to be let for public bid as provided by law.
Proposed law retains present law that authorizes a public entity to either negotiate or let for
public bid a change order less than the contract limit. Provides for negotiated change orders
to be fully documented and itemized as to costs. Prohibits deviation in unit prices contained
in an initial contract in a negotiated change order.
Proposed law retains present law that requires public works estimated to cost in excess of
$150,000 to be advertised and let by contract to the lowest responsible bidder. Proposed law
requires public works to be let to the lowest responsible and responsive bidder.
Proposed law retains present law that authorizes public works estimated to cost less than
$150,000 to be undertaken by the public entity with its own employees.
Proposed law retains present law that authorizes a public entity to issue a bid addendum and
to extend the bid period for up to 30 days without readvertising. Requires completion of
transmittal of a copy of any addendum issued within 24 hours of its issuance and delivery
by either facsimile transmission, email, other electronic means, or by hand provided the
prime bidder has supplied the facsimile transmission number or email address to the public
entity by the public entity to all prime bidders who have requested bidding documents.
Requires postponement of the bid opening by at least seven days if an addendum cannot be
transmitted by facsimile transmission, email, or other electronic means, or otherwise effected
by hand delivery.
Proposed law adds authority to issue addendum by special delivery mail.
Proposed law retains present law that prohibits issuance of any addenda modifying the
bidding document within 72 hours prior to the advertised time for the opening of bids,
excluding Saturdays, Sundays, and any other legal holidays, but authorizes issuance of an
addendum due to necessity with such period and requires extension of the time to open bids
for at least seven days but not more than 21 working days without the requirement to
readvertise. Requires the addendum to state the revised time and date to open bids.
Proposed law retains present law that provides competitive bidding requirements do not
apply in cases of public emergency where the public entity certifies such emergency and
publishes notice of such public emergency within 10 days in its official journal or in cases
of extreme public emergency. Requires the president of the police jury, the president of the
parish council, the mayor of the municipality, or a person to act on behalf of the governing
authority of any other political subdivision to declare the existence of an extreme public
emergency and to publish same in the official journal within 10 days or as soon as
practicable thereafter.
Proposed law retains present law that authorizes the office of facility planning and control
to address damage caused by hurricanes Katrina and Rita by public advertisement in the
official journal of the locality of the project and the state's official journal and to take public
bids in a minimum of 10 days after advertisement. Prohibits negotiation of such projects
except when no bids are received. Requires competitive bidding negotiations with no fewer
than two contractors. Requires written determination and findings to support decision for
every negotiated contract under present law. Requires the public entity to take telephone or
other oral offers, to obtain written confirmation of an accepted offer and to include such
confirmation in the contract case file. Requires the public entity to establish a record that
contains, as a minimum, the following information for each offer: a description of the work
to be performed, the name and address of each offeror quoting, and the performance time
and terms of each offer. Requires to record and include in the contract file the rejection of
any quotations that are lower than the accepted quotation. Requires retention of such records
for a minimum of six years after the purchase or completion of the public work.
Proposed law deletes present law that authorized East Baton Rouge Parish to assist SB NO. 468
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Louisiana State University through use of the parish's own employees to undertake a project
to enclose approximately 500 feet of Corporation Canal that runs adjacent to the University
Laboratory School on the Baton Rouge campus, which project has been funded as an
emergency through appropriation of funds by the Interim Emergency Board to Louisiana
State University.
Proposed law retains present law that authorizes a publicly owned utility to undertake a
public works project, other than construction of a building, for the contract limit ( $150, 000)
or less by either of the following methods: entry into contracts with or without public bid;
use of the employees of the public entity owning the utility. Proposed law provides that such
publicly owned utility be recognized by the Louisiana Public Service Commission.
Proposed law retains present law that prohibits ownership or operation of a manufacturing
plant for construction materials by a public entity. Proposed law adds manufacturing
facilities and production of construction materials to such prohibition. Proposed law deletes
provisions that excluded any such facilities owned or operated prior to September 11, 1981,
from such prohibition.
Proposed law retains present law that authorizes a public entity to use its regular
maintenance employees for labor necessary in the maintenance, construction, or extension
of publicly owned and operated electric public utilities. Authorizes public entities to use
their regular maintenance employees to construct or extend all other public utilities when the
cost of the work per project does not exceed $100,000, including labor and materials.
