Page 1 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 ENROLLED SENATE BILL NO. 481 BY SENATOR DONAHUE AN ACT1 To amend and reenact R.S. 36:4(B)(1)(e), Subpart C of Part I of Chapter 1 of Subtitle I of2 Title 39 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 39:15.1,3 15.2, 15.3, and Part V-A of Chapter 1 of Subtitle I of Title 39 of the Louisiana4 Revised Statutes of 1950, to be comprised of R.S. 39:196, 197, 198, 199, and 200,5 all relative to technology and technology procurement; to provide for the structure6 of the executive branch of state government; to change the office of information7 technology to the office of technology services; to provide for the state chief8 information officer to replace the chief information officer; to grant authority over9 procurement for information technology systems and services to the state chief10 information officer; to provide for additional duties and responsibilities of the office11 of technology services relative to operations, procurement, and customer service12 charges; to place the office of telecommunications management under the state chief13 information officer; to provide authority for centralized information technology14 procurement under the office of technology services and the state chief information15 officer; to provide for certain reporting requirements; to provide relative to certain16 multi-year contracts; to provide for an effective date; and to provide for related17 matters.18 Be it enacted by the Legislature of Louisiana:19 Section 1. R.S. 36:4(B)(1)(e) is hereby amended and reenacted to read as follows:20 §4. Structure of executive branch of state government21 * * *22 B. The office of the governor shall be in the executive branch of state23 government.24 (1) The following agencies and their powers, duties, functions, and25 responsibilities are hereby transferred to the office of the governor:26 * * *27 SB NO. 481 ENROLLED Page 2 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (e) The office of information technology services (R.S. 39:15.1 et seq.),1 including the Louisiana Geographic Information Systems Council (R.S. 49:1051 et2 seq.), within the division of administration.3 * * *4 Section 2. Subpart C of Part I of Chapter 1 of Subtitle I of Title 39 of the Louisiana5 Revised Statutes of 1950, comprised of R.S. 39:15.1, 15.2, 15.3, and Part V-A of Chapter6 1 of Subtitle I of Title 39 of the Louisiana Revised Statutes of 1950, comprised of R.S.7 39:196, 197, 198, 199, and 200, are hereby amended and reenacted to read as follows:8 SUBPART C. OFFICE OF INFORMATION TECHNOLOGY SERVICES9 §15.1. Office of information technology services; scope10 The office of information technology services shall have authority over all11 information technology systems and services for agencies in the executive branch of12 state government, except for any agency of a statewide elected official. The office13 shall have no authority over the legislative or judicial branches of state government14 or agencies thereof. However, nothing provided in this Subpart shall apply to the15 public postsecondary management boards or the Board of Regents as provided16 in Article VIII of the Constitution of Louisiana.17 §15.2. Office of information technology services; state chief information officer18 A. The office of information technology services is established within the19 division of administration. This office shall be headed by the state chief information20 officer, hereafter referred to in this Part as the "CIO." The CIO will serve as the21 spokesperson for all matters related to information technology and resources,22 including Geographic Information Systems (GIS), with regard to policies, standard23 setting, deploymen t, strategic and tactical planning, acquisition, management, and24 operations as necessary and in keeping with the industry trends of the private and25 public sectors. Rules and regulations shall be promulgated, in accordance with the26 Administrative Procedure Act, as may be necessary to carry out the provisions of this27 Subpart.28 B. The CIO shall be appointed by the governor and serve in the executive29 department of the division of administration, and shall be in the unclassified service.30 SB NO. 481 ENROLLED Page 3 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The CIO shall report to the commissioner of administration concerning his1 responsibilities to provide direction, stewardship, leadership, operation, and general2 oversight of information technology and information resources. The salary of the3 CIO shall be determined by the commissioner of administration. Support staff,4 office facilities, and operating expenses shall be provided by the division of5 administration.6 C. The CIO shall also perform all duties and functions that the commissioner7 of administration deems necessary for the proper, efficient, and economical8 administration of information technology.9 D. The CIO shall be the principal adviser to the governor and the executive10 cabinet on information technology policy, including policy on the acquisition and11 management of information technology and resources.12 E. The CIO may delegate his authority under this Subpart to such13 designees or to any agency as defined in R.S. 39:2(2) as he may deem14 appropriate within the limitations of state law and regulations.15 §15.3. Office of information technology services; offices and staff; duties16 A. The office of information technology services shall consist of executive17 offices and staff as deemed necessary for effective information technology18 governance, acquisition and operation.19 B. The state chief information officer shall manage and direct the office of20 information technology services, with roles, duties, and activities including but not21 limited to the following:22 (1) Establishing and coordinating all information technology systems23 and information technology services affecting the management and operations24 of the executive branch of state government. The office of technology services25 shall, subject to the provisions of this Subpart, have sole authority and26 responsibility for defining the specific information technology systems and27 information technology services to which the provisions of this Subpart shall be28 applicable. Information technology systems, including equipment and related29 services, and information technology services shall mean the equipment and30 SB NO. 481 ENROLLED Page 4 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. services and means necessary to provide, including but not limited to the1 following:2 (a) Telecommunications systems and services.3 (b) Network systems and services.4 (c) Server systems and services.5 (d) Storage systems and services.6 (e) Information technology security systems and services.7 (f) Related peripheral systems and services.8 (g) Software and software application services.9 (h) Infrastructure and platform systems and services.10 (i) Desktop computing systems and services.11 (j) Geographic information systems and services.12 (k) Mobile device systems and services.13 (l) Video systems and services, except those video systems and services14 specifically reserved to the Louisiana Educational Television Authority15 pursuant to R.S. 17:2501.16 (m) Radio systems, to include but not be limited to two-way radio17 systems; however, the operational abilities and priorities of two-way18 communications of the departments in the executive branch shall not be19 impeded.20 (n) Any and all systems and services based on emerging and future21 information technologies relating to Subparagraphs (a) through (k) of this22 Paragraph.23 (2) Overseeing and implementing a state master information technology plan24 on an annual basis.25 (2)(3) Establishing and directing the implementation of information26 technology standards, architecture, and guidelines suitable for statewide application27 for hardware, software, services, contractual arrangements, consolidation of systems28 and management of systems.29 (3)(4) Reviewing, coordinating, and standardizing information technology30 SB NO. 481 ENROLLED Page 5 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. strategic business technology planning, information technology procurement,1 information technology budgeting (both executive and capital outlay), and2 information technology personnel and training.3 (4)(5) Implementing strategic information technology planning, including the4 review and approval of the planning, initiation, design, acquisition, and operation of5 information technology systems.6 (5)(6) Assessing the performance of information technology systems and7 technology operations and personnel including establishing accountability,8 performance measurement, and benchmarking policies