DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 573 Reengrossed 2018 Regular Session Zeringue
Abstract: Allows political subdivisions to perform integrated coastal projects through
outcome-based contracting.
Proposed law authorizes political subdivisions to use an outcome-based performance contract
alternative project delivery method to contract for financing, designing, constructing, and monitoring
integrated coastal protection projects.
Proposed law prohibits the use of outcome-based performance contracts for projects that cost more
than $25 million or with terms exceeding 10 years.
Proposed law generally defines "outcome-based performance contract" to be a contract with specific
outcomes or goals and for payment upon completion of those agreed-upon outcomes or goals.
Proposed law defines "outcome-based performance contractor" as any person or entity properly
licensed, bonded, and insured who is responsible to the owner for the integrated coastal protection
project to be delivered.
Proposed law defines "owner" to be the political subdivision.
Proposed law defines "licensed design professional" as a licensed engineer, architect, or landscape
architect.
Proposed law defines "resident business" as one authorized to do and doing business under the laws
of this state that either maintains its principal place of business in the state or that employs a
minimum of two employees who are residents of La.
Proposed law also defines "coastal area", integrated coastal protection", and "comprehensive master
coastal protection plan".
Proposed law prohibits the political subdivision from accepting unsolicited proposals for outcome-
based performance contracts. Specifies that nothing in the law prohibits a company from making
suggestions for new projects or alterations to solicited proposals. Specifies that the award of any
contract may be made only after the issuance of a request for proposal and competitive bid.
Proposed law allows the political subdivision to formulate rules and guidelines necessary to
implement proposed law. Proposed law provides for financing terms and conditions of outcome-based performance contracts
to be determined by the political subdivision and the outcome-based performance contractor.
Proposed law allows the political subdivision to acquire land and easements in order to serve the
purpose of proposed law.
Proposed law requires outcome-based performance contractors employ duly licensed professionals.
Further provides that the rules and regulations of the La. Professional Engineering and Land
Surveying Board and the State Licensing Board for Contractors apply to proposed law.
Proposed law authorizes the political subdivision to provide a request for statement of interest and
qualification (RSIQ). Delineates the requirements of what must be included in the RSIQ including
a statement of the ability and intention of a contractor to provide equal opportunities in recruitment,
selection, appointment, promotion, training, and other employment areas associated with an
outcome-based performance contract.
Proposed law authorizes the political subdivision to establish a qualification review committee
which must evaluate the responses to the RSIQ. Proposed law additionally requires the qualification
review committee to create a list of the highest rated proposers and present the list to the political
subdivision.
Proposed law requires the political subdivision to issue a request for proposal (RFP) to those making
the list of highest rated proposers. Proposed law delineates what must be included in the RFP.
Proposed law authorizes the political subdivision to establish a proposal review committee
consisting of representatives of the owner, a design professional with appropriate expertise, and a
licensed contractor with appropriate expertise.
Proposed law requires the proposal review committee to make recommendations to the political
subdivision within 90 days of the deadline for responses to the RFP.
Proposed law requires the political subdivision and the selected outcome-based performance
contractor to execute a contract within 60 days of the award of the outcome-based performance
contract. Specifies that if no contract is executed within those 60 days, the political subdivision may
readvertise the project.
Proposed law requires the political subdivision to cancel any solicitation and decline to award a
contract if a determination is made that the cancellation or declination is in the best interests of the
political subdivision.
Proposed law prohibits a challenge by legal process to any selection of an outcome-based
performance contractor except for fraud, bias, or arbitrary and capricious selection by the authority.
Proposed law specifies that proposed law supersedes any conflicting provisions of present law. Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 38:2320.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation, Highways and
Public Works to the original bill:
1. Lower the estimated maximum threshold to prohibit outcome-based performance
contracts for any integrated coastal protection projects from $250 million to $25 million.
2. Decrease the contract term threshold to prohibit outcome-based performance contracts
for any integrated coastal protection projects from a contract term of 25 years to a
contract term of 10 years.
The House Floor Amendments to the engrossed bill:
1. Make technical changes.