Proposed law increases the contract limit for such projects to $150,000.
Proposed law retains present law that requires all purchases of materials or supplies
exceeding the contract limit ($150,000) to be let by public bid as provided by law.
Proposed law retains present law that authorizes a public entity to specify a particular brand,
make, or manufacturer for a project let to public bid and requires specification to include the
model or catalog number.
Proposed law retains present law that requires bidding documents to state clearly that the
specification of the name of a certain brand, make, manufacturer, or definite specification
is used only to denote the quality standard of product desired, to convey to prospective
bidders the general style, type, character, and quality of product desired, does not restrict
bidders to the specific brand, make, manufacturer, or specification named, and that
equivalent products are acceptable. Requires a professionally employed architect or engineer
to determine what is considered an equivalent product on any and all projects in which he
has been legally employed to perform his professional services.
Proposed law retains present law that authorizes a public entity to enter into maintenance
contracts for the repair and maintenance of water storage tanks owned, controlled, or
operated by a public entity for a fixed annual fee provided such contracts extend for a
duration of not less than two years, include a nonappropriation clause, and are not considered
a debt of the public entity. Proposed law changes present law from water storage tanks to
public facilities. Proposed law retains present law that provides that such maintenance
contracts are not considered a public works contract.
Proposed law retains present law that prohibits division or separation of any public work
project into smaller projects to avoid the requirement that public work be advertised and let
by contract to the lowest responsible bidder. Proposed law changes phrase lowest
responsible bidder to lowest responsible and responsive bidder.
Proposed law retains present law that makes it inapplicable to labor necessary for the
maintenance of public works built and completed.
Proposed law retains present law that makes it inapplicable to volunteer citizen labor used SB NO. 468
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for the construction of a project funded by the Louisiana Community Development Block
Grant Louisiana Small Town Environment Program and provides that the value of donated
volunteer service shall not be used as a component of any bid if such public work is bid to
determine the lowest responsible bid. Proposed law changes phrase lowest responsible
bidder to lowest responsible and responsive bidder.
Proposed law retains present law that requires a public entity to give written notice that
includes all reasons and an opportunity for a hearing to any bidder who it proposes to
disqualify on the grounds that such bidder is not a responsible bidder prior to such
disqualification. Proposed law requires the informal hearing to be conducted prior to award
of the public work. Proposed law further provides that such hearing is a condition precedent
to any action by the bidder adverse to the public entity, its representatives, employees, and
designers and shall be conducted before the highest ranking official of the public entity or
his designee who has no previous involvement with the proposed disqualification. Proposed
law prohibits award of the contract for the public work by the public entity prior to the
expiration of at least five working days after the date of issuance of the decision by the
hearing official and requires the hearing official to issue a ruling in writing and deliver same
to the affected bidder in the manner agreed upon by such official and the bidder.
Proposed law retains present law that prohibits a public entity from entering into a contract
for the purpose of public works with a contractor who then finances the project. Provides
that under no circumstances shall the agreement of a contractor to finance a public works
project be used in any way to avoid the requirement that public work be advertised and let
by contract to the lowest responsible bidder as provided in this Section.
Proposed law deletes provisions of present law that authorized a public entity to include bid
selection provisions in bid documents relative to participation in a mentor-protégé program.
Proposed law retains present law that provides that it shall not apply to purchases of
materials and supplies by contractors awarded public works contracts by a public entity; or
to subcontractors of such contractors, who have been appointed or designated agents for the
purchase of materials and supplies to be incorporated into a public work pursuant to a
contract properly bid in accordance with this Chapter when acting pursuant to said
appointment or designation. Proposed law changes phrase lowest responsible bidder to
lowest responsible and responsive bidder.
Present law (R.S. 38:2212.5) authorizes the division of administration to prequalifiy bidders
for historic restoration projects funded by the state except for construction or repair of roads
and bridges and contractors providing materials and supplies for such construction. Requires
the division to promulgate rules and regulations. Defines historic restoration projects to
means repairs, renovations, or reconstruction of state-owned structures included or eligible
for inclusion on the National Register of Historic Places. Further provides for renovation
of the Louisiana State University Student Union on the Baton Rouge campus. Requires that
only prequalified bidders may submit bids on designated historic projects. Requires award
of contracts for historic projects to the prequalified bidder submitting the lowest responsible
bid. Requires contract for renovation of the LSU Student Union may be for overhead and
profit or lump sum. Requires submission of such contract to the Joint Legislative Committee
on the Budget for review and approval.
Proposed law requires award of a historic restoration project to the prequalified bidder who
submits the lowest responsible and responsive bid.
Proposed law removes provisions in present law applicable to the LSU Student Union.
Present law (R.S. 38:2212.10) provides, generally, that a private employer shall not bid on
or otherwise contract with a public entity for a contract for public work unless the private
employer verifies in a sworn affidavit attesting to both of the following: SB NO. 468
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(1)The private employer is registered and participates in a status verification system to
verify that all employees are legal citizens of the U.S. or are legal aliens.
(2)The private employer must continue, during the term of the contract, to utilize a
status verification system to verify the legal status of all new employees.
Proposed law changes present law to require that private employers verify new employees.
Present law provides that its provisions shall no longer apply if the status verification system
expires and extensions are no longer approved by the federal government.
Proposed law retains present law and requires the executive director of the Louisiana
Workforce Commission to provide written notice to Louisiana State Law Institute if the
status verification expires and is not extended.
Present law (R.S. 38:2215) provides for the time period to hold bids and to issue a work
order to commence work on a public works project. Requires the state or any state agency
upon receipt of bids to award a public works contract to the lowest responsible bidder or to
reject all bids within 30 calendar days of receipt of bids. Requires a political subdivision to
award a contract within 45 calendar days of receipt of bids. Requires the contractor and the
public entity to execute the public works contract not later than 45 days from the public
entity's acceptance of the lowest responsible bid if the low bidder has timely provided all
necessary documents within 10 days of the opening of bids and no bid challenge has been
submitted to the public entity. Requires issuance of a notice to proceed within 30 days of
execution of the contract. Authorizes an extension of time to issue the notice to proceed
upon mutual consent of both parties. Provides that these provisions do not apply to contracts
financed by bonds that must be sold after opening of bids, to contracts financed in whole or
in part by federal or other funds not readily available at the time of bid opening, or to
contracts that require a poll of the legislature before funds are available. Requires such time
exceptions to be mentioned in the bidding documents and the advertisement for bids.
Proposed law changes present law to uniformly require any public entity, which includes the
state, a state agency, and a political subdivision, to award a public works contract to the
lowest responsible and responsive bidder or to reject all bids within 45 calendar days of the
date of bid opening.
Present law (R.S. 38:2225) requires granting the same percentage preference the state of
domicile of a nonresident contractor provides to a Louisiana resident contractor over such
nonresident contractor bidding on a Louisiana public work. Prohibits local preference laws.
Prohibits granting a preference to any local contractor or subcontractor over other Louisiana
resident contractors. Prohibits waiver of provisions by any public entity.
Proposed law retains but relocates present law [R.S. 38:2212(A)(1)(c)(ii)] that requires the
Department of Transportation and the office of facility planning and control to keep on file
a list of all states with a bid preference.
Present law (R.S. 38:2241.1) requires a public entity to record acceptance of a written
contract for public works in the office of the recorder of mortgages in the parish where the
work has been done upon substantial completion. Authorizes a public entity that does not
record such acceptance to require the contractor to record such acceptance upon written
recommendation of the public entity's architect or engineer. Authorizes the architect or
engineer to make such recommendation within 30 days of completion of the project. Defines
"substantial completion" to mean the finishing of construction, in accordance with the
contract documents as modified by any change orders agreed to by the parties, when the
public entity can use or occupy the public works or use or occupy the specified area of the
public works for the use for which it was intended. Provides that such recordation of
acceptance upon substantial completion shall be effective as an acceptance for all purposes
under law. SB NO. 468
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Proposed law requires the public entity to record project acceptance not later than 30 days
after completion or substantial completion of the project. Requires the contractor to file
acceptance within 45 calendar days after completion or substantial completion of the project
for those public entities that do not record an acceptance only upon written recommendation
of the architect or engineer of the public entity made not later than 30 calendar days after the
date of completion or substantial completion of the project.
Effective August 1, 2014.
(Amends R.S. 38:2211(A)(1), (2), (3), (4), (5), (6), (7), (8), and (9), 2212, 2212.5,
2212.10(C)(1) and (G), 2215, 2225, and 2241.1)