and procedures.9 (6)(7) Overseeing and coordinating the centralization of the technology10 systems and data processing systems, including consolidation, outsourcing, and11 sharing statewide government information technology resources and services.12 (7)(8) Overseeing all telecommunication systems.13 (8)(9) Assuring compatibility and connectivity of Louisiana's information14 systems.15 (9)(10) Facilitating and fostering innovative applications of emerging16 technologies that provide cost-effective solutions for improving government17 operations and services.18 (10)(11) Reviewing and overseeing information technology projects and19 systems for compliance with statewide strategies, policies, and standards, including20 alignment with state government's business goals, investment, and other risk21 management policies.22 (11)(12) Providing support and technical assistance to the office of state23 purchasing, the office of contractual review, the office of facility planning and24 control, and the office of planning and budget, and the Louisiana Technology25 Innovations Council.26 (12)(13) Overseeing and coordinating access to state information that is27 electronically available online from agency web sites.28 (13)(14) Facilitating a process among state agencies to identify services that29 are favorable for electronic delivery, and maintaining an electronic directory of state30 SB NO. 481 ENROLLED Page 6 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. services.1 (14)(15) Providing direction to the Louisiana Geographic Information2 Systems Council and the Louisiana Geographic Information Center (LAGIC) for3 coordination of geographic data, geographic technology, and geographic standards4 of the state.5 (15)(16) Identifying information technology applications that should be6 statewide in scope, and ensuring that these applications are not developed7 independently or duplicated by individual state agencies of the executive branch.8 (16)(17) Reviewing and approving the receipt by executive agencies of9 information technology goods and services and telecommunication systems and10 services from non-appropriated sources, including but not limited to grants,11 donations, and gifts.12 (17)(18) Preparing annual reports and plans concerning the status and result13 of the state's specific information technology plans and submitting these annual14 reports and plans to the governor and the legislature.15 (18)(19) Facilitating and fostering the identification of the policy and16 planning data needs of the state.17 (19)(20) Charging respective user agencies for the cost of the information18 technology services provided by the office of information technology systems and19 information technology services provided by the office of technology services20 and may include all or part of the cost of the operation of the office. These costs21 shall be charged in a consistent and equitable manner.22 (21) Acting as the sole centralized customer for the acquisition, billing,23 and record keeping of information technology systems or information24 technology services provided to state agencies. The ownership of such systems25 procured by the office of technology services may vest in the respective agency,26 but control of the systems shall be retained by the office of technology services.27 (22) Developing coordinated information technology systems or28 information technology services within and among all state agencies and29 require, where appropriate, cooperative utilization of information technology30 SB NO. 481 ENROLLED Page 7 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. systems and information technology services by aggregating users. However,1 nothing provided in this Section shall apply to the authority for operation of the2 National Crime Information Center.3 (23) Reviewing, coordinating, approving, or disapproving requests by4 state agencies for the procurement of information technology systems or5 information technology services including information technology proposals,6 studies, and contracts.7 C. To accomplish the work of the office of information technology services,8 all agencies as defined in R.S. 39:2 shall cooperate with the office of information9 technology services and provide assistance as required. However, if the office of10 information technology and a statewide elected official cannot jointly agree on an11 information technology plan, system, or service for any agency under his12 jurisdiction, then he may implement an information technology plan, system or13 service of his own, upon finding just cause to do so and after giving notice of his14 actions and reason therefore at a meeting of the Joint Legislative Committee on the15 Budget. Prior to implementation, any such information technology plan, system or16 service adopted by a statewide elected official shall be as compatible as is practical17 under the circumstances with the state master technology plan nothing in this18 Subpart shall apply to the authority of any statewide elected official relative to19 his authority to implement information technology plans, systems, or services20 for any agency under his jurisdiction.21 D. The information, technology, personnel, agency resources, and records of22 the Integrated Criminal Justice Information System as established by R.S. 15:122823 through 1228.8 and its components shall be excluded from the provisions of this Part24 and shall not be under the authority of the office of information technology services.25 E. Beginning October 1, 2014, the state chief information officer shall26 report quarterly to the Joint Legislative Committee on the Budget on the status27 of the consolidation of the information technology functions of the executive28 branch of state government. The report shall provide information on29 organizational changes within the division of administration, as well as30 SB NO. 481 ENROLLED Page 8 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. organizational changes between the office of technology services and the other1 executive branch agencies. The report shall include information and data on2 personnel changes, changes in purchasing and procurement, and any budgetary3 changes that have occurred.4 * * *5 PART V-A. DATA PROCESSING INFORMATION TECHNOLOGY6 PROCUREMENT7 §196. Application of Part: responsibility for determining; executive director of8 information services state chief information officer9 A. The provisions of this Part shall be applicable to all state agencies in the10 executive branch, as defined in R.S. 39:2(1) 36:3(1), except for any agency of a11 statewide elected official, with respect to the purchase, lease, and rental of all data12 processing information technology equipment, related services, and software.13 B. The state central purchasing agency shall, subject to the provisions of this14 Part, have sole authority and responsibility for defining the specific data processing15 equipment, related services, and software to which the provisions of this Part shall16 be applicable. The office of technology services shall, subject to the provisions of17 this Part, have sole authority and responsibility for defining the specific18 information technology systems and information technology services to which19 the provisions of this Part shall be applicable. Rules and regulations shall be20 promulgated as may be necessary to carry out the provisions of this Part.21 §197. Definitions22 For the purposes of this Part, the following words and phrases shall be23 defined as follows:24 (1) "Agency" shall have the same meaning ascribed to it as provided in25 R.S. 36:3(1).26 (2) "Competitive sealed bidding" means a method of procurement which27 strictly follows the requirements set forth in Chapter 17 of Title 39 of the28 Louisiana Revised Statutes of 1950 except for such variations as are specifically29 established herein.30 SB NO. 481 ENROLLED Page 9 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (3) "Procurement" means the selling, buying, purchasing, renting,1 leasing, or otherwise obtaining information technology systems, information2 technology services, or its related software, as well as all activities engaged in,3 resulting in, or expected to result in the selling, buying, purchasing, renting,4 leasing, or otherwise obtaining information technology systems, information5 technology services, or its related software by the state or its agencies.6 (4) "Software" means computer programs and documentation essential7 to and necessary for an information technology system or information8 technology service to perform productive operations.9 (5) "Information technology service contract" means a contract for the10 procurement of information technology services to include but not be limited11 to software as a service, infrastructure as a service, platform as a service,12 application hosting services, or installation and configuration services.13 (6) "Information technology systems", which shall include information14 technology equipment and related services, and "information technology15 services" are limited to the equipment and services and means to provide:16 (a) Server systems and services.17 (b) Storage systems and services.18 (c) Information technology security systems and services.19 (d) Related peripheral systems and services.20 (e) Software and software application services.21 (f) Infrastructure and platform systems and services.22 (g) Desktop computing systems and services.23 (h) Geographic information systems and services.24 (i) Mobile device systems and services.25 (j) Any and all systems and services based on emerging and future26 information technologies relating to Subparagraphs (a) through (i) of this27 Paragraph.28 (7) "Information technology systems contract" means a contract for the29 procurement of information technology systems including equipment and30 SB NO. 481 ENROLLED Page 10 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. related services to include but not be limited to installation and maintenance.1 (8) "Information technology systems lease contract" means a contract2 between a supplier of information technology systems and the division of3 administration, office of technology services, or the procuring agency, through4 which information technology systems may be procured for a term which shall5 not exceed ten years. The contract may be either an operating lease, installment6 purchase, or a financed lease without a balloon payment.7 (9) "Utility" means any information technology service provided by the8 office of technology services and used in the essential operations of a state9 agency, such as system authentication, data replication, and system utilization10 and performance management.11 (10) "Related services" means and is limited to service activities affecting the12 maintenance of data processing information technology equipment or software and13 the providing of fiscal intermediary services in processing claims of health care14 providers. Notwithstanding any other provisions of law to the contrary, "related15 services" shall also mean those consulting services ancillary to the procurement of16 data processing information technology hardware or software that would otherwise17 be governed by the provisions of professional, personal, consulting, and social18 services procurement in Chapter 16 of this Title, provided those consulting services19 are limited to the lesser of twenty percent of the procurement amount or two hundred20 fifty thousand dollars.21 (2)(11) "Direct order contract" means a contract which covers a specific class22 of data processing information technology equipment, software, or services, or a23 contract which covers a single, specific class of data processing information24 technology equipment, software, or services, and all features associated with that25 class and through which state agencies may procure the item of hardware specified26 by issuing a purchase order under the terms of the contract, without the necessity of27 further competitive bidding.28 (3)(12) "Multi-year contract" means contracts for a term of more than one29 year, not to exceed ten years and includes the following:30 SB NO. 481 ENROLLED Page 11 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (a) Contracts between a supplier of data processing equipment, information1 technology systems, information technology services, and software, and related2 services, and the state or a state agency through which data processing equipment,3 information technology systems, information technology services, and software,4 and related services except for fiscal intermediary services for the processing of5 claims of health care providers, may be leased or purchased for a term of more than6 one fiscal year, but the term shall not exceed sixty months.7 (b) Contracts for fiscal intermediary services for the processing of claims8 received from health care providers.9 (4)(13) "Rental contract" means and includes contracts between a supplier of10 data processing information technology equipment and the state, or a state agency,11 through which data processing information technology equipment may be leased12 for a term not to exceed one fiscal year, such contracts to include the right of13 termination by the state upon notice of ninety days or less, and to be renewable, upon14 review and recommendations of the procurement support team and review and15 approval by the office of data processing information technology, with such16 renewal to be limited to one additional term not to exceed twelve months.17 (5) "Software" means computer programs and documentation essential to and18 necessary for a computer to perform productive operations.19 (6)(14) "Competitive sealed bidding" means a method of procurement which20 strictly follows the requirements set forth in Chapter 17 of Title 39 this Title except21 for such variations as are specifically established herein.22 (7) "Procurement" means and includes the selling, buying, purchasing,23 renting, leasing, or otherwise obtaining data processing equipment, related services24 or software, as well as all activities engaged in, resulting in or expected to result in25 the selling, buying, purchasing, renting, leasing or otherwise obtaining of data26 processing equipment, related services or software by the state or its agencies.27 (8)(15) "Emergency acquisitions or rentals of data processing information28 technology" means a method of procurement utilized when there exists a threat to29 the public health, welfare, safety or public property.30 SB NO. 481 ENROLLED Page 12 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (9)(16) "Master agreement" means an agreement between the state and a1 vendor which specifies the general terms and conditions under which parties will2 routinely conduct procurement business.3 (10)(17) "Purchase contract" means a contract that is utilized for the direct4 acquisition of certain equipment, including but not limited to data processing5 information technology, word processing, micro desktop computers, server6 systems, storage systems, mobile computing systems, peripheral systems,7 software, and related services. Such contract shall contain the terms and conditions8 pertinent to the rights and obligations of both the state and the vendor. Any purchase9 by direct acquisition under the terms of the purchase contract will require one single10 payment, and title shall pass to the state upon the date of purchase as defined in the11 contract unless the purchase contract is amended by an installment payment contract.12 (11)(18) "Installment-payment contract" means a contract which amends and13 is incorporated into a purchase contract and is utilized to finance with the vendor the14 purchase of certain equipment, including but not limited to data processing15 information technology, word processing, micro desktop computers, server16 systems, storage systems, mobile computing systems, peripheral systems,17 software, related services, and related supplies or a contract which itself alone is18 utilized to procure such equipment from a contractor and provides therein for19 payment in a set of installments over a fixed period of time. An installment payment20 contract shall arrange for a method of financing with payment being made in a set21 of installment payments over a fixed period of time in accordance with the22 provisions of the contract and shall provide for the vendor to deliver title to the23 governmental body in accordance with such terms.24 (19) "Financed lease" means a contract or lease of an information25 technology system made pursuant to a solicitation for procurement, according26 to which:27 (a) The successful proposer, as lessor, shall retain title to the information28 technology system, although the using agency, as lessee, shall take possession of29 the system.30 SB NO. 481 ENROLLED Page 13 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (b) Payments shall be made by the lessee according to a payment1 schedule to the lessor.2 (c) The lessor may transfer its designation as lessor to its choice of3 financial institution; however, such transfer shall have no effect on the4 contracted payment schedule, contracted interest rate, or any other right or5 obligation of either the lessee or lessor under the contract.6 §198. Types of contracts permitted7 A. The types of contracts permitted in the procurement of data processing8 information technology systems, information technology services, equipment,9 related services, and software are defined herein in this Part, and the provisions of10 this Part supersede, with respect to such procurements, any existing conflicting11 statutory provisions and supplement the provisions of R.S. 39:1551 through 1736.12 B. The office of technology services, through the state purchasing office,13 may, on behalf of any state agency, enter into information technology systems14 contracts in accordance with the following provisions:15 (1) Contracts of this type shall be entered into through a request for16 proposals as provided in R.S. 39:199. An invitation to bid format may be17 utilized with written approval from the state chief information officer.18 (2) The term of such contracts shall not exceed five years.19 C. The office of technology services, through the state purchasing office,20 may on behalf of any state agency, enter into information technology services21 contracts in accordance with the following provisions:22 (1) Contracts of this type shall be entered into through a request for23 proposals as provided in R.S. 39:199. An invitation to bid format may be24 utilized with written approval from the state chief information officer.25 (2) The term of such contracts shall not exceed ten years.26 D. The office of technology services, through the state purchasing office,27 may on behalf of any state agency, enter into a information technology systems28 lease contract for an operating lease, installment purchase, or financed lease for29 information technology systems in accordance with the following provisions:30 SB NO. 481 ENROLLED Page 14 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) All contracts of this type shall be entered into through a request for1 proposals as provided in R.S. 39:199.2 (2) The justification of such contracts must be approved by the office of3 technology services prior to issuance of a request for proposals. Such4 justification shall identify and consider all cost factors relevant to that contract.5 (3) The term of such contracts shall not exceed ten years, except financed6 contracts shall be for a term not to exceed the economic life of the system or ten7 years, whichever is less.8 (4) Upon the advance written approval of the office of technology9 services, state agencies may extend operating leases of information technology10 systems on a month-to-month basis for a period not to exceed one calendar year11 for the stated lease prices.12 E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the13 use of a multi-year contract for information technology systems and14 information technology services shall be in accordance with rules and15 regulations and under the following conditions:16 (1) The state chief information officer shall approve in writing the use of17 a multi-year contract over one year, not to exceed three years.18 (2) The director of the state purchasing office shall approve in writing19 the use of a multi-year contract over three years, not to exceed five years.20 (3) The commissioner of administration, or his designee, shall approve21 in writing the use of a multi-year contract over five years.22 (4) A report of all multi-year contracts shall be provided to the Joint23 Legislative Committee on the Budget no later than ninety days after the end of24 each fiscal year.25 A F. Direct order contracts. The division of administration office of26 technology services, through the state central purchasing agency, shall, on behalf of27 all state agencies, enter into a direct order contract with a vendor of data processing28 information technology equipment for the purchase, rental, or both, of such29 equipment in accordance with the following provisions:30 SB NO. 481 ENROLLED Page 15 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) Specifications for direct order contracts. Specifications for direct order1 contracts shall be developed in advance and shall conform to the following2 requirements:3 (a) Specifications for direct order contracts shall cover a specific class of4 equipment and may include all features associated with that class.5 (b) Specifications in the invitation for bids for direct order contracts shall be6 developed by the office of data processing information technology.7 (c) Specifications shall be based on the projected needs of user agencies.8 (d) Specifications for direct order contracts for the purchase and/or rental of9 data processing information technology equipment may include specifications for10 the maintenance of the equipment desired.11 (2) Procurement of direct order contracts. The initial procurement of a direct12 order contract, and procurement of equipment by using agencies under a direct order13 contract, shall be as defined herein:14 (a) Direct order contracts shall be awarded by competitive sealed bidding.15 (b) A using agency may procure required data processing information16 technology equipment available under a direct order contract through release of a17 purchase order for the required equipment to the vendor holding a direct order18 contract. However, such procurement by purchase order shall be accomplished in19 accordance with the procedures and regulations prescribed by the state central20 purchasing agency in the Division of Administration division of administration and21 shall be subject to all other statutory requirements.22 (3) The final authority for entering into direct order contracts shall rest with23 the Division of Administration division of administration, and such contracts shall24 be executed by the purchasing office, in accordance with procedures and regulations25 defined by the Division of Administration division of administration.26 (4) Terms and conditions of direct order contracts. Direct order contracts27 shall include the following terms and conditions:28 (a) Direct order contracts for data processing information technology29 equipment are subject to the following requirements:30 SB NO. 481 ENROLLED Page 16 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (i)(a) Direct order contracts shall be valid for not more than three fiscal years.1 (ii)(b) The prices stated in such contract shall be firm for the period of the2 contract; except that, all such contracts shall include a clause granting to the state the3 benefit of any general price reductions effected by the vendor during the term of the4 contract.5 (iii)(c) Individual items of computer hardware which may be included under6 a direct order contract may not have a purchase price greater than seventy-five7 thousand dollars or a monthly rental price greater than two thousand dollars. Such8 price shall not include costs of maintenance, taxes, or transportation.9 (iv)(d) Direct order contracts shall include the annual appropriation10 dependency clause set forth in Subparagraph BG(1)(d) of this Section.11 (v)(e) Direct order contracts may be extended into one additional fiscal year12 only under the following conditions:13 (aa)(i) Such extension of a direct order contract shall be subject to the14 approval of the office of data processing information technology.15 (bb)(ii) The vendor may increase rental prices for the term of the additional16 fiscal year by an amount equal to the lesser of any increase permitted by that17 vendor's contract with the General Services Administration of the United States18 Government for such equipment, or any increase in that vendor's published list prices19 for such equipment, during that fiscal year; provided that, such increase may not20 exceed ten percent, and the increase must have been authorized by the initial direct21 order contract.22 (vi)(f) Items covered by a direct order contract may also be acquired through23 additional competitive sealed bidding.24 B.G. Multiyear contracts other than direct order contracts and contracts for25 fiscal intermediary services in processing claims of health care providers. State26 agencies may enter into contracts for the lease or purchase of data processing27 equipment information technology systems, information technology services, or28 software when the term of such lease or purchase is greater than twelve months or29 involves more than one fiscal year in accordance with the following provisions:30 SB NO. 481 ENROLLED Page 17 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (1) General terms and conditions for multiyear contracts shall be as follows:1 (a) All contracts of this type shall be entered into through competitive sealed2 bidding.3 (b) The justification of such contracts must be presented to the state central4 purchasing agency prior to issuance of an invitation for bids. Such justification shall5 identify and consider all cost factors relevant to that contract.6 (c) The term of such contract shall not exceed sixty months.7 (d) All such contracts must contain the following annual appropriation8 dependency clause:9 "The continuation of this contract is contingent upon the continuation of an10 appropriation of funds by the legislature to fulfill the requirements of the contract.11 If the legislature fails to appropriate sufficient monies to provide for the continuation12 of a contract or if such appropriation is reduced by the veto of the governor or by any13 means provided in the Appropriation Act or Title 39 of the Louisiana Revised14 Statutes of 1950 to prevent the total appropriations for the year from exceeding15 revenues for that year or for any other lawful purpose and the effect of such16 reduction is to provide insufficient monies for the continuation of the contract, the17 contract shall terminate on the date of the beginning of the first fiscal year for which18 funds are not appropriated."19 (e) The state central purchasing agency in the Division of Administration20 division of administration shall maintain a list of all multi-year contracts. This list21 must show at a minimum the name of the vendor, the annual cost of each contract,22 and the term of the contract.23 (f) All such contracts for lease must contain a clause granting to the state the24 benefit of any general price reduction effected by the vendor during the term of the25 contract.26 (g) With respect to all such contracts for purchase, there shall be no27 provisions for a penalty to the state for the early payment of the contract.28 (2) Provisions relating to multi-year contracts for software:29 (a) Contracts for software which extend for periods greater than twelve30 SB NO. 481 ENROLLED Page 18 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. months or which cover all or a portion of more than one fiscal year, but which1 require only a single payment by the state to the vendor, may be entered into by any2 state agency, without regard to the specific requirements of Paragraph (1) of this3 Subsection.4 (3) Provisions relating to multi-year contracts for the installment payment of5 financing for certain equipment, including but not limited to data processing, word6 processing, micro desktop computers, server systems, storage systems, mobile7 computing systems, peripheral systems, software, and related services are as8 follows:9 (a) Installment-payment contracts will be entered into with vendors of the10 defined equipment by the Division of Administration division of administration11 through the state central purchasing agency on behalf of all state agencies in12 accordance with rules and regulations adopted by the director of central purchasing.13 (b) Installment-payment contracts may serve as amendments to and be14 incorporated into the vendor purchase contracts.15 (c) The installment-payment contract may serve as a financing agreement and16 may contain only those provisions pertinent to the payment obligation, including but17 not limited to payment schedule and rate, provisions of default, assignment of18 payment stream, early payment, passage of title, and insurance coverage.19 (d) Each contract shall contain an annual dependency clause, as defined in20 R.S. 39:198(B)(1)(d) Subparagraph (G)(1)(d) of this Section.21 (e) Installment-payment contracts utilized in procuring microcomputer22 equipment, word processing, software, and maintenance through brand name23 contracts shall contain a fixed interest for the term, which will generally be defined24 as one fiscal year, of the brand name contract. The interest rate is to be bid by the25 vendor, accepted by central purchasing, and approved by the State Bond26 Commission.27 (f) Interest rates for individual procurements of equipment either through the28 competitive sealed bid process or under the terms of the applicable brand name29 contract shall be fixed for the term of the multi-year contract specific to that30 SB NO. 481 ENROLLED Page 19 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. individual procurement.1 (g) The term of an installment-payment contract utilized for the equipment2 defined herein shall not exceed sixty months.3 (4) Provisions relating to the procurement of information technology4 consulting services through the office of technology services shall be conducted5 in accordance with the provisions of R.S. 39:1481 through 1526.6 C.H. Rental Contracts. Upon the advance written approval of the state central7 purchasing agency, state agencies may enter into contracts for the rental of data8 processing information technology equipment and related services on a month-to-9 month basis for a period not to extend beyond the end of the fiscal year in which the10 contract is made. All such contracts shall be entered into only as a result of11 competitive sealed bidding procedures.12 (1) Equipment currently installed, or installed at the beginning of a fiscal year13 under a valid rental contract, may be retained at the end of the fiscal year by14 renewing or extending the existing rental contract for one additional term, not to15 exceed twelve months, without competitive sealed bidding procedures, subject to the16 following provisions:17 (a) All prices under a fiscal year rental contract shall be no greater than the18 supplier's established catalogue price and shall be firm for the fiscal year in which19 the contract is made, with the exception that the state shall be entitled to any general20 price reductions effected by the supplier during the term of the contract.21 (b) All rental contracts shall have a notice of termination provision in favor22 of the state not to exceed ninety days and shall allow termination of the contract as23 it applies to specific equipment or services without termination of the entire contract.24 (c) Renewal of a rental contract shall be subject to the advance review and25 recommendation of the procurement support team and to the advance written26 approval of the state central purchasing agency and shall only be permitted only if27 any proposed price increases do not exceed the supplier's current published list28 prices.29 (2) Termination of a rental contract may be effected, in addition to any other30 SB NO. 481 ENROLLED Page 20 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. legal reasons, by the state central purchasing agency, which shall have authority to1 direct a user agency to terminate, with adequate notice, a rental contract for the2 failure of any party to comply with the provisions herein, and to initiate competitive3 sealed bidding procedures in order to retain or replace the equipment affected by4 termination.5 D. I. Contracts for fiscal intermediary services in processing claims of health6 care providers. State agencies may enter into contracts for fiscal intermediary7 services in processing claims of health care providers. The term of such a contract8 shall be one hundred twenty months. In the event special circumstances, as provided9 in Paragraph (9) of this Subsection, necessitate, additional one-year extensions of10 the contract may be granted. The award process and final contract shall include the11 following:12 (1) Contracts for fiscal intermediary services in processing claims of health13 care providers shall be awarded by a competitive selection process which shall list14 in the solicitation for proposals the method by which the contract shall be awarded15 and include all criteria to be used and the weights assigned to each criterion. The16 procedure for issuance of the solicitation for proposals shall be in accordance with17 guidelines published by the state central purchasing agency. The selection of the18 contractor shall be made by the head of the using agency only in accordance with the19 method and criteria as set forth in the solicitation for proposals and in accordance20 with the recommendation of the procurement support team.21 (2) Justification for the contract shall be submitted to the state central22 purchasing agency and shall be submitted to the House and Senate committees on23 health and welfare at least forty-five days prior to the issuance of a solicitation for24 proposals. Within thirty days of receipt of the justification by the House and Senate25 committees on health and welfare, either committee may convene a meeting26 separately or jointly for the purpose of conducting a public hearing on the27 justification which was submitted. Such justification shall include identification and28 consideration of all factors, including costs, relevant to the solicitation for proposals29 and the final contract.30 SB NO. 481 ENROLLED Page 21 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (3) The one-hundred-twenty-month term of such contract shall be divided1 into one period of between thirty-six months and sixty months, immediately followed2 by successive twelve-month periods. The state shall have an option to renew such3 contract for each of the twelve-month periods. If the state does not exercise its option4 to renew, the contract shall be terminated. In the event special circumstances occur,5 as provided in Paragraph (9) of this Subsection, additional twelve-month extensions6 of the contract may be granted.7 (4) In addition to other provisions as required by law or in the best interests8 of the state, such contract shall contain provisions setting forth, (a) the amount and9 requirements of the contractor's performance bond, (b) penalty and enforcement10 provisions for the failure of the contractor to perform in accordance with the contract11 documents, (c) conditions for optional renewal of the contract by the state in12 accordance with the provisions of this Subsection, and (d) requirements for13 termination of the contract by the state at any time, or for cause, or upon the refusal14 of the state to exercise an option to renew such contract.15 (5) Issuance of specifications for a solicitation for proposals on a contract for16 fiscal intermediary services in processing claims of health care providers shall be17 made at least twelve months prior to the termination date of an existing contract,18 unless the contract termination is for cause or due to the refusal of the state to19 exercise an option to renew.20 (6) No award of the contract shall be made until the House and Senate21 committees on Health and Welfare health and welfare, meeting jointly or a joint22 subcommittee thereof has conducted a public hearing concerning such award.23 (7) No award of the contract shall be made later than eight months prior to24 the termination date of an existing contract, unless the contract termination is for25 cause or due to the refusal of the state to exercise an option to renew.26 (8) No option to renew such contract shall be exercised by the state until the27 following criteria have been satisfied:28 (a) The Department of Health and Hospitals has conducted a public hearing29 concerning such renewal.30 SB NO. 481 ENROLLED Page 22 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (b) The Department of Health and Hospitals submits to the House and Senate1 committees on health and welfare a notice of intention by the Department of Health2 and Hospitals to exercise the option to renew such contract and a copy of any public3 testimony which was taken at the public hearing held by the Department of Health4 and Hospitals. The House and Senate committees on health and welfare, meeting5 separately or jointly, may hold a public hearing concerning such renewal within6 thirty days following the receipt of a notice of intention by the Department of Health7 and Hospitals to exercise the option to renew such contract.8 (c) The House and Senate committees on health and welfare, meeting9 separately or jointly, have conducted a public hearing concerning such renewal or10 thirty days have elapsed from the date the Department of Health and Hospitals11 submitted a notice of intention to renew such contract to the House and Senate12 committees on health and welfare and neither committee has posted a public notice13 of meeting concerning the renewal of such contract.14 (9) In the event the Department of Health and Hospitals and/ or the United15 States Department of Health and Human Services, Health Care Financing16 Administration Centers for Medicare and Medicaid Services proposes substantial17 changes in the operations of the Medicaid program that would materially impact the18 services performed by the fiscal intermediary, the Department of Health and19 Hospitals may, subject to the approval of the House and Senate committees on health20 and welfare, approve additional extensions of the contract until such time as it is21 practical to prepare a solicitation for proposals describing the revised services that22 would be performed by the fiscal intermediary. During the time frame covered by23 any extension beyond the original one-hundred-twenty-month period, the fiscal24 intermediary may be required to perform additional functions to assist in preparing25 the Department of Health and Hospitals in the transition to the new program. Such26 functions shall include existing fiscal intermediary services as well as efforts to27 control fraud and abuse, program reports, beneficiary enrollment and program28 information services, encounter data, and annual managed care negotiation data.29 E.J. Master Agreements. The state director of purchasing may enter into30 SB NO. 481 ENROLLED Page 23 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. master agreements with vendors with which the state conducts substantial business1 over a period of time.2 (1) Such agreements shall set forth those terms and conditions of specific3 legal import which relate to the basic provisions according to which procurement4 activity will be conducted, and shall meet the following requirements:5 (a) Such agreements may be for any term up to sixty months.6 (b) All agreements must contain a clause providing that any changes7 mandated by state or federal law, whether legislative or judicial, will be8 incorporated; however, if such a change is not acceptable to either party, the affected9 term or terms of the contract shall be renegotiated and, if agreement cannot be10 reached, shall be stricken from the contract.11 (c) A specific provision of any such agreement may be waived or changed12 only once during the term of the agreement, by mutual consent, expressed in writing.13 (d) Each master agreement must be negotiated by a procurement support14 team and executed on behalf of the state by the state director of purchasing.15 (2) Vendors may refer to the master agreement on file with the state director16 of purchasing when responding to invitations for bids for specific items of data17 processing information technology equipment, related services, or software. Such18 bid responses must include a proposed schedule incorporating the terms of the master19 agreement and further detailing the items and prices bid. The selected vendor and the20 procuring agency shall sign the schedule and submit it to the state central purchasing21 agency for approval.22 (3) The state director of purchasing, subject to the approval of commissioner23 of administration, shall have authority for determining when and if master24 agreements may be used. Notwithstanding any other provisions of this Part, master25 agreements shall not be used to circumvent the competitive bid process otherwise26 required by law.27 F.K. The Department of Public Safety and Corrections may enter into a28 multiyear contract not to exceed ten years when contracting for the Video Gaming29 Monitoring System for the purposes described in R.S. 27:302(A)(5)(o) R.S.30 SB NO. 481 ENROLLED Page 24 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 27:405(B)(1). This contract may be awarded by the competitive request for proposal1 procedures set forth in R.S. 39:1593(C).2 G.L. The Department of Wildlife and Fisheries may enter into a multiyear3 contract not to exceed ten years when contracting for the issuance of hunting and4 fishing licenses through an electronic issuance system as authorized by R.S. 56:30.1.5 This contract may be awarded by the competitive request for proposal procedures set6 forth in R.S. 39:1593(C).7 M. Any contract entered into for a period of more than three years as8 authorized by this Section shall be subject to prior approval of the Joint9 Legislative Committee on the Budget.10 §199. Methods of procurement11 A. The only methods of procurement permitted for the acquisition of data12 processing equipment, related services, or software are those defined in this Section.13 Except as provided in Subsection B, all procurement of computer hardware shall be14 by competitive sealed bidding. The office of technology services, through the15 state purchasing office, may procure information technology systems and16 information technology 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 to22 be provided under the contract, the functional specifications, the criteria to be23 used in evaluating the proposals, and the time frames within which the work24 must be completed or the service provided.25 (b) For information systems lease contracts, the request for proposals26 shall require that proposals contain a declaration as to the maximum price for27 which the system may be purchased following the termination of the lease28 contract. No other basis of evaluation shall be used except that set out in the29 request for proposals.30 SB NO. 481 ENROLLED Page 25 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (3) The office of technology services shall evaluate all proposals to1 determine the proposal most advantageous to the state, taking into2 consideration all evaluation criteria set forth in the request for proposals, and3 shall make a recommendation of award to the state purchasing office.4 (4) The office of technology services may request that the state5 purchasing office reject all proposals when it is deemed that such action is in the6 best interest of the state.7 B. Other methods. Other methods of procurement permitted for acquisitions8 hereunder are small purchases in accordance with rules and regulations promulgated9 by the state central purchasing agency and emergency acquisitions or rentals of data10 processing equipment if such procurement is conducted under applicable laws and11 rules and regulations specified by the state central purchasing agency. The office of12 technology services may procure information technology systems and13 information technology services in accordance with the law or regulations, or14 both, which govern the state purchasing office, the division of administration.15 C. Method for procuring maintenance services. Notwithstanding any other16 provisions of this Part, any agency may procure maintenance services for data17 processing information technology equipment without the need for competitive18 bidding. Such procurement must have the written advance approval of the state19 central purchasing agency and shall not be for a price greater than the vendor's20 published price. The procurement support team shall develop and deliver to the21 office of state purchasing and the office of information technology proposed rules22 establishing guidelines for procurement activities under this Part. Upon approval of23 the office of information technology, the office of state purchasing shall promulgate24 rules in accordance with the Administrative Procedure Act.25 D. Method for procuring software and software maintenance and support26 services. Notwithstanding any other provisions of this Part, any agency may procure27 data processing software, software maintenance, and support services without the28 need for competitive bidding. Such procurement must have the written advance29 approval of the state central purchasing agency and shall not be for a price greater30 SB NO. 481 ENROLLED Page 26 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. than the vendor's published price. The procurement support team shall develop and1 deliver to the office of state purchasing and the office of information technology2 proposed rules establishing guidelines for procurement activities under this Part.3 Upon approval of the office of information technology, the office of state purchasing4 shall promulgate rules in accordance with the Administrative Procedure Act.5 E. Method for procuring microcomputer equipment, word processing6 equipment, software, and maintenance services. Notwithstanding any other7 provisions of this Part, any agency may procure by purchase, rental, or lease8 microcomputer equipment, word processing equipment, software, and maintenance9 services through name brand contracts awarded by the state central purchasing10 agency in accordance with the provisions of R.S. 39:1551 through 1736. Such11 procurement must have the written advance approval of the state central purchasing12 agency. The terms and conditions of such name brand contracts may be amended by13 the central purchasing office.14 F. Method for procuring data processing information technology equipment,15 software, and maintenance services for public colleges and universities.16 Notwithstanding any other provisions of this Part, any public college or university17 may procure, through its purchasing officer, data processing information18 technology equipment, software, and maintenance services without the advance19 approval of the state central purchasing agency when a single expenditure for such20 materials or combined materials and services does not exceed one hundred thousand21 dollars.22 G.F.(1) The commissioner of administration shall for each fiscal year23 designate a goal for awarding to small businesses a portion of anticipated total state24 procurement of data processing information technology equipment and software.25 For purposes of this Subsection, "small businesses" shall be defined as an employer26 with fifty or fewer employees. The commissioner may divide the procurements so27 designated into contract award units of economically feasible production runs in28 order to facilitate offers or bids from small businesses. In making his annual29 designation of goals for small business procurements, the commissioner shall attempt30 SB NO. 481 ENROLLED Page 27 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. to vary the included procurements so that a variety of data processing information1 technology equipment and software produced by different small businesses shall be2 a goal each year. The failure of the commissioner to establish a goal for particular3 procurements shall not be deemed to prohibit or discourage small businesses from4 seeking the procurement award through the normal solicitation and bidding5 processes. The commissioner of administration shall report to the Joint Legislative6 Committee on the Budget and to the House Committee on Commerce and the Senate7 Committee on Commerce, Consumer Protection, and International Affairs on the8 program established in this Subsection each year prior to the submission of the9 executive budget. Such report shall include the goals and awards from the previous10 year, a list of unsuccessful awards as described in Paragraph (4) of this Subsection,11 and the goals for the upcoming year.12 (2) Contract procedure. The commissioner shall establish a contract13 procedure in accordance with law, for the awarding of a procurement contract under14 the goals established in this Subsection. Surety bonds guaranteed by the federal15 United States Small Business Administration shall be acceptable security for an16 award under this Subsection.17 (3) Responsibility of bidder or offeror. Before making a goal award, the18 commissioner shall evaluate whether the small business scheduled to receive the19 award is able to perform the set-aside contract. This determination shall include20 consideration of production and financial capacity and technical competence.21 (4) Award of contracts after unsuccessful goal procedures. In the event that22 the provisions of this Subsection do not operate to extend a contract award to a small23 business, the award shall be placed pursuant to the existing solicitation and award24 provisions established by law. The commissioner shall thereupon designate a goal25 for small businesses' additional state procurements of data processing information26 technology equipment and software corresponding in approximate value to the27 contract unable to be awarded pursuant to the provisions of this Subsection.28 (5) Conflict with other code provisions. All laws and rules pertaining to29 solicitations, bid evaluations, contract awards, and other procurement matters not30 SB NO. 481 ENROLLED Page 28 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. inconsistent with the provisions of this Subsection shall apply to procurements set-1 aside for small businesses. In the event of conflict with other rules, the provisions of2 this Subsection shall govern.3 §200. General provisions4 The following general provisions shall apply to all procurements under this5 Part:6 A. Used equipment. Used data processing information technology7 equipment is defined to include all equipment which cannot be certified as new by8 the vendor. Used equipment may be acquired through rental or purchase when the9 vendor and/or manufacturer certify that:10 (1) The equipment has been properly maintained and used.11 (2) Maintenance acceptable to the state is available by contract at a cost12 which shall not increase the total cost to the state to that level which would exist13 should the state acquire the same equipment new.14 (3) The equipment is warranted by the manufacturer or vendor under the15 same terms and conditions as those offered by the manufacturer for that equipment16 when new.17 B. Purchase of equipment being leased or rented. Equipment being leased or18 rented by a state agency may be purchased without the need for competitive sealed19 bidding. When the contract under which the equipment is being leased or rented20 provides for any credit of rental or lease payments toward purchase, the leasing or21 renting vendor shall be required to deduct such credits from the purchase price. A22 written analysis of the contract must be made by the using agency and filed with the23 state central purchasing agency. Such analysis shall at a minimum include the current24 market value of the equipment, the total amount paid to the vendor as lease or rental25 payments credited to the purchase price, the total time the equipment was leased or26 rented, and the amount of and contractor for related prior and subsequent contracts,27 including but not limited to maintenance contracts. Such purchases shall have the28 written advance approval of the state central purchasing agency, and the legislature29 shall have provided a specific appropriation for such purchase.30 SB NO. 481 ENROLLED Page 29 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. C. Disposition of data processing information technology equipment no1 longer required by state agencies. The state central purchasing agency shall have the2 authority to dispose of data processing information technology equipment no longer3 required by a state agency in accordance with regulations which shall be developed4 and published by the state central purchasing agency. Such dispositions may be5 through trade-in, assignment to another state agency, or sale. Dispositions other than6 by assignment to another agency shall be on a competitive basis.7 D. Effective date of contracts. Any contracts entered into under the8 provisions of this Part may have an effective starting date at any point during a fiscal9 year. No contract entered into hereunder shall have an initial effective date earlier10 than the date on which such contract receives the final statutorily required approval.11 However, with the approval of the state central purchasing agency, a state agency12 shall make payments to a vendor in those circumstances where it has utilized the13 data processing information technology equipment to be contracted prior to the14 actual receipt of the final statutorily required approval. The state central purchasing15 agency shall determine the size of the payments in accordance with the number of16 such days of utilization.17 E. Contract amendments. All changes, modifications, and amendments to any18 contract hereunder shall be approved in advance by the state central purchasing19 agency, in addition to any other statutorily required approvals. This Subsection shall20 not apply to contracts for maintenance or software, but amendments to such contracts21 may not increase the rates specified in such contracts to a figure greater than the22 vendor's published standard rates.23 F. Contract form. No contracts entered into hereunder shall be on preprinted24 contract forms supplied by a vendor, unless otherwise approved by the director of25 state purchasing.26 G. Proposal or bid incorporated into contract. Where written proposals or27 bids are submitted by vendors, the proposal or bid of the successful vendor shall be28 incorporated into the final contract consummated with that vendor.29 H. Letters of intent. Letters of intent may be issued by an agency to a vendor30 SB NO. 481 ENROLLED Page 30 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. solely for the purpose of obtaining a delivery schedule with that vendor. All such1 letters must be clearly identified as such, and must be filed on issuance with the2 office of data processing information technology and the attorney general.3 I. Procurement support. All contracts covered under the provisions of this4 Chapter, in an amount greater than one hundred thousand dollars, whether for5 purchase or rental payments or fiscal intermediary services in processing claims of6 health care providers, or master agreements, but excluding taxes, transportation, and7 other related services, shall be entered into with the assistance of a procurement8 support team as provided in Paragraph (2) below of this Subsection and in9 accordance with guidelines to be published by the state central purchasing agency.10 (1) Procurement support team participation must include, as a minimum,11 assistance in evaluation of bids and negotiation of contracts.12 (2) A procurement support team shall consist of a person chosen jointly by13 the speaker of the House of Representatives and the president of the Senate from14 among the attorneys on the legislative services staff of the House of Representatives15 or the staff of the Senate and one or more representatives from each of the following:16 the Division of Administration, central purchasing agency; the using agency17 initiating the procurement action; and the Legislative Fiscal Office. At least two18 members of the team shall have received formal training in computer contract19 negotiations. At least four members, one from each office or agency designated,20 must be present to constitute a quorum.21 J. Contract specifications. (1) A specification may be drafted which describes22 a product which is proprietary to one company only where when no other kind of23 specification is reasonably available for the state to describe its requirements; or24 where there is a requirement for specifying a particular design or make of product25 due to factors of compatibility, standardization, or maintainability; and, where when26 such specification includes language which specifically permits an equivalent to be27 supplied. Such specification shall include a description of the essential characteristics28 of the product.29 (2) Whenever proprietary specifications are used, the specifications shall30 SB NO. 481 ENROLLED Page 31 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. clearly state that the proprietary characteristics are used only to denote the quality1 standard of the equipment desired and that such specifications do not restrict vendors2 to the specific brand, make, or manufacture; that they are used only to set forth and3 convey to prospective bidders the general style, type, character, and quality of4 equipment desired; and that equivalents will be acceptable.5 (3) The specifications in an invitation for bids shall contain a list of the6 factors to be considered in evaluating the responses to the invitation, and any weights7 assigned to those factors. No other basis of evaluation shall be used with respect to8 bids received. When relevant, the following factors shall be included in the9 specifications: cost of transportation, installation, and conversion of operations;10 taxes; or cost of conversion to different equipment architecture.11 K. The provisions of this Part shall, with respect to the procurement of12 information technology systems or information technology services, supersede13 specifications of any contradictory or conflicting provisions of the following14 statutes: R.S. 38:2211 et seq. with respect to awarding of public contracts and15 R.S. 39:1551 through 1736, but all other provisions in Chapter 17 of Title 3916 apply to all procurements under this Part. The provisions of this Part do not17 relate to the procurement of services covered by R.S. 39:1481 through 152618 except as provided in R.S. 39:198. The Louisiana Lease of Movables Act, R.S.19 9:3301 through 3342, shall not apply to the provisions of this Part.20 L. Volume discounts. The state director of purchasing, on behalf of one or21 more state agencies, may enter into non-binding agreements with vendors for the22 purpose of establishing volume discounts. Such agreements shall be based on the23 estimated usage and requirements of state agencies. In addition to specific24 authorizations contained in this Part, and pursuant to R.S. 39:15.2(C), the state25 chief information officer, with the approval of the commissioner of26 administration or his designee, shall have the power and authority to make27 necessary and reasonable regulations and orders to carry out the provisions of28 this Part in accordance with the provisions of the Administrative Procedure29 Act.30 SB NO. 481 ENROLLED Page 32 of 32 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. M. Other laws. The provisions of this Part shall, with respect to the1 procurement of data processing equipment, related services, and software, supersede2 specifications of any contradictory or conflicting provisions of the following statutes:3 R.S. 39:330 with respect to the disposition of equipment; R.S. 38:2211 et seq. with4 respect to the awarding of public contracts; and Chapter 17 of Title 39. The5 provisions of this Part do not relate to the procurement of services covered by R.S.6 39:1481 through R.S. 39:1526.7 Section 3. The Louisiana State Law Institute is hereby authorized and requested to8 review all statutes which contain the name of the office of information technology, changed9 in this Act, and in all locations it deems appropriate change said references to the office of10 technology services.11 Section 4. This Act shall become effective on July 1, 2014; if vetoed by the governor12 and subsequently approved by the legislature, this Act shall become effective on July 1,13 2014, or on the day following such approval by the legislature, whichever is later.14 PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: