Page 1 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 ENROLLED SENATE BILL NO. 468 BY SENATOR ADLEY AND REPRESENTATIVES BROWN, FRANKLIN, GISCLAIR, GUINN, HILL, HONORE, HOWARD, MACK, NORTON AND ST. GERMAIN 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 within the scope of17 the project, material, or equipment specified in the bidding documents, or both.18 (2) "Bidding documents" means the bid notice, plans and specifications,19 bidding bid form, bidding instructions, addenda, special provisions, and all other20 written instruments prepared by or on behalf of a public entity for use by prospective21 bidders on a public contract.22 SB NO. 468 ENROLLED Page 2 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (2) (3)(a) "Change order" means any contract modification that includes1 an alteration, deviation, addition, or omission as to a preexisting public work2 contract, which authorizes an adjustment in the contract price, contract time, or3 an addition, deletion, or revision of work.4 (3) (b) "Change order outside the scope of the contract" means a change order5 which alters the nature of the thing to be constructed or which is not an integral part6 of the project objective.7 (4) (c) "Change order within the scope of the contract" means a change order8 which does not alter the nature of the thing to be constructed and which is an integral9 part of the project objective.10 (5)(4) "Contractor" means any person or other legal entity who enters into a11 public contract.12 (6)(5)(a) "Emergency" means an unforeseen mischance bringing with it13 destruction or injury of life or property or the imminent threat of such destruction or14 injury or as the result of an order from any judicial body to take any immediate15 action which requires construction or repairs absent compliance with the formalities16 of this Part, where the mischance or court order will not admit of the delay incident17 to advertising as provided in this Part. In regard to a municipally owned public18 utility, an emergency shall be deemed to exist and the public entity may negotiate as19 provided by R.S. 38:2212(D) R.S. 38:2212(P) for the purchase of fuel for the20 generation of its electric power where the public entity has first advertised for bids21 as provided by this Part but has failed to receive more than one bid.22 (b) An "extreme public emergency" means a catastrophic event which causes23 the loss of ability to obtain a quorum of the members necessary to certify the24 emergency prior to making the expenditure to acquire materials or supplies or to25 make repairs necessary for the protection of life, property, or continued function of26 the public entity.27 (7)(6) "Licensed design professional" means the architect, landscape28 architect, or engineer who shall have the primary responsibility for the total design29 services performed in connection with a public works project. Such professional30 SB NO. 468 ENROLLED Page 3 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. shall be licensed as appropriate and shall be registered under the laws of the state of1 Louisiana.2 (8)(7)(a) "Louisiana resident contractor", for the purposes of this Section3 Part, includes any person, partnership, association, corporation, or other legal entity4 and is defined as one that either:5 (i) Is an individual who has been a resident of Louisiana for two years or6 more immediately prior to bidding on work,7 (ii) Is any partnership, association, corporation, or other legal entity whose8 majority interest is owned by and controlled by residents of Louisiana, or9 (iii) For two years prior to bidding has maintained a valid Louisiana10 contractor's license and has operated a permanent facility in the state of Louisiana11 and has not had a change in ownership or control throughout those two years.12 (b) For the purposes of Item (7)(a)(ii) of this Paragraph, ownership13 percentages shall be determined on the basis of:14 (i) In the case of corporations, all common and preferred stock, whether15 voting or nonvoting, and all bonds, debentures, warrants, or other instruments16 convertible into common and/or preferred stock.17 (ii) In the case of partnerships, capital accounts together with any and all18 other capital advances, loans, bonds, debentures, whether or not convertible into19 capital accounts.20 (9)(8) "Negotiate" means the process of making purchases and entering into21 contracts without formal advertising and public bidding with the intention of22 obtaining the best price and terms possible under the circumstances.23 (9) "Probable construction costs" means the estimate for the cost of the24 project as designed that is determined by the public entity or the designer.25 * * *26 §2212. Advertisement and letting to lowest responsible and responsive bidder;27 public work; electronic bidding; participation in mentor-protégé28 program; exemptions29 A.(1)(a) All public work exceeding the contract limit as defined in this30 SB NO. 468 ENROLLED Page 4 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Section, including labor and materials, to be done by a public entity shall be1 advertised and let by contract to the lowest responsible and responsive bidder who2 had bid according to the contract, plans, and specifications bidding documents as3 advertised, and no such public work shall be done except as provided in this Part.4 (2) The term "bidding documents" is defined in R.S. 38:2211(A).5 (b)(i) B.(1) The provisions and requirement of this Section, and those stated6 in the advertisement for bids, and those required on the bid form bidding documents7 shall not be waived by any entity.8 (ii)(aa)(2) The Any public entity advertising for public work shall use9 only the Louisiana Uniform Bid Form as promulgated in accordance with the10 Administrative Procedure Act by the division of administration, office of facility11 planning and control, shall develop and prescribe through the promulgation of rules12 and regulations in accordance with the Administrative Procedure Act the bid form13 necessary to obtain the information and to implement the sections of the bid form14 provided for in this Item to be utilized for the public bid of public works projects.15 The bid form developed bidding documents shall require only the following16 information necessary to determine the lowest bidder and the following sections and17 information and documentation to be submitted by a bidder at the time18 designated in the advertisement for bid opening: Bid Security or Bid Bond,19 Acknowledgment of Addenda, Base Bid, Alternates, Signature of Bidder, Name,20 Title, and Address of Bidder, Name of Firm or Joint Venture, Corporate Resolution21 or written evidence of the authority of the person signing the bid, and Louisiana22 Contractors License Number, and on public works projects where unit prices are23 utilized, a section on the bid form where the unit price utilized in the bid shall be set24 forth including a description for each unit; however, unit prices shall not be25 utilized for the construction of building projects, unless the unit price is prices and26 their extensions are incorporated into the base bid or alternates.27 (3)(a) (bb) Other documentation and information required including but not28 limited to the low bidder's attestation pursuant to R.S. 38:2212.10 and 2227 shall be29 furnished by the low bidder within ten days after the bid opening The bidding30 SB NO. 468 ENROLLED Page 5 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. documents shall not require any bidder, other than the apparent low bidder, to1 furnish any other information or documentation, including the Attestation2 Affidavit and the E-Verification Form, any sooner than ten days after the date3 bids are opened; however, the apparent low bidder may submit such4 information or documentation at any time prior to the expiration of the ten-day5 period. If the apparent low bidder does not submit the proper information or6 documentation as required by the bidding documents within the ten-day period,7 such bidder shall be declared non-responsive, and the public entity may award8 the bid to the next lowest bidder, and afford the next lowest bidder not less than9 ten days from the date the apparent low bidder is declared non-responsive, to10 submit the proper information and documentation as required by the bidding11 documents, and may continue such process until the public entity either12 determines the low bidder or rejects all bids. The ten-day period shall not be13 altered or waived by any public entity except the governing authority of any publicly14 owned commercial aviation airport, the Sewerage and Water Board of New Orleans,15 the Regional Transit Authority, and all agencies of the City of New Orleans,16 including but not limited to the Regional Transit Authority and the New Orleans17 Aviation Board, who shall require that the other documentation and information18 referred to in this Subitem Subparagraph be furnished by the two lowest apparent19 low bidders no sooner than three days after the bid opening. The two apparent low20 bidders may submit such information or documentation at any time prior to the21 expiration of the three day period. If the two apparent low bidders do not22 submit the proper information or documentation as required by the bidding23 documents within the three day period, such bidders shall be declared non-24 responsive, and from that date, award may be made to the next lowest bidder,25 and afford that bidder not less than three days to submit the required26 information or documentation, and the process may continue until either a low27 bidder is determined or all bids are rejected.28 (cc) (b) Notwithstanding any other provision of law to the contrary the29 provisions of this Paragraph, all bidders bidding on public works for East Baton30 SB NO. 468 ENROLLED Page 6 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Rouge Parish shall submit all bid forms required by statute or by the Louisiana1 Administrative Code to the governing authority of East Baton Rouge Parish prior to2 the opening of all bids relative to a contract for public works.3 (iii) The provisions of this Subparagraph shall not apply to bid forms of the4 Department of Transportation and Development pursuant to Title 48 of the Louisiana5 Revised Statutes of 1950.6 (4) Notwithstanding any other provision of law to the contrary and in7 addition to any other requirements provided by this Subsection, the8 Acknowledgment of Addenda to the bid form provided for in this Section for9 the public bid of public works conducted by the New Orleans Sewerage and10 Water Board shall also include attachment of the addenda if pricing11 information is contained therein and the addenda requires attachment.12 (c)(i) (5) Evidence Written evidence of agency, corporate, or partnership the13 authority of the person signing the bid for public works shall be required for14 submission of a bid to the division of administration or the state of Louisiana15 submitted at the time of bidding. The authority of the signature of the person16 submitting the bid shall be deemed sufficient and acceptable if any of the following17 conditions are met:18 (aa) (a)The signature on the bid is that of any corporate officer listed on the19 most current annual report on file with the secretary of state, or the signature on the20 bid is that of any member of a partnership or partnership in commendam, limited21 liability company, limited liability partnership, or other legal entity listed in the22 most current partnership business records on file with the secretary of state.23 (bb) (b) The signature on the bid is that of an authorized representative of the24 corporation, partnership, or other legal entity and the bid is accompanied by a25 corporate resolution, certification as to the corporate principal, or other documents26 indicating authority which are acceptable to the public entity as documented by the27 legal entity certifying the authority of the person.28 (cc) (c) The corporation, partnership, or other legal entity has filed in the29 appropriate records of the secretary of state of this state in which the public entity30 SB NO. 468 ENROLLED Page 7 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. is located, an affidavit, resolution, or other acknowledged or authentic document1 indicating the names of all parties authorized to submit bids for public contracts.2 Such document on file with the secretary of state shall remain in effect and shall be3 binding upon the principal until specifically rescinded and canceled from the records4 of the office.5 (ii) (6)(a) Except as provided in Subparagraph (f) of this Paragraph, each6 Each bid shall be either hand delivered by the bidder or his agent in which instance7 the deliverer shall be handed a written receipt, or such bid shall be sent by registered8 or certified mail with a return receipt requested, or shall be submitted9 electronically as provided in Subsection E of this Section. However, the10 requirement that all bids be sent by registered or certified mail shall not apply to bids11 received by municipal and parochial governing authorities. No public entity shall12 accept or take any bids, including receiving any hand delivered bids, on days which13 are recognized as holidays by the United States Postal Service. The Department of14 Transportation and Development and facility planning and control section under the15 division of administration shall keep on file a list of all states which have passed a16 bid preference law.17 (b) Only for the purpose of interpretation of the base bid total and18 alternate bids, when applicable, written words shall govern if a conflict exists19 between words and numerals.20 (c) If the public works requires unit price bids and there is a discrepancy21 between the base bid total and the sum of the extended unit prices, the unit22 price bid shall govern.23 (7) The provisions of this Subsection shall not apply to the Department24 of Transportation and Development.25 (d) C.(1) The Except as provided in Paragraphs (2) and (3) of this26 Subsection, the term "contract limit" as used herein shall be equal to the sum of one27 hundred fifty thousand dollars per project, including labor, materials, and equipment28 as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate29 Book and administrative overhead not to exceed fifteen percent; however:, provided30 SB NO. 468 ENROLLED Page 8 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. that beginning February 1, 2015, and annually on February first of each1 subsequent year, the office of facility planning and control within the division2 of administration shall adjust the "contract limit" by an amount not to exceed3 the annual percentage increase in the Consumer Price Index in the preceding4 year. The office of facility planning and control within the division of5 administration shall publish the new contract limit for public works contracts6 in the Louisiana Register in January of each year.7 (i) (2)When the Department of Public Safety and Corrections intends to use8 inmates as labor in connection with projects which occur on the grounds or to the9 buildings, structures, or facilities located on the grounds of prisons or correctional10 institutions, the term contract limit shall be fifty seventy-five thousand dollars per11 project, for the calendar year 1982 and for each succeeding calendar year, shall be12 increased by a factor equal to three percent per year for each of the next ten calendar13 years.14 (ii) Repealed by Acts 2011, 1 st Ex. Sess., No. 5, §2, eff. June 12, 2011.15 (iii) Beginning September 1, 2005, when the Bossier Parish Police Jury16 intends to undertake a public works project with its own employees, the term17 "contract limit" shall be equal to the sum of one hundred thirty thousand dollars.18 Additionally, the police jury may adjust the contract limit provided for in this Item19 each year by an amount not to exceed the annual percentage increase in the20 Consumer Price Index in the preceding year. If the contract limit is increased, the21 Bossier Parish Police Jury shall publish the new contract limit for public works22 contracts in its official journal in February of each year.23 (iv) Repealed by Acts 2007, No. 336, §2, eff. July 31, 2008.24 (v)(aa) (3)(a) The annual limit by a public entity for any work to restore or25 rehabilitate a levee that is not maintained with federal funds, including mitigation on26 public lands owned by the state or a political subdivision, shall not exceed the sum27 of one million dollars, including labor, materials, and equipment, which is not28 publicly bid, as per the rates in the latest edition of the Associated Equipment29 Distributors Rental Rate Book, and administrative overhead not to exceed fifteen30 SB NO. 468 ENROLLED Page 9 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. percent; provided that the work is undertaken by the public entity with its own1 resources and employees, or with the resources and employees of another public2 entity through a cooperative endeavor or other agreement with such entity.3 (bb) (b) The provisions of this Item Paragraph shall remain effective until4 December 31, 2018.5 (e)(i) D. Each public entity advertising and letting for bid a public works6 contract under the provisions of this Section shall furnish all prime bidders who7 request bid bidding documents and who are properly licensed by the Louisiana State8 Licensing Board for Contractors with at least one set of complete bid bidding9 documents. The public entity may require a deposit on the bid bidding documents;10 however, the total cost of the deposit, including handling fees and other costs shall11 not exceed twice the actual cost of reproduction. Deposits on the first set of12 documents furnished bona fide prime bidders will shall be fully refunded upon return13 of the documents no later than ten days after receipt of bids. On other sets of14 documents furnished to bidders, the deposit less the actual cost of reproduction, will15 shall be refunded upon return of the documents no later than ten days after receipt16 of bids. Where the public entity, itself, prepares and distributes the contract bidding17 documents, the public entity may, in lieu of a deposit, charge a fee for the18 documents, which fee shall not exceed the actual cost of reproduction. Prime19 bidders shall obtain an original set of electronic or paper bidding documents20 either from the public entity or the design professional who prepared such21 documents. Either the public entity or the design professional may choose the22 method and service of plan distribution. When the public entity utilizes an23 electronic bid submittal system, bidding documents shall be distributed in the24 manner chosen by the public entity. At its sole discretion, the public entity may25 authorize its design professional of record to choose an electronic bid submittal26 system. The public entity or its design professional of record shall maintain a27 list of all prime bidders for the purpose of addenda distribution.28 (ii) Where the Sewerage and Water Board of New Orleans, itself, prepares29 and distributes electronic contract documents, the Sewerage and Water Board of30 SB NO. 468 ENROLLED Page 10 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. New Orleans may, in lieu of a deposit, charge a fee for each paper document, which1 shall not exceed the actual cost of reproduction.2 (f)(i) E. (1) Contractors shall be provided the option to submit bids for public3 contracts through Public entities shall provide, as an additional bidding option,4 a uniform and secure electronic interactive system for the submittal of bids for5 public works requiring competitive bidding. Political subdivisions Any public6 entity providing such system shall follow the standards for the receipt of electronic7 bids adopted by the office of the governor, division of administration, and the office8 of information technology as provided for in LAC 4:XV.701 , and shall make the9 appropriate provisions necessary for the acceptance of electronic bids for all10 purchases requiring competitive bidding as required by this Section. Any special11 condition or requirement for the submission shall be specified in the advertisement12 for bids required by this Section.13 (ii) (2) Public entities that are currently without available high speed high-14 speed Internet access will shall be exempt from this requirement until such time that15 high speed high-speed Internet access becomes available.16 (iii) (3) Any parish with a police jury form of government and a population17 of less than twenty thousand shall be exempt from the provisions of this18 Subparagraph Subsection.19 (iv) (4) Any city or municipality with a population of less than ten thousand20 shall be exempt from the provisions of this Subparagraph Subsection.21 (v) (5) Any special service district created by a police jury form of22 government and other public entity which is unable to comply with R.S.23 38:2212(A)(1)(f)(i) the electronic bidding provisions of this Subsection without24 securing and expending additional funding shall be exempt from its requirements.25 The special service district shall be exempted from any expenditures for high speed26 Internet access, software, personnel costs, training, or other office equipment directly27 relating to the receipt of bids via high speed Internet access.28 (vi) (6) Public entities shall have the option to require that all bids be29 submitted electronically for any competitive bid let out for public bid.30 SB NO. 468 ENROLLED Page 11 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (vii) (7) Public entities must shall include all bid bidding documents as1 defined in R.S. 38:2211(A)(1) 38:2211(A)(2), on the electronic website accepting2 the electronic bids.3 (g) Repealed by Acts 1999, No. 768, §2.4 (2) F. The bid specification may contemplate a fixed escalation or de-5 escalation in accordance with the United States Bureau of Labor Statistic's Consumer6 Price Index and/or Wholesale or the Producer Price Index. Bids based on7 specifications which are subject to a recognized escalation index shall be legal and8 valid for any item of a public work, at the discretion of the public entity.9 (3)(a) G. (1) The advertisement required by this Section for any contract for10 public works shall be published once a week for three different weeks in a newspaper11 in the locality, and the first advertisement shall appear at least twenty-five days12 before the opening of bids. In addition to the newspaper advertisement, a public13 entity may also publish an advertisement by electronic media available to the general14 public.15 (b) (2) The first publication of the advertisement shall not occur on a16 Saturday, Sunday, or legal holiday. Plans and specifications All bidding documents17 shall be available to bidders on the day of the first advertisement and shall be18 available until twenty-four hours before the bid opening date.19 (c)(i) If at the end of the contract document phase, it is determined that the20 designer's estimate is more than the funds budgeted by the public entity for the21 project, the project shall not be advertised for bid. The designer's estimate shall be22 read aloud upon opening bids.23 (ii) The bid form shall contain Bid Security or Bid Bond, Acknowledgment24 of Addenda, Base Bid, Alternates, Signature of Bidder, Name, Title, and Address of25 Bidder, Name of Firm or Joint Venture Corporate Resolution, and Louisiana26 Contractors License Number, and on public works projects where unit prices are27 utilized, their inclusion in the bid form; however, unit prices shall not be utilized for28 the construction of building projects, unless the unit price is incorporated into the29 base bid. Other documentation required shall be furnished by the low bidder within30 SB NO. 468 ENROLLED Page 12 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. ten days after the bid opening. The governing authority of any publicly owned1 commercial aviation airport, the Sewerage and Water Board of New Orleans, and all2 agencies of the City of New Orleans, including but not limited to the Regional3 Transit Authority and the New Orleans Aviation Board shall require that the other4 documentation referred to above shall be furnished by the two lowest bidders three5 days after the bid opening. The division of administration, office of facility planning6 and control, shall develop and prescribe the necessary bid form for public works7 projects for public bid purposes and implement the provisions of this Section of the8 bid form in accordance with the Administrative Procedure Act.9 (iii) The provisions of this Subparagraph shall not apply to bid forms of the10 Department of Transportation and Development pursuant to Title 48 of the Louisiana11 Revised Statutes of 1950.12 H. Every public entity intending to advertise a public work for bids shall13 estimate the probable construction costs of such public work or obtain such14 estimate from the project designer prior to advertising such public work for15 bids. No public entity shall advertise a public work for bids unless funds that16 meet or exceed the estimate of the probable construction costs have been17 budgeted by the public entity for the project. The estimate of probable18 construction costs for the project shall be made available at the time of bid19 opening, either by posting such estimate electronically or announcing aloud20 such estimate at the bid opening. Any and all bidders' information shall be21 available upon request, either no sooner than fourteen days following the bid22 opening or after the recommendation of award by the public entity or the design23 professional, whichever occurs first, and the requester shall pay reasonable24 reproduction costs. The provisions of this Subsection shall not apply to the25 Department of Transportation and Development.26 (d)(i) I. When a design professional or public entity mandates attendance by27 prospective bidders at pre-bid conferences as a prerequisite to bid on a public28 works project, the date, place, and time of the pre-bid conference shall be stated in29 the first each advertisement notice.30 SB NO. 468 ENROLLED Page 13 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (ii) All prospective bidders in the orphan well plug and abandonment1 program within the Louisiana Department of Natural Resources shall be present at2 the beginning of the pre-bid conference and shall remain in attendance for the3 duration of the conference. Any prospective bidder who fails to attend the conference4 or remain for the duration shall be prohibited from submitting a bid for the project.5 (e) J. Any proposal Bidding documents shall include no more than three6 alternates. An alternate bid by any name is still an alternate. Alternates, if accepted,7 shall be accepted in the order in which they are listed on the bid form. Determination8 of the low bidder shall be on the basis of the sum of the base bid and any alternates9 accepted. However, the public entity shall reserve the right to accept alternates in any10 order which does not affect determination of the low bidder.11 (f) K. Use of allowances in proposals bidding documents shall be restricted12 to minor items and shall be limited to hardware, face brick, landscaping, electric13 light fixtures, miscellaneous steel, tile, wallpaper and other exterior finishes,14 fixtures and furnishings, and carpeting. Allowances may not be utilized by the15 design professional or public entity to control the selection of a subcontractor or16 supplier.17 (g)(i) L.(1) No construction manager or any other third-party consultant18 employed by a public entity may manage a construction project as a general19 contractor or act in the role of the general contractor to oversee, direct, or coordinate20 individual trade contractors on behalf of the public entity, or accept bids or itself bid21 on the public work or components of the public work with respect to which the22 manager or consultant is employed or contracted to manage or consult.23 (ii) (2) The provisions of Item (i) Paragraph (1) of this Subparagraph24 Subsection shall not apply to the initial construction of a hospital, medical facility,25 or a combination of both, constructed by the Orleans Hospital Service District, but26 shall apply to the construction of any additions or modifications of a hospital,27 medical facility, or a combination of both, constructed by the Orleans Hospital28 Service District following the completion of the initial construction. The provisions29 of this Item Paragraph shall not relieve the Orleans Hospital Service District from30 SB NO. 468 ENROLLED Page 14 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. complying with all other applicable provisions of this Title.1 (iii) All construction contracts on public works shall be opened in a public2 meeting. All subcontractors bidding on the project shall be invited to the meeting and3 the general contractor shall list in the bid documents who the subcontractors will be4 on the project.5 (4) M. (1) All public work contracts shall contain provisions authorizing the6 issuance of change orders within the scope of the contract.7 (5) (2) All change orders shall be in writing or in electronic format if the8 public entity has the capability to receive change orders electronically. All9 change orders shall be signed by the contractor and the public entity or its10 design representative.11 (3) The public entity shall pay the contractor for work performed by12 change order not later than sixty days after the date the public entity approves13 the application for payment for completion of the work performed in the change14 order.15 (6) (4) Any change order outside the scope of the contract in excess of the16 contract limit as defined herein shall be let out for public bid as provided by this Part.17 (7) (5) Any change order pertaining to public work, not required by this Part18 to be put let out for public bid, shall either be negotiated in the best interest of the19 public entity or let out for public bid as provided by this Part. Where the change20 order is negotiated, the public entity shall require that said such change order be21 fully documented and itemized as to costs, including material quantities, material22 costs, taxes, insurance, employee benefits, other related costs, profit, and overhead.23 Where certain unit prices are contained in the initial contract, no deviations shall be24 allowed in computing negotiated change order costs.25 (8)(a) Notwithstanding any other law to the contrary and in addition to any26 other requirements provided for in this Subsection, the Acknowledgment of Addenda27 of the bid form provided for in R.S. 38:2212(A)(1)(b)(ii) for the public bid of public28 works projects conducted by the New Orleans Sewerage and Water Board shall also29 include attachment of the addenda if pricing information is contained therein and the30 SB NO. 468 ENROLLED Page 15 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. addenda specifies attachment.1 (b) Notwithstanding any other law to the contrary and in addition to any other2 requirements provided for in this Subsection, the Acknowledgment of Addenda of3 the bid form for public works projects conducted by the New Orleans Sewerage and4 Water Board shall also include attachment of the addenda if pricing information is5 contained therein and the addenda specifies attachment.6 B. N. Those contracts let by any public entity for public works estimated to7 cost in excess of the contract limit shall be advertised and let by contract to the8 lowest responsible and responsive bidder. Public works which are estimated to cost9 less than the contract limit, may be undertaken by the public entity with its own10 employees.11 C. O. (1) Except as provided by Paragraph (2) of this Subsection, the public12 entity may, through the issuance of an addendum, extend the bid period for up to13 thirty days, without the requirement of readvertising as provided by Subsection A of14 this Section.15 (2)(a) If a public entity issues or causes to be issued on a public work16 exceeding the contract limit any addendum modifying plans and specifications the17 bidding documents within a period of seven days prior to the advertised time, or the18 time extended as provided for in this Section, for the opening of bids, excluding19 Saturdays, Sundays, and any other legal holidays, then the public entity shall20 transmit a copy of the addendum to all prime bidders who have requested bid21 bidding documents pursuant to Subparagraph (A)(1)(e) Subsection D of this22 Section. This shall be completed within twenty-f our hours of the issuance of the23 addendum and may be delivered by either facsimile transmission, e-mail, other24 electronic means, or by hand, or by overnight delivery using a nationally25 recognized carrier provided the prime bidder has supplied the facsimile26 transmission number or e-mail address to the public entity. In addition to the27 transmission required in this Paragraph, a copy of the addendum shall be sent by28 regular mail to all prime bidders who have requested bid documents pursuant to29 Subparagraph (A)(1)(e) of this Section. If the addendum cannot be transmitted by30 SB NO. 468 ENROLLED Page 16 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. facsimile transmission, e-mail, or other electronic means, overnight delivery using1 a nationally recognized carrier, or otherwise effected by hand delivery, the public2 entity shall postpone the bid opening by at least seven days.3 (b) No public entity shall issue or cause to be issued any addenda modifying4 plans and specifications the bidding documents within a period of seventy-two5 hours prior to the advertised time for the opening of bids, excluding Saturdays,6 Sundays, and any other legal holidays; however, if the necessity arises to issue an7 addendum modifying plans and specifications the bidding documents within the8 seventy-two-hour period prior to the advertised time for the opening of bids, then the9 opening of bids shall be extended for at least seven but not more than twenty-one10 working days, without the requirement of readvertising as provided by Subsection11 A of this Section. The addendum shall state the revised time and date for the opening12 of bids.13 D. P. (1)(a) This Section shall not apply in cases of public emergency where14 such emergency has been certified to by the public entity and notice of such public15 emergency shall, within ten days thereof, be published in the official journal of the16 public entity proposing or declaring such public emergency.17 (b)(i) This Section shall not apply in the event that an extreme public18 emergency occurs.19 (ii) The president of the police jury, the president of the parish council, the20 mayor of the municipality, or a person designated to act on behalf of the governing21 authority of any other political subdivision, shall declare that an extreme emergency22 exists and shall cause such declaration to be published in the official journal within23 ten days or as soon as practicable thereafter.24 (c) This Section shall not apply with respect to repairs administered by the25 office of facility planning and control for addressing damage caused by Hurricanes26 Katrina and Rita. However, the office of facility planning and control shall not be27 allowed to negotiate such projects, but shall be required to publicly advertise such28 projects in the official journal of the locality of the project and in the state's official29 journal. Public bids may be taken in a minimum of ten days after advertisement of30 SB NO. 468 ENROLLED Page 17 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. such projects. However, if there are no bidders for such projects, the office of facility1 planning and control may enter into competitive bidding negotiations with no fewer2 than two contractors.3 (2) Limitations. (a) Every contract negotiated by a public entity under the4 authority of this Subsection shall be supported by a written determination and5 findings by the public entity justifying use of the authority.6 (b) When contract action under this authority is taken pursuant to telephone7 or other oral offers, a written confirmation of the accepted offer shall be obtained and8 made a part of the contract case file. In addition, whenever contract action is taken9 as authorized by this Subsection, a record shall be established by the public entity10 which shall contain, as a minimum, the following information with respect to each11 offer: a description of the work to be performed, the name and address of each12 offeror quoting, and the performance time and terms of each offer. If quotations13 lower than the accepted quotation are received, the reasons for their rejection shall14 be recorded and made a part of the contract case file. Such records shall be retained15 for a minimum of six years following the purchase or completion of the public work.16 (3) Notwithstanding any other law to the contrary, for the project to enclose17 approximately five hundred feet of Corporation Canal that runs adjacent to the18 University Laboratory School on the Baton Rouge campus, which has been funded19 as an emergency through appropriation of funds by the Interim Emergency Board to20 Louisiana State University, East Baton Rouge Parish shall be authorized to assist in21 the project through use of its own employees to undertake such project.22 E. Q. (1) A publicly owned utility, as recognized by the Louisiana Public23 Service Commission, may undertake a public works project, other than construction24 of a building, for the contract limit or less by either of the following methods:25 (a) (1) Entry into contracts with or without public bid.26 (b) (2) Use of the employees of the public entity owning the utility.27 R.(2) Such public Public entities are herein prohibited from owning or28 operating manufacturing facilities or plants whereby such public entities that29 produce or manufacture construction materials. Any such facilities owned or30 SB NO. 468 ENROLLED Page 18 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. operated prior to September 11, 1981, are excluded from these provisions.1 S. (3) The provisions of this Section shall not prevent public entities from2 using their regular maintenance employees for labor necessary in the maintenance,3 construction, or extension of publicly owned and operated electric public utilities.4 With respect to the construction or extension of all other public utilities, the5 provisions of this Section shall not prevent public entities from using their regular6 maintenance employees when the cost of the work per project does not exceed one7 hundred fifty thousand dollars, including labor and materials. All purchases of8 materials or supplies exceeding the sum contract limit provided for in Subsection9 A of this Section shall be let by public bid as provided in this Part.10 F. T. (1) Whenever a public entity desires to purchase technical equipment,11 apparatus, machinery, materials, or supplies of a certain type and such purchases are12 clearly in the public interest, the public entity may specify a particular brand, make,13 or manufacturer in the specifications bidding documents let out for public bid as14 provided by this Part. If a particular brand, make, or manufacturer is specified, the15 model or catalog number also shall be specified.16 (2) Wherever in specifications a public entity specifies the name of a certain17 brand, make, manufacturer, or uses a definite specification is utilized, the18 specifications bidding documents shall state clearly that they are used only to19 denote the quality standard of product desired and that they do not restrict bidders20 to the specific brand, make, manufacturer, or specification named; that they are used21 only to set forth and convey to prospective bidders the general style, type, character,22 and quality of product desired; and that equivalent products will may be acceptable.23 It shall be the responsibility of the professionally employed architect or engineer to24 determine what is considered an equivalent product on any and all projects in which25 he has been legally employed to perform his professional services.26 U. G. Notwithstanding the provisions of Subsection M of this Section relative27 to the financing of public works contracts by a contractor, public Public entities are28 hereby authorized to may enter into professional maintenance contracts for the repair29 and maintenance of water storage tanks public facilities owned, controlled, or30 SB NO. 468 ENROLLED Page 19 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. operated by a public entity for a fixed annual fee. Such contracts shall extend for a1 duration of not less than two years. Any such contract entered into by a public entity2 shall include a nonappropriation clause and shall not be considered a debt of the3 public entity. Such a professional maintenance contract shall not be considered a4 public works contract.5 H. V. Under no circumstances shall there be a division or separation of any6 public work project into smaller projects which division or separation would have7 the effect of avoiding the requirement that public work be advertised and let by8 contract to the lowest responsible and responsive bidder as provided in this Section.9 I. W. (1) This Section shall not apply to labor necessary for the maintenance10 of public works built and completed.11 (2) Volunteer citizen labor used for the construction of a project which is12 funded by the Louisiana Community Development Block Grant Louisiana Small13 Town Environment Program shall not be subject to the requirements of this Section.14 However, the value of the donated volunteer service shall not be used as a15 component of any bid if the public work has to be bid or to determine which is the16 lowest responsible and responsive bid.17 J. X.(1) If the public entity letting the contract proposes to disqualify any18 bidder, either as a potential bidder or as the low bidder, on grounds that such19 bidder is not a "responsible bidder" such public entity shall do all of the following:20 (1) (a) Give written notice of the proposed disqualification action to such21 bidder and include in the written notice all reasons for the proposed disqualification22 action; and .23 (2) (b) Give such bidder, the bidder who is proposed to be disqualified the24 opportunity to be heard at an informal hearing at which such bidder is afforded the25 opportunity to refute the reasons for the disqualification proposed action.26 (2) The informal hearing shall be conducted prior to award of the public27 work.28 (3) The informal hearing shall be a condition precedent to any action by29 the bidder adverse to the public entity, its representatives, employees, and30 SB NO. 468 ENROLLED Page 20 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. designers.1 (4) The informal hearing shall be conducted by the public entity not later2 than five business days after the date of the notice of disqualification of such3 bidder. The public entity shall issue a ruling in writing and deliver it to the4 affected bidder not later than five business days after the date of the informal5 hearing.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 (6) The provisions of this Subsection shall not apply to such actions of the10 Department of Transportation and Development.11 K. Repealed by Acts 1999, No. 768, §2.12 L. Repealed by Acts 1999, No. 768, §2.13 M Y. No public entity shall enter into a contract for the purpose of public14 works with a contractor who then finances the project. Under no circumstances shall15 the agreement of a contractor to finance a public works project be used in any way16 to avoid the requirement that public work be advertised and let by contract to the17 lowest responsible and responsive bidder as provided in this Section.18 N. Repealed by Acts 1999, No. 768, §2.19 O. Whenever evidence of agency, corporate, or partnership authority is20 required for submission of a bid to a public entity, such fact shall be contained in the21 bid documents and such proof shall be provided in accordance with the provisions22 of this Section. The authority of the signature of the person submitting the bid shall23 be deemed sufficient and acceptable if any of the following conditions are met:24 (1) The signature on the bid is that of any corporate officer listed on the most25 current annual report on file with the secretary of state, or the signature on the bid26 is that of any member of a partnership or partnership in commendam listed in the27 most current partnership records on file with the secretary of state.28 (2) The signature on the bid is that of an authorized representative of the29 corporation, partnership, or other legal entity and the bid is accompanied by a30 SB NO. 468 ENROLLED Page 21 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. corporate resolution, certification as to the corporate principal, or other documents1 indicating authority which are acceptable to the public entity.2 (3) The corporation, partnership, or other legal entity has filed in the3 appropriate records of the secretary of state or the clerk of court of the parish in4 which the public entity is located, an affidavit, resolution, or other acknowledged or5 authentic document indicating the names of all parties authorized to submit bids for6 public contracts. Such document on file with the secretary of state or the clerk of7 court shall remain in effect and shall be binding upon the principal until specifically8 rescinded and canceled from the records of the respective offices.9 P. Repealed by Acts 1999, No. 768, §2.10 Q. Repealed by Acts 1999, No. 768, §2.11 R.(1) In the bid selection process for any contract for a public work or for all12 purchases of materials and supplies exceeding the sum of fifteen thousand dollars to13 be paid out of public funds under the provisions of this Chapter, any public entity14 may include bid selection provisions in bid documents relative to participation in a15 mentor-protégé program as provided by R.S. 51:1753.1.16 (2) In determination of compensation, the agency may provide for additional17 incentives for mentor-protégé participants for any contract which provides incentives18 for work performed or deliveries completed ahead of schedule. Incentives for19 mentor-protégé participants shall be not less than five percent greater than incentives20 awarded to persons who are not participants in the program.21 (3) Advertisements for bids must specify bid selection and incentive22 provisions for mentor-protégé participation.23 (4) Political subdivisions may participate in the mentor-protégé program as24 provided by R.S. 51:1753.1 or may adopt a program to provide for incentives in the25 bid selection process or incentives for participation.26 S. Z. The provisions of this Section shall not apply to purchases of materials27 and supplies by contractors awarded public works contracts by a public entity; or to28 subcontractors of said such contractors, who have been appointed or designated29 agents for the purchase of materials and supplies to be incorporated into a public30 SB NO. 468 ENROLLED Page 22 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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 entity for the physical performance of services within the state of Louisiana unless30 SB NO. 468 ENROLLED Page 23 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. the private employer verifies in a sworn affidavit attesting to both of the following:1 (1) The private employer is registered and participates in a status verification2 system to verify that all new employees in the state of Louisiana are legal citizens3 of the United States or are legal aliens.4 * * *5 G. In the event the status verification system expires and extensions are not6 approved by the federal government, the provisions of this Section shall no longer7 apply. The executive director of the Louisiana Workforce Commission shall8 provide written notification to the Louisiana State Law Institute if the status9 verification system expires and extensions are not approved by the federal10 government.11 * * *12 §2215. Time period for holding bids; issuance of work orders to commence work;13 exceptions14 A. The state or any state agency upon receipt of bids for the undertaking of15 any public works contract A public entity shall act within thirty not later than16 forty-five calendar days of such receipt after the date of opening bids to award said17 such public works contract to the lowest responsible and responsive bidder or to18 reject all bids. A political subdivision upon receipt of bids for the undertaking of any19 public works contract shall act within forty-five calendar days of such receipt to20 award said contract to the lowest responsible bidder or reject all bids. However, the21 public entity and the lowest responsible and responsive bidder, by mutually written22 consent, may agree to extend the deadline for award by one or more extensions of23 thirty calendar days.24 B. If the lowest responsible and responsive bidder has timely provided25 all documents required by R.S. 38:2212, and no injunction or temporary26 restraining order is in effect, the lowest responsible and responsive bidder and27 the public entity shall execute the contract not later than sixty calendar days28 after the date of the public entity's award of the contract to the lowest29 responsible and responsive bidder.30 SB NO. 468 ENROLLED Page 24 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. C. The public entity shall issue to the contractor a notice to proceed with1 the project or work order not later than thirty calendar days following the date2 of execution of the contract by both parties, whichever execution date is later.3 However, the public entity and the contractor, upon mutual written consent of4 both parties, may agree to extend the deadline to issue the notice to proceed.5 D. The provisions of this Section shall not be applicable when the contract6 is to be financed by bonds which are required to be sold after receipt opening of bids7 on the contract, or when the contract is to be financed in whole or in part by federal8 or other funds which will not be readily available at the time bids are received9 opened, or on contracts which require a poll of the legislature Legislature of10 Louisiana before funds are available to fund the contract. In the event the If any time11 limit stipulated herein in this Section is not applicable because of one of the12 exceptions outlined above in this Subsection, this fact shall be mentioned in the13 specifications bidding documents for the project and in the official advertisement14 for bids required in accordance with R.S. 38:2212.15 C. If the contractor has provided all necessary documents to the public entity16 within ten days of the opening of bids and no bid challenge has been submitted to the17 public entity, the contractor and public entity shall execute the contract not later than18 forty-five days from the public entity's acceptance of the lowest responsible bid.19 D. Upon the execution of the contract, the public entity, within thirty days20 thereafter, shall issue to the contractor a notice to proceed with the project. However,21 upon mutual consent by both parties, the notice to proceed may be extended.22 E. These provisions shall not be subject to waiver.23 * * *24 §2225. Preference in letting contracts for public work25 A. Repealed by Acts 1984, No. 894, §3, eff. July 1, 1987.26 B. If a nonresident contractor bidding on public work in the state of Louisiana27 is domiciled in a state that provides a percentage preference in favor of contractors28 domiciled in that state over Louisiana resident contractors for the same type of work,29 then every Louisiana resident contractor shall be granted the same preference over30 SB NO. 468 ENROLLED Page 25 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 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 days 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 finishing of construction, in accordance with the contract documents as modified by30 SB NO. 468 ENROLLED Page 26 of 26 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. any change orders agreed to by the parties, to the extent that the public entity can use1 or occupy the public works or use or occupy the specified area of the public works2 for the use for which it was intended. The recordation of an acceptance in accordance3 with the provisions of this Section upon substantial completion shall be effective as4 an acceptance for all purposes under this Chapter.5 C. Any public entity that does not file for recordation an acceptance of6 public work, shall require the contractor to have recorded in the office of the7 recorder of mortgages, in the parish where the work has been done, an8 acceptance of such work or of any specified area of such work, not later than9 forty-five calendar days after the date of completion or substantial completion10 of the work. This acceptance shall not be executed except upon the11 recommendation of the design professional hired by the public entity whose12 recommendation may be made not later than thirty calendar days after the date13 of completion or substantial completion of such public work.14 PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: