Louisiana Senate Bill SB480 Latest Draft

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Regular Session, 2014	ENROLLED
SENATE BILL NO. 480
BY SENATOR WALSWORTH 
AN ACT1
To amend and reenact R.S. 36:4(B)(1)(b) and Chapter 17 of Subtitle III of Title 39 of the2
Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:1551 through 1554.1,3
1556 through 1558, 1561 through 1569.1, 1571 through 1572, 1581, 1586 through4
1587, 1593 through 1598, 1600 through 1608, 1611 through 1633, 1641 through5
1644, 1646, 1651 through 1658, 1661 through 1662, 1671 through 1673, 16766
through 1679, 1681 through 1685, 1691 through 1692, 1695 through 1697, 17027
through 1710, 1716, 1731 through 1736, and 1751 through 1755, and to repeal8
Chapter 16 of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950,9
comprised of R.S. 39:1481 through 1526, relative to the procurement code; to10
provide for procurement by public bodies, including provisions for a central11
purchasing agency, for procurement regulations, and for source selection for items12
to be purchased and methods for such purchases; to provide for definitions and13
access to procurement information; to provide for the authority and duties of the14
commissioner of administration with respect to procurement; to provide for certain15
appointments and qualifications; to provide for mandatory information requirements;16
to provide for bid procedures and for types of contracts; to provide for contract17
modification, termination, and contract clauses; to provide for legal and contractual18
remedies and for administrative appeals; to provide for cooperative purchasing; to19
provide with respect to conflicts with other provisions of law; to provide for changes20
in designations by the Louisiana State Law Institute; to provide for an effective date;21
and to provide for related matters.22
Be it enacted by the Legislature of Louisiana:23
Section 1. R.S. 36:4(B)(1)(b) is hereby amended and reenacted to read as follows:24
§4.  Structure of executive branch of state government25
*          *          *26
ACT No. 864 SB NO. 480	ENROLLED
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B. The office of the governor shall be in the executive branch of state1
government.2
(1) The following agencies and their powers, duties, functions, and3
responsibilities are hereby transferred to the office of the governor:4
*          *          *5
(b) Office of contractual review, division of administration (R.S. 39: 14816
et seq.) Office of state procurement, division of administration (R.S. 39:1551 et7
seq.)8
*          *          *9
Section 2. Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised Statutes10
of 1950, comprised of R.S. 39:1551 through 1554.1, 1556 through 1558, 1561 through11
1569.1, 1571 through 1572, 1581, 1586 through 1587, 1593 through 1598, 1600 through12
1608, 1611 through 1633, 1641 through 1644, 1646, 1651 through 1658, 1661 through 1662,13
1671 through 1673, 1676 through 1679, 1681 through 1685, 1691 through 1692, 169514
through 1697, 1702 through 1710, 1716, 1731 through 1736, and 1751 through 1755, is15
hereby amended and reenacted to read as follows:16
CHAPTER 17.  LOUISIANA PROCUREMENT CODE17
PART I.  GENERAL PROVISIONS18
SUBPART A.  SHORT TITLE, PURPOSES,19
CONSTRUCTION, AND APPLICATION20
§1551.  Short title21
This Chapter shall be known as and may be cited as the Louisiana22
Procurement Code.23
§1552.  Purposes; rules of construction24
A. Interpretation.  This Chapter shall be construed and applied to promote25
its underlying purposes and policies.26
B. Purposes and policies.  The underlying purposes and policies of this27
Chapter are:28
(1) To simplify, clarify, and modernize the law governing procurement by29
this state.30 SB NO. 480	ENROLLED
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(2) To permit the continued development of procurement policies and1
practices.2
(3) To provide for increased public confidence in the procedures followed3
in public procurement.4
(4) To ensure the fair and equitable treatment of all persons who deal with5
the procurement system of this state.6
(5) To provide increased economy in state procurement activities by7
fostering effective competition.8
(6) To provide safeguards for the maintenance of a procurement system of9
quality and integrity.10
§1553.  Construction11
A. Supplementary general principles of law applicable.  To the extent not12
inconsistent with the particular provisions of this Chapter, the principles of Louisiana13
law shall supplement its provisions.14
B. Obligation of good faith.  Every contract or duty within this Chapter15
imposes an obligation of good faith in its performance or enforcement. "Good faith"16
means honesty in fact in the conduct or transaction concerned and the observance of17
reasonable commercial standards of fair dealing.18
§1554.  Application of this Chapter19
A. General application. This Chapter applies only to contracts solicited or20
entered into after the effective date of this Chapter unless the parties agree to its21
application to a contract entered into prior to the effective date.22
B. Application to state procurement. Except as provided in Subsections C23
and D below Unless otherwise exempted or excluded in this Section, this Chapter24
shall apply to every expenditure of public funds irrespective of their source,25
including federal assistance monies except as otherwise specified in Subsection (F)26
below F of this Section, by this state, acting through a governmental body defined27
herein, under any contract for supplies, services, or major repairs, or personal,28
professional, consulting, or social services, defined herein, except that this Chapter29
shall not apply to either grants or contracts between the state and its political30 SB NO. 480	ENROLLED
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subdivisions or other governments, except as provided in Part VII1
(Intergovernmental Relations) of this Chapter, Intergovernmental Relations.2
Notwithstanding any other provision of this Chapter, the provisions of R.S. 38:21813
through R.S. 38:2316 38:2318 shall govern the procurement of construction and the4
selection of architects, engineers, and landscape architects by governmental bodies5
of this state, and R.S. 38:2181 through R.S. 38:2316 38:2318 shall not apply to any6
procurement of supplies, services, or major repairs by the state except that the7
provisions of R.S. 38:2301 shall be applicable to major repairs.8
C. Procurement by the governor. Notwithstanding any other provisions of9
this Chapter, the governor shall procure all materials, supplies, equipment, and10
contractual services required for the governor's mansion, the cafeteria operated in the11
state capitol, and similar agencies. The procurement shall, insofar as practicable, be12
in accordance with the provisions of this Chapter.13
D. Exclusions. (1) This Chapter shall not be construed to change, affect,14
increase, or relieve the requirements of:15
(a) R.S. 42:261 through R.S. 42:264, regarding the retaining and16
employment of lawyers.17
(b)  R.S. 39:1481 through R.S. 39:1526, regarding the procurement of18
professional, personal, consulting, and social services.19
(c)  Repealed by Acts 1983, No. 306, §3.20
(d) R.S. 23:3025, as regarding the purchase of products or services from21
individuals who are blind.22
(2) This Chapter shall not be applicable to the legislative and judicial23
branches of state government or to any agency within the legislative branch of state24
government.25
(3) The office for citizens with developmental disabilities in the Department26
of Health and Hospitals shall be exempt from the requirements of R.S. 39:1643 in27
order to lease residential living options for mentally retarded disabled or28
developmentally disabled individuals without carrying out the competitive sealed29
bidding requirement of this Chapter.30 SB NO. 480	ENROLLED
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(4) This Chapter shall not be applicable to any hospital owned or operated1
by the state through the Department of Health and Hospitals for the purchase of2
supplies, materials, and equipment from a qualified group purchasing organization3
if the Department of Health and Hospitals, with the concurrence of the division of4
administration, has determined that the cost is less than the state procurement prices,5
and that it is in the best interest of the state to purchase the supplies, materials, and6
equipment from the qualified group purchasing organization.7
(5) This Chapter shall not be applicable to the purchase of any medical8
supplies or medical equipment from a qualified group purchasing organization if the9
commissioner of administration has determined that it is in the best interest of the10
state to purchase the medical supply or medical equipment from the qualified group11
purchasing organization. An annual report on the number, type, and volume of such12
procurements shall be made to the commissioner of administration, the speaker of13
the House of Representatives, and the president of the Senate.14
(6) The provisions of this Chapter shall not be applicable to the State Bond15
Commission in the solicitation of bids for printing of financial documents. However,16
the State Bond Commission shall obtain a minimum of three written or telefaxed17
bids from separate vendors which meet the criteria required by the State Bond18
Commission for printing of financial documents.19
(7) The provisions of this Chapter shall not be applicable to interinstitutional20
agreements between co-owners of intellectual property when one co-owner is a21
Louisiana regionally accredited college, technical school, or university.22
§1502.1(8) Contracts awarded by an agency for the benefit of an industry,23
payment of which comes from self-generated funds received from that industry, are24
exempt from the requirements of this Part Chapter provided that any such contract25
is awarded through a competitive process.26
E.(1) Political subdivisions authorized to adopt this Chapter. The27
procurement of supplies, services, major repairs, and construction by political28
subdivisions of this state shall be in accordance with the provisions of Chapter 10 of29
Title 38 of the Louisiana Revised Statutes of 1950, except that all political30 SB NO. 480	ENROLLED
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subdivisions are authorized to adopt all or any part of this Chapter and its1
accompanying regulations.2
(2) Additionally, all political subdivisions which are not subject to this3
Chapter may adopt the provisions of R.S. 39:1598.139:1600(D) and its4
accompanying regulations.5
F. Compliance with federal requirements. Where a procurement involves the6
expenditure of federal assistance or contract funds, the procurement officer shall7
comply with such federal law and authorized regulations which are mandatorily8
applicable and which are not reflected in this Chapter.9
G.  Applicable to Department of Public Safety and Corrections.10
(1)  Repealed by Acts 1999, No. 1164, §5.11
(2) Because the prison enterprise system operates under the constraints of an12
income statement, the secretary of the Department of Public Safety and Corrections13
shall have the authority, notwithstanding any other provisions of law, to purchase for14
that system used agricultural and industrial equipment sold at public auction which15
shall result in savings to the correctional system, according to the following terms16
and conditions:17
(a)(1) The used agricultural and industrial equipment shall be purchased by18
the secretary within the price range set by the director of state purchasing state chief19
procurement officer in his statement of written approval for the purchase which20
must be obtained by the secretary prior to purchase.21
(b)(2) The secretary shall certify in writing to the 	director of state purchasing22
state chief procurement officer all of the following:23
(i)(a) The price for which the used equipment may be obtained.24
(ii)(b) The plan for maintenance and repair of the equipment and the cost25
thereof.26
(iii)(c) The savings that will accrue to the state because of the purchase of27
the used equipment.28
(iv)(d) The fact that following the procedures set out in the Louisiana29
Procurement Code will result in the loss of the opportunity to purchase the30 SB NO. 480	ENROLLED
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equipment.1
H. Exemption for inmate canteens and the employee commissary of the2
Louisiana State Penitentiary. Whenever, for sound economic reasons and improved3
administrative procedures, the secretary of the Department of Public Safety and4
Corrections certifies in writing that it is not practical to comply with the provisions5
of this Chapter, the Department of Public Safety and Corrections may procure the6
various items for resale to inmates at the inmate canteens in state correctional7
facilities and the various items for resale to employees of the department at the8
employee commissary of the Louisiana State Penitentiary, without competitive9
sealed bidding as required in R.S. 39:1594 and without complying with the10
requirements of R.S. 39:1597. Any procurement pursuant to this Subsection is11
exempt from the provisions of R.S. 39:1611. Any contract entered into pursuant to12
this Subsection must have prior written approval of the commissioner of13
administration, the Joint Legislative Committee on the Budget, and the attorney14
general, who shall only approve the contract only if they determine in writing that15
it is in the best interest of the state to enter into the contract. All such information16
shall be of public record.17
I. Plasmapheresis programs. All plasmapheresis programs operated for and18
participated in by inmates in correctional facilities under the jurisdiction of the19
Department of Public Safety and Corrections, or its designees or assignees, such as20
private contractors operating correctional facilities under contract with the21
department, shall operate only pursuant to a contract entered into independent of any22
other contracts for prison management or operation, and only pursuant to competitive23
sealed bids on an individual basis at each penal institution and other facility in24
accordance with this Chapter. Contracts presently in existence affecting all25
plasmapheresis programs on site and off site shall be excluded and shall remain in26
effect for the duration of the contract.27
§1482(A) J. This Chapter shall not apply to the following procurements:28
(1)(a) Professional services for engineering design contracts, construction29
contracts, or contracts for surveying pertaining to the maintenance and construction30 SB NO. 480	ENROLLED
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of roads and bridges, flood control, integrated coastal protection, aviation, public1
transportation, or public works entered into by the Department of Transportation and2
Development as provided in Part XIII-A of Chapter 1 of Title 48 of the Louisiana3
Revised Statutes of 1950.4
(b) Consulting service contracts with appraisers, foresters, economists, right-5
of-way agents, title abstractors, asbestos abatement inspectors, negotiators,6
accountants, and cost consultants relating to acquisition of rights-of-way for7
maintenance and construction projects entered into by the Department of8
Transportation and Development.9
(2) Grants or contracts or like business agreements between the state and its10
political subdivisions or other governmental entities, or between higher education11
boards and institutions under their jurisdiction, except this Chapter shall apply to12
interagency contracts as defined in R.S. 39:1490(C), and to contracts or grants13
between the state and its political subdivisions to procure social services.14
§1482(B)K. This Chapter shall not apply or affect licensed insurance agents15
appointed as agents of record on policies insuring any of the state's insurable16
interests. Nor shall it apply to or affect insurance consultants and actuaries when17
used in lieu of agents of record, so long as fees paid do not exceed the commission18
that would have been paid to said the agents of record.19
§1482(C)L. This Chapter shall not apply to those services performed by20
architects, engineers, or landscape architects as provided for in L.S.A. R.S. 38:2310-21
through 38:2316 38:2318, nor shall the provisions of this Chapter affect or22
otherwise limit the duties, functions, and jurisdiction of the Louisiana Architect23
Selection Board, the Louisiana Engineer Selection Board, or the Louisiana24
Landscape Architect Selection Board.25
§1482(E)M. This Chapter shall not apply to any contract or like business26
agreement to purchase professional, personal, consulting, or contract services27
required or utilized by the Louisiana Agricultural Finance Authority authorized28
under the provisions of Chapter 3-B of Title 3 of the Louisiana Revised Statutes of29
1950.30 SB NO. 480	ENROLLED
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§1482(F)N.(1) This Chapter shall not apply to those personal, professional,1
or social services provided to the clients of the Department of Health and Hospitals,2
the Department of Children and Family Services, the office of special education3
services within the Department of Education, provided that the expense for these4
special education services is five thousand dollars or less per child, corrections5
services within the Department of Public Safety and Corrections, or the office of6
juvenile justice, within the Department of Public Safety and Corrections, in the7
following circumstances:8
(a)  When these services are accessed directly by clients through utilization9
of medical vendor cards, with the clients arranging services with providers and10
providers then billing the agency for payment.11
(b) When clients of a particular program area are guaranteed freedom of12
choice in selection of a provider of services.13
(c) When personal and professional services are arranged on a case-by-case14
basis by a worker as the need arises.15
(d) When social services are arranged on a case-by-case basis from a social16
service provider qualifying under R.S. 	39:1494.1(A) 39:1619(B).17
(e) When the using agency arranging social services on a case-by-case basis18
makes no guarantee of specific sums of monthly or annual payment or referrals of19
clientele.20
(2) If personal, professional, or social services are provided for the primary21
benefit of a single using agency provided for in R.S. 39:1482(F)(1) Paragraph (1)22
of this Subsection, and said the agency exhibits budgetary and programmatic23
control over the provider of the services, and the deliverables of the services are24
intended solely for the benefit of the using agency, the provisions of this Chapter25
shall apply.26
(3) This Chapter shall not apply to the use of professional services of27
physicians who provide consultative examinations regarding applicants for disability28
benefits under the Social Security act Act by the disability determinations services29
of the Department of Children and Family Services.30 SB NO. 480	ENROLLED
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(4) This Chapter shall not apply to the taking of Medicaid applications by1
certified Medicaid enrollment centers for prospective Medicaid clients pursuant to2
an agreement with the Department of Health and Hospitals and in accordance with3
federal regulations.4
§1482(H)O. This Chapter shall not apply to any contract or like business5
agreement to hire professional, personal, consulting, or contract services required or6
utilized by the State Market Commission under the provisions of Part I-D of Chapter7
5 of Title 3 of the Louisiana Revised Statutes of 1950.8
§1482(I)P. This Chapter shall not apply to any contract for a court reporter9
or expert witness utilized by a governmental body for the purpose of taking10
depositions, giving expert testimony, or other related matters if such contract has a11
total amount of compensation of less than five thousand dollars.12
§1482(J)Q. This Chapter shall not apply to any contract for the procurement13
of individualized agreements for persons with developmental disabilities by the14
Department of Health and Hospitals.15
§1482(K)R.(1) This Chapter shall not apply to contracts of an institution of16
higher education or other agency of higher education, hereinafter collectively17
referred to as "higher education entity", to which the 	director of the office of18
contractual review state chief procurement officer has delegated authority to19
procure services with private grant funds or federal funds specifically provided for20
such purpose.21
(2) Procurements conducted by a higher education entity operating under22
delegation of authority as provided herein shall be made in accordance with all23
federal requirements necessary for the receipt and use of such private grant or federal24
funds, particularly with regard to competitive bidding requirements for procurement25
of research services. Further, in making such procurements, such entity may also26
consider factors such as quality, reliability, expected life span, and compatibility27
with existing equipment or research protocols, as permitted under federal guidelines.28
§1554.1.  Federal block grants29
The provisions of this Part Chapter shall be applicable to any goods and30 SB NO. 480	ENROLLED
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services procured with funds pursuant to the federally enacted community services1
block grant or community development block grant.2
SUBPART B. DEFINITIONS3
§1556.  Definitions4
As used in this Chapter, the words defined in this Section shall have the5
meanings set forth below, unless the context in which they are used clearly requires6
a different meaning or a different definition is prescribed for a particular Part or7
provision:8
§1752(1)(1) "Agency" as used in this Part and in Part V of this Title9
Chapter shall have the same meaning ascribed to it as provided in R.S. 36:3(1).10
§1591(9)(2) "Assembled" means the process of putting together all11
component parts of an item of equipment by the manufacturer where the assembly12
plant is located within the territorial borders of the state of Louisiana. "Assembled"13
shall not mean the reassembly of parts packed for shipping purposes.14
(1)(3) "Business" means any corporation, partnership, individual, sole15
proprietorship, joint stock company, joint venture, or any other legal entity through16
which business is conducted.17
(4) "Central purchasing agency" means the office of state procurement.18
(2)(5) "Change order" means a written order signed by the procurement19
officer, directing the contractor to make changes which the changes clause of the20
contract authorizes the procurement officer to order without the consent of the21
contractor.22
(3)(6) "Chief procurement officer" means the state director of purchasing23
person holding the position created in R.S. 39:1562 and the directors of24
purchasing of the departments exempt from central purchasing the office of state25
procurement by R.S. 39:1572.26
§1484(A)(1.1)(7) "Claims adjuster" means an individual engaged in the27
investigation, evaluation, and negotiation of property, casualty, and worker's28
compensation insurance claims.29
§1484(A)(3)(8) "Competitive negotiation" means to negotiate for a contract30 SB NO. 480	ENROLLED
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through a Request for Proposal (R.F.P.) request for proposals process or any other1
similar competitive selection process.2
(22)(9) "Sealed Competitive sealed bidding" means the receipt of bids3
protected from inspection prior to bid opening. Bids may be received in any manner4
specified in the invitation for bids including receipt by mail, by direct delivery, or5
through any secure electronic interactive environment permitted by rule or6
regulation.7
§1484(A)(4)(a)(10) "Consulting service" means work, other than8
professional, personal, or social service, rendered by either individuals or firms who9
possess specialized knowledge, experience, and expertise to investigate assigned10
problems or projects and to provide counsel, review, design, development, analysis,11
or advice in formulating or implementing programs or services, or improvements in12
programs or services, including but not limited to such areas as management,13
personnel, finance, accounting, planning, data processing, information technology,14
and advertising contracts, except for printing associated therewith.15
(b) The term "consulting service" includes the procurement of supplies and16
services by a contractor without the necessity of complying with provisions of the17
Louisiana Procurement Code when such supplies and services are merely ancillary18
to the provision of consulting services under a contingency fee arrangement, even19
though the procurement of such supplies or services directly by a governmental body20
would require compliance with the Louisiana Procurement Code. Supplies or21
services ancillary to the provision of consulting services are those supplies or22
services which assist the contractor in fulfilling the objective of his contract when23
the cost for such supplies and services is less than the cost of providing consulting24
services, as determined by the using agency.25
(4)(11) "Contract" means all types of state agreements, regardless of what26
they may be called, including orders and documents purporting to represent27
grants, which are for the purchase or disposal of supplies, services, or major28
repairs, or any other item. It includes awards and notices of award; contracts of a29
fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the30 SB NO. 480	ENROLLED
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issuance of job or task orders; leases; letter contracts; and purchase orders. It also1
includes supplemental agreements with respect to any of the foregoing.2
(5)(12) "Contract modification" means any written alteration in3
specifications, delivery point, rate of delivery, period of performance, price, quantity,4
or other provisions of any contract accomplished by mutual action of the parties to5
the contract.6
(6)(13) "Contractor" means any person having a contract with a governmental7
body.8
§1701(1)(14) "Cooperative purchasing" means procurement conducted by or9
on behalf of more than one public procurement unit or by a public procurement unit10
with an external procurement activity or by a private procurement unit.11
§1591(1)(15) "Cost-reimbursement contract" means a contract under which12
a contractor is reimbursed for costs which are allowable and allocable in accordance13
with cost principles as provided for in regulations, and a fee, if any.14
§1522(16) For the purpose of this Chapter, the term "court" "Court" means15
the Nineteenth Judicial District located in Baton Rouge and, in the event of an appeal16
from such a court, the First Circuit Court of Appeal located in Baton Rouge.17
(7)(17) "Data" means recorded information, regardless of form or18
characteristic.19
(8)(18) "Debarment" means the disqualification of a person to receive20
invitations for bids or requests for proposals, or the award of any contract by any21
governmental body, for a specified period of time commensurate with the22
seriousness of the offense or the failure or the inadequacy of performance.23
(9)(19) "Designee" means a duly authorized representative of a person24
holding a superior position.25
(20) "Electronic" means electrical, digital, magnetic, optical,26
electromagnet, or any other similar technology.27
§1484(A)(10)(21) "Employee" means an individual drawing a salary from a28
governmental body, whether elected or not, and any nonsalaried individual29
performing personal services for any governmental body.30 SB NO. 480	ENROLLED
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§1591(2)(22) "Established catalog price" means the price included in a1
catalog, price list, schedule, or other form that:2
(a) Is regularly maintained by a manufacturer or contractor.3
(b) Is either published or otherwise available for inspection by customers	,4
and.5
(c) States prices at which sales are currently or were last made to a significant6
number of buyers constituting the general buying public for the supplies or services7
involved.8
§1701(2)(23) "External procurement activity" means any buying organization9
not located in this state which, if located in this state, would qualify as a public10
procurement unit. An agency of the United States government is an external11
procurement activity.12
(10)(24) "Governmental body" means any department, office, division,13
commission, council, board, bureau, committee, institution, agency, government14
corporation, or other establishment or official of the executive or judicial branches15
branch of state government. For purposes of procurement of personal,16
professional, consulting, and social services contracts, governmental shall not17
include the judicial branch of state government.18
1484(A)(11.1)(25) "Governmental entity" means any governmental unit19
which is not included in the definition of "governmental body" in R.S. 39:1484(11.1)20
this  Section.21
(11)(26) "Grant" means the furnishing by the state of assistance, whether22
financial or otherwise, to any person to support a program authorized by law. It does23
not include an award whose primary purpose is to procure an end product, whether24
in the form of supplies, services, or major repairs; a contract resulting from such an25
award is not a grant but a procurement contract.26
(27) "Information technology", which includes telecommunications,27
means those commodities subject to the authority of the office of information28
technology in accordance with R.S. 39:15.3.29
(12)(28) "Installment-purchase contract" means a contract which is utilized30 SB NO. 480	ENROLLED
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to procure supplies or equipment from a contractor where payment for the supplies1
or equipment is made in a set of installment payments over a fixed period of time in2
accordance with the provisions of the contract, and in which the contractor agrees to3
deliver title of the property to the governmental body in accordance with the terms4
and conditions of the contract.5
§1591(3)(29) "Invitation for bids" means all documents, whether attached or6
incorporated by reference, utilized for soliciting bids in accordance with the7
procedures set forth in R.S. 39:1594.8
§1490(C)(30) As used in this Chapter, "interagency "Interagency contract"9
means any contract in which each of the parties thereto is a "governmental body" as10
defined in R.S. 39:1484(11) this Section.11
§1701(3)(31) "Local public procurement unit" means any parish, city, town,12
governmental body, and any other subdivision of the state or public agency thereof,13
public authority, public educational, health, or other institution, and to the extent14
provided by law, any other entity which expends public funds for the acquisition or15
leasing of supplies, services, major repairs, and construction, and any nonprofit16
corporation operating a charitable hospital.17
(13)(32) "Major repairs" means those repairs payable with funds appropriated18
in the general appropriations act, except those funds transferred from the operating19
budget of one governmental body to supplement and complete a project under20
contract by the division of administration facility planning and control section.21
(14)(33) "May" denotes the permissive.22
§1484(A)(13)(34) "Negotiation" means the formulation of a contractual23
relationship by either of the methods set forth in Sections 1494, 1495, and 1496 of24
through discussions as may be allowed under this Chapter.25
§1484(A)(14)(35) "Performance-based energy efficiency contract" means a26
contract for energy efficiency services and equipment in which the payment27
obligation for each year of the contract is either:28
(a) Set as a percentage of the annual energy cost savings attributable to the29
services or equipment under the contract, or.30 SB NO. 480	ENROLLED
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(b) Guaranteed by the person under contract to be less than the annual energy1
cost savings attributable to the services or equipment under the contract.2
(15)(36) "Person" means any business, individual, union, committee, club,3
or other organization or group of individuals.4
§1484(A)(16)(37) "Personal service" means work rendered by individuals5
which requires use of creative or artistic skills, such as including but not limited to6
graphic artists, sculptors, musicians, photographers, and writers, or which requires7
use of highly technical or unique individual skills or talents, such as including but8
not limited to paramedicals, therapists, handwriting analysts, foreign representatives,9
and expert witnesses for adjudications or other court proceedings. A "foreign10
representative" shall mean a person in a foreign country whose education and11
experience qualify such person to represent the state in such foreign country.12
(16)(38) "Practicable" means that which can be done or put into practice;13
feasible.14
§1701(4)(39) "Private procurement unit" means any independent institution15
of higher education in this state. regionally accredited independent college or16
university in the state that is a member of the Louisiana Association of17
Independent Colleges and Universities.18
(17)(40) "Procurement" means the buying, purchasing, renting, leasing, or19
otherwise obtaining any supplies, services, or major repairs. It also includes all20
functions that pertain to the obtaining of any public procurement, including21
description of requirements, selection and solicitation of sources, preparation and22
award of contract, and all phases of contract administration.23
(18)(41) "Procurement officer" means any person authorized by a24
governmental body, in accordance with procedures prescribed by regulations, to25
enter into and administer contracts and make written determinations and findings26
with respect thereto. The term also includes an authorized representative acting27
within the limits of authority.28
1484(A)(18)(a)(42) "Professional service" means work rendered by an29
independent contractor who has a professed knowledge of some department of30 SB NO. 480	ENROLLED
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learning or science used by its practical application to the affairs of others or in the1
practice of an art founded on it, which independent contractor shall include but not2
be limited to lawyers, doctors, dentists, psychologists, certified advanced practice3
nurses, veterinarians, architects, engineers, land surveyor s, landscape architects,4
accountants, actuaries, and claims adjusters. A profession is a vocation founded upon5
prolonged and specialized intellectual training which enables a particular service to6
be rendered. The word "professional" implies professed attainments in special7
knowledge as distinguished from mere skill. For contracts with a total amount of8
compensation of fifty thousand dollars or more, the definition of "professional9
service" shall be limited to lawyers, doctors, dentists, psychologists, certified10
advanced practice nurses, veterinarians, architects, engineers, land surveyors,11
landscape architects, accountants, actuaries, claims adjusters, and any other12
profession that may be added by regulations adopted by the office of contractual13
review state procurement of the division of administration.14
(b) For the period beginning July 1, 2008, and ending June 30, 2009,15
"professional service" shall include work rendered by an educational consultant16
which is procured by the Department of Education through a contract which has a17
maximum amount of compensation of two hundred fifty thousand dollars and a term18
of no longer than twelve months. Regardless of the number of contracts, the19
aggregate total compensation to be paid to any contractor for contracts authorized20
pursuant to this Subparagraph shall not exceed two hundred fifty thousand dollars.21
Any contract entered into pursuant to this Subparagraph shall contain specific22
measurable objectives and goals for achievement, and shall be available for public23
inspection for a period of at least thirty days prior to the execution of the contract.24
For purposes of this Subparagraph "educational consultant" shall mean a person who25
holds an earned doctorate degree in education from a postsecondary institution26
accredited by a regional accrediting organization which is recognized by the United27
States Department of Education. The provisions of this Subparagraph shall be null,28
void, and of no effect on July 1, 2009.29
§1701(5)(43) "Public procurement unit" means either a local public30 SB NO. 480	ENROLLED
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procurement unit or a state public procurement unit.1
§1591(4) "Purchase description" means specifications or any other document2
describing the supplies, services, or major repairs to be procured.3
(19) "Purchase request" means that document whereby a using agency4
requests that a contract be obtained for a specified need, and may include, but is not5
limited to, the technical description of the requested item, delivery schedule,6
transportation, criteria for evaluation of solicitees, suggested sources of supply, and7
information supplied for the making of any written determination and finding8
required by this Chapter.9
(20)(44) "Purchasing agency" means any governmental body which is10
authorized by this Chapter or its implementing regulations, or by way of delegation11
from the state director of purchasing chief procurement officer, to contract on its12
own behalf rather than through the central contracting authority of the central13
purchasing agency office of state procurement.14
(21)(45) "Qualified group purchasing organization" means a service15
organization, whether for profit or not, with a membership of at least fifteen hospitals16
within the United States, which contracts with suppliers for supplies and materials17
used in hospitals and makes such contracts available to its members.18
§1591(5)(46) "Request for proposals" means all documents, whether attached19
or incorporated by reference, utilized for soliciting proposals in accordance with the20
procedures set forth in R.S. 39:1595, R.S. 39:1596, R.S. 39:1597, or R.S. 39:159821
this Chapter.22
§1591(6)(47) "Resident business" means one authorized to do and doing23
business under the laws of this state, which either:24
(a) Maintains its principal place of business in the state; or.25
(b) Employs a minimum of two employees who are residents of the state.26
§1591(7)(48) "Responsible bidder or offeror proposer" means a person who27
has the capability in all respects to perform the contract requirements and the28
integrity and reliability which will assure good faith performance.29
§1591(8)(49) "Responsive bidder" means a person who has submitted a bid30 SB NO. 480	ENROLLED
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under R.S. 39:1594 which conforms in all substantive respects to the invitation for1
bids, including the specifications set forth in the invitation.2
§1598.1(A)(2)(50)  For purposes of this Subpart, "reverse "Reverse auction"3
means a competitive online solicitation process on the Internet for materials,4
supplies, services, products, or equipment in which vendors compete against each5
other online in real time in an open and interactive environment.6
(22) "Sealed bidding" means the receipt of bids protected from inspection7
prior to bid opening. Bids may be received in any manner specified in the invitation8
for bids including receipt by mail, by direct delivery, or through any secure9
electronic interactive environment permitted by rule or regulation.10
(23)(51) "Services" means the furnishing of labor, time, or effort by a11
contractor, not involving the delivery of a specific end product other than reports12
which are merely incidental to the required performance whose primary purpose13
is to perform an identifiable task rather than to furnish an end item of supply.14
(a) Services include but are not limited to the following:15
(i) Maintenance, overhaul, repair, servicing, rehabilitation, salvage,16
modernization, or modification of supplies, systems, or equipment.17
(ii) Routine recurring maintenance of immovable property.18
(iii) Housekeeping services.19
(iv) Operation of government owned equipment, immovable property,20
and systems.21
(v) Information technology services.22
(b) This The term "services" shall not include:23
(a)(i) Employment agreements or collective bargaining agreements.24
(b)(ii) Personal, professional, consultant, consulting, or social services as25
provided by R.S. 39:1481 through R.S. 39:1526 defined in this Chapter.26
(c)(iii) Services performed by lawyers as provided by R.S. 42:261 through27
R.S. 42:264.28
(d)(iv) Services performed by an architect, engineer, or landscape architect29
as provided by R.S. 38:2310 through R.S. 38:2314.30 SB NO. 480	ENROLLED
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(24)(52) "Shall" denotes the imperative.1
(53) "Signature" means a manual or electronic signature. "Electronic2
signature" means an electronic sound, symbol, or process attached to or3
logically associated with a record and executed or adopted by a person with the4
intent to sign the record.5
§1484(A)(22)(54) "Social service" means work rendered by any person, firm,6
corporation, organization, governmental body, or governmental entity in furtherance7
of the general welfare of the citizens of Louisiana, including but not limited to the8
objectives provided for in Subsection B of this Section R.S. 39:1619(A).9
§1651(B)(55) As used in this Part, the term "specification" "Specification"10
means any description of the physical or functional characteristics, or of the nature11
of a supply, service, or major repair. It may include a description of any requirement12
for inspecting, testing, or preparing a supply, service, or major repair for delivery.13
(25) "State director of purchasing" means the person holding the position14
created in R.S. 39:1562, as the head of the central purchasing office of Louisiana.15
(56) "State chief procurement officer" means the person holding the16
position created in R.S. 39:1562 as head of the central purchasing agency of17
Louisiana.18
§1701(6)(57) "State public procurement unit" means the central purchasing19
agency and any other purchasing agency of this state.20
§1484(A)(23)(58) "Supplemental agreement" means any contract21
modification which is accomplished by the mutual action of the parties.22
(26)(59) "Supplies" means all property, including but not limited to23
equipment, materials, insurance, and leases on real immovable property excluding24
land or a permanent interest in land.25
(27)(60) "Suspension" means the disqualification of a person to receive26
invitations for bids or requests for proposals, or the award of a contract by the state,27
for a temporary period pending the completion of an investigation and any legal28
proceedings that may ensue because a person is suspected upon probable cause of29
engaging in criminal, fraudulent, or seriously improper conduct or failure or30 SB NO. 480	ENROLLED
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inadequacy of performance which may lead to debarment.1
(28)(61) "Using agency" means any governmental body of the state which2
utilizes any supplies, services, or major repairs purchased under this Chapter.3
(29)(62) "Written" or "in writing" means the product of any method of4
forming characters on paper, other materials, or viewable screen, which can be read,5
retrieved, and reproduced, including information that is electronically transmitted6
and stored.7
SUBPART C.  RECORDS; PUBLIC ACCESS8
§1557.  Public access to procurement information9
Procurement information shall be a public record to the extent provided in10
Chapter 1 of Title 44 of the Louisiana Revised Statutes of 1950 and shall be11
available to the public as provided in such statute.12
§1557.1.  Change orders; recordation13
Each change order to a contract which adds an amount of ten percent or more14
of the original contract amount and which additional amount is at least ten thousand15
dollars or all change orders to a contract aggregating to an amount of twenty percent16
or more of the original contract amount and which additional amount is at least ten17
thousand dollars shall be recorded by the governmental body which entered into the18
contract in the office of the recorder of mortgages in the parish where the work is to19
be done or where the entity is domiciled not later than thirty days after the date of the20
change order which requires that the recordation take place. In addition, the original21
contract shall be recorded together with the amendments or other revisions if not22
previously recorded. The provisions of this Section shall not apply to the office of23
facility planning and control, and the office of state purchasing procurement.24
§1558.  Determinations25
Written determinations and findings required by this Chapter shall be retained26
in an official contract file in the central purchasing agency or purchasing agency or27
by the governmental body administering the contract.28
PART II. PURCHASING ORGANIZATION29
SUBPART A. DIVISION OF ADMINISTRATION30 SB NO. 480	ENROLLED
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§1561.  Authority and duties of the commissioner of administration1
A. Except as otherwise provided in this Chapter, the commissioner of2
administration, hereinafter referred to as "the commissioner," shall have the authority3
and responsibility to promulgate regulations, consistent with this Chapter, governing4
the procurement, management, and control of any and all supplies, services, and5
major repairs, and personal, professional, consulting, or social services required6
to be procured by the state. However, the commissioner shall not require by rule or7
regulation any policy or management board of public higher education or any8
institution under their jurisdiction to prepare or submit a monthly report on items9
purchased from state contracts or on contract item usage to the Division of10
Administration division of administration. The quarterly report listing purchases11
for under five thousand dollars and the annual report for purchases above five12
thousand dollars on all items purchased from state contracts shall be sufficient to13
meet the requirements of this Chapter.14
B. The commissioner or his designee shall consider and decide matters of15
policy within the provisions of this Chapter including those referred to him by the16
state director of purchasing chief procurement officer. The commissioner or his17
designee shall have the power to audit and review the implementation of the18
procurement regulations and the requirements of this Chapter.19
SUBPART B.  CENTRAL PURCHASING AGENCY20
§1562.  Central purchasing agency; creation21
There is hereby created, within the division of administration, the Central22
Purchasing Agency central purchasing agency, headed by the State Director of23
Purchasing, hereinafter referred to as "the director" state chief procurement officer.24
§1563.  Appointment and qualifications25
The director state chief procurement officer shall be in the classified26
service of the state and shall be appointed in accordance with the provisions of27
Article X, Section 7 of the Louisiana Constitution of 1974. The director state chief28
procurement officer shall have had a minimum of eight years experience in the29
large scale procurement of supplies, services, or construction, personal,30 SB NO. 480	ENROLLED
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professional, consulting, or social services, involving specification development,1
the preparation of bid proposals and bid evaluation and award, including at least2
three years of supervisory experience. Preference shall be given to such experience3
in governmental purchasing.4
§1564.  Authority of the state director of purchasing chief procurement officer5
A. Central procurement officer of the state.  The director state chief6
procurement officer shall serve as the central procurement officer of the state.7
B. Power to adopt rules. Consistent with the provisions of this Chapter, the8
director state chief procurement officer may adopt rules governing the internal9
procedures of the central purchasing agency.10
C. Duties. Except as otherwise specifically provided in this Chapter, the11
director state chief procurement officer shall, within the limitations of regulations12
promulgated by the commissioner:13
(1) Procure or supervise the procurement of all supplies, services, and major14
repairs, and personal, professional, consulting, and social services needed by the15
state.16
(2) Exercise supervision over all inventories of warehoused supplies17
belonging to the state.18
(3) Establish and maintain programs for the inspection, testing, and19
acceptance of supplies, services, and major repairs.20
(4) To provide for contractual forms and specifications to be used in the21
confection of all contracts provided for in this Chapter.22
§1565.  Duties of the attorney general23
The attorney general shall be the chief legal adviser to the director state chief24
procurement officer.25
§1566.  Appointment of assistants and other employees; delegation of authority by26
the state director of purchasing chief procurement officer27
Subject to the provisions of the Article X, Section 7 of the Louisiana28
Constitution of 1974, the director state chief procurement officer may employ and29
supervise such assistants and other persons as may be necessary and may delegate30 SB NO. 480	ENROLLED
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authority to such designees or to any governmental body as the 	director state chief1
procurement officer may deem appropriate within the limitations of state law and2
the state procurement regulations.3
§1567.  Reporting requirements4
A. The director state chief procurement officer shall prepare any reports5
that the commissioner of administration may deem necessary and shall deliver such6
reports to such recipients as the commissioner may designate.  As provided in R.S.7
44:1 et seq., such reports shall be available to the public upon request.  However,8
nothing in this Section shall require any policy or management board of public9
higher education or any institution under their jurisdiction to prepare or submit a10
monthly report on items purchased from state contracts or on contract item usage to11
the director state chief procurement officer. The quarterly report listing purchases12
for under five thousand dollars and the annual report for purchases above five13
thousand dollars on all items purchased from state contracts, shall be sufficient to14
meet the requirements of this Section.15
§1489 B. The director state chief procurement officer shall prepare such16
reports as he finds necessary for the proper conduct of his duties, to include an17
annual report of all professional, personal, consulting, social services, and other18
contracts over which the office of contractual review state procurement has power19
and authority under the provisions of this Chapter or through administrative rules and20
regulations.  The annual report shall be compiled on a fiscal year basis and consist,21
at a minimum, of summary descriptive and statistical data regarding the number and22
amounts of such contracts by type of service.  The annual report shall be submitted23
to the president of the Senate and speaker of the House of Representatives not later24
than January first of the year following the end of the fiscal year for which the report25
is prepared.26
§1517(A)C.(1) When for any reason collusion is suspected among any27
offerers proposers, a written notice report of the facts giving rise to such suspicion28
shall be transmitted to the director of contractual review state chief procurement29
officer and the attorney general.30 SB NO. 480	ENROLLED
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B.(2) All documents involved in any procurement in which collusion is1
suspected shall be retained until the Office office of Contractual Review state2
procurement gives notice that they may be destroyed.  All retained documents shall3
be made available to the commissioner of administration or his designee upon4
request.5
§1493D. The using agencies shall cooperate with the office of contractual6
review state procurement in the preparation of statistical data concerning the7
acquisition, usage, and disposition of all professional, personal, consulting, and8
social services, and may employ trained personnel, as necessary, to carry out this9
function. All using agencies shall furnish such reports as the office of contractual10
review state procurement may require concerning usage and needs, and the office11
of contractual review state procurement shall have authority to prescribe forms to12
be used by the using agencies in the reporting of professional, personal, consulting,13
and social services.14
§1658§1568. Mandatory information requirement for contracts let without15
competition under the authority of an executive order related to16
Hurricane Katrina or Rita17
A. The provisions of this Section shall apply to any contract for state18
procurement of goods or services which is subject to the provisions of this Chapter,19
hereinafter referred to as "state procurement law", which contract is let without20
competition pursuant to an executive order issued by authority granted under the21
Louisiana Homeland Security and Emergency Assistance and Disaster Act, which22
order grants exceptions to the requirements of state procurement law. Such23
provisions shall apply to contracts which have been or will be let without24
competition pursuant to executive orders related to Hurricane Katrina or Rita which25
granted exceptions to the requirements of state procurement law.26
B.(1) For any contract subject to the provisions of this Section, the27
information cited in Subparagraphs (a) through (d) of this Paragraph shall be28
submitted by the primary contractor to the office of state purchasing procurement.29
The following information shall be submitted, in a format to be determined by such30 SB NO. 480	ENROLLED
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agencies, no later than forty-five days after the effective date of the contract, or1
forty-five days after June 29, 2006, whichever is later:2
(a) The name of the primary contractor.3
(b) The amount of the contract.4
(c) The name of each subcontractor.5
(d) The amount of each subcontract.6
(2)  Any change in subcontractors, or in the amount of a subcontract which7
exceeds twenty-five percent in the aggregate of the original subcontracted amount,8
shall necessitate the submission of updated information as required in Paragraph (1)9
of this Subsection.10
(3) The primary contractor for each contract subject to the provisions of this11
Section shall be notified of the requirements of this Section by the contracting state12
agency.  Such notification shall be made no later than ten days after June 29, 200613
for contracts which are currently in effect. Otherwise, the notification shall be made14
prior to execution of the contract.15
C. The office of state purchasing procurement shall maintain a listing or16
registry of all information reported to it pursuant to the provisions of this Section.17
D. Failure to submit all of the information required as provided in Subsection18
B of this Section shall be grounds for debarment. It shall be unlawful for any person19
to intentionally fail to submit such information, which failure is hereby deemed to20
be a violation of the duty to provide the mandatory information. Whomever violates21
such provisions of Subsection B of this Section shall be fined in an amount not to22
exceed one-half of the contract amount and imprisoned for not more than six months,23
or both.24
E. The provisions of this Section shall not be subject to suspension pursuant25
to the authority granted to the governor by R.S. 29:721 et seq., the Louisiana26
Homeland Security and Emergency Assistance and Disaster Act.27
§1613§1568.1.  Use of other types of contracts28
Subject to the limitations of R.S. 39:1611 and R.S. 39:1612, any type of29
contract, including brand name and multiple award contracts, which will promote the30 SB NO. 480	ENROLLED
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best interests of the state may be used, provided that the chief procurement officer1
must make a written determination justifying the type of contract used.  An annual2
report on the number, type, and volume of such procurements shall be made to the3
commissioner or cabinet department head within ninety days after the end of the4
fiscal year.5
§1517.1§1568.2. The Road Home Program; reporting on certain contract payments,6
subcontractors, and performance for professional, personal,7
consulting, or social services contracts8
Notwithstanding any other provision of law to the contrary, the division of9
administration, office of community development, shall report monthly to the10
Legislative Audit Advisory Council with respect to the contract between the office11
of community development and ICF Emergency Management Services dated June12
30, 2006, as amended. The report shall contain information relating to13
subcontractors, inclusive of subcontractors of subcontractors, payments made to any14
contractor or subcontractor, the value of the contract, contractor performance in the15
achievement of goals and objectives of the contract, and any penalties which have16
been assessed for insufficient performance. The information shall be compiled by the17
office of community development and delivered to the Legislative Audit Advisory18
Council on a monthly basis, on a date to be established by the chairman of the19
council. The commissioner of administration shall consult with the chairman of the20
Legislative Audit Advisory Council to develop the format in which the information21
will be presented to the council.22
§1518§1569.  Reports of procurement actions related to professional, personal,23
consulting, and social services contracts24
A. A written report shall be compiled annually, within one hundred twenty25
days after the close of the fiscal year, of contracts made under Sections 1494, 149526
R.S. 39:1617, 1620, and 1496 1621 of this Chapter during that preceding fiscal year.27
The report shall (1) name each contract; (2) state the amount and type of each28
contract; (3) describe the services purchased by each contract, and (4) include, as29
attachments, copies of all determinations and findings required to be made by30 SB NO. 480	ENROLLED
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provisions of this Part and implementing rules and regulations.1
B.(1) A central file or listing of all architects, engineers, clerk of the works,2
attorneys, including bond attorneys or counsel, and public relations persons or firms3
employed or retained by each state agency, board, commission, or department,4
including nonbudget units shall be compiled and updated annually, within one5
hundred twenty days after the close of the fiscal year, of contracts made during that6
preceding year. Each such list shall be kept separately by profession and shall7
contain information relative to such employment or retention, including a detailed8
description of the nature of services rendered to the agency, the extent and duration9
of such services, the amount of the fee or other compensation paid in return for such10
services, and any other information deemed pertinent by the commissioner of the11
division of administration.12
(2) Notwithstanding the any other provisions of R.S. 39:1482 this Chapter,13
each state agency, board, commission, or department, including nonbudget units,14
shall forward on an annual basis on forms to be supplied by the office of contractual15
review state procurement, a report containing the data and information on all16
professional services retained or employed which are required to be listed in a central17
listing as provided in Paragraph (1) of this Subsection B of this Section.18
C.  The reports required by this Section shall be retained as public records.19
§1500§1569.1.  Contract administration20
A. Upon entering into a professional, personal, consulting, or social service21
contract, the using agency shall have full responsibility for the diligent22
administration and monitoring of the contract.  The director of the office of23
contractual review state chief procurement officer may require the using agency24
to report at any time on the status of any such outstanding contracts to which the25
using agency is a party.26
B. After completion of performance under a professional, personal,27
consulting, or social service contract, the using agency shall prepare a final report on28
the contract which shall include an evaluation of contract performance and an29
assessment of the utility of the final product.  This report shall be delivered to the30 SB NO. 480	ENROLLED
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director of the office of contractual review state chief procurement officer within1
sixty days after completion of performance and shall be retained in the official2
contract file. Reports not submitted to the office of contractual review state3
procurement within the sixty-day period shall be delinquent. The report shall4
include at least the following:5
(1) The name of the agency official or officials responsible for monitoring6
the contract and for final agency acceptance of the contract deliverables.7
(2) The contractor, contract amount, contract cost basis, and contract8
timetable which shall reflect both the proposed and actual work initiation and9
completion dates.10
(3)  Any contract modifications.11
(4) A listing of the contract deliverables, inclusive of specific products and12
services, and whether all such deliverables were satisfactorily and timely completed.13
(5) An itemization of any problems encountered with respect to the14
execution of the contract.15
(6)  An assessment of the utility of the contract deliverables.16
C. Final evaluation reports required by this Section for contracts in amounts17
of two hundred fifty thousand dollars or greater shall also be submitted to the18
legislative auditor.19
D. No contract for professional, personal, consulting, or social services20
shall be entered into by a using agency with any contractor for which a delinquent21
final evaluation report remains outstanding for a contract with such using agency.22
§1615(A)E. A report of all multiyear contracts shall be provided to the23
Joint Legislative Committee on the Budget no later than ninety days after the24
end of each fiscal year.25
SUBPART C.  CENTRALIZATION OF PUBLIC PROCUREMENT26
§1571.  Centralization of procurement authority27
Except as otherwise provided in this Subpart, all rights, powers, duties, and28
authority relating to the procurement of supplies, services, and major repairs now29
vested in or exercised by any state governmental body under the several statutes30 SB NO. 480	ENROLLED
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relating thereto are hereby transferred to the central purchasing agency.1
§1572.  Exemptions2
A. Exemption from central purchasing agency and procurement regulations3
of commissioner. Procurement of the following items or by the following4
governmental bodies shall not be required to be conducted through the central5
purchasing agency and shall not be required to follow the procurement6
regulations of the commissioner or the office of state procurement, but shall7
nevertheless be subject to the requirements of this Chapter and such regulations as8
may be promulgated by the head of such governmental body:9
(1) The Department of Transportation and Development, for procurement10
of materials, services, and supplies that will become a component part of any road,11
highway, bridge, or appurtenance thereto, and.12
(2) Textbooks, scientific and laboratory equipment, teaching materials,13
teaching devices, and teaching supplies procured by the Department of Education.14
B. Exemptions from central purchasing only. 	Unless otherwise provided15
in R.S. 39:1554, exemptions from central purchasing do not apply to16
professional services, personal services, consulting services, social services,17
information technology, or vehicle acquisition. Unless otherwise ordered by18
regulation of the commissioner with approval of the governor, the following19
governmental bodies shall not be required to conduct procurement through the20
central purchasing agency, but shall nevertheless be subject to the requirements of21
this Chapter and the regulations promulgated by the commissioner:22
(1)  Louisiana State University System.23
(2)  Southern University System.24
(3)  Board of Trustees of State Colleges and Universities University of25
Louisiana System.26
(4) Special schools and other institutions under the supervision of the State27
Board of Elementary and Secondary Education.28
(5)  Department of Education for items other than those exempted in29
Paragraph A(2) of this Section.30 SB NO. 480	ENROLLED
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(6) The office of the state bond commission in the Department of the1
Treasury for printing only.2
(7)(6) Louisiana Community and Technical College System.3
C. Use of central purchasing by exempt agencies. A governmental body4
exempted from centralized purchasing may use the central purchasing facilities5
whenever the best interests of such governmental body and the state may be served.6
SUBPART D.  STATE PROCUREMENT REGULATI ONS7
§1581.  State procurement regulations8
A. Regulations. Regulations promulgated by the commissioner in accordance9
with the Administrative Procedure Act shall govern all procurements by all10
governmental bodies except for:11
(1) Regulations promulgated by the secretary of the Department of12
Transportation and Development governing procurement by that department, for13
procurement of materials and supplies that will become a component part of any14
road, highway, bridge, or appurtenance thereto.15
(2) Regulations promulgated by the State Superintendent of Education16
governing the procurement of textbooks, scientific and laboratory equipment,17
teaching materials, teaching devices, and teaching supplies by the Department of18
Education.19
B. Exempted departments. Secretaries of departments exempted under20
Subsection A of this Section shall promulgate regulations for the purposes set forth21
in accordance with the Administrative Procedure Act. Such regulations shall not be22
inconsistent with the provisions of this Chapter.23
C.  Power to promulgate regulations shall not be delegated. The24
commissioner or secretary shall not delegate his power to promulgate regulations.25
Delegation of power to promulgate regulations. The secretary shall not delegate26
his power to promulgate regulations.  The commissioner may delegate his power27
to promulgate regulations to the state chief procurement officer.28
D. Regulations shall not change existing contract rights. No regulation shall29
change any commitment, right, or obligation of the state or of a contractor under a30 SB NO. 480	ENROLLED
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contract in existence on the effective date of such regulation.1
E. Incorporation of required clauses into contracts by operation of law only2
with consent of both parties. No clause which is required by regulation to be3
included shall be considered to be incorporated by operation of law in any state4
contract without the consent of both parties to the contract to such incorporation;5
provided, however, that the parties to the contract may give such consent to6
incorporation by reference at any time after the contract has been entered into and7
without the necessity of consideration passing to either party.8
SUBPART E.  COORDINATION, TRAINING, AND EDUCATION9
§1586.  Relationship with using agencies10
The commissioner and the director state chief procurement officer shall11
maintain a close and cooperative relationship with the using agencies. The director12
state chief procurement officer shall afford each using agency reasonable13
opportunity to participate in and make recommendations with respect to matters14
affecting such using agency. Any using agency may at any time make15
recommendations to the commissioner or the director state chief procurement16
officer, and the commissioner or director state chief procurement officer may at17
any time make recommendations to any using agency.18
§1587.  Procurement advisory council; other advisory groups19
A. Procurement advisory council. The commissioner may establish a20
Procurement Advisory Council.  If created, such council, upon adequate public21
notice, shall meet at least once a year for the discussion of problems and22
recommendations for improvement in the procurement process. When requested by23
the commissioner, the procurement advisory council may conduct studies, research,24
and analyses and make such reports and recommendations with respect to such25
subjects or matters within the jurisdiction of the commissioner.  The procurement26
advisory council shall consist of such qualified persons as the commissioner may27
deem desirable.28
B. Other advisory groups.  The director state chief procurement officer29
may appoint advisory groups to assist with respect to specifications and procurement30 SB NO. 480	ENROLLED
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in specific areas and with respect to any other matters within the authority of the1
director state chief procurement officer.2
C. Drug procurement advisory council.  The commissioner shall establish3
a Drug Procurement Advisory Council which shall be composed of persons from the4
division of administration and from using agencies of drugs procured by the division5
and persons qualified in the fields of medicine and pharmacy.  The council shall6
advise the commissioner with respect to the procurement of drugs for any using7
agency by generic contract, as further provided in R.S. 39:1594.139:1601.8
PART III.  SOURCE SELECTION AND CONTRACT FORMATION9
SUBPART A. DEFINITIONS10
§1591. Definitions of terms used in this Part11
(1) "Cost-reimbursement contract" means a contract under which a contractor12
is reimbursed for costs which are allowable and allocable in accordance with cost13
principles as provided for in regulations, and a fee, if any.14
(2) "Established catalog price" means the price included in a catalog, price15
list, schedule, or other form that:16
(a) Is regularly maintained by a manufacturer or contractor.17
(b) Is either published or otherwise available for inspection by customers, and18
(c) States prices at which sales are currently or were last made to a significant19
number of buyers constituting the general buying public for the supplies or services20
involved.21
(3) "Invitation for bids" means all documents, whether attached or22
incorporated by reference, utilized for soliciting bids in accordance with the23
procedures set forth in R.S. 39:1594.24
(4) "Purchase description" means specifications or any other document25
describing the supplies, services, or major repairs to be procured.26
(5) "Request for proposals" means all documents, whether attached or27
incorporated by reference, utilized for soliciting proposals in accordance with the28
procedures set forth in R.S. 39:1595, R.S. 39:1596, R.S. 39:1597, or R.S. 39:1598.29
(6) "Resident business" means one authorized to do and doing business under30 SB NO. 480	ENROLLED
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the laws of this state, which either:1
(a) Maintains its principal place of business in the state; or2
(b) Employs a minimum of two employees who are residents of the state.3
(7) "Responsible bidder or offeror" means a person who has the capability in4
all respects to perform the contract requirements and the integrity and reliability5
which will assure good faith performance.6
(8) "Responsive bidder" means a person who has submitted a bid under R.S.7
39:1594 which conforms in all substantive respects to the invitation for bids,8
including the specifications set forth in the invitation.9
(9) "Assembled" means the process of putting together all component parts10
of an item of equipment by the manufacturer where the assembly plant is located11
within the territorial borders of the state of Louisiana. "Assembled" shall not mean12
the reassembly of parts packed for shipping purposes.13
SUBPART B. A. METHODS OF SOURCE SELECTION14
§1593.  Methods of source selection15
A. Unless otherwise authorized by law, all state contracts shall be awarded16
by competitive sealed bidding, pursuant to R.S. 39:1594, except as provided in R.S.17
39:1593.1 and R.S. 39:1595 through 1598 one of the following methods:18
(1) R.S. 39:1594, competitive sealed bids.19
(2) R.S. 39:1595, competitive sealed proposals.20
(3) R.S. 39:1596, small purchases.21
(4) R.S. 39:1597, sole source.22
(5) R.S. 39:1598, emergency procurements.23
(6) R.S. 39:1600, other procurement methods:24
(a) Unstable market conditions.25
(b) Group purchasing organizations.26
(c) Used equipment.27
(d) Reverse auctions.28
(e) Negotiation of noncompetitive contracts.29
B. Notwithstanding any other provisions of this Section to the contrary and30 SB NO. 480	ENROLLED
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in accordance with rules and regulations promulgated by the commissioner in1
accordance with the Administrative Procedure Act, the directors of state purchasing2
or directors of purchasing at a college or university, with the approval of the3
commissioner, may procure by solicitation requiring written response from at least4
three bona fide bidders under the provisions of this Subsection, when it is determined5
that market conditions are unstable and the competitive bid process is not conducive6
for best pricing for products, supplies and other materials. The provisions of this7
Subsection shall be applicable only if the value of the contract is fifty thousand8
dollars or less and only after sufficient documentation is provided to the9
commissioner by the director to substantiate the unstable market.10
C.(1) Notwithstanding any other provision of this Section to the contrary,11
with the approval of the commissioner and the written determination by the director12
of state purchasing that the best interests of the state would be served, a competitive13
request for proposals process as provided in this Subsection may be used in the14
following circumstances:15
(a) For the procurement of supplies, services, or major repairs, including but16
not limited to the procurement of high technology acquisitions or of complex17
services.18
(b) Through a contract with a group purchasing organization, for the19
procurement of medical and laboratory supplies and medical equipment required for20
the purpose of diagnosis or direct treatment of a patient by a health care provider in21
a hospital or clinical setting, provided the commissioner determines the total cost to22
be less than the state procurement prices and in the best interest of the state.23
(2)(a)(i) For a contract to be let under the provisions of this Subsection, the24
agency shall give adequate public notice of the request for proposals by advertising25
in the official journal of the state at least thirty days before the last day that proposals26
will be accepted. In addition, the agency shall mail written notice to persons, firms,27
or corporations who are known to be in a position to furnish the required services at28
least thirty days before the last day that proposals will be accepted.29
(ii) All requests for proposals shall be advertised through a centralized30 SB NO. 480	ENROLLED
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electronic interactive environment administered by the division of administration as1
provided in this Section. The advertisement or written notice required by this Section2
shall contain the name and address of the using agency and shall establish the3
specific date, time, and place by which the request for proposals must be received.4
(b) The request for proposals shall clearly state the technological or other5
outcome desired from the procurement of the technological or complex systems6
and/or services, if applicable, and shall indicate the relative importance of price and7
other evaluation factors, the criteria to be used in evaluating the proposals, and the8
time frames within which the work must be completed.9
(c) Written or oral discussions shall be conducted with all responsible10
offerers who submit proposals determined in writing to be reasonably susceptible of11
being selected for award. Discussions shall not disclose any information derived12
from proposals submitted by competing offers. Discussions need not be conducted:13
(i) If prices are fixed by law or regulation, except that consideration shall be14
given to competitive terms and conditions.15
(ii) If time of delivery or performance will not permit discussions.16
(iii) If it can be clearly demonstrated and documented from the existence of17
adequate competition or accurate prior cost experience with the particular service18
that acceptance of an initial offer without discussion would result in fair and19
reasonable prices and the request for proposals notifies all offerers of the possibility20
that award may be made on the basis of the initial offers.21
(d)(i) Award shall be made to the responsible offerer whose proposal is22
determined in writing by the agency to be the most advantageous to the state, taking23
into consideration review of price and the evaluation factors set forth in the request24
for proposals.25
(ii) A request for proposals or other solicitation may be cancelled or all26
proposals may be rejected only if it is determined, based on reasons provided in27
writing, that such action is taken in the best interest of the state.28
(e) Each contract entered into pursuant to this Subsection shall contain as a29
minimum:30 SB NO. 480	ENROLLED
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(i) Description of the work to be performed and/or objectives to be met, when1
applicable.2
(ii) Amount and time of payments to be made.3
(iii) Description of reports or other deliverables to be received, when4
applicable.5
(iv) Date of reports or other deliverables to be received, when applicable.6
(v) Responsibility for payment of taxes, when applicable.7
(vi) Circumstances under which the contract can be terminated either with or8
without cause.9
(vii) Remedies for default.10
(viii) A statement giving the legislative auditor the authority to audit records11
of the individual(s) or firm(s).12
(f)(i) Upon entering into a contract, the using agency shall have full13
responsibility for the diligent administration and monitoring of the contract. The14
director of state purchasing may require the using agency to report at any time on the15
status of any such outstanding contracts to which the using agency is a party. After16
completion of performance under a contract, the using agency shall evaluate contract17
performance and the utility of the final product. This evaluation shall be delivered18
to the director of state purchasing within one hundred twenty days after completion19
of performance and shall be retained in the official contract file.20
(ii)(aa) No contract shall be valid, nor shall the state be bound by the contract,21
until it has first been executed by the head of the using agency, or his designee,22
which is a party to the contract and the contractor and has been approved in writing23
by the director of state purchasing.24
(bb) In cases where the head of the using agency wants to delegate authority25
to one or more of his subordinates to sign contracts on behalf of the agency, this26
delegation shall be made in accordance with regulations of the commissioner and27
shall be subject to the approval of the director of state purchasing.28
§1594.  Competitive sealed bidding bids29
A. Conditions for use. Contracts exceeding the amount provided by R.S.30 SB NO. 480	ENROLLED
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39:1596 shall be awarded by competitive sealed bidding unless otherwise provided1
in this Chapter.2
B. Invitation for bids. Competitive sealed bidding shall be initiated by the3
issuance of an invitation for bids containing a description of the supplies, services,4
or major repairs to be procured and all contractual terms and conditions applicable5
to the procurement.6
C.  Public notice.7
(1) Adequate public notice of the invitation for bids shall be given at least8
ten days prior to the date set forth therein for the opening of bids on all matters9
except those made for housing of state agencies, their personnel, operations,10
equipment, or activities pursuant to R.S. 39:1643, for which such notice shall be11
given at least twenty days prior to the opening of bids. Notice shall be in writing and12
to persons in a position to furnish the supplies, services, or major repairs required,13
as shown by its records, and by advertising if the amount of the purchase is14
twenty-five thousand dollars or more.15
(2) The advertisements or written notices shall contain general descriptions16
of the supplies, services, or major repairs for which bids are wanted and shall state17
all of the following:18
(a) The names and locations of the departments or institutions for which the19
purchases are to be made.20
(b) Where and how specifications and quotation forms may be obtained	, and.21
(c) The date and time not later than which bids must be received and will be22
opened.23
(3) Each advertisement shall be published in the official journal of the state.24
In the case of any purchase to meet the needs of a single budget unit the25
advertisement shall be published also in a newspaper of general circulation printed26
in the parish in which the budget unit is situated or, if there is no newspaper printed27
in the parish, in a newspaper printed in the nearest parish, that which has a general28
circulation in the parish in which the budget unit is situated.29
(4) Evidence of agency, corporate, or partnership authority shall be required30 SB NO. 480	ENROLLED
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for submission of a bid to the division of administration or purchasing agencies of1
the state of Louisiana. The authority of the signature of the person submitting the bid2
shall be deemed sufficient and acceptable if any of the following conditions is met:3
(a) The signature on the bid is that of any corporate officer listed on the most4
current annual report on file with the secretary of state, or the signature on the bid5
is that of any member of a partnership or partnership in commendam listed in the6
most current partnership records on file with the secretary of state.7
(b) The signature on the bid is that of an authorized representative of the8
corporation, partnership, or other legal entity and the bid is accompanied by bidder9
submits or provides upon request a corporate resolution, certification as to the10
corporate principal, or other documents indicating authority which are acceptable to11
the public entity, including registration on an electronic Internet database12
maintained by the public entity.13
(c) The corporation, partnership, or other legal entity has filed in the14
appropriate records of the secretary of state in which the public entity is located, an15
affidavit, resolution, or other acknowledged or authentic document indicating the16
names of all parties authorized to submit bids for public contracts. Such document17
on file with the secretary of state shall remain in effect and shall be binding upon the18
principal until specifically rescinded and canceled from the records of the respective19
offices.20
(5) All bids shall be advertised by a using agency through a centralized21
electronic interactive environment administered by the division of administration as22
provided in this Section. The advertisement or written notice required by this Section23
shall contain the name and address of the using agency and shall establish the24
specific date, time, and place by which the bids must be received.25
D. Bid opening. Bids shall be opened publicly in the presence of one or more26
witnesses at the time and place designated in the invitation for bids. Each bid,27
together with the name of the bidder, shall be recorded and open to public inspection.28
E.  Bid evaluation.29
(1) Bids shall be evaluated based on the requirements set forth in the30 SB NO. 480	ENROLLED
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invitation for bids, which may include criteria to determine acceptability such as1
inspection, testing, quality, workmanship, delivery, and suitability for a particular2
purpose, and criteria affecting price such as life cycle or total ownership costs. The3
invitation for bids shall set forth the evaluation criteria to be used. No criteria may4
shall be used in bid evaluation that are not set forth in the invitation for bids.5
(2) For bids made for housing of state agencies, their personnel, operations,6
equipment, or activities pursuant to R.S. 39:1643, the criteria for evaluation shall be7
included in the invitation for bids and shall include, at a minimum, the following:8
(a)  Location of the proposed space.9
(b)  Condition of the proposed space.10
(c)  Suitability of the proposed space for the advertiser's needs.11
(d)  Timeliness of availability of the proposed space.12
F. Correction or withdrawal of bids. Patent errors in bids or errors in bids13
supported by clear and convincing evidence may be corrected, or bids may be14
withdrawn, if such correction or withdrawal does not prejudice other bidders, and15
such actions may be taken only to the extent permitted under regulations.16
G. Award. The contract shall be awarded with reasonable promptness by17
written notice to the lowest responsive and responsible bidder whose bid meets the18
requirements and criteria set forth in the invitation for bids. Award shall be made by19
unconditional acceptance of a bid without alteration or correction except as20
authorized in this Part Chapter.21
H. Resident business preference. In state contracts awarded by competitive22
sealed bidding, resident businesses shall be preferred to nonresident businesses23
where there is a tie bid and where there will be no sacrifice or loss in quality.24
I.  Exemption.25
(1) Purchases of goods manufactured by or services performed by severely26
handicapped individuals in state-operated and state-supported sheltered workshops27
as defined in R.S. 39:1595.4 R.S. 39:1604.4 shall be exempt from the provisions of28
this Section. This exemption shall also apply to goods and services procured by29
purchase order directly from a central nonprofit agency contracting under R.S.30 SB NO. 480	ENROLLED
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39:1595.4 R.S. 39:1604.4 to assist qualified sheltered workshops; any purchase order1
shall be issued directly to the central nonprofit agency for all goods and services2
within the exemption provided under this Subsection.3
(2) Purchases of raw materials and supplies used in the manufacturing4
process by the Department of Public Safety and Corrections, division of prison5
enterprises, with the approval of the director of state purchasing state chief6
procurement officer, shall be exempt from the provisions of this Section and shall7
be procured through the use of written bids.8
§1593(C)§1595.  Competitive sealed proposals9
A.(1) Notwithstanding any other provision of this Section to the contrary,10
with the approval of the commissioner and the written determination by the director11
of state purchasing state chief procurement officer that the best interests of the12
state would be served, a competitive request for proposals process as provided in this13
Subsection may be used in the following circumstances:14
(a) For the procurement of supplies, services, or major repairs, including but15
not limited to the procurement of high technology acquisitions or of complex16
services.17
(b) Through a contract with a group purchasing organization, for the18
procurement of medical and laboratory supplies and medical equipment required for19
the purpose of diagnosis or direct treatment of a patient by a health care provider in20
a hospital or clinical setting, provided the commissioner determines the total cost to21
be less than the state procurement prices and in the best interest of the state.22
(c) The approval and written determination requirements of this23
Paragraph shall not apply to a request for proposals for professional, personal,24
consulting, or social services.25
(2)(a)(i) For a contract to be let under the provisions of this Subsection, the26
agency shall give adequate public notice of the request for proposals by advertising27
in the official journal of the state at least thirty days before the last day that proposals28
will be accepted. In addition, the agency shall mail written notice to persons, firms,29
or corporations who are known to be in a position to furnish the required services at30 SB NO. 480	ENROLLED
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least thirty days before the last day that proposals will be accepted.1
§1503(A)B. Requests for proposals2
(1) For consulting service contracts with a total maximum compensation of3
fifty thousand dollars or more, except for such contracts entered into by the4
Department of Transportation and Development, adequate public notice of the5
request for proposals shall be given by advertising in the official journal of the state6
and in one or more newspapers of general circulation in the state at least once. The7
advertisement shall appear at least thirty days before the last day that proposals will8
be accepted. When available, advertisements shall be placed in those national trade9
journals which serve the particular type of contractor desired. In addition, written10
notice shall be provided to persons, firms, or corporations who are known to be in11
a position to furnish such services, at least thirty days before the last day that12
proposals will be accepted.13
(2) For social service contracts not qualifying under R.S. 	39:1494.1(A)14
39:1619(B), adequate public notice of the request for proposals shall be given by15
advertising in the official journal of the state, in the official journal of the parish in16
which the services are to be performed and such other newspapers, bulletins, or other17
media as are appropriate in the circumstances. Such advertisements shall appear at18
least once in the official journal of the state and once in the official journal of the19
parish. If the services are to be performed in or made available to residents of a20
multiparish area, advertising in the official journal of the state and in one or more21
newspapers of general circulation in the state at least once shall be sufficient to meet22
this requirement. In all cases, the advertisement shall appear at least fourteen days23
before the last day that the proposals will be accepted. In addition, written notice24
shall be provided to persons, firms, or corporations who are known to be in a25
position to furnish such services, at least fourteen days before the last day that26
proposals will be accepted. This last requirement is subject to reasonable limitation27
at the discretion of the using agency.28
(3) For consulting service contracts entered into by the Department of29
Transportation and Development with a total maximum compensation of fifty30 SB NO. 480	ENROLLED
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thousand dollars or more, adequate public notice of the request for proposals shall1
be given by advertising in the official journal of the state at least once. The first2
advertisement shall appear at least fifteen days before the last day that proposals will3
be accepted. In addition, written notice shall be provided to persons, firms, or4
corporations who are known to be in a position to furnish such services, at least5
fifteen days prior to the last day that proposals will be accepted.6
(4) All requests for proposals shall be advertised by a using agency through7
a centralized electronic interactive environment administered by the division of8
administration as provided in this Section. The advertisement or written notice9
required by this Section shall contain the name and address of the using agency and10
shall establish the specific date, time, and place by which the request for proposals11
must be received.12
§1503(B)(5) The Request for Proposals requests for proposals:13
(a) For consulting, social, and professional services not otherwise exempt14
by law or regulation shall indicate the relative importance of price and other15
evaluation factors, shall clearly define the tasks to be performed under the contract,16
the criteria to be used in evaluating the proposals and the time frames within which17
the work must be completed.18
(b) For all others, it shall clearly state the technological or other outcome19
desired from the procurement of the supplies, services, or major repairs, if20
applicable, and shall indicate the relative importance of price and other21
evaluation factors, the criteria to be used in evaluating the proposals, and the22
time frames within which the work must be completed.23
§1503(D)(6) Written or oral discussions shall be conducted with all24
responsible offerers proposers who submit proposals determined in writing to be25
reasonably susceptible of being selected for award. Discussions shall not disclose26
any information derived from proposals submitted by competing offerers proposers.27
Discussions need not be conducted:28
(1)(a) With respect to prices, where such If prices are fixed by law or29
regulation, except that consideration shall be given to competitive terms and30 SB NO. 480	ENROLLED
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conditions; or.1
(2)(b) Where If time of delivery or performance will not permit discussions;2
or.3
(3)(c) Where If it can be clearly demonstrated and documented from the4
existence of adequate competition or accurate prior cost experience with that the5
particular service that acceptance of an initial offer without discussion would result6
in fair and reasonable prices, and the Request for Proposals request for proposals7
notifies all offerers proposers of the possibility that award may be made on the basis8
of the initial offers.9
C. (7)(a) Award shall be made to the responsible offerer proposer whose10
proposal is determined in writing by the 	head of the using agency to be the most11
advantageous to the state, taking into consideration review of price and the12
evaluation factors set forth in the Request for Proposals request for proposals.13
§1504(b) A request for proposals or other solicitation may be cancelled or14
all proposals may be rejected only if it is determined, based on reasons provided in15
writing, that such action is taken in the best interest of the state.16
§1593(C)(2)(d)(ii)(8) A request for proposals or other solicitation may be17
cancelled or all proposals may be rejected only if it is determined, based on reasons18
provided in writing, that such action is taken in the best interest of the state.19
§1593(C)(2)(e)(9) Each contract entered into pursuant to this Subsection20
shall contain as a minimum:21
(i)(a) Description of the work to be performed and/or or objectives to be22
met, when applicable.23
(ii)(b) Amount and time of payments to be made.24
(iii)(c) Description of reports or other deliverables to be received, when25
applicable.26
(iv)(d) Date of reports or other deliverables to be received, when applicable.27
(v)(e) Responsibility for payment of taxes, when applicable.28
(vi)(f) Circumstances under which the contract can be terminated either with29
or without cause.30 SB NO. 480	ENROLLED
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words in boldface type and underscored are additions.
(vii)(g) Remedies for default.1
(viii)(h) A statement giving the legislative auditor the authority to audit2
records of the individual(s) or firm(s) individual or firm.3
(i)  Performance measurements.4
(j)  Monitoring plan.5
(f)(i)(10)(a) Upon entering into a contract, the using agency shall have full6
responsibility for the diligent administration and monitoring of the contract. The7
director of state purchasing state chief procurement officer may require the using8
agency to report at any time on the status of any such outstanding contracts to which9
the using agency is a party. After completion of performance under a contract, the10
using agency shall evaluate contract performance and the utility of the final product.11
This evaluation shall be delivered to the director of state purchasing state chief12
procurement officer or his designee or the director of purchasing at a college or13
university, as applicable, within one hundred twenty days after completion of14
performance and shall be retained in the official contract file.15
(ii)(aa)(b)(i) No contract shall be valid, nor shall the state be bound by the16
contract, until it has first been executed by the head of the using agency, or his17
designee, which is a party to the contract and the contractor and has been approved18
in writing by the director of state purchasing state chief procurement officer or his19
designee or the director of purchasing at a college or university, as applicable.20
(bb)(ii) In cases where the head of the using agency wants to delegate21
authority to one or more of his subordinates to sign contracts on behalf of the agency,22
this delegation shall be made in accordance with regulations of the commissioner and23
shall be subject to the approval of the director of state purchasing state chief24
procurement officer.25
§1502(E)(11) Requests for proposals shall not be required for "interagency26
contracts" as defined in R.S. 39:1490(C) 39:1556(29).27
§1502(F)(12) Notwithstanding the provisions of this Chapter, all relevant28
federal statutes and regulations shall be followed by the using agency in procuring29
services. The burden of complying with these federal statutes and regulations shall30 SB NO. 480	ENROLLED
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rest with the using agency and shall be documented in the contract record submitted1
to the office of contractual review state procurement.2
§1502.§1595.1. Validity of professional, personal, consulting, and social service3
contracts4
A. No contract shall be valid, nor shall the state be bound by the contract,5
until it has first been executed by the head of the using agency, or his designee,6
which is a party to the contract and the contractor, and has been approved in writing7
by the director of the office of contractual review state chief procurement officer.8
B. In cases where the head of the using agency wants to delegate authority9
to one or more of his subordinates to sign contracts on behalf of the agency, this10
delegation must shall be made in accordance with regulations of the office of11
contractual review state procurement and shall be subject to the approval of the12
office of contractual review state procurement.13
§1596.  Small purchases14
Procurements not exceeding the amounts established by executive order of15
the governor may be made in accordance with small purchase procedures prescribed16
by such executive order, except that procurement requirements shall not be17
artificially divided so as to constitute a small purchase under this Section.18
§1597.  Sole source procurements19
A contract may be awarded for a required supply, service, or major repair20
without competition when, under regulations, the chief procurement officer or his21
designee above the level of procurement officer determines in writing that there is22
only one source for the required supply, service, or major repair item.23
§1598.  Emergency procurements24
A. Conditions for use.  The chief procurement officer or his designee above25
the level of procurement officer may make or authorize others to make emergency26
procurements when there exists an imminent threat to the public health, welfare,27
safety, or public property under emergency conditions as defined in accordance with28
regulations.29
B. Written quotations.  Every effort shall be made to obtain quotations from30 SB NO. 480	ENROLLED
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three or more vendors when supplies, services, or major repairs are to be purchased1
on an emergency basis, except for standard equipment parts for which prices are2
established. Immediate purchasing shall be discouraged as much as is practicable.3
When supplies, services, or major repairs are urgently required and time does not4
permit the obtaining of written quotations, the procurement officer may obtain5
quotations by telephoning or otherwise, but such quotations shall be made on the6
relative purchase requisitions. So far as practicable, quotations shall be secured from7
institutions of the state as provided by law.8
C. Determination required.  The Chief Procurement Officer chief9
procurement officer shall make a written determination of the basis of the10
emergency that includes the facts and circumstances leading to the conclusion that11
such procurement was necessary as well as a written determination detailing the12
steps taken prior to selecting a particular contractor and the basis for the final13
selection. The written determination shall be included in the contract file either prior14
to contracting or as soon thereafter as practicable.15
§1593(B)§1600.  Other procurement methods16
A.  Unstable market conditions17
Notwithstanding any other provisions of this Section Chapter to the contrary18
and in accordance with rules and regulations promulgated by the commissioner in19
accordance with the Administrative Procedure Act, the directors of state purchasing20
state chief procurement officer or directors director of purchasing at a college or21
university, with the approval of the commissioner, may procure by solicitation22
requiring written response from at least three bona fide bidders under the provisions23
of this Subsection Section, when it is determined that market conditions are unstable24
and the competitive bid process is not conducive for best pricing for products,25
supplies and other materials. The provisions of this Subsection Section shall be26
applicable only if the value of the contract is fifty thousand dollars or less and only27
after sufficient documentation is provided to the commissioner by the director to28
substantiate the unstable market.29
§1593.1B.  Group purchasing30 SB NO. 480	ENROLLED
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A.(1) The Louisiana State University Health Sciences Center may contract1
with a group purchasing organization through a competitive request for proposals2
process for medical and laboratory supplies and medical equipment required for the3
purpose of diagnosis or direct treatment of a patient by a health care provider in a4
hospital or clinic setting.5
B.(2) Prior to the award of such contract, the proposed contract shall be6
approved by the commissioner of administration provided he determines the total7
cost to be less than the state procurement prices the Louisiana State University8
Health Sciences Center makes a written determination that prices from the9
group purchasing organization are fair market prices and that the contract is in10
the best interest of the state.11
C.(3) No later than sixty days after a purchasing agency submits a proposed12
contract to the commissioner for approval, the commissioner shall notify the13
purchasing agency in writing as to whether the proposed contract has been approved14
or rejected. If the commissioner does not timely notify the purchasing agency of his15
decision, the request for approval on the proposed contract shall be deemed to have16
been approved. The commissioner shall not unreasonably withhold his approval.17
§1645.C. Procurement of used Used equipment18
A.(1) Any agency covered by this Chapter may procure any equipment19
which is used or which has been previously purchased by an individual or20
corporation where the agency proposing to make such procurement can present21
satisfactory information to the procurement officer to illustrate that the procurement22
of said equipment is cost effective to the state.23
B.(1)(2)(a) The used equipment shall be purchased by the head of the24
agency, college, or university, within the price range set by the 	director of state25
purchasing state chief procurement officer, or the directors of purchasing at26
colleges and universities, in a statement of written approval for the purchase which27
must be obtained by the head of the agency, college, or university, prior to the28
purchase.29
(2)(b) The head of the agency, college, or university, shall certify in writing30 SB NO. 480	ENROLLED
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to the director of state purchasing state chief procurement officer, or the directors1
of purchasing at colleges and universities, all of the following:2
(a)(i) The price for which the used equipment may be obtained.3
(b)(ii) The plan for maintenance and repair of the equipment and the cost4
thereof.5
(c)(iii) The savings that will accrue to the state because of the purchase of6
the used equipment.7
(d)(iv) The fact that following the procedures set out in the Louisiana8
Procurement Code will result in the loss of the opportunity to purchase the9
equipment.10
§1598.1D.  Reverse auction11
A.(1) Notwithstanding the provisions of Subpart B A of this Part, with the12
approval of the state director of purchasing state chief procurement officer and the13
determination of the head of the using agency that the best interests of the state14
would be served and that electronic online bidding is more advantageous than other15
procurement methods provided in this Chapter, a reverse auction may be utilized for16
the acquisition of materials, supplies, services, products, or equipment.17
B.(2) Prior to the implementation of this Subpart Subsection, the state18
director of purchasing chief procurement officer shall develop policies, procedures,19
and promulgate regulations, in accordance with the Administrative Procedure Act.20
Such policies and procedures may require that:21
(1)(a) Vendors shall register before the opening date and time, and as part22
of the registration, require that the vendors agree to any terms and conditions and23
other requirements of the solicitation.24
(2)(b) Vendors shall be prequalified prior to placing bids and allow only25
bidders who are prequalified to submit bids.26
(3)(c) The solicitation shall designate an opening date and time and the27
closing date and time. The closing date and time may be fixed or remain open28
depending on the nature of the item being bid.29
(4)(d) At the opening date and time, the using agency shall begin accepting30 SB NO. 480	ENROLLED
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online bids and continue accepting bids until the bid is officially closed. Registered1
bidders shall be allowed to lower the price of their bid below the lowest bid posted2
on the Internet until the closing date and time.3
(5)(e) Bidders' identities shall not be revealed during the bidding process;4
only the successively lower prices, ranks, scores, and related bid details shall be5
revealed.6
(6)(f) All bids shall be posted electronically and updated on a real-time basis.7
(7)(g) The using agency shall retain the right to cancel the solicitation if it8
determines that it is in the agency's or the state's best interest.9
(8)(h) The using agency shall retain its existing authority to determine the10
criteria that shall be used as a basis for making awards.11
C.(3) Adequate public notice for the purchase of materials, supplies,12
services, or equipment using a reverse auction shall be given as follows:13
(1)(a) The advertisement or notice shall be published one time in the official14
journal of the state at least twenty days before the opening date of the reverse15
auction.16
(2)(b) In the case of any purchase to meet the needs of a single budget unit,17
the advertisement shall be published also in a newspaper of general circulation18
printed in the parish in which the budget unit is situated, or, if there is not a19
newspaper printed in the parish, in a newspaper printed in the nearest parish that has20
a general circulation in the parish in which the budget unit is situated.21
§1499E.  Negotiation of noncompetitive contracts.22
The head of the using agency or the agency procurement officer shall23
negotiate with the highest qualified persons for all contracts sole source or24
emergency procurements or for professional, personal, or those consulting services25
for less than fifty thousand dollars, or those social services qualifying under R.S.26
39:1494.1(A) 39:1619(B) at compensation which the head of the using agency27
determines in writing to be fair and reasonable to the state.  In making this28
determination, the head of the using agency shall take into account, in the following29
order of importance, the professional or technical competence of offerers proposers,30 SB NO. 480	ENROLLED
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the technical merits of offers proposals, and the compensation for which the services1
are to be rendered, including fee.  Negotiation of consulting services for fifty2
thousand dollars or more or social services not qualifying under R.S. 39:1494.1(A)3
39:1619(B) shall be conducted in accordance with Part II, Subpart B R.S.4
39:1595(B) hereof.5
§1594.1§1601.  Contracts for drugs6
Multisource generic drug contracts shall be used for the procurement of drugs7
approved by the Federal Drug Administration and listed in the Federal Drug8
Administration Prescription Drug Products with Therapeutic Equivalence9
Evaluations Compendium and Supplements for all using agencies.  Such contracts10
shall be competitively bid at the lowest available price.  However, a brand name11
contract may be used if there is only one source of supply for a particular drug or if12
the using agency certifies to the chief procurement officer that a justifiable medical13
reason exists for the use of a particular brand name drug. The chief procurement14
officer shall seek the advice of the Drug Procurement Advisory Council on all such15
requests other than declared emergencies.16
§1594.2§1602.  Right to reject bids from Communist countries17
In awarding contracts for supplies, any public entity is authorized to reject18
the lowest bid if received from a bidder domiciled in a Communist country, or if the19
supplies are manufactured in a Communist country, including but not limited to the20
Soviet Union Russia, China, North Korea, and Vietnam, and to award the contract21
to the next lowest bidder, provided this Section shall not apply to any country having22
established trade relations agreements or approvals from the government of the23
United States.24
§1594.3§1603.  Limitations on consultants competing for contracts25
A.  Any person contracting with an agency for the purposes of developing26
bidding documents, requests for proposals, or any other type of solicitation related27
to a specific procurement shall be prohibited from bidding, proposing, or otherwise28
competing for award of that procurement. Such persons shall further be prohibited29
from participating as subcontractors related to the award of that procurement.30 SB NO. 480	ENROLLED
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B. For the purposes of this Section, the following activities shall not be1
considered "developing bidding documents, requests for proposals, or any other type2
of solicitation":3
(1) Architectural and engineering programming.4
(2) Master planning.5
(3) Budgeting.6
(4) Feasibility analysis.7
(5) Constructability review.8
(6) Furnishing specification data or other product information.9
(7) Any other services that do not establish selection qualifications or10
evaluation criteria for the procurement of an architect or engineer.11
§1595§1604. Preference for all types of products produced, manufactured,12
assembled, grown, or harvested in Louisiana; exceptions13
A. As used in this Section, the following terms shall have the following14
meanings ascribed to them:15
(1) "Meat" and "meat product" means beef, veal, pork, mutton, poultry, and16
other meats, and products made from those meats.17
(2) "Other products" includes "other meat", "other meat products", "other18
seafood", and "other seafood products" and means products which are produced,19
manufactured, grown, processed, and harvested outside the state.20
(3) "Seafood" means crawfish, catfish, other fish, shrimp, oysters, crabs,21
underutilized species, and other seafood and freshwater food.22
(4) "Processed" means the alteration of any raw product altered from its23
original state to enhance its value or render it suitable for further refinement or24
marketing.25
B. Notwithstanding any other provision of this Section to the contrary, each26
procurement officer, purchasing agent, or similar official who procures or purchases27
agricultural or forestry products, including meat, seafood, produce, eggs, paper or28
paper products under the provisions of this Chapter shall procure or purchase29
Louisiana products provided all of the following conditions are met:30 SB NO. 480	ENROLLED
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(1) The bidder certifies in the bid submitted that the product meets the criteria1
of a Louisiana product.2
(2) The product is equal to or better than equal in quality to other products.3
(3) The cost of the Louisiana product shall not exceed the cost of other4
products by more than ten percent, except as otherwise provided in this Chapter as5
a specific exception.6
C. In order to qualify as Louisiana products for the purpose of this Section,7
the following products shall meet the following requirements:8
(1) Produce shall be produced in Louisiana and produce products shall be9
produced and processed in Louisiana.10
(2) Eggs shall be laid in Louisiana and egg products shall be processed from11
eggs laid in Louisiana.12
(3) Meat and meat products shall be processed in Louisiana from animals13
which are alive at the time they enter the processing plant.14
(4)(a) Seafood shall be:15
(i) Harvested in Louisiana seas or other Louisiana waters; or.16
(ii) Harvested by a person who holds a valid appropriate commercial fishing17
license issued under R.S. 56:1 et seq.18
(b) Products produced from such seafood shall be processed in Louisiana.19
(5) Domesticated catfish shall be processed in Louisiana from animals which20
were grown in Louisiana.21
(6) Paper and paper products shall be manufactured or converted in22
Louisiana. For the purposes of this Paragraph, "manufactured" shall mean the23
process of making a product suitable for use from raw materials by hand or by24
machinery, and "converted" shall mean the process of converting roll stock into a25
sheeted and fully packaged product in a full-time converting operation. For paper26
supplied in wrapped reams, each carton and each individual ream shall be clearly27
labeled with the name of the manufacturer or converter and the location within28
Louisiana where such paper is manufactured or converted. For paper and paper29
products supplied in bulk or in other forms, the smallest unit of packaging shall be30 SB NO. 480	ENROLLED
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clearly labeled with the name of the manufacturer or converter and the location1
within Louisiana where such paper or paper product is manufactured or converted.2
(7) All other agricultural or forestry products shall be produced,3
manufactured, or processed in Louisiana.4
D. Notwithstanding any other provision of this Section to the contrary, each5
procurement officer, purchasing agent, or similar official who procures or purchases6
products under the provisions of this Chapter shall procure or purchase meat and7
meat products which are further processed in Louisiana under the grading and8
certification service of the Louisiana Department of Agriculture and Forestry and9
which are equal in quality to other meat and meat products, provided the cost of the10
further processed meat and meat products does not exceed the cost of other meat or11
meat products by more than seven percent.12
E. Notwithstanding any other provision of this Section to the contrary, each13
procurement officer, purchasing agent, or similar official who procures or purchases14
products under the provisions of this Part shall procure or purchase domesticated or15
wild catfish which are processed in Louisiana but grown outside of Louisiana and16
which are equal in quality to domesticated or wild catfish which are processed17
outside of Louisiana provided the cost of the domesticated or wild catfish which are18
processed in Louisiana does not exceed the cost of the domesticated or wild catfish19
which are processed outside of Louisiana by more than seven percent.20
F. Notwithstanding any other provision of this Section to the contrary, each21
procurement officer, purchasing agent, or similar official who procures or purchases22
products under the provisions of this Part shall procure or purchase produce23
processed in Louisiana but grown outside of Louisiana and which is equal in quality24
to produce processed and grown outside of Louisiana, provided the cost of the25
produce processed in Louisiana does not exceed the cost of the produce processed26
outside of Louisiana by more than seven percent.27
G. Notwithstanding any other provision of this Section to the contrary, each28
procurement officer, purchasing agent, or similar official who procures or purchases29
products under the provisions of this Chapter shall procure or purchase eggs or30 SB NO. 480	ENROLLED
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crawfish which are further processed in Louisiana under the grading service of the1
Louisiana Department of Agriculture and Forestry and which are equal in quality to2
other eggs or crawfish, provided the cost of the further processed eggs or crawfish3
does not exceed the cost of other eggs or crawfish by more than seven percent.4
H.  Except as otherwise provided in this Section, each procurement officer,5
purchasing agent, or similar official who procures or purchases materials, supplies,6
products, provisions, or equipment under the provisions of this Chapter may7
purchase such materials, supplies, products, provisions, or equipment which are8
produced, manufactured, or assembled in Louisiana, as defined in R.S. 38:2251(A),9
and which are equal in quality to other materials, supplies, products, provisions, or10
equipment, provided that all of the following conditions are met:11
(1) The cost of such items does not exceed the cost of other items which are12
manufactured, processed, produced, or assembled outside the state by more than ten13
percent.14
(2) The vendor of such Louisiana items agrees to sell the items at the same15
price as the lowest bid offered on such items.16
(3) In cases where more than one bidder offers Louisiana items which are17
within ten percent of the lowest bid, the bidder offering the lowest bid on Louisiana18
items is entitled to accept the price of the lowest bid made on such items.19
I. Notwithstanding any other provision of this Section to the contrary, such20
preferences shall only apply only to bidders whose Louisiana business workforce is21
comprised of a minimum of fifty percent Louisiana residents.22
J. Notwithstanding any other provision of this Section to the contrary, 	such23
preference the preference provided in Subsection H of this Section shall not apply24
to Louisiana products whose source is a clay which is mined or originates in25
Louisiana, and which is manufactured, processed or refined in Louisiana for sale as26
an expanded clay aggregate form different than its original state. No provision of this27
Subsection shall affect the preferences applicable to brick manufacturers.28
K.  The provisions of this Section shall not apply to treated wood poles and29
piling.30 SB NO. 480	ENROLLED
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§1595.1§1604.1.  Preference in awarding contracts1
A. In the awarding of contracts by any public entity, except contracts for the2
construction, maintenance, or repair of highways and streets, and contracts financed3
in whole or in part by contributions or loans from any agency of the United States4
government, where both in-state and out-of-state vendors are bidding, in-state5
vendors shall be given a preference in the same manner that any of the out-of-state6
vendors would be given on a comparative bid in their own state. If one party to a7
joint venture is qualified under this Section as a vendor domiciled in Louisiana, this8
qualification shall extend to all parties to the joint venture. For the purpose of this9
Section, a foreign corporation which was qualified to do business in the state of10
Louisiana in the manner required by law more than six months prior to the11
advertising of bids on a contract shall be considered to be a vendor domiciled in the12
state of Louisiana for the purpose of awarding the contract.13
B. For purposes of determination of the lowest responsible bidder, when14
letting contracts where bids are received from in-state vendors and out-of-state15
vendors, local sales and use taxes shall be excluded from the bid.16
C. The provisions and requirements of this Section shall not be waived by17
any public entity.18
§1595.2§1604.2.  Preference in letting contracts for public work19
A.(1) In the letting of contracts for public work by any public entity, except20
contracts financed in whole or in part by contributions or loans from any agency of21
the United States government:22
(a) Preference shall be given to contractors domiciled in the state of23
Louisiana over contractors domiciled in a state that provides for a preference in favor24
of contractors domiciled in that state over contractors domiciled in the state of25
Louisiana for the same type of work	; and.26
(b) Contractors domiciled in the state of Louisiana are to be granted the same27
preference over contractors domiciled in such state favoring contractors domiciled28
therein with a preference over contractors domiciled in the state of Louisiana in the29
same manner and on the same basis and to the same extent that such preference may30 SB NO. 480	ENROLLED
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be granted in letting contracts for the same type of work by such other state to1
contractors domiciled therein over contractors domiciled in the state of Louisiana.2
(2) If one party to a joint venture is qualified under this Section as a3
contractor domiciled in Louisiana, this qualification shall extend to all parties to the4
joint venture.5
(3)  For the purpose of this Section, a foreign corporation that has qualified6
to do business in the state of Louisiana in the manner required by law more than six7
months prior to the advertising for bids on a contract for public work shall be8
considered to be a contractor domiciled in the state of Louisiana for the purpose of9
letting the contract for such public work.10
B. The provisions and requirements of this Section shall not be waived by11
any public entity.12
§1595.3§1604.3.  Preference in awarding contracts for certain services13
In the awarding of contracts by any public entity, for services to organize or14
administer rodeos and livestock shows, where state-owned facilities will be used to15
house or contain such activities, and where both in-state and out-of-state vendors are16
bidding, in-state vendors shall be given preference, provided such services are equal17
in quality and do not exceed in cost by more than ten percent those services available18
from outside the state.19
§1595.4§1604.4. Preference for goods manufactured, or services performed, by20
sheltered workshops; definitions; coordinating council21
A. Every governmental body shall give a preference in its purchasing22
practices to goods manufactured and services performed by severely handicapped23
individuals in state-operated and state-supported sheltered workshops.24
B. The provisions of this Section shall not be construed to limit or otherwise25
affect the provisions of R.S. 23:3024 and 3025 regarding the sheltered industries26
program for individuals who are blind.27
C. There is hereby created within the Department of Health and Hospitals28
a council whose function shall be to coordinate and facilitate the carrying out of29
provisions of this Section. The membership of this council shall be determined by30 SB NO. 480	ENROLLED
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the secretary of the Department of Health and Hospitals. It shall have authority to1
designate and contract with a central nonprofit agency to assist sheltered workshops2
in submitting applications for the selection of suitable goods and services, to3
facilitate the allocation of orders among qualified sheltered workshops, and4
otherwise to assist the council in performing its functions.5
D. The Department of Health and Hospitals may adopt, promulgate, and6
enforce such rules and regulations as are necessary and appropriate to implement the7
provisions of this Section. The regulations shall be promulgated in accordance with8
the Administrative Procedure Act, R.S. 49:950 et seq.9
E. For the purposes of this Section, the following terms are defined as10
follows:11
(1) "Direct labor" means all labor involved in the manufacture of goods or12
the performance of services except for supervision, instruction, administration, and13
shipping.14
(2) "Goods manufactured and services performed by severely handicapped15
individuals" means goods and services for which not less than seventy-five percent16
of the man-hours of direct labor required for manufacture or performance is provided17
by severely handicapped individuals.18
(3) "Qualified nonprofit agency for the severely handicapped" means an19
agency that:20
(a) Is incorporated under the Louisiana Nonprofit Corporation Law and21
operated in the interests of severely handicapped individuals, and the income of22
which does not inure in whole or in part to the benefit of any shareholder or other23
private individual, and.24
(b) Complies with any applicable occupational health and safety standards25
provided by the statutes or regulations of this state or of the United States.26
(4) "Severely handicapped individuals" means individuals with a physical,27
mental, or substance abuse disability which constitutes a substantial obstacle to their28
employment and is of such a nature as to prevent an individual from engaging in29
normal competitive employment.30 SB NO. 480	ENROLLED
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(5) "Sheltered workshop" means a facility designed to provide gainful1
employment for severely handicapped individuals who cannot be absorbed into the2
competitive labor market or to provide interim employment for such individuals3
when employment opportunities for them in the competitive labor market do not4
exist.5
(6) "State-operated sheltered workshop" means a sheltered workshop staffed6
by state agency personnel.7
(7) "State-supported sheltered workshop" means a sheltered workshop funded8
in whole or in part by the state and staffed by personnel from a qualified nonprofit9
agency for the severely handicapped.10
§1595.5§1604.5.  Preference for items purchased from Louisiana retailers11
A. When purchasing items at retail, every procurement officer under the12
provisions of this Chapter or other person acting as purchasing agent shall purchase13
items from a retail dealer located in the state of Louisiana which items are equal in14
quality to items purchased from a retail dealer located outside the state, provided the15
cost of items purchased from a retail dealer located in this state does not exceed by16
more than ten percent the cost of items purchased from a retail dealer located outside17
the state.18
B. A retail dealer shall qualify for the preference if the dealer can show that19
he has paid Louisiana corporate income, corporate franchise, and inventory taxes or20
any combination thereof during the previous twelve-month period.21
C. Retailers domiciled in the state of Louisiana are to be granted the same22
preference over retailers domiciled in the state favoring retailers domiciled therein23
with a preference over retailers domiciled in the state of Louisiana in the same24
manner and on the same basis and to the same extent that such preference may be25
granted in purchasing items of the same type by such other state to retailers26
domiciled therein over retailers domiciled in the state of Louisiana.27
§1595.6§1604.6.  Preference for steel rolled in Louisiana28
A.  When purchasing steel, every person acting as purchasing agent for any29
agency, board, commission, department, or other instrumentality of the state or of30 SB NO. 480	ENROLLED
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a parish, municipality, or other unit of local government, including a levee board,1
drainage district, school board, or special district, shall purchase steel rolled in this2
state which is equal in quality to steel rolled outside the state, provided the cost of3
steel rolled in this state does not exceed by more than ten percent the cost of steel4
which is rolled outside the state.5
B. The provisions of this Section shall not apply when sufficient quantities6
of steel rolled in Louisiana are not available.7
§1595.7§1604.7. Preference for items manufactured in the United States; definitions8
A. This Section may be cited as the "Procurement of Domestic Products9
Act".10
B.  As used in this Section, the following definitions shall apply:11
(1) "Manufactured in the United States" means produced by a process in12
which the manufacturing, final assembly, processing, packaging, testing, and any13
other process that adds value, quality, or reliability to assembled articles, materials,14
or supplies, occur in the United States.15
(2) "United States" means the United States and any place subject to the16
jurisdiction of the United States.17
C. In the event a contract is not entered into for products purchased under the18
provisions of R.S. 39:1595, each procurement officer, purchasing agent, or similar19
official who procures or purchases materials, supplies, products, provisions, or20
equipment under the provisions of this Chapter may purchase such materials,21
supplies, products, provisions, or equipment which are manufactured in the United22
States, and which are equal in quality to other materials, supplies, products,23
provisions, or equipment, provided that all of the following conditions are met:24
(1) The cost of such items does not exceed the cost of other items which are25
manufactured outside the United States by more than five percent.26
(2) The vendor of such items agrees to sell the items at the same price as the27
lowest bid offered on such items.28
(3) In cases where more than one bidder offers items manufactured in the29
United States which are within five percent of the lowest bid, the bidder offering the30 SB NO. 480	ENROLLED
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lowest bid on such items is entitled to accept the price of the lowest bid made on1
such items.2
(4) The vendor certifies that such items are manufactured in the United3
States.4
D. The office of state purchasing procurement may promulgate rules and5
regulations for the implementation of this Section in accordance with the6
Administrative Procedure Act.7
SUBPART C.B. CANCELLATION OF INVITATIONS8
FOR BIDS OR REQUESTS FOR PROPOSALS9
§1599§1605.  Cancellation of invitations for bids or requests for proposals10
An invitation for bids, a request for proposals, or other solicitation may be11
cancelled, or all bids or proposals may be rejected, only if it is determined in writing12
by the chief procurement officer or his designee that such action is taken in the best13
interests of the state.14
SUBPART D.C. QUALIFICATIONS AND DUTIES15
§1601§1606.  Responsibility of bidders and offerers proposers16
A. A reasonable inquiry to determine the responsibility of a bidder or 	offerer17
proposer may be conducted. The unreasonable failure of a bidder or offerer18
proposer promptly to supply information in connection with such an inquiry may19
be grounds for a determination of nonresponsibility with respect to such bidder or20
offerer proposer.21
B. Whenever the Chief Procurement Officer, Commissioner chief22
procurement officer, commissioner, or head of a governmental body with such23
authority proposes to disqualify the lowest bidder on bids of $5,000 five thousand24
dollars or more such individual shall:25
1)(1) Give written notice of the proposed disqualification to such bidder and26
include in the written notice all reasons for the proposed disqualification; and.27
2)(2) Give such bidder who is proposed to be disqualified, a reasonable28
opportunity to be heard at an informal hearing at which such bidder is afforded the29
opportunity to refute the reasons for the disqualification.30 SB NO. 480	ENROLLED
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§1505BC. Except as otherwise provided by law, information furnished by1
an offerer a proposer pursuant to this Section may not be disclosed outside of the2
user agency or the Office of Contractual Review office of state procurement3
without prior written consent of notice to the offerer proposer.4
§1602.  Prequalification of suppliers5
Prospective suppliers may be prequalified for particular types of supplies and6
services.7
§1506. §1607. Prequalification of offerers bidders and proposers8
The Office of Contractual Review office of state procurement may provide9
for prequalification of offerers bidders and proposers as responsible prospective10
contractors for consulting services. Solicitation mailing lists of potential contractors11
of such services shall include but shall not necessarily be limited to such prequalified12
offerers bidders and proposers. Prequalification shall not foreclose a written13
determination (a) between the time of the receipt of offers bid or proposal and the14
making of an award that a prequalified offerer bidder or proposer is not responsible15
or (b) that an offerer a bidder or proposer who is not prequalified at the time of16
receipt of offers bid or proposals is responsible.17
§1603§1608.  Cost or pricing data18
A. Contractor certification.  A contractor shall submit cost or pricing data19
and shall certify that, to the best of its knowledge and belief, the cost or pricing data20
submitted was accurate, complete, and current as of a mutually determined specified21
date prior to the date of:22
(1) Pricing of any contract awarded by other than competitive sealed bidding,23
as provided in R.S. 39:1594, or small purchase procedures, as provided in R.S.24
39:1596, where the total contract price is expected to exceed an amount established25
by regulations; or26
(2) Pricing of any change order or contract modification which is expected27
to exceed an amount established by regulations.28
B.  Price adjustment.  Any contract, change order, or contract modification29
under which a certificate is required shall contain a provision that the price to the30 SB NO. 480	ENROLLED
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state, including profit or fee, shall be adjusted to exclude any significant sums by1
which the procurement officer finds that such price was increased because the2
contractor-furnished cost or pricing data was inaccurate, incomplete, or not current3
as of the date agreed upon between the parties.4
C. Cost or pricing data not required.  The requirements of this Section need5
not be applied to contracts:6
(1) Where the contract price is based on adequate price competition;.7
(2) Where the contract price is based on an established catalog price or8
market prices established by an analysis of commercial items sold in substantial9
quantities to the general public;.10
(3) Where contract prices are set by law or regulation	; or.11
(4) In exceptional cases where it is determined in writing in accordance with12
regulations that the requirements of this Section may be waived, and the reasons for13
such waiver are stated in writing.14
SUBPART E.D. TYPES OF CONTRACTS15
§1611.  Cost-plus-a-percentage-of-cost contracts16
The cost-plus-a-percentage-of-cost system of contracting shall not be used.17
§1612.  Cost-reimbursement contracts18
A. Determination required prior to use.  No cost-reimbursement prime19
contract may be made unless it is determined in writing in accordance with20
regulations that such contract is likely to be less costly to the state than any other21
type of contract or that it is impracticable to obtain supplies, services, or major22
repairs of the kind or quality required except under such a contract.23
B. Reimbursement of costs.  All cost-reimbursement contracts shall contain24
a provision that only costs recognized as allowable in accordance with cost principles25
set forth in regulations will be reimbursable.26
§1511C. Prior notice requirement concerning use of cost-reimbursement27
type subcontract. Each contractor under a cost-reimbursement type contract shall28
give notice, as provided for in the contract, before entering into (1) a29
cost-reimbursement type subcontract or (2) any other type of subcontract involving30 SB NO. 480	ENROLLED
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more than ten thousand dollars or ten percent of the estimated cost of the prime1
contract.2
§1512§1613. Reimbursement of costs for professional, personal, consulting, and3
social services contracts4
A. All cost-reimbursement type contracts shall contain a provision that5
only costs recognized as allowable in accordance with cost principles set forth in6
rules and regulations, issued pursuant to Part IV hereof of this Chapter will be7
reimbursable.8
B. Payments may be made to the contractor for professional, personal,9
consulting, and social services contracts in advance of services being performed10
if the following conditions are met:11
(1) The using agency has submitted, in writing, to the Division of12
Administration, division of administration, office of contractual review state13
procurement, a certification that an advance is necessary in order to provide the14
services at the lowest total cost and that there is no other cost effective cost-15
effective source of such advance funding.  The certification shall include a16
narrative setting out the facts which necessitate the advance funding.17
(2) The advance is approved by the director of the office of contractual18
review state chief procurement officer.19
(3) Except as may be otherwise provided by law, the amount of such20
advance shall be limited to a sum not to exceed twenty percent of the total21
contract amount, excluding travel advances which shall be governed by applicable22
regulations.23
(4) The contractor is a nonprofit corporation.24
C. If local matching funds are available to fund the advance, no state25
monies shall be advanced through the contract.26
D. If federal funds are used for the advance, federal regulations and27
statutes shall govern the use and amounts of advance payments made.28
E. Interagency contracts as defined in R.S. 39:1490(C) 39:1556(29) are29
exempt from the provisions of Subsections B and C of this Section.30 SB NO. 480	ENROLLED
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F. The provisions of this Section shall not be construed to authorize1
payments in advance of services to be performed pursuant to a professional2
service contract.3
G. State funds may be expended to fund the advance only in the same4
fiscal year in which the funds are appropriated.5
§1614.  Approval of accounting system6
Except with respect to firm fixed-price contracts, no contract type shall be7
used unless it has been determined in writing by the chief procurement officer or8
his designee that:9
(1) The proposed contractor's accounting system will permit timely10
development of all necessary cost data in the form required by the specific11
contract type contemplated ; and.12
(2) The contractor's accounting system is adequate to allocate costs in13
accordance with generally accepted accounting principles.14
§1615.  Multiyear contracts15
A. Specified Period. Unless otherwise provided by law, a contract for16
supplies or services may be entered into for periods of not more than five years,17
if funds for the first fiscal year of the contemplated contract are available at the18
time of contracting. Payment and performance obligations for succeeding fiscal19
years shall be subject to the availability and appropriation of funds therefor.  No20
contract shall be entered into for more than one year unless the length of the21
contract was clearly stated in the specifications. Any lease or similar agreement22
affecting the allocation of space in the state capitol shall have the prior approval23
of the Legislative Budgetary Control Council if it extends for more than one year.24
A report of all multiyear contracts shall be provided to the Joint Legislative25
Committee on the Budget no later than ninety days after the end of each fiscal26
year.27
B. Determination prior to use.  Prior to the utilization of a multiyear28
contract for supplies, services, or major repairs, it shall be determined in29
writing:30 SB NO. 480	ENROLLED
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(1) That estimated requirements cover the period of the contract and are1
reasonably firm and continuing ; and.2
(2) That such a contract will serve the best interests of the state by3
encouraging effective competition or otherwise prompting economies in state4
procurement.5
A written resume of the supportive underlying facts for the foregoing6
determinations shall be included in the determination, and the resume shall state7
the estimated savings to be obtained by entering into a multiyear contract.8
C. Termination due to unavailability of funds in succeeding years.  When9
funds are not appropriated to support continuation of performance in a subsequent10
year of a multiyear contract for supplies, services, or major repairs, the11
contract for such subsequent year shall be terminated.  When a contract is12
terminated under these conditions, no additional funds shall be paid to the13
contractor as a result of such action.14
D. Educational institutions excepted. (1) An educational institution may15
enter into a multiyear nonexclusive contract, not to exceed ten years, with a16
vendor who has made a gift to the institution of equipment utilized for promoting17
products and university activities at a cost to the vendor in excess of fifty18
thousand dollars. Further, for this exception to be applicable, the contract shall19
cover products for resale within the institution.20
(2) The state superintendent of education may enter into a multiyear21
contract, not to exceed ten years, with any public or private agency to act as the22
depository in the state for school books.23
E. With respect to all multiyear contracts 	for supplies, services, or major24
repairs, there shall be no provisions for a penalty to the state for the cancellation25
or early payment of the contract.26
F. The Department of Environmental Quality may enter into a multiyear27
contract, not to exceed seven years, for the operation of privately operated vehicle28
emission inspection facilities pursuant to R.S. 30:2054(B)(8). The secretary shall29
seek and consider proposals for an enhanced inspection maintenance program to30 SB NO. 480	ENROLLED
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be implemented no sooner than January 1, 1995, from contractors proposing to1
implement currently evolving, cost-effective technologies, presenting minimal2
public inconvenience, designed to bring Louisiana into compliance with federal3
ambient air quality standards and meeting EPA required program standards.4
§1514(A)G.(1) Unless otherwise provided in the statutes making5
appropriations therefor, a contract for professional, personal, consulting, or social6
services may be entered into for periods of not more than five years, except that:7
(a) Contracts for management of food services at public universities and8
colleges, contracts of retirement systems for investment management services and9
investment advisory services, contracts for electronic disbursement services for10
child support payments, contracts for prisoner dialysis, and contracts for central11
banking services for the state may be entered into for periods of up to five years.12
(b) Contracts for electronic benefits issuance system services as required13
under R.S. 46:450.1 may be entered into for periods of up to ten years. The14
contracts shall be for an initial contract period of six years with the state having15
two options for two-year extensions up to a maximum of ten years.16
(c) Contracts for national norm-referenced testing or other testing services17
which are to be used as part of the school and district accountability system as18
provided in R.S. 17:10.1 et seq. may be entered into for a period of up to twelve19
years. Modifications to existing contracts may be made in order to ensure the20
acquisition and usage of the most current tests offered by the contractor.21
(d)(i) Contracts or amendments to existing contracts issued to institutions22
of higher education under the authority of grants or joint agreements between the23
Board of Regents and federal agencies for research, educational, or infrastructure24
development activities, and contracts or amendments to existing contracts issued25
by such institutions under the authority of grants or joint agreements issued by26
federal agencies or private grants, may be entered into for a period corresponding27
to the performance period of the grant or agreement.28
(ii) Contracts or amendments to existing contracts issued to institutions of29
higher education under the authority of the Board of Regents to award grants for30 SB NO. 480	ENROLLED
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educational and research purposes with funds available from the Louisiana1
Quality Education Support Fund, the Louisiana Fund, and the Health Excellence2
Fund may be entered into for periods of not more than six years. However, such3
contracts may be extended beyond the six-year limit up to an additional two years4
provided no additional costs are incurred.5
(e) Contracts for the administration of the Medicaid early periodic6
screening diagnosis and treatment program (EPSDT), primary care case7
management (PCCM), and home and community-based services waivers may be8
entered into by the Department of Health and Hospitals for periods of up to five9
years.10
(2) Any such contract may be cancelled by the governmental body,11
provided the governmental body gives thirty days notice of such cancellation. If12
funds for the first fiscal year of the contemplated contract are available at the time13
of contracting, payment and performance obligations for succeeding fiscal years14
shall be subject to the availability of funds therefor.15
§1514(B)H. Prior to the utilization of a multi-year contract 	for16
professional, personal, consulting, or social services, it shall be determined in17
writing by the commissioner of administration that (1) estimated requirements18
cover the period of the contract and are reasonably firm and continuing and (2)19
such a contract will serve the best interests of the state by encouraging effective20
competition or otherwise promoting economies in state procurement.21
§1514(C)I. When funds are not appropriated or otherwise made available22
to support continuation of performance in a subsequent year of a multi-year23
contract for professional, personal, consulting, or social services, the contract24
for such subsequent year shall be cancelled and the contractor shall be reimbursed25
in accordance with the terms of the contract for the reasonable value of any26
nonrecurring costs incurred but not amortized in the price of the services delivered27
under the contract. The cost of cancellation may be paid from (1) appropriations28
currently available for performance of the contract; (2) appropriations currently29
available for procurement of similar services and not otherwise obligated, or (3)30 SB NO. 480	ENROLLED
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appropriations made specifically for the payment of such cancellation costs.1
§1514(D)J. Except for those contracts provided in Subparagraph2
(A)(G)(1)(a) through (e) of this Section, any contract for professional, personal,3
consulting, or social services entered into for a period of not more than five years4
but for a period of more than three years as authorized by this Section shall be5
subject to prior approval of the Joint Legislative Committee on the Budget.6
§1616.  Installment-purchase contract7
The central purchasing agency may, on behalf of any governmental body,8
enter into contracts for the installment purchase of supplies or equipment,9
including but not limited to data processing equipment and telecommunications10
equipment, procured under the Louisiana Procurement Code this Chapter and11
any other applicable laws on the procurement of supplies or equipment, in12
accordance with the following provisions:13
(1) All installment-purchase contracts shall be entered into utilizing the14
requisite procedures applicable to the particular supply or equipment being15
procured.16
(2) The term of such contract shall not exceed the economic life to the17
item or items being procured, which shall be established by the central purchasing18
agency and shall be set forth in the invitation to bid or request for proposal, but19
in no case shall the term of the contract exceed five years.20
(3) Each contract shall contain an annual appropriation dependency clause21
which shall provide that the continuation of the contract is contingent upon the22
continuation of an appropriation of funds by the legislature to fulfill the23
requirements of the contract. If the legislature fails to appropriate sufficient24
monies to provide for the continuation of the contract or if a veto or reduction of25
appropriation of funds necessitates the discontinuance of the contract, the contract26
shall terminate on the last day of the fiscal year for which funds were27
appropriated, in accordance with R.S. 39:1615(C).28
(4) Such contracts shall also conform to any other requirements which29
may be established by the central purchasing agency through rules and30 SB NO. 480	ENROLLED
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regulations, promulgated in accordance with law.1
§1494§1617.  Professional service contracts2
Contracts for professional services may be awarded without the necessity3
of competitive bidding or competitive negotiation.4
§1521.1§1618.  Contractual attorney's fees; affidavit5
Each attorney hired on a contractual basis for professional services shall6
submit his fee by sworn affidavit. The affidavit shall contain a detailed statement7
of the number of hours actually worked, giving the dates and time of day, and a8
description of the work performed. No contract fee shall be paid unless submitted9
by affidavit as provided herein.10
§1619.  Social service contracts11
§1484(B) A.  Social services include:12
(1) Rehabilitation and health support include services rendered by a13
contractor with special knowledge or service available to assist individuals attain14
or maintain a favorable condition of physical and mental health. These services15
include but are not limited to:16
(a) Health-related counseling.17
(b) Alcohol or drug abuse training and treatment.18
(c) Training to support emergency medical services.19
(d) Services to support family planning.20
(e) Counseling, delinquency prevention.21
(f) Genetic disease evaluation and counseling.22
(g) Community-based medical support services.23
(h) Evaluation and training for physically/mentally handicapped.24
(i) Other services in support of same.25
(2) Habilitation and socialization include services rendered by a contractor26
with special knowledge to assist specified client groups to enhance their27
self-sufficiency or alleviate their dependency or isolation from the community.28
These services include but are not limited to:29
(a) Day care.30 SB NO. 480	ENROLLED
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(b) Work and training.1
(c) Early intervention for the mentally retarded disabled, developmentally2
delayed, or physically handicapped.3
(d) Transportation for service access.4
(e) Homemaker, home management, and housing improvement services.5
(f) In-home and out-of-home respite care.6
(g) Socialization services for low income and other special needs groups.7
(h) Nursing home ombudsman.8
(i) Nutritional, employment, case management, senior center activities, or9
other services to aid independent living by the elderly.10
(j) Training and community planning services for same.11
(3) Protection for adults and children include services rendered by a12
contractor to provide therapeutic intervention for adults or children who are in13
danger or threatened with danger of physical or mental injury, neglect,14
maltreatment, extortion, or exploitation, including victims of family violence.15
These services include but are not limited to:16
(a) Community planning for neglect/abuse.17
(b) Adoption.18
(c) Substitute care.19
(d) Education and training.20
(e) Crisis intervention type services.21
(f) Emergency shelter for victims of rape/family violence or services in22
support of same.23
(g) Training and evaluation services for same.24
(4) Improvement of living conditions and health include services rendered25
by an authorized contractor with special knowledge or services available to assist26
individuals to attain or maintain favorable conditions in which to live. These27
services include but are not limited to:28
(a) Distribution of foodstuffs either purchased or that are made available29
from government-owned commodities.30 SB NO. 480	ENROLLED
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(b) Determining the needs of the poor, and development of programs to1
distribute the available resources.2
(c) Determining the needs of the poor and identifying programs to3
alleviate these poverty conditions.4
(d) Providing services to respond to the educational/employment needs of5
eligible individuals in the communities needing these services. The primary6
purpose of this service is to provide the participating individuals with the skills7
necessary for them to advance socially, academically, and occupationally.8
(e) Providing training and evaluation of services for any of the above9
services.10
(5) Evaluation, testing, and remedial educational services for exceptional11
handicapped or learning disabled nonpublic school students include services12
rendered by a contractor with special knowledge or services available to provide13
special educational and related services for exceptional or handicapped students14
voluntarily enrolled in approved nonpublic schools of Louisiana who are not15
otherwise provided with such services through either their local school program16
or through other services afforded to them by local school boards or other public17
agencies. These services include but are not limited to:18
(a) Identification, assessment, appraisal, and evaluation of exceptional or19
handicapped children.20
(b) Development of individualized educational programs.21
(c) The providing of instructional and supportive services to such eligible22
students in accordance with the provisions of R.S. 17:1941, et seq. and P.L.23
94-142 and their regulations.24
§1494.1(A)B.  Contracts for social services may be awarded without the25
necessity of competitive bidding or competitive negotiation only if the director of26
the office of contractual review state chief procurement officer determines that27
any one of the following conditions is present. The using agency shall document28
the condition present and such documentation shall be part of the contract record29
submitted to the office of contractual review state procurement.30 SB NO. 480	ENROLLED
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(1) The services are available only from a single	, or sole, source (sole1
source). Sole source procurement shall be determined by the director of the office2
of contractual review state chief procurement officer. A contract shall also be3
considered as sole source if a request for proposals is issued in accordance with4
R.S. 39:1503 39:1595(B) and only one or no proposals are received.5
(2) The state legislature has made an appropriation for that particular6
contractor or contractors via the appropriation bill or other statutes.7
(3) A quasi-public and/or or nonprofit corporation, such as a parish8
voluntary council on aging, an area agency on aging, an association of 	retarded9
mentally disabled citizens or equivalent, an organization serving children, youth,10
and/or families, or an organization promoting independence from public11
assistance has been established in coordination with the state to provide the12
particular service involved in the contract.13
(4) Local matching funds of greater than ten percent of the contract14
amount are required to be contributed by the contractor. Such matching funds may15
be in the form of cash, certified expenditures or in-kind contributions, where16
applicable to the funding source.17
(5) The nature of the services being provided necessitates that a continuity18
of contractors be maintained as in but not limited to therapeutic and crisis support19
to clients and employment and training programs.20
(6) An emergency exists which will not permit the delay in procurement21
necessitated by the request for proposal procedure given in R.S. 39:150322
39:1595(B). Such emergency shall be determined by the director of the office of23
contractual review state chief procurement officer.24
(7) The total contract amount is less than two hundred fifty thousand25
dollars per twelve-month period. Service requirements shall not be artificially26
divided so as to exempt contracts from the request for proposal process.27
(8) The contract is with another governmental entity or governmental28
body.29
(9) Funds are specifically designated by the federal government for a30 SB NO. 480	ENROLLED
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particular private or public contractor or political subdivision.1
(10) The contract is with a social service contractor who supplies services2
under a contract in existence as of November 30, 1985, as long as such contractor3
continues to supply substantially the same services and the using agency certifies:4
(a) The services are satisfactory.5
(b) They intend to continue contracting with that contractor.6
§1494.1(B)C. If none of the conditions given in R.S. 39:1494.1(A)7
Subsection B of this Section are determined by the director of the office of8
contractual review state chief procurement officer to be present in a contract for9
social service, then that contract shall be awarded through a request for proposal10
process in accordance with R.S. 39:1503 39:1595(B) under rules and regulations11
issued by the office of contractual review state procurement.12
§1482.A(2)D.  Grants or contracts or like business agreements between the13
state and its political subdivisions or other governmental entities, or between14
higher education boards and institutions under their jurisdiction, except this This15
Chapter shall apply to interagency contracts as defined in R.S. 39:1490(C)16
39:1556(29), and to contracts or grants between the state and its political17
subdivisions to procure social services.18
§1495§1620.  Personal service contracts19
Contracts for personal services may be awarded without the necessity of20
competitive bidding or competitive negotiation.21
§1496§1621.  Consulting service contracts22
A. Contracts for consulting services which have a total maximum amount23
of compensation less than fifty thousand dollars for a twelve-month period may24
be awarded without the necessity of competitive bidding or competitive25
negotiation.26
B. Contracts for consulting services which have a total maximum amount27
of compensation of fifty thousand dollars or more 	for a twelve-month period28
shall be awarded through a request for proposal process under rules and29
regulations issued by the office of contractual review state procurement. Service30 SB NO. 480	ENROLLED
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requirements shall not be artificially divided so as to exempt contracts from the1
request for proposal process.2
C.(1) All contracts for consulting services which have a total maximum3
amount of compensation of one hundred forty thousand dollars or more may be4
entered into with the assistance of a procurement support team as provided herein,5
and in accordance with guidelines promulgated and published by the office of6
contractual review state procurement.7
(2) For each such consulting contract the office of contractual review state8
procurement may establish a procurement support team which shall include one9
or more representatives from each of the following:10
(a) The office of contractual review state procurement.11
(b) The using agency initiating the contract.12
(c) The office of the attorney general.13
(d) The Legislative Fiscal Office legislative fiscal office.14
(3) Participation of the procurement support team must include, at a15
minimum, assistance in development or review of the request for proposals,16
evaluation of responses received to the request for proposals, and formulation of17
recommendations to be submitted to the director of the office of contractual18
review state chief procurement officer concerning the final contract.19
§1496.1§1622.  Performance-based energy efficiency contracts20
A. Any state agency as defined in R.S. 39:2 may enter into a performance-21
based energy efficiency contract for services and equipment as provided in this22
Section. The commissioner of administration shall adopt and promulgate rules and23
regulations necessary to implement the provisions of this Section, which rules24
shall be consistent with the Energy Management Act of 2001. Any such rules and25
regulations shall be adopted and promulgated only after the review and approval26
of the Joint Legislative Committee on the Budget. The commissioner of27
administration shall submit the proposed rules and regulations to the Joint28
Legislative Committee on the Budget thirty days prior to the review and approval29
of such rules and regulations by the committee.30 SB NO. 480	ENROLLED
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B.  The contract shall be considered a consulting services contract under1
the provisions of this Chapter. Performance-based energy efficiency contracts2
shall be awarded through a request for proposal process under the provisions of3
this Chapter and specifically the provisions of Subsection E of this Section.4
C.(1) Notwithstanding the requirements of R.S. 39:1514(A), any5
performance-based energy efficiency contract entered into shall be for a period6
equal to the lesser of twenty years or the average life of the equipment installed7
by the performance contractor and shall contain a guarantee of energy savings.8
The guarantee of energy savings shall, at a minimum, ensure a total annual9
savings sufficient to fully fund any financing arrangement entered into to fund the10
contract. In addition, any performance-based energy efficiency contract shall11
contain the following clause:12
"The continuation of this contract is contingent upon the appropriation of13
funds by the legislature to fulfill the requirements of the contract. If the legislature14
fails to appropriate sufficient monies to provide for the continuation of the15
contract, the contract shall terminate on the last day of the fiscal year for which16
funds have been appropriated. Such termination shall be without penalty or17
expense to the agency, board, or commission except for payments which have18
been earned prior to the termination date."19
(2) Any contract entered into pursuant to this Section shall include the20
total units of energy saved, the method, device or financial arrangement to21
establish a firm amount for the savings, the cost per unit of energy, and, if22
applicable, the basis for any adjustment in the stated cost for the term of the23
contract, and for each energy saving measure included in the contract, provide the24
following:25
(a) Detailed scope of work.26
(b) Price to be paid by the state agency as the initial cost.27
(c) Annual energy cost savings.28
(d) Annual maintenance savings including any maintenance and29
operational savings associated with installation; including but not limited to,30 SB NO. 480	ENROLLED
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services, parts, materials, labor, and equipment.1
(e) Annual new maintenance cost including operating expenses added as2
a result of new equipment installed or services performed by the contractor.3
(f) Total annual savings by adding annual energy cost savings to annual4
maintenance savings minus any annual new maintenance costs.5
(3) No payment shall be made by a state agency pursuant to a contract6
entered into in accordance with this Section, until there is compliance with7
Paragraph (2) of this Subsection. However, Paragraph (2) of this Subsection and8
this Paragraph shall not invalidate nor require the reissuance of a request for9
proposal for which notice was given pursuant to this Chapter prior to June 17,10
2004.11
D. When calculating "annual energy cost savings attributable to the12
services or equipment" installed pursuant to a performance-based energy13
efficiency contract as defined in R.S. 39:1484(14), maintenance savings shall be14
included. "Maintenance savings" means operating expenses eliminated and future15
capital replacement expenditures avoided as a result of new equipment installed16
or services performed by the performance contractor.17
E.(1) Prior to award of any performance-based energy efficiency contract,18
the response to the requests for proposals shall be evaluated as follows:19
(a) A state agency that seeks to enter into a contract pursuant to this20
Section shall conduct an initial evaluation of proposals submitted to it. Such21
evaluation shall be consistent with the provisions of this Chapter, except that a22
state agency shall not make a final selection from among submitted proposals.23
(b) A state agency shall forward the results of its evaluation of each such24
proposal to the commissioner of administration. The commissioner of25
administration may select an independent third-party evaluation consultant to26
review and evaluate the submitted proposals. The consultant shall submit the27
result of his evaluation to the Energy Efficiency Procurement Support Team28
energy efficiency procurement support team and to the commissioner of29
administration. The Energy Efficiency Procurement Support Team energy30 SB NO. 480	ENROLLED
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efficiency procurement support team shall review the evaluation of the1
independent third-party evaluation consultant. Upon completion of such review,2
the Energy Efficiency Procurement Support Team energy efficiency3
procurement support team shall submit its recommendation to the4
commissioner of administration. The commissioner of administration shall review5
the evaluation of the independent third-party evaluation consultant and the6
recommendation of the Energy Efficiency Procurement Support Team energy7
efficiency procurement support team and shall notify the agency as to whether8
it may proceed with negotiation of the contract in accordance with the provisions9
of this Chapter. The commissioner of administration may require that the10
consultant selected pursuant to this Section participate on behalf of the agency in11
the negotiation of the contract. Upon the completion of the negotiation of the12
contract by the agency, the commissioner of administration shall review the13
negotiated contract. If the commissioner of administration approves the contract14
then the contract shall be submitted by the commissioner of administration to the15
Joint Legislative Committee on the Budget for review and approval.16
(c) Notwithstanding any other provision of this Chapter, no proposer shall17
be selected pursuant to this Section nor shall any contract be awarded pursuant to18
this Section, except by the approval of both the commissioner of administration19
and the Joint Legislative Committee on the Budget.20
(d) An independent third-party evaluation consultant shall have no direct21
conflict of interest as to the agency, the proposals which the consultant is to22
evaluate, or to any proposer. Prior to the selection of such consultant, the23
legislative auditor shall certify that the consultant has no direct conflict of interest24
as to the agency, the proposals which the consultant is to evaluate, or to any25
proposer.26
(e) The provisions of Subparagraphs (a) through (d) of this Paragraph shall27
not be applicable when the requests for proposals or the proposed contract was28
received by the division of administration prior to January 1, 2004.29
(2) The legislative auditor shall conduct performance audits of30 SB NO. 480	ENROLLED
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performance-based energy efficiency contracts. The legislative auditor shall1
establish a written schedule for execution of such performance audits, and the2
schedule shall be posted on the website of the legislative auditor no later than3
February first of each year. Such schedule shall provide for periodic audits during4
the term of such contracts and for an audit upon the completion of any such5
contract. The legislative auditor shall coordinate with the commissioner of6
administration to develop a description of information to be included as part of7
each performance audit. The results of any such performance audits shall be8
published no later than thirty days prior to the commencement of each Regular9
Session of the Legislature. Audits shall be conducted on each performance-based10
energy efficiency contract in effect on and after January 1, 2010.11
(3)(a)(i) In order to fund the cost of the evaluation, review, approval,12
oversight, and performance audits as provided in this Section, the request for13
proposal for the award of a performance-based energy efficiency contract shall14
require the proposer to pay a sum not to exceed two and one-half percent of the15
total value of the performance-based energy efficiency contract at the time that16
a contract is executed by that proposer.17
(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, where18
a request for proposal or a proposed contract is exempt from the application of19
Subparagraphs (a) through (d) of Paragraph (1) of this Subsection, the proposer20
shall be required to pay a sum not to exceed one percent of the total value of the21
performance-based energy efficiency contract at the time that a contract is22
executed by that proposer.23
(b) The determination of the sum to be paid shall be made by the24
commissioner of administration according to the rules and regulations adopted25
pursuant to this Section.26
(c) The "Energy Performance Contract Fund", hereinafter referred to as27
the "fund", is hereby created in the state treasury. After compliance with the28
provisions of Article VII, Section 9(B) of the Constitution of Louisiana relative29
to the allocation of monies to the Bond Security and Redemption Fund, the30 SB NO. 480	ENROLLED
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treasury shall deposit into the fund an amount equal to the amount collected1
pursuant to Subparagraphs (a) and (b) of this Paragraph. The monies in the fund2
shall be used only to fund the requirements of this Section and the rules3
promulgated pursuant thereto. Monies in the fund shall be invested in the same4
manner as monies in the state general fund and any interest earned on the5
investment of monies in the fund shall be credited to the fund. Unexpended and6
unencumbered monies in the fund at the end of the fiscal year shall remain in the7
fund.8
F.  For the purposes of this Section, any appropriation to an agency shall9
not be deemed an appropriation of funds by the legislature to fulfill the10
requirements of a performance-based energy efficiency contract awarded on or11
after January 1, 2010, unless and until such contract has been approved in12
accordance with the provisions of this Section.13
G. For the purposes of this Section, the Energy Efficiency Procurement14
Support Team energy efficiency procurement support team shall consist of an15
attorney chosen jointly by the speaker of the House of Representatives and the16
president of the Senate from the legislative services staff of the House of17
Representatives or the staff of the Senate and one or more representatives chosen18
by each of the following: the Division of Administration division of19
administration, facility planning and control; the using agency initiating the20
procurement action; and the Legislative Fiscal Office legislative fiscal office. At21
least four members, one from each office or agency designated, must be present22
to constitute a quorum. The Energy Efficiency Procurement Support Team energy23
efficiency procurement support team shall evaluate the submitted proposal in24
accordance with guidelines to be published by the Division of Administration25
division of administration.26
§1497§1623.  Certification by using agency27
A. Upon seeking approval to enter into a proposed professional, personal,28
consulting, or social service contract valued in excess of five thousand dollars, an29
individual or individuals specifically designated by the head of the using agency30 SB NO. 480	ENROLLED
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for such purpose shall certify to the director of the office of contractual review1
state chief procurement officer that:2
(1) Either no employee of that agency is both competent and available to3
perform the services called for by the proposed contract or the services called for4
are not the type readily susceptible of being performed by persons who are5
employed by the state on a continuing basis.6
(2) The services are not available as a product of a prior or existing7
professional, personal, consulting, or social service contract.8
(3) The requirement for consultant and social services contracts, when9
applicable, have been publicized pursuant to R.S. 39:1503 39:1595(B).10
(4) The using agency has developed and fully intends to implement a11
written plan providing for:12
(a) The assignment of specific using agency personnel to a monitoring and13
liaison function.14
(b) The periodic review of interim reports or other indicia of performance15
to date.16
(c) The ultimate use of the final product of the services.17
(5) The cost basis for the proposed contract.18
(6) A description of the specific objectives or deliverables associated with19
the proposed contract and the monitoring plan therefor.20
(7) Methods to be used to measure and determine contract performance.21
B. In addition to the certifications required in Subsection A herein, for22
any proposed professional, personal, consulting, or social service contract that23
exceeds fifty thousand dollars and has a term of more than six months, a cost-24
benefit analysis shall be conducted which indicates that obtaining such services25
from the private sector is more cost-effective than providing such services by the26
using agency itself or by an agreement with another state agency, to include both27
a short-term and long-term analysis. The office of contractual review state chief28
procurement officer shall promulgate, as necessary, rules and regulations29
relative to the form and content of a cost-benefit analysis.30 SB NO. 480	ENROLLED
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§1498§1624.  Approval of contract; penalties1
A.  Before approving a proposed contract for professional, personal,2
consulting, or social services, the director of the office of contractual review state3
chief procurement officer or an assistant shall have determined that:4
(1) All provisions of R.S. 39:1497 39:1623 have been complied with.5
(2) The using agency has statutory authority to enter into the proposed6
contract.7
(3) The contract will not establish an employer/employee relationship8
between the state or the using agency and any prospective contractor.9
(4) No current state employee will engage in the performance of the10
proposed contract except as provided for in R.S. 39:1498.2 39:1626.11
(5) No using agency has previously performed or contracted for the12
performance of tasks which would be substantially duplicated under the proposed13
contract without appropriate written justification.14
(6) There has been appropriated or otherwise lawfully made available and15
ready for expenditure sufficient monies for payment of the services called for in16
the contract, at least for the applicable fiscal year.17
(7) The contracting using agency has specified the purpose, duration,18
specific goals and objectives, measures of performance, and a plan for monitoring19
the services to be provided under the contract.20
(8) The using agency has a written plan for the monitoring of the contract21
and such monitoring plan has been submitted in accordance with rules and22
regulations adopted by the office of contractual review state procurement.23
(9) The provisions of R.S. 12:25(E) have been complied with, if the24
contract is with a business corporation, the provisions of R.S. 12:205(E) have25
been complied with, if the contract is with a nonprofit corporation, or the26
provisions of R.S. 12:304(A)(11) have been complied with, if the contract is with27
a foreign corporation.28
B. Any corporation which fails to make complete disclosure of29
ownership, directors, and officers as required by law shall be required, as a30 SB NO. 480	ENROLLED
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penalty, to refund any funds received by that corporation from the state for the1
contract.2
§1498.1§1625.  Contract content3
Each contract for professional, personal, consulting, or social services4
entered into by a governmental body as defined in R.S. 39:1484(11) 39:1556(23)5
shall contain as a minimum: description of the work to be performed and6
objectives to be met; amount and time of payments to be made; description of7
reports or other deliverables to be received, when applicable; date of reports or8
other deliverables to be received, when applicable; responsibility for payment of9
taxes, when applicable; circumstances under which the contract can be terminated10
either with or without cause; remedies for default; and a statement giving the11
legislative auditor the authority to audit records of the individual(s) or firm(s)12
individual or firm.13
§1498.2§1626. Professional, personal, and consulting service contracts with state14
employees15
A. State agency personnel in the medical, nursing or allied health fields,16
state employees who are qualified to serve as interpreters for the deaf, faculty17
members of public institutions of higher education, and state employees selected18
to serve as instructors in the paralegal studies course of the division of continuing19
education at a state college or university may be employed by other state agencies20
through a contract for professional, personal, consulting, or social services in21
accordance with rules and regulations adopted by the office of contractual review22
state procurement. No such faculty member, except those who are also23
employed by private firms, may contract for the design or redesign of a24
state-owned facility in which the services of a professional architect or engineer,25
or both, are required.26
B. Additionally, each professional, personal, consulting, and social27
service agreement between a governmental body as defined in R.S. 39:1484(11)28
39:1556(23) and a faculty member of any state college or state university shall be29
subject to the policies and procedures promulgated by each respective state30 SB NO. 480	ENROLLED
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college and university and the management boards having authority over the1
respective institution of higher education in which the faculty member is a2
member and the Board of Regents. Notwithstanding any other provision of law,3
each such agreement shall be subject to the written approval of the president of4
the college or university which employs the faculty member, and written5
notification of agreement and approval shall be given to the appropriate6
management board.7
C. The list of occupations exempted in this Section from the provision of8
R.S. 39:1498(4) 39:1624(A)(4) may be increased by rules adopted by the office9
of contractual review state chief procurement officer.10
D. Notwithstanding any other provisions of law to the contrary, the11
Louisiana School for the Deaf is hereby authorized to enter into professional,12
personal, consulting, and social services contracts with an employee of the school13
to provide sign language and interpreting services which are independent of the14
employee's assigned duties and regular work hours, and for which compensation15
may be paid.16
E. Notwithstanding any other provisions of law to the contrary, the17
Louisiana Commission for the Deaf is hereby authorized to enter into18
professional, personal, consulting, and social services contracts with an employee19
of the commission to provide sign language and interpreting services which are20
independent of the employee's assigned duties and regular work hours, and for21
which compensation may be paid; however, such contract is authorized only if a22
person who is not an employee of the commission is unavailable for such services.23
PART III. SUBPART E. CONTRACT MODIFICATIONS24
AND TERMINATION25
§1519§1627.  Modification of contracts26
The office of contractual review state procurement may adopt and27
promulgate rules and regulations permitting or requiring the insertion in contracts28
for the procurement of professional, personal, consulting, and social services29
appropriate clauses to enable the state to effect desired changes and modifications30 SB NO. 480	ENROLLED
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to such contracts.1
§1520§1628.  Termination of contracts2
A. The office of contractual review state procurement may adopt and3
promulgate rules and regulations relating to the termination of contracts for the4
procurement of professional, personal, consulting, and social services for the5
default of the contractor.6
B. The office of contractual review state procurement is authorized to7
issue rules and regulations relating to the termination of contracts for the8
procurement of professional, personal, consulting, and social services for the9
convenience of the state.10
SUBPART F.  INSPECTION OF PLANT AND AUDIT OF RECORDS11
§1621§1629.  Right to inspect plant12
The state may, at reasonable times, inspect the part of the plant or place13
of business of a contractor or any subcontractor which is related to the14
performance of any contract awarded or to be awarded by the state.15
§1622§1629.1.  Right to audit records16
A. Audit of persons submitting cost or pricing data.  The state may, at17
reasonable times and places, audit the books and records of any person who has18
submitted cost or pricing data pursuant to R.S. 39:1603 39:1608 to the extent that19
such books and records relate to such cost or pricing data.20
B. Contract audit.  The state shall be entitled to audit the books and21
records of a contractor or any subcontractor under any negotiated contract or22
subcontract other than a firm fixed-price contract to the extent that such books and23
records relate to the performance of such contract or subcontract. Such books and24
records shall be maintained by the contractor for a period of five years from the25
date of final payment under the prime contract and by the subcontractor for a26
period of five years from the date of final payment under the subcontract.27
SUBPART G.  DETERMINATIONS AND REPORTS28
§1625§1630.  Finality of determinations29
The determinations required by R.S. 39:1595(A),
1
 R.S. 39:1595(E),
1
 R.S.30 SB NO. 480	ENROLLED
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39:1597, R.S. 39:1598(C), R.S. 39:1599 39:1605, R.S. 39:1601 39:1606, R.S.1
39:1603(C) 39:1608(C), R.S. 39:1612(A), R.S. 39:1613 39:1568.1, and R.S.2
39:1614 are final and conclusive unless they are clearly erroneous, arbitrary,3
capricious, or contrary to law.4
§1627§1630.1.  Record of certain procurement actions5
The chief procurement officer shall retain all contracts made under R.S.6
39:1597 or R.S. 39:1598 for a minimum of six years.7
SUBPART H.  INSURANCE8
§1631.  Direct purchase of insurance9
Notwithstanding the provisions of R.S. 22:1171 or any other law to the10
contrary, the state may purchase insurance policies covering any property or11
insurable interests or activities of the state directly from insurers or underwriters,12
without the necessity for signature or countersignature of such policies as13
provided by R.S. 22:1171, and in lieu thereof such policy shall be signed by an14
official or designated representative of the company issuing the policy. The15
insurers or underwriters making such direct sales to the state shall reduce the16
policy premiums by the amount of the commissions, which would have been paid,17
as required by R.S. 22:1171, but for the provisions of this Section. However, if18
any such insurance policy is purchased in accordance with the provisions of R.S.19
22:1171, the agent may credit any portion of the commission to the state, through20
the division of administration. The state shall be advised of the amount of any21
such rebate at the time the agent furnishes a bid for such policy to the state, and22
the amount of such rebate shall be taken into consideration in determining the cost23
of such policy.24
§1632.  Splitting of commissions prohibited25
It shall be unlawful for an agent to split, pass on, or share with any person,26
group, organization, or other agent, except the state of Louisiana, all or any27
portion of the commission derived from the sale of insurance to the state; except28
that on policies involving properties or exposure in more than one geographic area29
of the state, said commission may be split, shared, or passed on if authorized in30 SB NO. 480	ENROLLED
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writing by the commissioner of administration. In any such instance where the1
sharing of a commission on state insurance is authorized, it shall be only with a2
bona fide insurance agent. Whoever violates the provisions of this Section shall,3
upon conviction, be fined not less than one thousand dollars nor more than five4
thousand dollars and shall be imprisoned for not more than two years.5
§1633.  Authorization constitutes public record6
Such written authorization as required by R.S. 39:1632 	above shall7
constitute a public record as defined in Chapter 1 of Title 44 of the Louisiana8
Revised Statutes of 1950.9
SUBPART I.  ACQUISITION OF HOUSING SPACE10
§1641.  Budget for acquisition of housing space and leases by budget units11
A. Contracts and agreements by and in name of state agencies. All12
contracts and agreements for the lease or rental of space for the housing of state13
agencies, their personnel, operations, equipment, or activities shall be made in the14
name of and by the authorized representative or representative body of the state15
agency but shall be made and entered into only with the approval of the16
commissioner of administration. The cost of such housing shall be provided for17
in and defrayed from the budgets of the using agencies.18
B. Contracts and agreements by and in name of the state, executed by the19
commissioner.20
(1) When a contract or agreement for the lease or rental of space for the21
housing of state agencies, their personnel, operation, equipment, or activities,22
shall pertain to more than one building or facility or shall pertain to a building or23
facility which is to house more than one state agency, their personnel, operation,24
equipment, or activities, such contract or agreement may be made in the name of25
the state and executed by the commissioner of administration, rather than in the26
name of and by an authorized representative or a representative body of the state27
agency or agencies to be housed in such building or buildings or facility or28
facilities.29
(2) The commissioner of administration shall allocate space to one or more30 SB NO. 480	ENROLLED
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state agencies in the building or buildings or facility or facilities to which such1
contract or agreement pertains and shall allocate the cost of such housing to or2
among such using agency or agencies, which cost shall be provided for in and3
defrayed from the budgets of the using agency or agencies. The commissioner4
shall determine the amount of the allocations of the costs of such housing to the5
various agencies using such building or buildings and facility or facilities in such6
manner so that the aggregate of the amount so allocated equals the total cost of7
such housing.8
C. Definition of "agency." The definition of "agency" stated in 	R.S.9
39:2(1) R.S. 39:2(2) shall be the sole definition of the term "state agency"10
employed in connection with the acquisition of housing space in this and11
following Sections, and the fact that an agency is supported by fees or taxes12
collected by, or dedicated to, the agency or which otherwise receives its operating13
funds through means other than direct appropriations, shall not be a test as to14
whether this Section shall be applicable to an agency of the state.15
D. Applicability. The provisions of this Subpart shall be applicable to all16
agencies meeting the definition of R.S. 39:2(1) R.S. 39:2(2) established by the17
laws of Louisiana.18
§1642.  Uniform space standards; inventory and evaluation of budget unit space19
utilization20
A. Uniform space standards.  The division of administration shall prepare21
and utilize a uniform set of standards for determining space needs for state22
agencies. These standards shall also provide for a uniform method of measuring23
square footage or other measurements used as the basis for lease payments or24
other charges.25
B. Inventory of state space.  The division of administration shall conduct26
and maintain a complete inventory of state space, both owned and leased.27
C. Evaluation of space utilization.  The division of administration shall28
evaluate the utilization of all leased space on a continuing basis to determine the29
feasibility of locating state agencies in buildings to be purchased and/or30 SB NO. 480	ENROLLED
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constructed by the state.1
§1643.  Advertisement and award of lease bids2
A.  Every lease for the use of five thousand square feet or more of space3
in a privately owned building entered into by a state agency as lessee shall be4
awarded pursuant to R.S. 39:1594 in accordance with the conditions for use set5
forth in that Section and only after evaluation of the bids in accordance with the6
specific criteria contained in the invitation for bids as authorized by R.S.7
39:1594(E)(2).  No such lease shall extend beyond a period of ten years.8
B. The ten-year limitation shall not be applicable to the management9
boards created under Article VIII, Sections 6 and 7 of the 1974 Louisiana10
Constitution.11
§1644.  Amendment of leases12
A.(1) An existing lease for office or warehouse space may be renegotiated13
with the present lessor, but only after the division of administration has entered14
into a competitive negotiation process involving discussions with at least three,15
unless there are less than three, offerers proposers who submit written proposals.16
Such proposals shall be solicited by advertising as in R.S. 39:1594(C).17
(2) If it is determined by the commissioner of administration or his18
designee, after the evaluation of these proposals and discussions with the current19
lessor, that to renew the present lease would be in the best interest of the state, the20
renewal of an existing lease may be renegotiated or the commissioner may enter21
into a lease with one of these offerers proposers if determined to be in the state's22
best interest. In making such a determination the commissioner, or his designee,23
shall take into consideration, over the duration of the lease, rental rates, the24
amount of funds necessary to relocate, any geographical considerations particular25
to that state program, the amount of disruption to state business that may be26
incurred in moving to a new location, and any other relevant factors presented.27
B. Any lease for office or warehouse space for under five thousand square28
feet may be amended up to but not to exceed a maximum of four thousand nine29
hundred ninety-nine square feet.30 SB NO. 480	ENROLLED
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C. Existing leases for office or warehouse space between a single state1
agency, a single lessor and affecting a single building or buildings immediately2
adjacent to each other which leases have different termination dates, may be3
renegotiated by the division of administration to perfect a single lease for the4
whole of the office or warehouse space utilized under the existing leases. The5
renegotiated lease shall not extend beyond the termination date of the latest6
existing lease, nor shall the price per square foot paid under the new lease result7
in a total payment in excess of the total of the combined payments under the8
preexisting leases.9
D. In the event alterations or modifications of space currently under lease10
are required to meet changed operating requirements, a lease may be amended.11
Such lease amendment may, with approval of the division of administration,12
provide an adjustment in monthly lease payments not to exceed twenty-five13
percent of the original annual lease price per square foot, sufficient to reimburse14
the lessor for paying for the leasehold improvements; provided, however, that any15
adjustment in monthly lease payments shall also require the approval of the Joint16
Legislative Committee on the Budget and the continuance of an adjustment in17
excess of the current lease shall be further contingent on the appropriation of18
funds therefor in the following fiscal year.19
E. A lease may be amended, with approval of the division of20
administration, to provide an adjustment in monthly lease payments not to exceed21
ten percent of the original annual lease price per square foot and not to exceed ten22
thousand dollars per year.23
SUBPART KJ.  ACQUISITION OF MOTOR VEHICLES24
§1646. Acquisition of motor vehicles; minimum requirements for fuel efficiency;25
exceptions26
A.  Any purchase or lease of a motor vehicle by an agency which is27
covered by this Chapter shall be made in accordance with the provisions of this28
Subpart. Such vehicles shall have, at the time of acquisition, a fuel efficiency29
rating of no less than eighteen miles per gallon for city driving and no less than30 SB NO. 480	ENROLLED
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twenty-eight miles per gallon for highway driving, or a combined city/highway1
average of twenty-four miles per gallon.2
B. For purposes of this Subpart, "motor vehicle" shall include the3
following vehicles as they are specified or defined in administrative rule or4
regulation prescribed by the commissioner of administration pursuant to Part XIII5
of Chapter 1 of Title 39 of the Louisiana Revised Statutes of 1950: alternative fuel6
vehicle, sedan, and station wagon.7
C. For purposes of this Subpart, "motor vehicle" shall not include the8
following:9
(1) A vehicle to be used by law enforcement personnel, certified first10
responders and emergency personnel when required for the performance of their11
duties, or a vehicle used in the conduct of military activities.12
(2) A vehicle to be used by any state employee when written authorization13
for such purchase has been provided by the department head to the commissioner14
of administration and approved by him, or a vehicle to be used by an employee15
of a political subdivision of the state when the governing authority of the political16
subdivision authorizes such purchase.17
PART IV.  SPECIFICATIONS18
§1651.  Duties of the commissioner of administration19
A. The commissioner shall promulgate regulations governing the20
preparation, maintenance, and content of specifications for supplies, services, and21
major repairs required by the state.22
§1651.1.  Shrimp specifications23
Notwithstanding any other provision of law to the contrary, regulations24
promulgated by the commissioner of administration or other purchasing entity,25
governing the purchase or use of shrimp shall require that the bid specify the26
count size of such shrimp and not specify size as "jumbo", "extra large",27
"medium", "small" or any other similar term or nomenclature used in the28
shrimping industry.29
§1652.  Duties of the chief procurement officer30 SB NO. 480	ENROLLED
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The chief procurement officer shall prepare, issue, revise, and monitor the1
use of specifications for required supplies, services, and major repairs.2
§1653.  Exempted items3
Specifications for supplies, services, or major repairs exempted pursuant4
to R.S. 39:1572 may be prepared by a purchasing agency in accordance with the5
provisions of this Part and regulations promulgated hereunder by the head of the6
governmental body granted authority to promulgate regulations by R.S. 39:1581.7
§1654.  Relationship with using agencies8
The director state chief procurement officer shall obtain advice and9
assistance from personnel of using agencies in the determination of needs and10
development of specifications and may delegate in writing to a using agency the11
authority to prepare and utilize its own specifications, subject to regulations.12
§1655.  Maximum practicable competition13
A. All specifications shall seek to promote overall economy for the14
purposes intended and encourage competition in satisfying the needs of the state,15
and shall not be unduly restrictive.  A specification may be drafted which16
describes a product which is proprietary to one company only 	where when one17
of the following applies:18
(1) No other kind of specification is reasonably available for the state to19
describe its requirements; or.20
(2) There is a requirement for specifying a particular design or make of21
product due to factors of compatibility, standardization, or maintainability	; or.22
(3) Such specification includes language which specifically permits an23
equivalent product to be supplied. Such specification shall include a description24
of the essential characteristics of the product.25
(4) Such specification is determined to be in the best interest of the state26
as provided for by 	R.S. 39:1613 R.S. 39:1568.1.27
B. Except in Paragraph (2) as provided in Paragraph (A)(2) of this28
Section, whenever such proprietary specifications are used, the specifications29
shall clearly state that they are used only to denote the quality standard of30 SB NO. 480	ENROLLED
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supplies, services, or major repairs desired and that they do not restrict bidders to1
the specific brand, make, manufacturer, or specification named; that they are used2
only to set forth and convey to prospective bidders the general style, type,3
character, and quality of supplies, services, or major repairs desired; and that4
equivalent supplies, services, or major repairs will be acceptable.5
§1656.  Escalation clause6
Bid specifications may contemplate a fixed escalation or deescalation de-7
escalation in accordance with a recognized price index.  Such index may8
include but not be limited to the United States Bureau of Labor Statistics,9
Consumer Price Index and Wholesale Price Index. Bids based on specifications10
which are subject to a recognized escalation index shall be legal and valid.11
§1657.  Specifications prepared by architects and engineers12
The requirements of this Part regarding the purposes and13
nonrestrictiveness of specifications shall apply to all specifications, including but14
not limited to those proposed by architects, engineers, designers, and draftsmen15
for public contracts.16
§1659§1658.  Purchase of prostheses, orthoses, prosthetic services, and orthotic17
services by a state agency from an accredited facility18
Notwithstanding any other provision of law to the contrary, regulations19
promulgated by the commissioner of administration or other purchasing entity20
governing the purchase of prostheses, orthoses, prosthetic services, or orthotic21
services shall require that such services shall be purchased only from an22
accredited facility as provided in R.S. 40:1300.281; however, nothing in this23
Section shall prohibit a licensed occupational therapist or a licensed physical24
therapist from practicing within his scope of practice. In addition, the provisions25
of this Section shall not apply to a licensed optometrist, ophthalmologist,26
podiatrist, or orthopedist.27
PART V.  MODIFICATION AND TERMINATION OF CONTRACTS28
FOR SUPPLIES, SERVICES, AND MAJOR REPAIRS29
§1661.  Contract clauses; administration30 SB NO. 480	ENROLLED
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A. Contract clauses. Regulations may permit or require the inclusion of1
clauses providing for equitable adjustments in prices, time for performance, or2
other contract provisions, as appropriate, covering including but not limited to3
the following subjects:4
(1) The unilateral right of the state to order in writing changes in the work5
within the general scope of the contract in any one or more of the following:6
(a) Drawings, designs, or specifications, if the supplies to be furnished are7
to be specially manufactured for the state in accordance therewith;.8
(b) Method of shipment or packing; or.9
(c) Place of delivery.10
(d) Security for contract performance.11
(e) Insurance requirements including as appropriate but not limited12
to general liability, automobile coverage, workers' compensation, and errors13
and omissions.14
(f) Beginning and ending dates of the contract.15
(g) Maximum compensation to be paid the contractor.16
(2) The unilateral right of the state to order in writing temporary stopping17
of the work or delaying of performance ; and.18
(3) Variations between estimated quantities of work in a contract and19
actual quantities.20
(4) Manufacturers' design drawings shall be supplied in duplicate for21
all state buildings, to the appropriate state agency at the conclusion of22
contract.23
B. Additional contract clauses. Regulations may permit or require the24
inclusion in state contracts of clauses providing for appropriate remedies and25
covering including but not limited to the following subjects:26
(1) Liquidated damages as appropriate.27
(2) Specified excuses for delay or nonperformance.28
(3) Termination of the contract for default, and29
(4) Termination of the contract in whole or in part for the convenience of30 SB NO. 480	ENROLLED
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the state.1
(5) Manufacturers' design drawings shall be supplied in duplicate for all2
state buildings, to the appropriate state agency at the conclusion of contract.3
C.  In the event any contractor fails to fulfill or comply with the terms of4
any contract, the chief procurement officer may award the contract to the next5
lowest responsible bidder subject to acceptance by that bidder and charge the6
difference in cost to the defaulting vendor.7
D. Regulations may permit or require the inclusion in state contracts of8
clauses relative to reverse auctions pursuant to the implementation of the9
provisions of R.S. 39:1598.1.10
§1521§1662.  Cost principles rules and regulations required11
The Office of Contractual Review state chief procurement officer shall12
issue rules and regulations setting forth cost principles which shall be used: (1) as13
guidelines in the negotiation of (a) equitable adjustments for state directed14
changes or modifications in contract performance and (b) settlements of contracts15
which have been terminated; (2) to determine the allowability of incurred costs16
for the purpose of reimbursing costs under contract provisions which provide for17
the reimbursement of costs, and (3) as appropriate in any other situation where the18
determination of the estimated or the incurred costs of performing contracts may19
be required.20
PART VI.  LEGAL AND CONTRACTUAL REMEDIES21
SUBPART A.  PRE-LITIGATION RESOLUTION22
OF CONTROVERSIES23
§1671.  Authority to resolve protested solicitations and awards24
A. Right to protest. Any person who is aggrieved in connection with the25
solicitation or award of a contract issued by the applicable chief procurement26
officer shall protest to the chief procurement officer. Protests with respect to a27
solicitation shall be submitted in writing at least two days prior to the opening of28
bids on all matters except housing of state agencies, their personnel, operations,29
equipment, or activities pursuant to R.S. 39:1643 for which such protest shall be30 SB NO. 480	ENROLLED
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submitted at least ten days prior to the opening of bids. Protests with respect to the1
award of a contract shall be submitted in writing within fourteen days after2
contract award.3
B. Authority to resolve protests. The chief procurement officer or his4
designee shall have authority, prior to the commencement of an action in court5
concerning the controversy, to settle and resolve a protest of an aggrieved person6
concerning the solicitation or award of a contract. This authority shall be7
exercised in accordance with regulations.8
C. Decision. If the protest is not resolved by mutual agreement, the chief9
procurement officer or his designee shall, within fourteen days, issue a decision10
in writing. The decision shall:11
(1) State the reasons for the action taken; and.12
(2) Inform the protestant of its right to administrative and judicial review13
as provided in this Part Chapter.14
D. Notice of decision. A copy of the decision under Subsection C of this15
Section shall be mailed or otherwise furnished immediately to the protestant and16
any other party intervening.17
E. Finality of decision. A decision under Subsection C of this Section18
shall be final and conclusive unless one of the following applies:19
(1) The decision is fraudulent; or.20
(2) The person adversely affected by the decision has timely appealed21
administratively to the Commissioner commissioner in accordance with R.S.22
39:1683.23
F. Stay of procurements during protests. In the event of a timely protest24
under Subsection A of this Section, the state shall not proceed further with the25
solicitation or with the awarding of the contract unless the chief procurement26
officer makes a written determination that the awarding of the contract is27
necessary without delay to protect the substantial interests of the state. Upon such28
determination by the chief procurement officer, no court shall enjoin progress29
under the award except after notice and hearing.30 SB NO. 480	ENROLLED
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G. Award of costs to protestants. In addition to any other relief, when the1
protest is administratively or judicially sustained and the protesting bidder or2
offerer proposer should have been awarded the contract but is not, the protesting3
bidder or offerer proposer shall be entitled to the reasonable costs incurred in4
connection with the solicitation, including bid or proposal preparation costs other5
than attorney's fees, provided that any administrative determination of such costs6
shall be subject to the written concurrence of the attorney general.7
H. Promulgation of regulations. The state director of purchasing state8
chief procurement officer is hereby authorized to promulgate regulations relative9
to protests, in accordance with the Administrative Procedure Act, to implement10
the provisions of R.S. 39:1598.1 39:1600(D).11
§1501§1671.1. Resolution of disputes between the director of the office of12
contractual review state chief procurement officer and using13
agencies14
If a dispute arises between the director of contractual review state chief15
procurement officer and a using agency as to any items required to be certified16
by the using agency to the director state chief procurement officer pursuant to17
R.S. 39:1497 39:1623 and R.S. 39:1494.1 39:1619(B), or any items that must be18
determined by the director state chief procurement officer pursuant to the19
provisions of R.S. 39:1498 39:1624, either the director state chief procurement20
officer or the using agency may request the commissioner of administration to21
make a final determination on the matter.22
§1672.  Authority to debar or suspend23
A. Applicability. This Section applies to a debarment for cause from24
consideration for award of contracts or a suspension from such consideration25
during an investigation where there is probable cause for such a debarment.26
B. Authority. After reasonable notice to the person involved and27
reasonable opportunity for that person to be heard, the chief procurement officer28
shall have authority to suspend or debar a person for cause from consideration for29
award of contracts, provided that doing so is in the best interests of the state. The30 SB NO. 480	ENROLLED
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causes for debarment are set forth in Subsection C of this Section.  The chief1
procurement officer may suspend a person from consideration for award of2
contracts if he determines that there is probable cause to believe that such person3
has engaged in any activity which might lead to debarment. The suspension shall4
not be for a period exceeding six months. The authority to debar or suspend shall5
be exercised in accordance with regulations.6
C. Causes for debarment. The causes for debarment include the following:7
(1) Conviction for commission of a criminal offense as an incident to8
obtaining or attempting to obtain a public or private contract or subcontract, or in9
the performance of such contract or subcontract;.10
(2) Conviction under state or federal statutes of embezzlement, theft,11
forgery, bribery, falsification or destruction of records, receiving stolen property,12
or any other offense indicating a lack of business integrity or business honesty13
which currently, seriously, and directly affects responsibility as a state contractor;.14
(3) Conviction under state or federal antitrust statutes arising out of the15
submission of bids or proposals;.16
(4) Violation of contract provisions, as set forth below, of a character17
which is regarded by the chief procurement officer to be so serious as to justify18
debarment action:19
(a) Deliberate failure without good cause to perform in accordance with20
the specifications or within the time limit provided in the contract; or.21
(b) A recent record of failure to perform or of unsatisfactory performance22
in accordance with the terms of one or more contracts; provided that failure to23
perform or unsatisfactory performance caused by acts beyond the control of the24
contractor shall not be considered to be a basis for debarment.25
(5) Any other cause the chief procurement officer determines to be so26
serious and compelling as to affect responsibility as a state contractor, including27
debarment by another governmental entity for any cause listed in regulations; and.28
(6) Violation of the ethical standards set forth in Chapter 15 of Title 42.29
D. Decision. The chief procurement officer shall issue a written decision30 SB NO. 480	ENROLLED
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to debar or suspend.  The decision shall:1
(1) State the reasons for the action taken; and.2
(2) Inform the debarred or suspended person involved of its rights to3
administrative and judicial review as provided in this Part Chapter.4
E. Notice of decision. A copy of the decision under Subsection D of this5
Section shall be mailed or otherwise furnished immediately to the debarred or6
suspended person and any other party intervening.7
F. Finality of decision.  A decision under Subsection D of this Section8
shall be final and conclusive unless one of the following applies:9
(1) The decision is fraudulent; or.10
(2) The debarred or suspended person has timely appealed11
administratively to the commissioner in accordance with R.S. 39:1684.12
SUBPART B.  LEGAL AND CONTRACTUAL13
REMEDIES FOR PROFESSIONAL, PERSONAL,14
CONSULTING, AND SOCIAL SERVICES CONTRACTS15
§1523§1672.1.  Applicability of Part16
This Part applies only to those contracts solicited and entered into after the17
effective date of this Chapter, unless the parties agree in writing to its application18
to a contract entered into prior to that effective date.19
§1524§1672.2.  Authority of the commissioner of administration20
Prior to the institution of any action in a court concerning any contract,21
claim or controversy, the commissioner of administration with the concurrence22
of the attorney general is authorized to compromise, pay, or otherwise adjust the23
claim by or against or a controversy with a contractor relating to a professional,24
personal, consulting, or social service contract entered into with the state under25
their respective authority, including a claim or controversy based on breach of26
contract, mistake, misrepresentation, or other cause for contract modification or27
rescission. Nothing herein shall limit the authority of the commissioner of28
administration, pursuant to rules and regulations to issue, negotiate, or accept29
changes in the terms and conditions of a contract.  When authorized, such30 SB NO. 480	ENROLLED
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compromise, payments, or adjustments shall be promptly paid; however, subject1
to any limitations or conditions imposed by rule or regulation, the commissioner2
of administration shall charge back all or any portion of such payments to the3
department or departments for whose benefit the contract was let.4
§1525§1672.3.  Action on contract claims5
This Section applies to a claim by or controversy between the state and a6
contractor arising out of a contract for professional, personal, consulting, or social7
services. If such a claim or controversy is not resolved by mutual agreement, the8
commissioner of administration, or his designee, shall promptly issue a decision9
in writing. A copy of that decision shall be mailed or otherwise furnished to the10
contractor, shall state the reasons for the action taken, and shall inform the11
contractor of his right to judicial relief as provided in this Part Subpart. The12
decision shall be final and conclusive unless fraudulent, or unless the contractor13
institutes suit pursuant to R.S. 39:1526 this Subpart. If the commissioner of14
administration, or his designee, does not issue a written decision within one15
hundred twenty days after written request for a final decision, or within such16
longer period as may be established in writing by the parties to the contract, then17
the contractor may proceed as if an adverse decision had been received.18
§1526.§1672.4. Jurisdiction; actions in certain cases19
A. The Nineteenth Judicial District Court, subject to appeal or review by20
the First Circuit Court of Appeal or by the supreme court, as otherwise permitted21
in civil cases by law and the state constitution, shall have jurisdiction over any22
claims arising out of a request for proposal or award of a contract, any23
controversies involving the state, or any other matters in connection with a24
petition for review of a decision made pursuant to this Chapter, following the25
exhaustion of administrative remedies as provided by law or regulation.26
B. In any action by a contractor based upon any express or implied27
contract or breach thereof, no action shall be maintained based upon any contract28
or any act of any state officer which the officer is not authorized to make or do by29
the laws of this state, unless the contractor, acting in good faith and without actual30 SB NO. 480	ENROLLED
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or constructive knowledge of the lack of authorization, has commenced1
performance under the apparent contract. In that event, the court may (1) cancel2
the contract and reimburse the contractor only for the actual expenses incurred in3
performing the work already performed or (2) where the best interests of the state4
require, allow the performance of the contract to continue.5
SUBPART C.  LEGAL AND CONTRACTUAL6
REMEDIES FOR CONTRACTS OTHER THAN PROFESSIONAL,7
PERSONAL, CONSULTING, AND SOCIAL SERVICES8
§1673. Authority to resolve contract and breach of contract controversies other9
than professional, personal, consulting, and social services10
contracts11
A. Applicability. This Section applies to controversies between the state12
and a contractor and which arise under or by virtue of a contract between them.13
This includes without limitation controversies based upon breach of contract,14
mistake, misrepresentation, or other cause for contract modification or rescission.15
Any contractor who seeks a remedy with regard to such controversy shall file a16
complaint with the chief procurement officer.17
B. Authority. The chief procurement officer or his designee is authorized,18
prior to the commencement of an action in court concerning the controversy, to19
settle and resolve, with the approval of the attorney general, a controversy20
described in Subsection A of this Section. This authority shall be exercised in21
accordance with regulations.22
C. Decision. If such a claim or controversy is not resolved by mutual23
agreement, the chief procurement officer or his designee shall promptly issue a24
decision in writing.  The decision shall do all of the following:25
(1) State the reasons for the action taken; and.26
(2) Inform the contractor of its right to administrative and judicial review27
as provided in this Part Subpart.28
D. Notice of decision.  A copy of the decision under Subsection C of this29
Section shall be mailed or otherwise furnished immediately to the contractor.30 SB NO. 480	ENROLLED
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E. Finality of decision.  The decision under Subsection C of this Section1
shall be final and conclusive unless one of the following applies:2
(1) The decision is fraudulent; or.3
(2) The contractor has timely appealed administratively to the4
commissioner in accordance with R.S. 39:1685.5
F. Failure to render timely decision.  If the chief procurement officer or6
his designee does not issue the written decision required under Subsection C of7
this Section within sixty days after written request for a final decision, or within8
such longer period as may be agreed upon by the parties, then the contractor may9
proceed as if an adverse decision had been received.10
SUBPART BD.  SOLICITATIONS OR AWARDS11
IN VIOLATION OF LAW12
§1676.  Applicability of this Subpart13
The provisions of this Subpart apply where it is determined14
administratively, or upon administrative or judicial review, that a solicitation or15
award of a contract is in violation of law.16
§1677.  Remedies prior to an award17
If it is determined prior to award that a solicitation or proposed award of18
a contract is in violation of law, then the solicitation or proposed award shall be19
cancelled.20
§1678.  Remedies after an award21
If it is determined after an award that a solicitation or award of a contract22
is in violation of law, then:23
(1) If the person awarded the contract has not acted fraudulently or in bad24
faith:25
(a) The contract may be ratified and affirmed, provided it is determined26
in writing by the commissioner that doing so is in the best interests of the state27
and the law violation had no significant effect on the outcome of the contract28
award; or29
(b) The contract may be terminated and the person awarded the contract30 SB NO. 480	ENROLLED
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shall be compensated for the actual expenses reasonably incurred under the1
contract prior to the termination, provided that any administrative determination2
of such costs shall be subject to the written concurrence of the attorney general.3
(2) If the person awarded the contract has acted fraudulently or in bad4
faith, the contract shall be declared null and void.5
§1678.1.  Damages6
A. Damages recoverable by any aggrieved person in any action brought7
pursuant to the provisions of R.S. 39:1671 or otherwise asserted at law, shall be8
limited exclusively to reasonable costs incurred in connection with the solicitation9
including bid preparation costs other than attorney's fees.10
B. Except as provided in Subsection E of this Section and R.S.11
39:1678(1), damages recoverable by any contractor under any contract entered12
into pursuant to the provisions of this Chapter, shall be limited exclusively to the13
actual expenses reasonably incurred in performance of the contract.14
C. The provisions of R.S. 49:965.1 shall not apply to actions instituted15
pursuant to the provisions of this Chapter.16
D. Any administrative determination of costs or expenses recoverable by17
a contractor or aggrieved person under Subsections A and B of this Section shall18
be subject to the written concurrence of the attorney general.19
E.  In no event shall damages awarded by the chief procurement officer,20
his designee, any hearing officer or any court include attorney's fees or any21
incidental, indirect, special, or consequential damages, including but not limited22
to loss of use, revenue or profit whether reasonably certain or not.23
§1679.  Violations; penalties24
A. No person shall intentionally violate the Louisiana Procurement Code25
or any rule or regulation promulgated by the commissioner of administration with26
respect to purchasing.27
B. Any person who intentionally violates such law, rule or regulation shall28
be fined not more than five hundred dollars, or imprisoned for not more than six29
months, or both.30 SB NO. 480	ENROLLED
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SUBPART CE.  ADMINISTRATIVE APPEALS PROCEDURES1
§1681.  Authority of the commissioner of administration2
The commissioner of administration shall have the authority to review and3
determine any appeal by an aggrieved person from a determination by the state4
director of purchasing chief procurement officer or his designee which is5
authorized by R.S. 39:1671, R.S. 39:1672, or R.S. 39:1673.6
§1682.  Exempted departments7
The secretary who is vested with authority to promulgate regulations by8
R.S. 39:1581 shall have, within his department, the same authority and9
responsibilities to review and determine appeals of decisions of the chief10
procurement officer of his department as are vested in the commissioner of11
administration by this Subpart.12
§1683.  Protest of solicitations or awards13
A. Scope. This Section applies to an appeal addressed to the commissioner14
of a decision under R.S. 39:1671(C).15
B. Time limitation on filing an appeal.  The aggrieved person shall file an16
appeal within seven days of receipt of a decision under R.S. 39:1671(C).17
C. Decision.  On any appeal under Subsection A of this Section, the18
commissioner shall decide within fourteen days whether the solicitation or award19
was in accordance with the constitution, statutes, regulations, and the terms and20
conditions of the solicitation. Any prior determinations by the 	director state chief21
procurement officer or his designee shall not be final or conclusive.22
D. Notice of decision.  A copy of the decision under Subsection C of this23
Section shall be mailed or otherwise furnished immediately to the protestant or24
any other party intervening.25
E.  Finality of decision.  A decision under Subsection C of this Section26
shall be final and conclusive unless one of the following applies:27
(1) The decision is fraudulent; or.28
(2) The person adversely affected by the decision has timely appealed to29
the court in accordance with R.S. 39:1691(A).30 SB NO. 480	ENROLLED
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§1684.  Suspension or debarment proceedings1
A. Scope.  This Section applies to a review by the commissioner of a2
decision under R.S. 39:1672.3
B. Time limitation on filing an appeal. The aggrieved person shall file its4
appeal with the commissioner within fourteen days of the receipt of a decision5
under R.S. 39:1672(D).6
C. Decision. The commissioner shall decide within fourteen days7
whether, or the extent to which, the debarment or suspension was in accordance8
with the constitution, statutes, regulations, and the best interests of the state, and9
was fair. Any prior determination by the 	director state chief procurement10
officer or his designee shall not be final or conclusive.11
D. Notice of decision.  A copy of the decision under Subsection C of this12
Section shall be mailed or otherwise furnished immediately to the debarred or13
suspended person or any other party interviewing.14
E. Finality of decision.  A decision under Subsection C of this Section15
shall be final and conclusive unless one of the following applies:16
(1) The decision is fraudulent; or.17
(2) The debarred or suspended person has timely appealed an adverse18
decision of the Commissioner to the court in accordance with R.S. 39:1691(B).19
§1685.  Contract and breach of contract controversies20
A.  Scope.  This Section applies to a review by the commissioner of a21
decision under R.S. 39:1673.22
B. Time limitation on filing an appeal.  The aggrieved contractor shall file23
its appeal with the commissioner within fourteen days of the receipt of the24
determination under R.S. 39:1673(C).25
C. Decision. The commissioner shall decide within fourteen days the26
contract or breach of contract controversy.  Any prior determination by the27
director state chief procurement officer or his designee shall not be final or28
conclusive.29
D. Notice of decision.  A copy of the decision under Subsection C of this30 SB NO. 480	ENROLLED
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Section shall be mailed or otherwise furnished immediately to the contractor.1
E. Finality of decision.  A decision under Subsection C of this Section2
shall be final and conclusive unless one of the following applies:3
(1) The decision is fraudulent; or.4
(2) The contractor has timely appealed an adverse decision of the5
commissioner to the court in accordance with R.S. 39:1691(C).6
SUBPART DF.  ACTIONS BY OR AGAINST THE STATE; PRESCRIPTION7
§1691.  Actions by or against the state in connection with contracts8
A.  Solicitation and award of contracts. The Nineteenth Judicial District9
Court shall have exclusive venue over an action between the state and a bidder,10
offerer, or contractor, prospective or actual, to determine whether a solicitation11
or award of a contract is in accordance with the constitution, statutes, regulations,12
and the terms and conditions of the solicitation. Such actions shall extend to all13
kinds of actions, whether for monetary damages or for declaratory, injunctive, or14
other equitable relief.15
B. Debarment or suspension. The Nineteenth Judicial District Court shall16
have exclusive venue over an action between the state and a person who is subject17
to a suspension or debarment proceeding, to determine whether the debarment or18
suspension is in accordance with the constitution, statutes, and regulations. Such19
actions shall extend to actions for declaratory, injunctive, or other equitable relief.20
C. Actions under contracts or for breach of contract. The Nineteenth21
Judicial District Court shall have exclusive venue over an action between the state22
and a contractor who contracts with the state, for any cause of action which arises23
under or by virtue of the contract, whether the action is on the contract or for a24
breach of the contract or whether the action is for declaratory, injunctive, or other25
equitable relief.26
D. Limited finality for administrative determinations. In any judicial27
action under this Section, factual or legal determination by employees, agents, or28
other persons appointed by the state shall have no finality and shall not be29
conclusive, notwithstanding any contract provision, regulation, or rule of law to30 SB NO. 480	ENROLLED
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the contrary, except to the extent provided in: R.S. 39:1625 39:1630, R.S.1
39:1671(E), R.S. 39:1672(F), R.S. 39:1673(E), R.S. 39:1683(E), R.S. 39:1684(E),2
and R.S. 39:1685(E).3
E. Writs or appeals; district court decisions. Any party aggrieved by a4
final judgment or interlocutory order or ruling of the Nineteenth Judicial District5
Court may appeal or seek review thereof, as the case may be, to the Court of6
Appeal, First Circuit or the Supreme Court of Louisiana, as otherwise permitted7
in civil cases by law and the constitution.8
§1692.  Commencement of actions9
A. Protested solicitations and awards.  Any action under R.S. 39:1691(A)10
shall be commenced within fourteen days after receipt of the decision of the11
commissioner under R.S. 39:1683(C).12
B. Debarments and suspension for cause.  Any action under R.S.13
39:1691(B) shall be commenced within sixty days after receipt of the decision of14
the commissioner under R.S. 39:1684(C).15
C.  Actions under contracts or for breach of contract controversies.  Any16
action under R.S. 39:1691(C) shall be commenced within sixty days after receipt17
of the decision of the commissioner under R.S. 39:1685(C).18
SUBPART EG.  DELINQUENT PAYMENT PENALTIES19
§1695.  Late payment to business; penalty paid by state agency20
A. If a state agency without reasonable cause fails to make any payment21
due within ninety days of the due date prescribed by contract, to a business22
awarded a contract with the state agency to supply equipment, supplies, materials,23
or textbooks, or to provide services, the state agency shall pay, in addition to the24
payment, interest on the amount due at the rate established pursuant to Civil Code25
Article 2924(B)(3) the judicial interest rate referenced in R.S. 13:4202(B) per26
year, from the ninety-first day after the due date prescribed by the contract. In27
applying this Section to a claim related in any way to an entitlement program,28
payment for claims shall be due ninety days after a claim is received by the state.29
B. If it is determined by the state agency that additional evidence of the30 SB NO. 480	ENROLLED
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validity of the claim for payment is required, such evidence shall be requested1
within ten working days from the date the bill is received by the state agency. In2
instances where additional evidence is required, the bill shall be reviewed and3
payment or rejection made within thirty days from receipt of the evidence4
requested in the office of the paying agency.5
C. Any penalty required to be paid by a state agency pursuant to this6
Section shall be disbursed upon warrants drawn by the state agency upon that7
agency's operating expenses budget.8
§1696.  Reporting requirements9
A. Whenever a state agency is required by R.S. 39:1695 to pay a penalty,10
it shall be presumed that the fault is that of the head of the state agency and, in11
such cases, the head of the state agency shall submit to the Joint Legislative12
Committee on the Budget at its next regular meeting following the payment of13
such a penalty a report on the actions taken to correct the problem.14
B. Any state agency which requests that the legislature make a15
supplemental appropriation for the agency shall identify at the time of the request16
what part of the amount is necessitated because of any penalties imposed by R.S.17
39:1695.18
§1697.  Disputed claims19
A. In cases where a state agency states that payment is late due to20
reasonable cause, and said claim is disputed by the business owed payment, upon21
the request of a representative of the business the Joint Legislative Committee on22
the Budget shall determine whether or not the circumstances constitute23
"reasonable cause" as used in R.S. 39:1695.24
B. No state agency shall be required to pay a penalty if it has submitted25
a warrant to the state treasurer at least thirty days prior to the due date prescribed26
by the contract.27
PART VII.  INTERGOVERNMENTAL RELATIONS28
SUBPART A.  DEFINITIONS29
§1701.  Definitions of terms used in this Part30 SB NO. 480	ENROLLED
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(1) "Cooperative purchasing" means procurement conducted by or on1
behalf of more than one public procurement unit or by a public procurement unit2
with an external procurement activity or by a private procurement unit.3
(2) "External procurement activity" means any buying organization not4
located in this state which, if located in this state, would qualify as a public5
procurement unit. An agency of the United States government is an external6
procurement activity.7
(3) "Local public procurement unit" means any parish, city, town,8
governmental body, and any other subdivision of the state or public agency9
thereof, public authority, public educational, health, or other institution, and to the10
extent provided by law, any other entity which expends public funds for the11
acquisition or leasing of supplies, services, major repairs, and construction, and12
any nonprofit corporation operating a charitable hospital.13
(4) "Private procurement unit" means any independent institution of higher14
education in this state.15
(5) "Public procurement unit" means either a local public procurement unit16
or a state public procurement unit.17
(6) "State public procurement unit" means the central purchasing agency18
and any other purchasing agency of this state.19
SUBPART B.A. COOPERATIVE PURCHASING20
§1702. Cooperative purchasing authorized; participation in federal General21
Services Administration vendor list22
A.(1) Any public procurement unit may either participate in, sponsor,23
conduct, or administer a cooperative purchasing agreement for the acquisition of24
any supplies, services, major repairs, or construction with one or more public25
procurement units or external procurement activities or one or more private26
procurement units in accordance with an agreement entered into between the27
participants. Such cooperative purchasing may include but is not limited to joint28
or multi-party contracts between public procurement units and open-ended state29
public procurement unit contracts which are made available to local public30 SB NO. 480	ENROLLED
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procurement units.1
(2) Any public procurement unit may procure materials, supplies, and2
equipment from federal General Services Administration supply schedules in3
accordance with rules and regulations which may be adopted by the central4
purchasing agency of the division of administration. Such purchases need not5
comply with the competitive bidding requirements of this Chapter. However, such6
materials, supplies, or equipment shall not be purchased at a price higher than the7
price of the same item listed on any available state purchasing procurement8
contract.9
(3) Any public procurement unit may procure materials, supplies,10
equipment, and services related to homeland security from federal General11
Services Administration supply schedules. Such purchases shall:12
(a) Utilize a Louisiana distributor.13
(b) Use the competitive ordering procedures of the federal General14
Services Administration.15
(c) Receive prior approval from the director of the Governor's Office of16
Homeland Security and Emergency Preparedness, or his designee.17
B.(1) A private procurement unit acquiring supplies through cooperative18
purchasing shall acquire such supplies for its own use and not for the purpose of19
resale in competition with private enterprise.20
(2) A private procurement unit shall certify to the vendor with each order21
that the supplies covered thereby are to be acquired for its own use and not for the22
purpose of resale in competition with private enterprise and shall provide a copy23
of such certification to the Central Purchasing Agency central purchasing24
agency within the Division of Administration division of administration.25
(3) Upon certification by the Commissioner of Administration26
commissioner of administration that the purchase of one or more types of27
supplies by a private procurement unit under this Section may adversely affect the28
interests of the state by impeding the ability of the Division of Administration29
division of administration to attract responsible bidders for such supplies, the30 SB NO. 480	ENROLLED
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governor shall have the authority to limit or eliminate the right of a private1
procurement unit to purchase such types of supplies to the extent necessary to2
eliminate the adverse affect on the state.3
C. No use shall be made of federal General Services Administration4
supply schedules under the provisions of this Section without the participation of5
a Louisiana licensed dealer or distributor.6
§1703.  Sale, acquisition, or use of supplies by a public procurement unit7
Any public procurement unit may sell to, acquire from, or use any supplies8
belonging to another public procurement unit or external procurement activity9
independent of the requirements of Part III of this Chapter or of Title 38.10
§1704.  Cooperative use of supplies or services11
Any public procurement unit may enter into an agreement, independent12
of the requirements of Part III of this Chapter or Title 38, with any other public13
procurement unit or external procurement activity for the cooperative use of14
supplies or services, under the terms agreed upon between the parties.15
§1705.  Joint use of facilities16
Any public procurement unit may enter into agreements for the common17
use or lease of warehousing facilities, capital equipment, and other facilities with18
another public procurement unit or an external procurement activity under the19
terms agreed upon between the parties.20
§1706.  Supply of personnel, information, and technical services21
A. Supply of personnel.  Any public procurement unit is authorized, in its22
discretion, upon written request from another public procurement unit or external23
procurement activity, to provide personnel to the requesting public procurement24
unit or external procurement activity.  The public procurement unit or external25
procurement activity making the request shall pay the public procurement unit26
providing the personnel the direct and indirect cost of furnishing the personnel,27
in accordance with an agreement between the parties.28
B.  Supply of services.  The informational, technical, and other services29
of any public procurement unit may be made available to any other public30 SB NO. 480	ENROLLED
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procurement unit or external procurement activity provided that the requirements1
of the public procurement unit tendering the services shall have precedence over2
the requesting public procurement unit or external procurement activity.  The3
requesting public procurement unit or external procurement activity shall pay for4
the expenses of the services so provided, in accordance with an agreement5
between the parties.6
C. State information services.  Upon request, the chief procurement7
officer may make available to public procurement units the following services,8
among others:9
(1)  Standard forms.10
(2)  Printed manuals.11
(3)  Product specifications and standards.12
(4)  Quality assurance testing services and methods.13
(5)  Qualified products lists.14
(6)  Source information.15
(7)  Common use commodities listings.16
(8)  Supplier prequalification information.17
(9)  Supplier performance ratings.18
(10)  Debarred and suspended bidders lists.19
(11) Forms for invitations for bids, requests for proposals, instructions to20
bidders, general contract provisions, and other contract forms; and21
(12) Contracts or published summaries thereof, including price and time22
of delivery information.23
D. State technical services.  The state, through the chief procurement24
officer may provide the following technical services, among others:25
(1)  Development of products specifications.26
(2) Development of quality assurance test methods, including receiving,27
inspection, and acceptance procedures.28
(3)  Use of state product testing and inspection facilities; and29
(4)  Use of state personnel training programs.30 SB NO. 480	ENROLLED
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E.  Fees.  The chief procurement officer may enter into contractual1
arrangements and publish a schedule of fees for the services provided under2
Subsections C and D of this Section.3
§1707.  Use of payments received by a supplying public procurement unit4
All payments from any public procurement unit or external procurement5
activity received by a public procurement unit supplying personnel or services6
shall be available to the supplying public procurement unit as authorized by law.7
§1708.  Public procurement units in compliance with code requirements8
Where the public procurement unit or external procurement activity9
administering a cooperative purchase complies with the requirements of this10
Chapter, any public procurement unit participating in such a purchase shall be11
deemed to have complied with this Chapter.  Public procurement units may not12
enter into a cooperative purchasing agreement for the purpose of circumventing13
this Chapter.14
§1709.  Review of procurement requirements15
To the extent possible, the chief procurement officer shall collect16
information concerning the type, cost, quality, and quantity of commonly used17
supplies, services, major repairs, or construction being procured or used by state18
public procurement units.  The chief procurement officer may also collect such19
information from local public procurement units.20
§1710. Local governing authorities; purchases from local vendors, payment of21
certain costs22
When a local governing authority purchases an item at the state bid price23
through a local vendor, the local governing authority may pay to the local vendor24
the costs for shipping, preparation, and delivery of the item, provided that these25
costs shall not exceed the state bid price by seven percent on purchases up to ten26
thousand dollars, five percent on purchases over ten thousand dollars and up to27
twenty thousand dollars, and three percent on purchases over twenty thousand28
dollars.29
SUBPART CB.  CONTRACT CONTROVERSIES30 SB NO. 480	ENROLLED
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§1716.  Contract controversies1
Under a cooperative purchasing agreement, controversies arising between2
an administering public procurement unit and its bidders, offerers, proposers, or3
contractors shall be resolved in accordance with Part VI of this Chapter, where the4
administering public procurement unit is a state public procurement unit or5
otherwise subject to Part VI.6
PART VIII.  ASSISTANCE TO SMALL AND DISADVANTAGED7
BUSINESSES AND WOMEN OWNED BUSI NESSES8
§1731.  Short title9
The provisions of this Part shall be known and may be cited as the10
Louisiana Small Business Procurement Act.11
§1732.  Definitions of terms used in this Part12
As used in this Part, the following words and phrases shall have the13
meaning ascribed to them in this Section, except as otherwise may be provided14
or unless a different meaning is plainly required by the context:15
(1) "Small business" means a small business as defined by the Small16
Business Administration of the United States Government which for purposes of17
size eligibility or other factors meets the applicable criteria set forth in 13 Code18
of Federal Regulations, Part 121, as amended, and which has its principal place19
of business in Louisiana.20
(2) "Dominant in its field of operation" means exercising a controlling or21
major influence in a business activity in which a number of businesses are22
engaged. In determining if a business is dominant, the following criteria, among23
others, shall be considered: number of employees; volume of business; financial24
resources; competitive status or position; ownership or control of materials,25
processes, patents, license agreements, and facilities; sales territory; and nature26
of business activity.27
(3)  "Affiliate or subsidiary of a business dominant in its field of28
operation" means a business which is at least twenty percent owned by a business29
dominant in that field of operation, or by partners, officers, directors, majority30 SB NO. 480	ENROLLED
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shareholders, or their equivalent of a business dominant in that field of operation.1
(4) "Socially or economically disadvantaged person" means a person who2
has been deprived of the opportunity to develop and maintain a competitive3
position in the economy because of social or economic disadvantage.  This4
disadvantage may arise from cultural, social or economic circumstances or5
background or physical location.6
(5)  "Women owned business" means a business that is at least 51 fifty-7
one percent owned by a woman or women who also control and operate it.8
"Control" in this context means exercising the power to make policy decisions.9
"Operate" in this context means being actively involved in the day-to-day10
management. In determining whether a business is 51 fifty-one percent owned11
by a woman or women, the percent ownership of the woman or women shall not12
be diminished because she is part of a community property regime.13
(6) "Services" means the furnishing of labor, time, or effort by a14
contractor, not involving the delivery of a specific end product other than reports15
which are merely incidental to the required performance. This term shall include16
those services covered by this Chapter 16 of Title 39 of the Louisiana Revised17
Statutes of 1950 and services performed by an architect, engineer, or landscape18
architect as provided by Part VII of Chapter 10 of Title 38 of the Louisiana19
Revised Statutes of 1950.  This term shall not include collective bargaining20
agreements.21
§1733.  Procurement from small businesses22
A.  Set aside Set-aside. The commissioner of the division of23
administration shall for each fiscal year designate and set aside for awarding to24
small businesses, an amount not to exceed ten percent of the value of anticipated25
total state procurement of goods and services excluding construction.  The26
commissioner shall divide the procurements so designated into contract award27
units of economically feasible production runs in order to facilitate offers or bids28
from small businesses.  In making his annual designation of set aside set-aside29
procurements the commissioner shall attempt to vary the included procurements30 SB NO. 480	ENROLLED
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so that a variety of goods and services produced by different small businesses1
shall be set aside each year.  The failure of the commissioner to set aside2
particular procurements shall not be deemed to prohibit or discourage small3
businesses from seeking the procurement award through the normal solicitation4
and bidding processes.5
B. Contract procedure.  The commissioner shall establish a contract6
procedure in accordance with law, for the awarding of a procurement contract7
under the set aside set-aside program established in this Part. Surety bonds8
guaranteed by the federal small business administration shall be acceptable9
security for a construction award under this Part.10
C. Responsibility of bidder or offerer.  Before making a set aside set-11
aside award, the commissioner shall evaluate whether the small business12
scheduled to receive the award is able to perform the set aside set-aside contract.13
This determination shall include consideration of production and financial14
capacity and technical competence.15
D. Preference to disadvantaged persons.  At least ten percent of the value16
of the procurements designated for set aside set-aside awards shall be awarded,17
if possible to businesses owned and operated by socially or economically18
disadvantaged persons. In the event small businesses owned and operated by19
socially or economically disadvantaged persons are unable to perform at least ten20
percent of the set aside set-aside awards, then the commissioner shall award the21
balance of the set aside set-aside contracts to other small businesses.22
E. Preference to women.  At least ten percent of the value of the23
procurements designated for set aside set-aside awards shall be awarded, if24
possible, to businesses owned and operated by women. In the event small25
businesses owned and operated by women are unable to perform at least ten26
percent of the set aside set-aside awards, then the commissioner shall award the27
balance of the set aside set-aside contracts to other small businesses.28
F. Award of contracts after unsuccessful set aside set-aside procedures.29
In the event that the provisions of this Part do not operate to extend a contract30 SB NO. 480	ENROLLED
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award to a small business, the award shall be placed pursuant to the existing1
solicitation and award provisions established by law.  The commissioner shall2
thereupon designate and set aside for small businesses additional state3
procurements corresponding in approximate value to the contract unable to be4
awarded pursuant to the provisions of this Part.5
G.  Conflict with other code provisions.  All laws and rules pertaining to6
solicitations, bid evaluations, contract awards, and other procurement matters7
shall apply as consistent to procurements set aside for small businesses.  In the8
event of conflict with other rules, the provisions of this Part shall govern.9
§1734.  Assistance to small businesses10
The commissioner of administration and the executive director of the11
Louisiana division of minority and women's business enterprise in the Department12
of Economic Development shall publicize the provisions of the set-aside program,13
attempt to locate small businesses able to perform set-aside procurement awards,14
and encourage participation.  When the commissioner of administration15
determines that a small business is unable to perform under a set-aside contract,16
he shall so inform the secretary of economic development, who shall assist the17
small business in attempting to remedy the causes of the inability to perform a18
set-aside award.  In assisting the small business, the executive director of the19
Louisiana division of minority and women's business enterprise, in cooperation20
with the commissioner of administration, shall use any management or financial21
assistance programs that may be available by or through the Louisiana division22
of minority and women's business enterprise or other state or governmental23
agencies.24
§1735.  Determination of disadvantaged25
The commissioner of administration shall promulgate regulations, rules,26
standards, and procedures for certifying that small businesses and small27
businesses owned and operated by socially or economically disadvantaged28
persons are eligible to participate under the requirements of R.S. 39:1733 and29
1734. The procedure for determination of eligibility may include 	self certification30 SB NO. 480	ENROLLED
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self-certification by a business, provided that the commissioner retains the ability1
to verify a self certification self-certification.  The commissioner shall2
promulgate other regulations and rules as may be necessary to carry out the duties3
set forth in this Part.4
§1736.  Reports5
The commissioner of administration shall submit an annual report to the6
governor and the legislature, with a copy thereof going to the Louisiana division7
of minority and women's business enterprise, indicating the progress being made8
toward the objectives and goals of this Part during each fiscal year. This report9
shall include the following information:10
(1) The total dollar value and number of potential set-aside awards11
identified during this period and the percentage of total state procurement this12
figure reflects.13
(2) The number of small businesses identified by and responding to the14
set-aside contracts actually awarded to small businesses, with appropriate15
designation as to the total number and value of set-aside contracts awarded to16
each small business, and the total number of small businesses that were awarded17
set-aside contracts.18
(3) The total dollar value and number of set-aside contracts awarded to19
small businesses owned and operated by economically or socially disadvantaged20
persons, with appropriate designation as to the total number and value of set-aside21
contracts awarded to each small business, and the percentages of the total state22
procurements the figures of total dollar value and the number of set asides reflect.23
(4) The total dollar value and number of set-aside contracts awarded to24
small businesses owned and operated by women, with appropriate designation as25
to the total number and value of set-aside contracts awarded to each small26
business, and the percentages of the total state procurements the figures of total27
dollar value and the number of set asides reflect.28
(5) The number of contracts which were designated and set aside but29
which were not awarded to a small business, the estimated total dollar value of30 SB NO. 480	ENROLLED
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these awards, the lowest offer or bid on each of these awards made by the small1
business, and the price at which these contracts were awarded pursuant to the2
normal procurement procedures.3
PART IX.  TELECOMMUNICATIONS PROCUREMENT4
§1751.  Application5
A.  The provisions of this Part shall be applicable to any agency, as6
defined in R.S. 36:3(1), within the executive branch of state government with7
respect to the procurement of all telecommunications systems and8
telecommunications services. However, nothing provided in this Part shall be9
construed to preempt the authorities granted to the higher education boards in10
Article VIII of the Constitution of Louisiana.11
B. The office of telecommunications management shall, subject to the12
provisions of this Part, have sole authority and responsibility for defining the13
specific telecommunications systems and telecommunications services to which14
the provisions of this Part shall be applicable. Rules and regulations shall be15
promulgated as may be necessary to carry out the provisions of this Part.16
§1752.  Definitions17
For the purposes of this Part, the following words and phrases shall be18
defined as follows:19
(1)  "Agency" as used in this Part and in Part V of Chapter 1 of this Title20
shall have the same meaning ascribed to it as provided in R.S. 36:3(1).21
(2) "Competitive sealed bidding" means a method of procurement which22
strictly follows the requirements set forth in this Chapter except for such23
variations as are specifically established in this Part.24
(3) "Local area network" means a limited distance data processing/25
communications network or system used to link computers and peripheral26
devices.27
(4) "Multi-year contracts" are contracts for a term of more than one year,28
not to exceed ten years.29
(5) "Procurement" means the selling, buying, purchasing, renting, leasing,30 SB NO. 480	ENROLLED
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or otherwise obtaining telecommunications systems, telecommunications services,1
or their related software as well as all activities engaged in, resulting in, or2
expected to result in the selling, buying, purchasing, renting, leasing, or otherwise3
obtaining telecommunications systems, telecommunications services, or their4
related software by the state or its agencies.5
(6) "Software" means computer programs and documentation essential to6
and necessary for a telecommunications system or telecommunications service to7
perform productive operations.8
(7) "Telecommunications service contract" means a contract for the9
procurement of telecommunications services to include but not be limited to long10
distance, pay telephone, radio paging, and utility-type services such as local dial11
tone.12
(8) "Telecommunications systems", which shall include13
telecommunications equipment and related services, and "telecommunications14
services" are limited to the equipment and services and means to provide:15
(a)  Telecommunications transmission facilities and services.16
(b)  Voice telecommunications systems and services.17
(c)  Local area network systems and services.18
(d)  Wide area network systems and services.19
(e) Video systems and services, except those video systems and services20
specifically reserved to the Louisiana Educational Television Authority pursuant21
to R.S. 17:2501.22
(f) Wireless systems and services to include but not be limited to cellular23
and personal communications systems.24
(g) Radio systems, to include but not be limited to two-way radio systems;25
however, the operational abilities and priorities of two-way communications of26
the departments in the executive branch shall not be impeded.27
(h)  Intercom and electro-mechanical paging systems.28
(i) Any and all systems and services based on emerging and future29
telecommunications technologies relating to Subparagraphs (a) through (h) of this30 SB NO. 480	ENROLLED
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Paragraph.1
(9) "Telecommunications systems contract" means a contract for the2
procurement of telecommunications systems including equipment and related3
services to include but not be limited to installation and maintenance.4
(10) "Telecommunications systems lease contract" means a contract5
between a supplier of telecommunications systems and the division of6
administration, office of telecommunications management, or the procuring7
agency, through which telecommunications systems may be procured for a term8
which shall not exceed ten years. The contract may be either an operating lease,9
installment purchase, or a financed lease without a balloon payment.10
(11) "Telecommunications transmission facility" means any transmission11
medium, switch, instrument, wiring system, or other facility which is used, in12
whole or in part, to provide any transmission.13
(12) "Utility" means any telecommunications service provided by the14
office of telecommunications management and used in the essential operations of15
a state agency, such as local dial tone, wide area network, and local area network.16
(13) "Wide area network" means a data processing/communications17
network or system generally utilizing common carrier facilities to link18
geographically dispersed local area networks to other local area networks or19
computer systems.20
§1753.  Types of contracts permitted21
A. The types of contracts permitted in the procurement of22
telecommunications systems and telecommunications services are defined in this23
Part, and the provisions of this Part supplement the provisions of R.S. 39:155124
through 1736.25
B. The office of telecommunications management, through the state26
purchasing office, may, on behalf of any state agency, enter into27
telecommunications systems contracts in accordance with the following28
provisions:29
(1) Contracts of this type shall be entered into through a request for30 SB NO. 480	ENROLLED
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proposals as defined in this Part. An invitation to bid format may be utilized with1
written approval from the director of the office of telecommunications2
management.3
(2) The term of such contracts shall not exceed five years.4
C. The office of telecommunications management, through the state5
purchasing office, may on behalf of any state agency, enter into6
telecommunications services contracts in accordance with the following7
provisions:8
(1) Contracts of this type shall be entered into through a request for9
proposals as defined in this Part. An invitation to bid format may be utilized with10
written approval from the director of the office of telecommunications11
management.12
(2) The term of such contracts shall not exceed ten years.13
D. The office of telecommunications management, through the state14
purchasing office, may on behalf of any state agency, enter into a15
telecommunications systems lease contract for an operating lease, installment16
purchase, or financed lease for telecommunications systems in accordance with17
the following provisions:18
(1) All contracts of this type shall be entered into through a request for19
proposals as defined in this Part.20
(2) The justification of such contracts must be approved by the office of21
telecommunications management prior to issuance of a request for proposals.22
Such justification shall identify and consider all cost factors relevant to that23
contract.24
(3) The term of such contracts shall not exceed ten years, except financed25
contracts shall be for a term not to exceed the economic life of the system or ten26
years, whichever is less.27
(4) Upon the advance written approval of the office of telecommunications28
management, state agencies may extend operating leases of telecommunications29
systems on a month-to-month basis for a period not to exceed one calendar year30 SB NO. 480	ENROLLED
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for the stated lease prices.1
E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the use2
of a multi-year contract for telecommunications systems and telecommunications3
services shall be in accordance with rules and regulations and under the following4
conditions:5
(1) The director of the office of telecommunications management shall6
approve in writing the use of a multi-year contract over one year, not to exceed7
three years.8
(2) The director of the state purchasing office state chief procurement9
officer shall approve in writing the use of a multi-year contract over three years,10
not to exceed five years.11
(3) The commissioner of administration, or his designee, shall approve in12
writing the use of a multi-year contract over five years.13
§1754.  Methods of procurement14
A. The office of telecommunications management, through the state15
purchasing office, may procure telecommunications systems and16
telecommunications services by a request for proposals to conform with the17
following requirements:18
(1)  Public notice of the request for proposals shall be the same as for an19
invitation to bid as provided in R.S. 39:1594(C).20
(2)(a) The request for proposals shall indicate the relative importance of21
all evaluation factors and shall clearly define the work, service, or solution to be22
provided under the contract, the functional specifications, the criteria to be used23
in evaluating the proposals, and the time frames within which the work must be24
completed or the service provided.25
(b) For telecommunications systems lease contracts, the request for26
proposals shall require that proposals contain a declaration as to the maximum27
price for which the system may be purchased following the termination of the28
lease contract. No other basis of evaluation shall be used except that set out in the29
request for proposals.30 SB NO. 480	ENROLLED
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(3)  The office of telecommunications management shall evaluate all1
proposals to determine the proposal most advantageous to the state, taking into2
consideration all evaluation criteria set forth in the request for proposals, and shall3
make a recommendation of award to the state purchasing office.4
(4) The office of telecommunications management may request that the5
state purchasing office reject all proposals when it is deemed that such action is6
in the best interest of the state.7
B. The office of telecommunications management may procure8
telecommunications systems and telecommunications services in accordance with9
the law or regulations, or both, which govern the state purchasing office, the10
division of administration.11
§1755.  General provisions12
The following general provisions shall apply to all procurements under13
this Part:14
(1) No contracts entered into shall have an initial effective date earlier15
than the date on which such contract receives approval as required by this Part.16
(2) All changes, modifications, and amendments to any contract17
hereunder shall be approved in advance by the office of telecommunications18
management and the state purchasing office, in addition to any other approvals19
required by law.20
(3) Where written proposals or bids are submitted by vendors, the21
proposal or bid of the successful vendor shall be incorporated into the final22
contract consummated with that vendor.23
(4) All contracts must contain the following annual appropriation24
dependency clause:  "The continuation of this contract is contingent upon the25
continuation of an appropriation of funds by the Legislature to fulfill the26
requirements of the contract. If the Legislature fails to appropriate sufficient27
monies to provide for the continuation of a contract or if such appropriation is28
reduced by the veto of the governor or by any means provided in the29
appropriations act to prevent the total appropriations for the year from exceeding30 SB NO. 480	ENROLLED
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revenues for that year or for any other lawful purpose and the effect of such1
reduction is to provide insufficient monies for the continuation of the contract, the2
contract shall terminate on the last day of the fiscal year for which funds were3
appropriated."4
(5)  The provisions of this Part shall, with respect to the procurement of5
telecommunications systems or telecommunications services, supersede6
specifications of any contradictory or conflicting provisions of the following7
statutes: R.S. 38:2211 et seq. with respect to awarding of public contracts, and8
R.S. 39:1551 through 1736.  The provisions of this Part do not relate to the9
procurement of services covered by R.S. 39:1481 through 1526.10
Section 3. Chapter 16 of Subtitle III of Title 39 of the Louisiana Revised Statutes11
of 1950, comprised of R.S. 39:1481 through 1526, is hereby repealed.12
Section 4. The Louisiana State Law Institute is hereby authorized and requested13
to review all statutes which contain the name of the office of contractual review and the14
office of state purchasing, changed in this Act, and in all locations it deems appropriate15
change said references to the office of state procurement.16
Section 5. The Louisiana State Law Institute is hereby authorized and requested17
to review all statutes which refer to Chapter 16 of Subtitle III of Title 39 of the Louisiana18
Revised Statutes of 1950 or Chapter 16 of Title 39 of the Louisiana Revised Statutes of19
1950, changed in this Act, and in all locations it deems appropriate change said references20
to Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950.21
Section 6. Prior to January 1, 2015, the commissioner of administration shall take22
action necessary to implement this Act on January 1, 2015, including promulgation of23
necessary rules under the authority of the commissioner of administration or on behalf of24
the office of state procurement and the state chief procurement officer in accordance with25
the Administrative Procedure Act.26
Section 7. (A) Sections 1 through 5 of this Act shall become effective on January27
1, 2015.28
(B) Section 6 of this Act and this Section shall become effective upon signature29
of this Act by the governor or, if not signed by the governor, upon expiration of the time30 SB NO. 480	ENROLLED
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for bills to become law without signature by the governor, as provided by Article III,1
Section 18 of the Constitution of Louisiana. If this Act is vetoed by the governor and2
subsequently approved by the legislature, this Section and Section 6 of this Act shall3
become effective on the day following such approval.4
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: