SLS 14RS-602 ORIGINAL Page 1 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 SENATE BILL NO. 481 BY SENATOR DONAHUE TECHNOLOGY. Provides with respect to technology services and technology procurement. (7/1/14) AN ACT1 To amend and reenact Subpart C of Chapter 1 of Subtitle I of Title 39 of the Louisiana2 Revised Statutes of 1950, to be comprised of R.S. 39:15.1, 15.2, 15.3, and Part V-A3 of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, to4 be comprised of R.S. 39:196, 197, 198, 199, and 200, all relative to technology and5 technology procurement; to change the office of information technology to the office6 of technology services; to provide for the state chief information officer to replace7 the chief information officer; to grant authority over procurement for information8 technology systems and services to the state chief information officer; to provide for9 additional duties and responsibilities of the office of technology services relative to10 operations, procurement, and customer service charges; to place the office of11 telecommunications management under the state chief information officer; to12 provide authority for centralized information technology procurement under the13 office of technology services and the state chief information officer; to provide for14 an effective date; and to provide for related matters.15 Be it enacted by the Legislature of Louisiana:16 Section 1. Subpart C of Chapter 1 of Subtitle I of Title 39 of the Louisiana Revised17 SB NO. 481 SLS 14RS-602 ORIGINAL Page 2 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Statutes of 1950, comprised of R.S. 39:15.1, 15.2, 15.3, and Part V-A of Chapter 1 of1 Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S. 39:196,2 197, 198, 199, and 200, are hereby amended and reenacted to read as follows:3 SUBPART C. OFFICE OF INFORMATION TECHNOLOGY SERVICES4 §15.1. Office of information technology services; scope5 The office of information technology services shall have authority over all6 information technology systems and services for agencies in the executive branch of7 state government. The office shall have no authority over the legislative or judicial8 branches of state government or agencies thereof. However, nothing provided in9 this Subpart shall apply to the public postsecondary management boards or the10 Board of Regents as provided in Article VIII of the Constitution of Louisiana.11 §15.2. Office of information technology services; state chief information officer12 A. The office of information technology services is established within the13 division of administration. This office shall be headed by the state chief information14 officer, hereafter referred to in this Part as the "CIO." The CIO will serve as the15 spokesperson for all matters related to information technology and resources,16 including Geographic Information Systems (GIS), with regard to policies, standard17 setting, deployment, strategic and tactical planning, acquisition, management, and18 operations as necessary and in keeping with the industry trends of the private and19 public sectors. Rules and regulations shall be promulgated, in accordance with the20 Administrative Procedure Act, as may be necessary to carry out the provisions of this21 Subpart.22 B. The CIO shall be appointed by the governor and serve in the executive23 department of the division of administration, and shall be in the unclassified service.24 The CIO shall report to the commissioner of administration concerning his25 responsibilities to provide direction, stewardship, leadership, operation, and general26 oversight of information technology and information resources. The salary of the27 CIO shall be determined by the commissioner of administration. Support staff,28 office facilities, and operating expenses shall be provided by the division of29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 3 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. administration.1 C. The CIO shall also perform all duties and functions that the commissioner2 of administration deems necessary for the proper, efficient, and economical3 administration of information technology.4 D. The CIO shall be the principal adviser to the governor and the executive5 cabinet on information technology policy, including policy on the acquisition and6 management of information technology and resources.7 E. The CIO may delegate his authority under this Subpart to such8 designees or to any governmental body as he may deem appropriate within the9 limitations of state law and regulations.10 §15.3. Office of information technology services; offices and staff; duties11 A. The office of information technology services shall consist of executive12 offices and staff as deemed necessary for effective information technology13 governance, acquisition and operation.14 B. The state chief information officer shall manage and direct the office of15 information technology services, with roles, duties, and activities including but not16 limited to the following:17 (1) Establishing and coordinating all information technology systems18 and information technology services affecting the management and operations19 of the executive branch of state government. The office of technology services20 shall, subject to the provisions of this Subpart, have sole authority and21 responsibility for defining the specific information technology systems and22 information technology services to which the provisions of this Subpart shall be23 applicable. Information technology systems, including equipment and related24 services, and information technology services shall mean the equipment and25 services and means necessary to provide, including but not limited to, the26 following:27 (a) Telecommunications systems and services.28 (b) Network systems and services.29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 4 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (c) Server systems and services.1 (d) Storage systems and services.2 (e) Information technology security systems and services.3 (f) Related peripheral systems and services.4 (g) Software and software application services.5 (h) Infrastructure and platform systems and services.6 (i) Desktop computing systems and services.7 (j) Geographic information systems and services.8 (k) Mobile device systems and services.9 (l) Video systems and services, except those video systems and services10 specifically reserved to the Louisiana Educational Television Authority11 pursuant to R.S. 17:2501.12 (m) Radio systems, to include but not be limited to two-way radio13 systems; however, the operational abilities and priorities of two-way14 communications of the departments in the executive branch shall not be15 impeded.16 (n) Any and all systems and services based on emerging and future17 information technologies relating to Subparagraphs (a) through (k) of this18 Paragraph.19 (2) Overseeing and implementing a state master information technology plan20 on an annual basis.21 (2)(3) Establishing and directing the implementation of information22 technology standards, architecture, and guidelines suitable for statewide application23 for hardware, software, services, contractual arrangements, consolidation of systems24 and management of systems.25 (3)(4) Reviewing, coordinating, and standardizing information technology26 strategic business technology planning, information technology procurement,27 information technology budgeting (both executive and capital outlay), and28 information technology personnel and training.29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 5 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (4)(5) Implementing strategic information technology planning, including the1 review and approval of the planning, initiation, design, acquisition, and operation of2 information technology systems.3 (5)(6) Assessing the performance of information technology systems and4 technology operations and personnel including establishing accountability,5 performance measurement, and benchmarking policies and procedures.6 (6)(7) Overseeing and coordinating the centralization of the technology7 systems and data processing systems, including consolidation, outsourcing, and8 sharing statewide government information technology resources and services.9 (7)(8) Overseeing all telecommunication systems.10 (8)(9) Assuring compatibility and connectivity of Louisiana's information11 systems.12 (9)(10) Facilitating and fostering innovative applications of emerging13 technologies that provide cost-effective solutions for improving government14 operations and services.15 (10)(11) Reviewing and overseeing information technology projects and16 systems for compliance with statewide strategies, policies, and standards, including17 alignment with state government's business goals, investment, and other risk18 management policies.19 (11)(12) Providing support and technical assistance to the office of state20 purchasing, the office of contractual review, the office of facility planning and21 control, and the office of planning and budget, and the Louisiana Technology22 Innovations Council.23 (12)(13) Overseeing and coordinating access to state information that is24 electronically available online from agency web sites.25 (13)(14) Facilitating a process among state agencies to identify services that26 are favorable for electronic delivery, and maintaining an electronic directory of state27 services.28 (14) Providing direction to the Louisiana Geographic Information Systems29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 6 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Council and the Louisiana Geographic Information Center (LAGIC) for coordination1 of geographic data, geographic technology, and geographic standards of the state.2 (15) Identifying information technology applications that should be3 statewide in scope, and ensuring that these applications are not developed4 independently or duplicated by individual state agencies of the executive branch.5 (16) Reviewing and approving the receipt by executive agencies of6 information technology goods and services and telecommunication systems and7 services from non-appropriated sources, including but not limited to grants,8 donations, and gifts.9 (17) Preparing annual reports and plans concerning the status and result of10 the state's specific information technology plans and submitting these annual reports11 and plans to the governor and the legislature.12 (18) Facilitating and fostering the identification of the policy and planning13 data needs of the state.14 (19) Charging respective user agencies for the cost of the information15 technology services provided by the office of information technology systems and16 information technology services provided by the office of technology services17 and may include all or part of the cost of the operation of the office. These costs18 shall be charged in a consistent and equitable manner.19 (20) Acting as the sole centralized customer for the acquisition, billing,20 and record keeping of information technology systems or information21 technology services provided to state agencies. The ownership of such systems22 procured by the office of technology services may vest in the respective agency,23 but control of the systems shall be retained by the office of technology services.24 (21) Developing coordinated information technology systems or25 information technology services within and among all state agencies and26 require, where appropriate, cooperative utilization of information technology27 systems and information technology services by aggregating users. However,28 nothing provided in this Section shall apply to the authority for operation of the29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 7 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. National Crime Information Center.1 (22) Reviewing, coordinating, approving, or disapproving requests by2 state agencies for the procurement of information technology systems or3 information technology services including information technology proposals,4 studies, and contracts.5 C. To accomplish the work of the office of information technology services,6 all agencies as defined in R.S. 39:2 shall cooperate with the office of information7 technology services and provide assistance as required. However, if the office of8 information technology and a statewide elected official cannot jointly agree on an9 information technology plan, system, or service for any agency under his10 jurisdiction, then he may implement an information technology plan, system or11 service of his own, upon finding just cause to do so and after giving notice of his12 actions and reason therefore at a meeting of the Joint Legislative Committee on the13 Budget. Prior to implementation, any such information technology plan, system or14 service adopted by a statewide elected official shall be as compatible as is practical15 under the circumstances with the state master technology plan nothing in this16 Subpart shall apply to the authority of any statewide elected official relative to17 his authority to implement information technology plans, systems, or services18 for any agency under his jurisdiction.19 D. The information, technology, personnel, agency resources, and records of20 the Integrated Criminal Justice Information System as established by R.S. 15:122821 through 1228.8 and its components shall be excluded from the provisions of this Part22 and shall not be under the authority of the office of information technology services.23 PART V-A. DATA PROCESSING INFORMATION TECHNOLOGY24 PROCUREMENT25 §196. Application of Part: responsibility for determining; executive director of26 information services state chief information officer27 A. The provisions of this Part shall be applicable to all state agencies in the28 executive branch, as defined in R.S. 39:2(1) 36:3(1), with respect to the purchase,29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 8 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. lease, and rental of all data processing information technology equipment, related1 services, and software.2 B. The state central purchasing agency shall, subject to the provisions of this3 Part, have sole authority and responsibility for defining the specific data processing4 equipment, related services, and software to which the provisions of this Part shall5 be applicable. The office of technology services shall, subject to the provisions of6 this Part, have sole authority and responsibility for defining the specific7 information technology systems and information technology services to which8 the provisions of this Part shall be applicable. Rules and regulations shall be9 promulgated as may be necessary to carry out the provisions of this Part.10 §197. Definitions11 For the purposes of this Part, the following words and phrases shall be12 defined as follows:13 (1) "Agency" as used in this Part and in Part V of Chapter 1 of this Title14 shall have the same meaning ascribed to it as provided in R.S. 36:3(1).15 (2) "Competitive sealed bidding" means a method of procurement which16 strictly follows the requirements set forth in Chapter 17 of Title 39 of the17 Louisiana Revised Statutes of 1950 except for such variations as are specifically18 established herein.19 (3) "Procurement" means the selling, buying, purchasing, renting,20 leasing, or otherwise obtaining information technology systems, information21 technology services, or its related software, as well as all activities engaged in,22 resulting in, or expected to result in the selling, buying, purchasing, renting,23 leasing, or otherwise obtaining information technology systems, information24 technology services, or its related software by the state or its agencies.25 (4) "Software" means computer programs and documentation essential26 to and necessary for an information technology system or information27 technology service to perform productive operations.28 (5) "Information technology service contract" means a contract for the29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 9 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. procurement of information technology services to include but not be limited1 to software as a service, infrastructure as a service, platform as a service,2 application hosting services, or installation and configuration services.3 (6) "Information technology systems", which shall include information4 technology equipment and related services, and "information technology5 services" are limited to the equipment and services and means to provide:6 (a) Server systems and services.7 (b) Storage systems and services.8 (c) Information technology security systems and services.9 (d) Related peripheral systems and services.10 (e) Software and software application services.11 (f) Infrastructure and platform systems and services.12 (g) Desktop computing systems and services.13 (h) Geographic information systems and services.14 (i) Mobile device systems and services.15 (j) Any and all systems and services based on emerging and future16 information technologies relating to Subparagraphs (a) through (i) of this17 Paragraph.18 (7) "Information technology systems contract" means a contract for the19 procurement of information technology systems including equipment and20 related services to include but not be limited to installation and maintenance.21 (8) "Information technology systems lease contract" means a contract22 between a supplier of information technology systems and the division of23 administration, office of technology services, or the procuring agency, through24 which information technology systems may be procured for a term which shall25 not exceed ten years. The contract may be either an operating lease, installment26 purchase, or a financed lease without a balloon payment.27 (9) "Utility" means any information technology service provided by the28 office of technology services and used in the essential operations of a state29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 10 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. agency, such as system authentication, data replication, and system utilization1 and performance management.2 (10) "Related services" means and is limited to service activities affecting the3 maintenance of data processing information technology equipment or software and4 the providing of fiscal intermediary services in processing claims of health care5 providers. Notwithstanding any other provisions of law to the contrary, "related6 services" shall also mean those consulting services ancillary to the procurement of7 data processing information technology hardware or software that would otherwise8 be governed by the provisions of professional, personal, consulting, and social9 services procurement in Chapter 16 of this Title, provided those consulting services10 are limited to the lesser of twenty percent of the procurement amount or two hundred11 fifty thousand dollars.12 (2)(11) "Direct order contract" means a contract which covers a specific class13 of data processing information technology equipment, or a contract which covers14 a single, specific class of data processing information technology equipment,15 software, or services, and all features associated with that class and through which16 state agencies may procure the item of hardware specified by issuing a purchase17 order under the terms of the contract, without the necessity of further competitive18 bidding.19 (3)(12) "Multi-year contract" means contracts for a term of more than one20 year, not to exceed ten years and includes the following:21 (a) Contracts between a supplier of data processing equipment, information22 technology systems, information technology services, and software, and related23 services, and the state or a state agency through which data processing equipment,24 information technology systems, information technology services, and software,25 and related services except for fiscal intermediary services for the processing of26 claims of health care providers, may be leased or purchased for a term of more than27 one fiscal year, but the term shall not exceed sixty months.28 (b) Contracts for fiscal intermediary services for the processing of claims29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 11 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. received from health care providers.1 (4)(13) "Rental contract" means and includes contracts between a supplier of2 data processing information technology equipment and the state, or a state agency,3 through which data processing information technology equipment may be leased4 for a term not to exceed one fiscal year, such contracts to include the right of5 termination by the state upon notice of ninety days or less, and to be renewable, upon6 review and recommendations of the procurement support team and review and7 approval by the office of data processing information technology, with such8 renewal to be limited to one additional term not to exceed twelve months.9 (5) "Software" means computer programs and documentation essential to and10 necessary for a computer to perform productive operations.11 (6)(14) "Competitive sealed bidding" means a method of procurement which12 strictly follows the requirements set forth in Chapter 17 of Title 39 except for such13 variations as are specifically established herein.14 (7) "Procurement" means and includes the selling, buying, purchasing,15 renting, leasing, or otherwise obtaining data processing equipment, related services16 or software, as well as all activities engaged in, resulting in or expected to result in17 the selling, buying, purchasing, renting, leasing or otherwise obtaining of data18 processing equipment, related services or software by the state or its agencies.19 (8)(15) "Emergency acquisitions or rentals of data processing information20 technology" means a method of procurement utilized when there exists a threat to21 the public health, welfare, safety or public property.22 (9)(16) "Master agreement" means an agreement between the state and a23 vendor which specifies the general terms and conditions under which parties will24 routinely conduct procurement business.25 (10) (17) "Purchase contract" means a contract that is utilized for the direct26 acquisition of certain equipment, including but not limited to data processing27 information technology, word processing, micro desktop computers, server28 systems, storage systems, mobile computing systems, peripheral systems,29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 12 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. software, and related services. Such contract shall contain the terms and conditions1 pertinent to the rights and obligations of both the state and the vendor. Any purchase2 by direct acquisition under the terms of the purchase contract will require one single3 payment, and title shall pass to the state upon the date of purchase as defined in the4 contract unless the purchase contract is amended by an installment payment contract.5 (11)(18) "Installment-payment contract" means a contract which amends and6 is incorporated into a purchase contract and is utilized to finance with the vendor the7 purchase of certain equipment, including but not limited to data processing8 information technology, word processing, micro desktop computers, server9 systems, storage systems, mobile computing systems, peripheral systems,10 software, related services, and related supplies or a contract which itself alone is11 utilized to procure such equipment from a contractor and provides therein for12 payment in a set of installments over a fixed period of time. An installment payment13 contract shall arrange for a method of financing with payment being made in a set14 of installment payments over a fixed period of time in accordance with the15 provisions of the contract and shall provide for the vendor to deliver title to the16 governmental body in accordance with such terms.17 §198. Types of contracts permitted18 A. The types of contracts permitted in the procurement of data processing19 information technology systems, information technology services, equipment,20 related services, and software are defined herein in this Part, and the provisions of21 this Part supersede, with respect to such procurements, any existing conflicting22 statutory provisions and supplement the provisions of R.S. 39:1551 through 1736.23 B. The office of technology services, through the state purchasing office,24 may, on behalf of any state agency, enter into information technology systems25 contracts in accordance with the following provisions:26 (1) Contracts of this type shall be entered into through a request for27 proposals as defined in this Part. An invitation to bid format may be utilized28 with written approval from the state chief information officer.29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 13 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (2) The term of such contracts shall not exceed five years.1 C. The office of technology services, through the state purchasing office,2 may on behalf of any state agency, enter into information technology services3 contracts in accordance with the following provisions:4 (1) Contracts of this type shall be entered into through a request for5 proposals as defined in this Part. An invitation to bid format may be utilized6 with written approval from the state chief information officer.7 (2) The term of such contracts shall not exceed ten years.8 D. The office of technology services, through the state purchasing office,9 may on behalf of any state agency, enter into a information technology systems10 lease contract for an operating lease, installment purchase, or financed lease for11 information technology systems in accordance with the following provisions:12 (1) All contracts of this type shall be entered into through a request for13 proposals as defined in this Part.14 (2) The justification of such contracts must be approved by the office of15 technology services prior to issuance of a request for proposals. Such16 justification shall identify and consider all cost factors relevant to that contract.17 (3) The term of such contracts shall not exceed ten years, except financed18 contracts shall be for a term not to exceed the economic life of the system or ten19 years, whichever is less.20 (4) Upon the advance written approval of the office of technology21 services, state agencies may extend operating leases of information technology22 systems on a month-to-month basis for a period not to exceed one calendar year23 for the stated lease prices.24 E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the25 use of a multi-year contract for information technology systems and26 information technology services shall be in accordance with rules and27 regulations and under the following conditions:28 (1) The state chief information officer shall approve in writing the use of29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 14 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. a multi-year contract over one year, not to exceed three years.1 (2) The director of the state purchasing office shall approve in writing2 the use of a multi-year contract over three years, not to exceed five years.3 (3) The commissioner of administration, or his designee, shall approve4 in writing the use of a multi-year contract over five years.5 A F. Direct order contracts. The division of administration office of6 technology services, through the state central purchasing agency, shall, on behalf of7 all state agencies, enter into a direct order contract with a vendor of data processing8 information technology equipment for the purchase, rental, or both, of such9 equipment in accordance with the following provisions:10 (1) Specifications for direct order contracts. Specifications for direct order11 contracts shall be developed in advance and shall conform to the following12 requirements:13 (a) Specifications for direct order contracts shall cover a specific class of14 equipment and may include all features associated with that class.15 (b) Specifications in the invitation for bids for direct order contracts shall be16 developed by the office of data processing information technology.17 (c) Specifications shall be based on the projected needs of user agencies.18 (d) Specifications for direct order contracts for the purchase and/or rental of19 data processing information technology may include specifications for the20 maintenance of the equipment desired.21 (2) Procurement of direct order contracts. The initial procurement of a direct22 order contract, and procurement of equipment by using agencies under a direct order23 contract, shall be as defined herein:24 (a) Direct order contracts shall be awarded by competitive sealed bidding.25 (b) A using agency may procure required data processing information26 technology equipment available under a direct order contract through release of a27 purchase order for the required equipment to the vendor holding a direct order28 contract. However, such procurement by purchase order shall be accomplished in29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 15 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. accordance with the procedures and regulations prescribed by the state central1 purchasing agency in the Division of Administration and shall be subject to all other2 statutory requirements.3 (3) The final authority for entering into direct order contracts shall rest with4 the Division of Administration, and such contracts shall be executed by the5 purchasing office, in accordance with procedures and regulations defined by the6 Division of Administration.7 (4) Terms and conditions of direct order contracts. Direct order contracts8 shall include the following terms and conditions:9 (a) Direct order contracts for data processing information technology10 equipment are subject to the following requirements:11 (i)(a) Direct order contracts shall be valid for not more than three fiscal years.12 (ii)(b) The prices stated in such contract shall be firm for the period of the13 contract; except that, all such contracts shall include a clause granting to the state the14 benefit of any general price reductions effected by the vendor during the term of the15 contract.16 (iii)(c) Individual items of computer hardware which may be included under17 a direct order contract may not have a purchase price greater than seventy-five18 thousand dollars or a monthly rental price greater than two thousand dollars. Such19 price shall not include costs of maintenance, taxes, or transportation.20 (iv)(d) Direct order contracts shall include the annual appropriation21 dependency clause set forth in Subparagraph BG(1)(d) of this Section.22 (v)(e) Direct order contracts may be extended into one additional fiscal year23 only under the following conditions:24 (aa)(i) Such extension of a direct order contract shall be subject to the25 approval of the office of data processing information technology.26 (bb)(ii) The vendor may increase rental prices for the term of the additional27 fiscal year by an amount equal to the lesser of any increase permitted by that28 vendor's contract with the General Services Administration of the United States29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 16 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Government for such equipment, or any increase in that vendor's published list prices1 for such equipment, during that fiscal year; provided that, such increase may not2 exceed ten percent, and the increase must have been authorized by the initial direct3 order contract.4 (vi)(f) Items covered by a direct order contract may also be acquired through5 additional competitive sealed bidding.6 B. G. Multiyear contracts other than direct order contracts and contracts for7 fiscal intermediary services in processing claims of health care providers. State8 agencies may enter into contracts for the lease or purchase of data processing9 equipment information technology systems, information technology services, or10 software when the term of such lease or purchase is greater than twelve months or11 involves more than one fiscal year in accordance with the following provisions:12 (1) General terms and conditions for multiyear contracts shall be as follows:13 (a) All contracts of this type shall be entered into through competitive sealed14 bidding.15 (b) The justification of such contracts must be presented to the state central16 purchasing agency prior to issuance of an invitation for bids. Such justification shall17 identify and consider all cost factors relevant to that contract.18 (c) The term of such contract shall not exceed sixty months.19 (d) All such contracts must contain the following annual appropriation20 dependency clause:21 "The continuation of this contract is contingent upon the continuation of an22 appropriation of funds by the legislature to fulfill the requirements of the contract.23 If the legislature fails to appropriate sufficient monies to provide for the continuation24 of a contract or if such appropriation is reduced by the veto of the governor or by any25 means provided in the Appropriation Act or Title 39 of the Louisiana Revised26 Statutes of 1950 to prevent the total appropriations for the year from exceeding27 revenues for that year or for any other lawful purpose and the effect of such28 reduction is to provide insufficient monies for the continuation of the contract, the29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 17 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. contract shall terminate on the date of the beginning of the first fiscal year for which1 funds are not appropriated."2 (e) The state central purchasing agency in the Division of Administration3 division of administration shall maintain a list of all multi-year contracts. This list4 must show at a minimum the name of the vendor, the annual cost of each contract,5 and the term of the contract.6 (f) All such contracts for lease must contain a clause granting to the state the7 benefit of any general price reduction effected by the vendor during the term of the8 contract.9 (g) With respect to all such contracts for purchase, there shall be no10 provisions for a penalty to the state for the early payment of the contract.11 (2) Provisions relating to multi-year contracts for software:12 (a) Contracts for software which extend for periods greater than twelve13 months or which cover all or a portion of more than one fiscal year, but which14 require only a single payment by the state to the vendor, may be entered into by any15 state agency, without regard to the specific requirements of Paragraph (1) of this16 Subsection.17 (3) Provisions relating to multi-year contracts for the installment payment of18 financing for certain equipment, including but not limited to data processing, word19 processing, micro desktop computers, server systems, storage systems, mobile20 computing systems, peripheral systems, software, and related services are as21 follows:22 (a) Installment-payment contracts will be entered into with vendors of the23 defined equipment by the Division of Administration division of administration24 through the state central purchasing agency on behalf of all state agencies in25 accordance with rules and regulations adopted by the director of central purchasing.26 (b) Installment-payment contracts may serve as amendments to and be27 incorporated into the vendor purchase contracts.28 (c) The installment-payment contract may serve as a financing agreement and29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 18 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. may contain only those provisions pertinent to the payment obligation, including but1 not limited to payment schedule and rate, provisions of default, assignment of2 payment stream, early payment, passage of title, and insurance coverage.3 (d) Each contract shall contain an annual dependency clause, as defined in4 R.S. 39:198(B)(G)(1)(d).5 (e) Installment-payment contracts utilized in procuring microcomputer6 equipment, word processing, software, and maintenance through brand name7 contracts shall contain a fixed interest for the term, which will generally be defined8 as one fiscal year, of the brand name contract. The interest rate is to be bid by the9 vendor, accepted by central purchasing, and approved by the State Bond10 Commission.11 (f) Interest rates for individual procurements of equipment either through the12 competitive sealed bid process or under the terms of the applicable brand name13 contract shall be fixed for the term of the multi-year contract specific to that14 individual procurement.15 (g) The term of an installment-payment contract utilized for the equipment16 defined herein shall not exceed sixty months.17 (4) Provisions relating to the procurement of information technology18 consulting services through the office of technology services shall be conducted19 in accordance with the provisions of R.S. 39:1481 through 1526.20 C. H. Rental Contracts. Upon the advance written approval of the state21 central purchasing agency, state agencies may enter into contracts for the rental of22 data processing equipment and related services on a month to month basis for a23 period not to extend beyond the end of the fiscal year in which the contract is made.24 All such contracts shall be entered into only as a result of competitive sealed bidding25 procedures.26 (1) Equipment currently installed, or installed at the beginning of a fiscal year27 under a valid rental contract, may be retained at the end of the fiscal year by28 renewing or extending the existing rental contract for one additional term, not to29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 19 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. exceed twelve months, without competitive sealed bidding procedures, subject to the1 following provisions:2 (a) All prices under a fiscal year rental contract shall be no greater than the3 supplier's established catalogue price and shall be firm for the fiscal year in which4 the contract is made, with the exception that the state shall be entitled to any general5 price reductions effected by the supplier during the term of the contract.6 (b) All rental contracts shall have a notice of termination provision in favor7 of the state not to exceed ninety days and shall allow termination of the contract as8 it applies to specific equipment or services without termination of the entire contract.9 (c) Renewal of a rental contract shall be subject to the advance review and10 recommendation of the procurement support team and to the advance written11 approval of the state central purchasing agency and shall only be permitted if any12 proposed price increases do not exceed the supplier's current published list prices.13 (2) Termination of a rental contract may be effected, in addition to any other14 legal reasons, by the state central purchasing agency, which shall have authority to15 direct a user agency to terminate, with adequate notice, a rental contract for the16 failure of any party to comply with the provisions herein, and to initiate competitive17 sealed bidding procedures in order to retain or replace the equipment affected by18 termination.19 D. I. Contracts for fiscal intermediary services in processing claims of health20 care providers. State agencies may enter into contracts for fiscal intermediary21 services in processing claims of health care providers. The term of such a contract22 shall be one hundred twenty months. In the event special circumstances, as provided23 in Paragraph (9) of this Subsection, necessitate, additional one-year extensions of24 the contract may be granted. The award process and final contract shall include the25 following:26 (1) Contracts for fiscal intermediary services in processing claims of health27 care providers shall be awarded by a competitive selection process which shall list28 in the solicitation for proposals the method by which the contract shall be awarded29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 20 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and include all criteria to be used and the weights assigned to each criterion. The1 procedure for issuance of the solicitation for proposals shall be in accordance with2 guidelines published by the state central purchasing agency. The selection of the3 contractor shall be made by the head of the using agency only in accordance with the4 method and criteria as set forth in the solicitation for proposals and in accordance5 with the recommendation of the procurement support team.6 (2) Justification for the contract shall be submitted to the state central7 purchasing agency and shall be submitted to the House and Senate committees on8 health and welfare at least forty-five days prior to the issuance of a solicitation for9 proposals. Within thirty days of receipt of the justification by the House and Senate10 committees on health and welfare, either committee may convene a meeting11 separately or jointly for the purpose of conducting a public hearing on the12 justification which was submitted. Such justification shall include identification and13 consideration of all factors, including costs, relevant to the solicitation for proposals14 and the final contract.15 (3) The one-hundred-twenty-month term of such contract shall be divided16 into one period of between thirty-six months and sixty months, immediately followed17 by successive twelve-month periods. The state shall have an option to renew such18 contract for each of the twelve-month periods. If the state does not exercise its option19 to renew, the contract shall be terminated. In the event special circumstances occur,20 as provided in Paragraph (9) of this Subsection, additional twelve-month extensions21 of the contract may be granted.22 (4) In addition to other provisions as required by law or in the best interests23 of the state, such contract shall contain provisions setting forth, (a) the amount and24 requirements of the contractor's performance bond, (b) penalty and enforcement25 provisions for the failure of the contractor to perform in accordance with the contract26 documents, (c) conditions for optional renewal of the contract by the state in27 accordance with the provisions of this Subsection, and (d) requirements for28 termination of the contract by the state at any time, or for cause, or upon the refusal29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 21 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of the state to exercise an option to renew such contract.1 (5) Issuance of specifications for a solicitation for proposals on a contract for2 fiscal intermediary services in processing claims of health care providers shall be3 made at least twelve months prior to the termination date of an existing contract,4 unless the contract termination is for cause or due to the refusal of the state to5 exercise an option to renew.6 (6) No award of the contract shall be made until the House and Senate7 committees on Health and Welfare, meeting jointly or a joint subcommittee thereof8 has conducted a public hearing concerning such award.9 (7) No award of the contract shall be made later than eight months prior to10 the termination date of an existing contract, unless the contract termination is for11 cause or due to the refusal of the state to exercise an option to renew.12 (8) No option to renew such contract shall be exercised by the state until the13 following criteria have been satisfied:14 (a) The Department of Health and Hospitals has conducted a public hearing15 concerning such renewal.16 (b) The Department of Health and Hospitals submits to the House and Senate17 committees on health and welfare a notice of intention by the Department of Health18 and Hospitals to exercise the option to renew such contract and a copy of any public19 testimony which was taken at the public hearing held by the Department of Health20 and Hospitals. The House and Senate committees on health and welfare, meeting21 separately or jointly, may hold a public hearing concerning such renewal within22 thirty days following the receipt of a notice of intention by the Department of Health23 and Hospitals to exercise the option to renew such contract.24 (c) The House and Senate committees on health and welfare, meeting25 separately or jointly, have conducted a public hearing concerning such renewal or26 thirty days have elapsed from the date the Department of Health and Hospitals27 submitted a notice of intention to renew such contract to the House and Senate28 committees on health and welfare and neither committee has posted a public notice29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 22 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. of meeting concerning the renewal of such contract.1 (9) In the event the Department of Health and Hospitals and/or the United2 States Department of Health and Human Services, Health Care Financing3 Administration propose substantial changes in the operations of the Medicaid4 program that would materially impact the services performed by the fiscal5 intermediary, the Department of Health and Hospitals may, subject to the approval6 of the House and Senate committees on health and welfare, approve additional7 extensions of the contract until such time as it is practical to prepare a solicitation for8 proposals describing the revised services that would be performed by the fiscal9 intermediary. During the time frame covered by any extension beyond the original10 one-hundred-twenty-mont h period, the fiscal intermediary may be required to11 perform additional functions to assist in preparing the Department of Health and12 Hospitals in the transition to the new program. Such functions shall include existing13 fiscal intermediary services as well as efforts to control fraud and abuse, program14 reports, beneficiary enrollment and program information services, encounter data,15 and annual managed care negotiation data.16 E. J. Master Agreements. The state director of purchasing may enter into17 master agreements with vendors with which the state conducts substantial business18 over a period of time.19 (1) Such agreements shall set forth those terms and conditions of specific20 legal import which relate to the basic provisions according to which procurement21 activity will be conducted, and shall meet the following requirements:22 (a) Such agreements may be for any term up to sixty months.23 (b) All agreements must contain a clause providing that any changes24 mandated by state or federal law, whether legislative or judicial, will be25 incorporated; however, if such a change is not acceptable to either party, the affected26 term or terms of the contract shall be renegotiated and, if agreement cannot be27 reached, shall be stricken from the contract.28 (c) A specific provision of any such agreement may be waived or changed29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 23 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. only once during the term of the agreement, by mutual consent, expressed in writing.1 (d) Each master agreement must be negotiated by a procurement support2 team and executed on behalf of the state by the state director of purchasing.3 (2) Vendors may refer to the master agreement on file with the state director4 of purchasing when responding to invitations for bids for specific items of data5 processing information technology equipment, related services, or software. Such6 bid responses must include a proposed schedule incorporating the terms of the master7 agreement and further detailing the items and prices bid. The selected vendor and the8 procuring agency shall sign the schedule and submit it to the state central purchasing9 agency for approval.10 (3) The state director of purchasing, subject to the approval of commissioner11 of administration, shall have authority for determining when and if master12 agreements may be used. Notwithstanding any other provisions of this Part, master13 agreements shall not be used to circumvent the competitive bid process otherwise14 required by law.15 F. K. The Department of Public Safety and Corrections may enter into a16 multiyear contract not to exceed ten years when contracting for the Video Gaming17 Monitoring System for the purposes described in R.S. 27:302(A)(5)(o). This contract18 may be awarded by the competitive request for proposal procedures set forth in R.S.19 39:1593(C).20 G. L. The Department of Wildlife and Fisheries may enter into a multiyear21 contract not to exceed ten years when contracting for the issuance of hunting and22 fishing licenses through an electronic issuance system as authorized by R.S. 56:30.1.23 This contract may be awarded by the competitive request for proposal procedures set24 forth in R.S. 39:1593(C).25 §199. Methods of procurement26 A. The only methods of procurement permitted for the acquisition of data27 processing equipment, related services, or software are those defined in this Section.28 Except as provided in Subsection B, all procurement of computer hardware shall be29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 24 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. by competitive sealed bidding. The office of technology services, through the1 state purchasing office, may procure information technology systems and2 information technology services by a request for proposals to conform with the3 following requirements:4 (1) Public notice of the request for proposals shall be the same as for an5 invitation to bid as provided in R.S. 39:1594(C).6 (2)(a) The request for proposals shall indicate the relative importance of7 all evaluation factors and shall clearly define the work, service, or solution to8 be provided under the contract, the functional specifications, the criteria to be9 used in evaluating the proposals, and the time frames within which the work10 must be completed or the service provided.11 (b) For information systems lease contracts, the request for proposals12 shall require that proposals contain a declaration as to the maximum price for13 which the system may be purchased following the termination of the lease14 contract. No other basis of evaluation shall be used except that set out in the15 request for proposals.16 (3) The office of technology services shall evaluate all proposals to17 determine the proposal most advantageous to the state, taking into18 consideration all evaluation criteria set forth in the request for proposals, and19 shall make a recommendation of award to the state purchasing office.20 (4) The office of technology services may request that the state21 purchasing office reject all proposals when it is deemed that such action is in the22 best interest of the state.23 B. Other methods. Other methods of procurement permitted for acquisitions24 hereunder are small purchases in accordance with rules and regulations promulgated25 by the state central purchasing agency and emergency acquisitions or rentals of data26 processing equipment if such procurement is conducted under applicable laws and27 rules and regulations specified by the state central purchasing agency. The office of28 technology services may procure information technology systems and29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 25 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. information technology services in accordance with the law or regulations, or1 both, which govern the state purchasing office, the division of administration.2 C. Method for procuring maintenance services. Notwithstanding any other3 provisions of this Part, any agency may procure maintenance services for data4 processing information technology equipment without the need for competitive5 bidding. Such procurement must have the written advance approval of the state6 central purchasing agency and shall not be for a price greater than the vendor's7 published price. The procurement support team shall develop and deliver to the8 office of state purchasing and the office of information technology proposed rules9 establishing guidelines for procurement activities under this Part. Upon approval of10 the office of information technology, the office of state purchasing shall promulgate11 rules in accordance with the Administrative Procedure Act.12 D. Method for procuring software and software maintenance and support13 services. Notwithstanding any other provisions of this Part, any agency may procure14 data processing software, software maintenance, and support services without the15 need for competitive bidding. Such procurement must have the written advance16 approval of the state central purchasing agency and shall not be for a price greater17 than the vendor's published price. The procurement support team shall develop and18 deliver to the office of state purchasing and the office of information technology19 proposed rules establishing guidelines for procurement activities under this Part.20 Upon approval of the office of information technology, the office of state purchasing21 shall promulgate rules in accordance with the Administrative Procedure Act.22 E. Method for procuring microcomputer equipment, word processing23 equipment, software, and maintenance services. Notwithstanding any other24 provisions of this Part, any agency may procure by purchase, rental, or lease25 microcomputer equipment, word processing equipment, software, and maintenance26 services through name brand contracts awarded by the state central purchasing27 agency in accordance with the provisions of R.S. 39:1551 through 1736. Such28 procurement must have the written advance approval of the state central purchasing29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 26 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. agency. The terms and conditions of such name brand contracts may be amended by1 the central purchasing office.2 F. Method for procuring data processing information technology equipment,3 software, and maintenance services for public colleges and universities.4 Notwithstanding any other provisions of this Part, any public college or university5 may procure, through its purchasing officer, data processing information6 technology equipment, software, and maintenance services without the advance7 approval of the state central purchasing agency when a single expenditure for such8 materials or combined materials and services does not exceed one hundred thousand9 dollars.10 G. F.(1) The commissioner of administration shall for each fiscal year11 designate a goal for awarding to small businesses a portion of anticipated total state12 procurement of data processing information technology equipment and software.13 For purposes of this Subsection, "small businesses" shall be defined as an employer14 with fifty or fewer employees. The commissioner may divide the procurements so15 designated into contract award units of economically feasible production runs in16 order to facilitate offers or bids from small businesses. In making his annual17 designation of goals for small business procurements, the commissioner shall attempt18 to vary the included procurements so that a variety of data processing information19 technology equipment and software produced by different small businesses shall be20 a goal each year. The failure of the commissioner to establish a goal for particular21 procurements shall not be deemed to prohibit or discourage small businesses from22 seeking the procurement award through the normal solicitation and bidding23 processes. The commissioner of administration shall report to the Joint Legislative24 Committee on the Budget and to the House Committee on Commerce and the Senate25 Committee on Commerce, Consumer Protection, and International Affairs on the26 program established in this Subsection each year prior to the submission of the27 executive budget. Such report shall include the goals and awards from the previous28 year, a list of unsuccessful awards as described in Paragraph (4) of this Subsection,29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 27 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and the goals for the upcoming year.1 (2) Contract procedure. The commissioner shall establish a contract2 procedure in accordance with law, for the awarding of a procurement contract under3 the goals established in this Subsection. Surety bonds guaranteed by the federal4 Small Business Administration shall be acceptable security for an award under this5 Subsection.6 (3) Responsibility of bidder or offeror. Before making a goal award, the7 commissioner shall evaluate whether the small business scheduled to receive the8 award is able to perform the set-aside contract. This determination shall include9 consideration of production and financial capacity and technical competence.10 (4) Award of contracts after unsuccessful goal procedures. In the event that11 the provisions of this Subsection do not operate to extend a contract award to a small12 business, the award shall be placed pursuant to the existing solicitation and award13 provisions established by law. The commissioner shall thereupon designate a goal14 for small businesses' additional state procurements of data processing information15 technology equipment and software corresponding in approximate value to the16 contract unable to be awarded pursuant to the provisions of this Subsection.17 (5) Conflict with other code provisions. All laws and rules pertaining to18 solicitations, bid evaluations, contract awards, and other procurement matters not19 inconsistent with the provisions of this Subsection shall apply to procurements set-20 aside for small businesses. In the event of conflict with other rules, the provisions of21 this Subsection shall govern.22 §200. General provisions23 The following general provisions shall apply to all procurements under this24 Part:25 A. Used equipment. Used data processing information technology26 equipment is defined to include all equipment which cannot be certified as new by27 the vendor. Used equipment may be acquired through rental or purchase when the28 vendor and/or manufacturer certify that:29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 28 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) The equipment has been properly maintained and used.1 (2) Maintenance acceptable to the state is available by contract at a cost2 which shall not increase the total cost to the state to that level which would exist3 should the state acquire the same equipment new.4 (3) The equipment is warranted by the manufacturer or vendor under the5 same terms and conditions as those offered by the manufacturer for that equipment6 when new.7 B. Purchase of equipment being leased or rented. Equipment being leased or8 rented by a state agency may be purchased without the need for competitive sealed9 bidding. When the contract under which the equipment is being leased or rented10 provides for any credit of rental or lease payments toward purchase, the leasing or11 renting vendor shall be required to deduct such credits from the purchase price. A12 written analysis of the contract must be made by the using agency and filed with the13 state central purchasing agency. Such analysis shall at a minimum include the current14 market value of the equipment, the total amount paid to the vendor as lease or rental15 payments credited to the purchase price, the total time the equipment was leased or16 rented, and the amount of and contractor for related prior and subsequent contracts,17 including but not limited to maintenance contracts. Such purchases shall have the18 written advance approval of the state central purchasing agency, and the legislature19 shall have provided a specific appropriation for such purchase.20 C. Disposition of data processing information technology equipment no21 longer required by state agencies. The state central purchasing agency shall have the22 authority to dispose of data processing information technology equipment no longer23 required by a state agency in accordance with regulations which shall be developed24 and published by the state central purchasing agency. Such dispositions may be25 through trade-in, assignment to another state agency, or sale. Dispositions other than26 by assignment to another agency shall be on a competitive basis.27 D. Effective date of contracts. Any contracts entered into under the28 provisions of this Part may have an effective starting date at any point during a fiscal29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 29 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. year. No contract entered into hereunder shall have an initial effective date earlier1 than the date on which such contract receives the final statutorily required approval.2 However, with the approval of the state central purchasing agency, a state agency3 shall make payments to a vendor in those circumstances where it has utilized the4 data processing information technology equipment to be contracted prior to the5 actual receipt of the final statutorily required approval. The state central purchasing6 agency shall determine the size of the payments in accordance with the number of7 such days of utilization.8 E. Contract amendments. All changes, modifications, and amendments to any9 contract hereunder shall be approved in advance by the state central purchasing10 agency, in addition to any other statutorily required approvals. This Subsection shall11 not apply to contracts for maintenance or software, but amendments to such contracts12 may not increase the rates specified in such contracts to a figure greater than the13 vendor's published standard rates.14 F. Contract form. No contracts entered into hereunder shall be on preprinted15 contract forms supplied by a vendor, unless otherwise approved by the director of16 state purchasing.17 G. Proposal or bid incorporated into contract. Where written proposals or18 bids are submitted by vendors, the proposal or bid of the successful vendor shall be19 incorporated into the final contract consummated with that vendor.20 H. Letters of intent. Letters of intent may be issued by an agency to a vendor21 solely for the purpose of obtaining a delivery schedule with that vendor. All such22 letters must be clearly identified as such, and must be filed on issuance with the23 office of data processing information technology and the attorney general.24 I. Procurement support. All contracts covered under the provisions of this25 Chapter, in an amount greater than one hundred thousand dollars, whether for26 purchase or rental payments or fiscal intermediary services in processing claims of27 health care providers, or master agreements, but excluding taxes, transportation, and28 other related services, shall be entered into with the assistance of a procurement29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 30 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. support team as provided in Paragraph (2) below and in accordance with guidelines1 to be published by the state central purchasing agency.2 (1) Procurement support team participation must include, as a minimum,3 assistance in evaluation of bids and negotiation of contracts.4 (2) A procurement support team shall consist of a person chosen jointly by5 the speaker of the House of Representatives and the president of the Senate from6 among the attorneys on the legislative services staff of the House of Representatives7 or the staff of the Senate and one or more representatives from each of the following:8 the Division of Administration, central purchasing agency; the using agency9 initiating the procurement action; and the Legislative Fiscal Office. At least two10 members of the team shall have received formal training in computer contract11 negotiations. At least four members, one from each office or agency designated,12 must be present to constitute a quorum.13 J. Contract specifications. (1) A specification may be drafted which describes14 a product which is proprietary to one company only where no other kind of15 specification is reasonably available for the state to describe its requirements; or16 where there is a requirement for specifying a particular design or make of product17 due to factors of compatibility, standardization, or maintainability; and, where such18 specification includes language which specifically permits an equivalent to be19 supplied. Such specification shall include a description of the essential characteristics20 of the product.21 (2) Whenever proprietary specifications are used, the specifications shall22 clearly state that the proprietary characteristics are used only to denote the quality23 standard of the equipment desired and that such specifications do not restrict vendors24 to the specific brand, make, or manufacture; that they are used only to set forth and25 convey to prospective bidders the general style, type, character, and quality of26 equipment desired; and that equivalents will be acceptable.27 (3) The specifications in an invitation for bids shall contain a list of the28 factors to be considered in evaluating the responses to the invitation, and any weights29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 31 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. assigned to those factors. No other basis of evaluation shall be used with respect to1 bids received. When relevant, the following factors shall be included in the2 specifications: cost of transportation, installation, and conversion of operations;3 taxes; or cost of conversion to different equipment architecture.4 K. The provisions of this Part shall, with respect to the procurement of5 information technology systems or information technology 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, but all other provisions in Chapter 17 of Title 399 apply to all procurements under this Part. The provisions of this Part do not10 relate to the procurement of services covered by R.S. 39:1481 through 152611 except as provided in R.S. 39:198. The Louisiana Lease of Movables Act, R.S.12 9:3301 through 3342, shall not apply to the provisions of this Part.13 L. Volume discounts. The state director of purchasing, on behalf of one or14 more state agencies, may enter into non-binding agreements with vendors for the15 purpose of establishing volume discounts. Such agreements shall be based on the16 estimated usage and requirements of state agencies. In addition to specific17 authorizations contained in this Part, and pursuant to R.S. 39:15.2(C), the state18 chief information officer, with the approval of the commissioner of19 administration or his designee, shall have the power and authority to make20 necessary and reasonable regulations and orders to carry out the provisions of21 this Part, and such regulations and orders shall have the effect of law.22 M. Other laws. The provisions of this Part shall, with respect to the23 procurement of data processing equipment, related services, and software, supersede24 specifications of any contradictory or conflicting provisions of the following statutes:25 R.S. 39:330 with respect to the disposition of equipment; R.S. 38:2211 et seq. with26 respect to the awarding of public contracts; and Chapter 17 of Title 39. The27 provisions of this Part do not relate to the procurement of services covered by R.S.28 39:1481 through R.S. 39:1526.29 SB NO. 481 SLS 14RS-602 ORIGINAL Page 32 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor1 and subsequently approved by the legislature, this Act shall become effective on July 1,2 2014, or on the day following such approval by the legislature, whichever is later.3 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jay R. Lueckel. DIGEST Donahue (SB 481) Present law provides for the office of information technology. Proposed law recreates this office as the office of technology services. Present law provides for the chief information officer who is referred to as the "CIO". Provides that the CIO shall be appointed by the governor and report to the commissioner of administration concerning the direction, stewardship, leadership, and oversight of information technology and information resources. Proposed law provides that nothing in these provisions shall apply to the public postsecondary management boards or the Board of Regents as provided in Article VIII of the Constitution of Louisiana. Present law provides relative to elected officials that to accomplish the work of the office of information technology services, all agencies as defined shall cooperate with the office and provide assistance as required. However, if the office and a statewide elected official cannot jointly agree on an information technology plan, system, or service for any agency under his jurisdiction, then he may implement an information technology plan, system or service of his own, upon finding just cause to do so and after giving notice of his actions and reason therefore at a meeting of the Joint Legislative Committee on the Budget. Prior to implementation, any such information technology plan, system or service adopted by a statewide elected official shall be as compatible as is practical under the circumstances with the state master technology plan. Proposed law provides that nothing int these provisions shall apply to the authority of any statewide elected officials relative to the authority to implement information technology plans, systems, or services for any agency under their jurisdiction. Proposed law renames this position as state chief information officer and adds authority for the CIO to oversee operation of information technology and information resources. Proposed law provides for additional duties and responsibilities including being responsible for establishing and coordinating all information technology systems across the executive branch of state government. Such coordination shall include telecommunications systems and services; network systems and services; server systems and services; storage systems and services; information technology security systems and services; related peripheral systems and services; software and software application services; infrastructure and platform systems and services; desktop computing systems and services; geographic information systems and services; mobile device systems and services; video systems and services (except those specifically reserved to the Louisiana Educational Television Authority); radio systems, provided the operational abilities and priorities of two-way communications of the departments in the executive branch are not impeded; and emerging and future information technologies. Proposed law further details the responsibilities and duties of the CIO and the office of SB NO. 481 SLS 14RS-602 ORIGINAL Page 33 of 33 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. technology services, including acting as the sole centralized customer for the acquisition, billing, and record keeping of information technology systems or services provided to state agencies; developing coordinated information technology systems or services within and among state agencies; and reviewing, coordinating, approving, or disapproving requests by state agencies for information technology procurement. Present law provides for data processing procurement. Proposed law changes "data processing procurement" to "information technology procurement" and provides that the CIO and the office of technology services shall have authority for defining the specific information technology systems and services which shall be applicable under information technology procurement. Proposed law provides updated definitions for information technology procurement. Present law provides for the types of contracts permitted under data processing procurement. Proposed law changes "data processing" to "information technology" and further provides for the types and terms of contracts permitted under information technology procurement. Present law provides for methods of procurement. Proposed law further specifies methods of procurement relative to information technology and information services to encompass requests for proposal, laws and regulations governing the state purchasing office, and other methods. Present law provides for general procurement provisions. Provides for the establishment of master purchase contracts for equipment provided by individual manufacturers. Proposed law removes authority for establishing non-competitive master price agreements although such competitively priced agreements shall be retained. Proposed law clarifies the applicability of the Lease of Movable Act with respect to the leasing of information technology equipment. Proposed law retains present law, but changes "data processing" specifications to "information technology". Proposed law clarifies the applicability of the Lease of Movables Act with respect to the leasing of information technology equipment under the Information Technology procurement code. Effective July 1, 2014. (Amends R.S. 39:15.1, 15.2, 15.3, 196, 197, 198, 199, and 200)