HLS 24RS-1454 REENGROSSED
2024 Regular Session
HOUSE BILL NO. 845
BY REPRESENTATIVE DESHOTEL
PROCUREMENT: Provides relative to procurement of information technology
1 AN ACT
2To amend and reenact R.S. 24:673(A) and (C) and R.S. 39:198(A), (B)(introductory
3 paragraph) and (1), (C)(1), (D)(introductory paragraph), (1), and (2),
4 (E)(introductory paragraph) and (4), (G)(introductory paragraph) and (1)(a), (c), and
5 (d), (I), and (M), to enact R.S. 39:197(20) through (22), 1556(63), 1593(6)(f), and
6 1600.2, and to repeal R.S. 39:198(G)(4) and 200(I), relative to the procurement of
7 information technology; to provide for authority of certain legislative committees;
8 to provide for review of certain contracts; to provide for methods of procurement;
9 to provide for invitation to negotiate as a method of procurement; to provide for the
10 types of contracts that may be procured by certain methods; to provide relative to
11 contract terms; to provide relative to procurement support; and to provide for related
12 matters.
13Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 24:673(A) and (C) are hereby amended and reenacted to read as
15follows:
16 §673. Budget requests and expenditure requests; technology funds, fees, and
17 donations; review
18 A. At the request of the Joint Legislative Committee on the Budget, the
19 committee shall review any budget request or expenditure request The committee
20 may review any budget request, expenditure request, or procurement request related
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1 to technology or cybersecurity. The committee shall review and approve a budget
2 request, expenditure request, or procurement request if required by law or requested
3 by the Joint Legislative Committee on the Budget. The committee shall perform its
4 review and submit its comments and recommendations regarding the request to the
5 Joint Legislative Committee on the Budget in a timely manner.
6 * * *
7 C. The committee may review all any technology fees and expenditures
8 related to information technology and cybersecurity from dedicated funds any means
9 of finance and shall report its findings and recommendations as it deems appropriate.
10 Section 2. R.S. 39:198(A), (B)(introductory paragraph) and (1), (C)(1),
11(D)(introductory paragraph), (1), and (2), (E)(introductory paragraph) and (4),
12(G)(introductory paragraph) and (1)(a), (c), and (d), (I), and (M) are hereby amended and
13reenacted and R.S. 39:197(20) through (22), 1556(63), 1593(6)(f), and 1600.2 are hereby
14enacted to read as follows:
15 §197. Definitions
16 For the purposes of this Part, the following words and phrases shall be
17 defined as follows:
18 * * *
19 (20) "Consulting service" shall have the same meaning as provided in R.S.
20 39:1556.
21 (21) "Invitation to negotiate" means a written or electronically posted
22 solicitation for competitive sealed replies to select one or more vendors with which
23 to commence negotiations for the procurement of information technology systems,
24 information technology services, software, professional services, or consulting
25 services.
26 (22) "Professional service" shall have the same meaning as provided in R.S.
27 39:1556.
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1 §198. Types of contracts permitted
2 A. The types of contracts permitted in the procurement of information
3 technology systems, information technology services, and software, and professional
4 services contracts and consulting services contracts related to information
5 technology, are defined in this Part, and the provisions of this Part supersede, with
6 respect to such procurements, any existing conflicting statutory provisions and
7 supplement the provisions of R.S. 39:1551 through 1736.
8 B. The office of technology services, through the state purchasing office,
9 office of state procurement, may, on behalf of any state agency, enter into
10 information technology systems contracts, as well as professional services contracts
11 and consulting services contracts related to information technology, in accordance
12 with the following provisions:
13 (1) Contracts of this type shall be entered into through a request for
14 proposals as provided in R.S. 39:199. using one of the methods of source selection
15 provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702. An invitation
16 to bid format may be utilized with written approval from the state chief information
17 officer.
18 * * *
19 C. The office of technology services, through the office of state procurement,
20 may on behalf of any state agency, enter into information technology services
21 contracts in accordance with the following provisions:
22 (1) Contracts of this type shall be entered into through a request for
23 proposals as provided in R.S. 39:199. using one of the methods of source selection
24 provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702. An invitation
25 to bid format may be utilized with written approval from the state chief information
26 officer.
27 * * *
28 D. The office of technology services, through the office of state
29 procurement, may on behalf of any state agency, enter into a an information
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1 technology systems lease contract for an operating lease, installment purchase, or
2 financed lease for information technology systems in accordance with the following
3 provisions:
4 (1) All contracts of this type shall be entered into through a request for
5 proposals as provided in R.S. 39:199. using one of the methods of source selection
6 provided in R.S. 39:199, 200, 1594, 1595, 1600(D), 1600.2, and 1702.
7 (2) The justification of such contracts must be approved by the office of
8 technology services prior to issuance of a request for proposals or an invitation to
9 negotiate. Such justification shall identify and consider all cost factors relevant to
10 that contract.
11 * * *
12 E. Notwithstanding the provisions of R.S. 39:1615 to the contrary, the The
13 use of a multi-year contract for information technology systems, and information
14 technology services, and professional services contracts and consulting services
15 contracts related to information technology shall be in accordance with rules and
16 regulations and under the following conditions:
17 * * *
18 (4) A report of all multi-year contracts shall be provided to the Joint
19 Legislative Committee on the Budget and the Joint Legislative Committee on
20 Technology and Cybersecurity no later than ninety days after the end of each fiscal
21 year.
22 * * *
23 G. Multiyear contracts other than direct order contracts and contracts for
24 fiscal intermediary services. The office of technology services, through the office of
25 state procurement, may on behalf of any state agency State agencies may enter into
26 contracts for the lease or purchase of information technology systems, information
27 technology services, or software, and professional services contracts and consulting
28 services contracts related to information technology when the term of such lease or
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1 purchase is greater than twelve months or involves more than one fiscal year in
2 accordance with the following provisions:
3 (1) General terms and conditions for multiyear contracts shall be as follows:
4 (a) All contracts of this type shall be entered into through competitive sealed
5 bidding using one of the methods of source selection as provided in R.S. 39:199,
6 200, 1594, 1595, 1600(D), 1600.2, and 1702.
7 * * *
8 (c)(i) The term of such contract shall not exceed sixty months be in
9 accordance with Subsections B, C, and D of this Section.
10 (ii) Notwithstanding Item (i) of this Subparagraph, contracts for electronic
11 benefits issuance system services as required pursuant to R.S. 46:450.1 may be
12 entered into for periods of up to ten years. The contracts shall be for an initial
13 contract period of six years with the state having two options for two-year extensions
14 up to a maximum of ten years.
15 (iii) Notwithstanding Item (i) of this Subparagraph and Subsection I of this
16 Section, contracts of this type may be entered into for periods of up to ten years with
17 approval from the Joint Legislative Committee on Technology and Cybersecurity.
18 The contracts shall be for an initial contract period of no more than six years with the
19 state having two options for two-year extensions up to a maximum of ten years.
20 (d)(i) All such contracts must shall contain the following annual
21 appropriation dependency clause:
22 "The continuation of this contract is contingent upon the continuation of an
23 appropriation of funds by the legislature to fulfill the requirements of the contract.
24 If the legislature fails to appropriate sufficient monies to provide for the continuation
25 of a contract or if such appropriation is reduced by the veto of the governor or by any
26 means provided in the Appropriation Act or Title 39 of the Louisiana Revised
27 Statutes of 1950 to prevent the total appropriations for the year from exceeding
28 revenues for that year or for any other lawful purpose and the effect of such
29 reduction is to provide insufficient monies for the continuation of the contract, the
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1 contract shall terminate on the date of the beginning of the first fiscal year for which
2 funds are not appropriated."
3 (ii) When funds are not appropriated or otherwise made available to support
4 continuation of performance in the following fiscal year of a multiyear contract for
5 professional or consulting services, the contract for the remaining term shall be
6 cancelled and the contractor shall be reimbursed in accordance with the terms of the
7 contract for the reasonable value of any nonrecurring costs incurred but not
8 amortized in the price of services delivered pursuant to the contract. The cost of
9 cancellation may be paid from appropriations made specifically for the payment of
10 such cancellation costs or from unobligated funds of the using agency.
11 (iii) With respect to all multiyear contracts for professional services and
12 consulting services pursuant to this Subsection, there shall be no provisions for a
13 penalty to the state for cancellation or early payment of the contract.
14 * * *
15 I. Contracts for fiscal intermediary services. (1) State agencies may enter
16 into contracts for fiscal intermediary services. as follows: The term of the contract
17 shall be one hundred twenty months. If special circumstances, as provided in
18 Paragraph (9) of this Subsection, necessitate, additional one-year extensions of the
19 contract may be granted. The award process and final contract shall include the
20 following:
21 (1) Contracts for fiscal intermediary services shall be awarded by
22 competitive sealed proposals in accordance with R.S. 39:1595 or cooperative
23 purchasing in accordance with R.S. 39:1702.
24 (a) Contracts for fiscal intermediary services with a total contract value of
25 ten million dollars or less, valued over the total period of performance, may be
26 awarded by competitive sealed proposals in accordance with R.S. 39:1595 or
27 cooperative purchasing in accordance with R.S. 39:1702.
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1 (b) Contracts for fiscal intermediary services with a total contract value
2 greater than ten million dollars, valued over the total period of performance, shall be
3 awarded by competitive sealed proposals in accordance with R.S. 39:1595.
4 (2) Except as otherwise provided in this Section, the award process and final
5 contract shall comply with the following requirements:
6 (2) (a) Justification for the contract shall be submitted to the state central
7 purchasing agency office of state procurement and shall be submitted to the Joint
8 Legislative Committee on the Budget at least forty-five days prior to the issuance of
9 a solicitation for proposals. Joint Legislative Committee on Technology and
10 Cybersecurity. Within thirty days of receipt of the justification by the Joint
11 Legislative Committee on the Budget Joint Legislative Committee on Technology
12 and Cybersecurity, the committee may conduct a public hearing on the justification
13 which was submitted. This justification shall include identification and consideration
14 of all factors, including costs, relevant to the solicitation for proposals and the final
15 proposed contract.
16 (3) (b) The term of the contract shall be one hundred twenty months. The
17 one-hundred-twenty-month term of such contract shall be divided into one period of
18 between thirty-six months and sixty months, immediately followed by successive
19 twelve-month periods. The state shall have an option to renew such contract for each
20 of the twelve-month periods. If the state does not exercise its option to renew, the
21 contract shall be terminated. In the event special circumstances occur, as provided
22 in Paragraph (9) (3) of this Subsection, additional twelve-month extensions of the
23 contract may be granted.
24 (4) (c) In addition to other provisions as required by law or in the best
25 interests of the state, such contract shall contain provisions setting forth, (a) (i) the
26 amount and requirements of the contractor's performance bond, (b) (ii) penalty and
27 enforcement provisions for the failure of the contractor to perform in accordance
28 with the contract documents, (c) (iii) conditions for optional renewal of the contract
29 by the state in accordance with the provisions of this Subsection, and (d) (iv)
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1 requirements for termination of the contract by the state at any time, or for cause, or
2 upon the refusal of the state to exercise an option to renew such contract.
3 (5) (d)(i) Issuance If procurement is pursuant to competitive sealed proposals
4 pursuant to Subparagraph (1)(b) of this Subsection, issuance of specifications for a
5 solicitation for proposals on a contract for fiscal intermediary services shall be made
6 at least twelve months prior to the termination date of an existing contract, unless the
7 contract termination is for cause or due to the refusal of the state to exercise an
8 option to renew.
9 (ii) If procurement is pursuant to Subparagraph (1)(b) of this Subsection, any
10 award of a contract shall be in compliance with Subsection M of this Section.
11 (6) (e) No If procurement is pursuant to Subparagraph (1)(a) of this
12 Subsection, no award of the contract shall be made until the Joint Legislative
13 Committee on the Budget Joint Legislative Committee on Technology and
14 Cybersecurity has conducted a public hearing concerning the award.
15 (7) (f) No award of the contract shall be made later than eight months prior
16 to the termination date of an existing contract, unless the contract termination is for
17 cause or due to the refusal of the state to exercise an option to renew.
18 (8) (g) No option to renew the contract shall be exercised by the state until
19 the following criteria have been satisfied:
20 (a) (i) The Louisiana Department of Health has conducted a public hearing
21 concerning such renewal.
22 (b) (ii) The Louisiana Department of Health submits to the Joint Legislative
23 Committee on the Budget Joint Legislative Committee on Technology and
24 Cybersecurity a notice of intention by the Louisiana Department of Health to
25 exercise the option to renew the contract and a copy of any public testimony which
26 was taken at the public hearing held by the Louisiana Department of Health. The
27 Joint Legislative Committee on the Budget Joint Legislative Committee on
28 Technology and Cybersecurity may hold a public hearing concerning the renewal
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1 within thirty days following the receipt of a notice of intention by the Louisiana
2 Department of Health to exercise the option to renew the contract.
3 (c) (iii) The Joint Legislative Committee on the Budget Joint Legislative
4 Committee on Technology and Cybersecurity has conducted a public hearing
5 concerning the renewal or thirty days have elapsed from the date the Louisiana
6 Department of Health submitted a notice of intention to renew the contract to the
7 Joint Legislative Committee on the Budget Joint Legislative Committee on
8 Technology and Cybersecurity and the committee has not posted a public notice of
9 meeting concerning the renewal of the contract.
10 (h) If procurement is pursuant to competitive sealed proposals pursuant to
11 Subparagraph (1)(b) of this Subsection and the request for proposals references a
12 prior fiscal intermediary services procurement approved by the United States
13 Department of Health and Human Services, Centers for Medicare and Medicaid
14 Services and the prior procurement resulted in multiple pre-qualified suppliers, the
15 publication of any request for proposals required pursuant to this Subsection and R.S.
16 39:1595 may be limited to such pre-qualified suppliers, if the agency provides
17 written notice of the request for proposals to all pre-qualified suppliers.
18 (9) (3) In the event the Louisiana Department of Health or the United States
19 Department of Health and Human Services, Centers for Medicare and Medicaid
20 Services proposes substantial changes in the operations of the Medicaid program that
21 would materially impact the services performed by the fiscal intermediary, the
22 Louisiana Department of Health may, subject to the approval of the Joint Legislative
23 Committee on the Budget Joint Legislative Committee on Technology and
24 Cybersecurity, approve additional extensions of the contract until it is practical to
25 prepare a solicitation for proposals describing the revised services that would be
26 performed by the fiscal intermediary. During the time frame covered by any
27 extension beyond the original one-hundred-twenty-month period, the fiscal
28 intermediary may be required to perform additional functions to assist in preparing
29 the Louisiana Department of Health in the transition to the new program. These
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1 functions may include existing fiscal intermediary services as well as efforts to
2 control fraud and abuse, program reports, beneficiary enrollment and program
3 information services, encounter data, and annual managed care negotiation data.
4 * * *
5 M.(1)(a) Any contract entered into for a period of more than three years as
6 authorized by this Section shall be subject to prior approval of the Joint Legislative
7 Committee on the Budget. No award of any contract procured for a period of more
8 than three years, inclusive of contract extension options, and with a cost of more than
9 ten million dollars shall be made until the contract is reviewed and approved by the
10 Joint Legislative Committee on Technology and Cybersecurity. If an extension of
11 any contract procured for a period of more than three years, inclusive of contract
12 extension options, and with a cost of more than ten million dollars would increase
13 the total contract cost more than five percent, then the extension shall not be
14 executed until after the extension is reviewed and approved by the Joint Legislative
15 Committee on Technology and Cybersecurity.
16 (b) The issuing agency shall submit the contract for review and approval by
17 the Joint Legislative Committee on Technology and Cybersecurity. The Joint
18 Legislative Committee on Technology and Cybersecurity shall conduct a public
19 hearing to consider approval of the award no later than thirty days after the contract
20 is submitted by the issuing agency. Any request not approved within thirty days
21 after the contract is submitted by the issuing agency shall automatically be referred
22 by the chairman of the Joint Legislative Committee on Technology and
23 Cybersecurity to the Joint Legislative Committee on the Budget for review and
24 approval.
25 (c) Any contract approved by the Joint Legislative Committee on
26 Technology and Cybersecurity pursuant to this Subsection shall be reported to the
27 Joint Legislative Committee on the Budget.
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1 (d) The chairman of the Joint Legislative Committee on Technology and
2 Cybersecurity may, at his discretion, refer any request for review and approval
3 directly to the Joint Legislative Committee on the Budget.
4 (2) The office of technology services shall submit a monthly report of all
5 multiyear contracts with a cost of more than one million dollars to the Joint
6 Legislative Committee on Technology and Cybersecurity.
7 (3) No award of any contract procured through an invitation to negotiate
8 pursuant to this Part shall be made until after the contract has been reviewed by the
9 Joint Legislative Committee on Technology and Cybersecurity.
10 * * *
11 §1556. Definitions
12 As used in this Chapter, the words defined in this Section shall have the
13 meanings set forth below, unless the context in which they are used clearly requires
14 a different meaning or a different definition is prescribed for a particular Part or
15 provision:
16 * * *
17 (63) "Invitation to negotiate" means a written or electronically posted
18 solicitation for competitive sealed replies to select one or more vendors with which
19 to commence negotiations for the procurement of information technology systems,
20 information technology services, software, professional services, or consulting
21 services.
22 * * *
23 §1593. Methods of source selection
24 Unless otherwise authorized by law, all state contracts shall be awarded by
25 one of the following methods:
26 * * *
27 (6) R.S. 39:1600, other procurement methods:
28 * * *
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1 (f) Invitation to negotiate.
2 * * *
3 §1600.2. Invitation to negotiate
4 A. Notwithstanding any other provision of law to the contrary, with the
5 written determination by the state chief procurement officer that the best interest of
6 the state would be served, especially where the business need is complex or requires
7 innovation, an invitation to negotiate may be utilized for procurements of any
8 monetary amount, including small purchases.
9 B. Before issuing an invitation to negotiate, the state chief procurement
10 officer shall determine and specify in writing that procurement by the other methods
11 of source selection provided in R.S. 39:199, 200, 1594, 1595, 1600(D), and 1702 are
12 not practicable.
13 C. The invitation to negotiate shall describe the questions being explored, the
14 facts being sought, and the specific goals or problems that are the subject of the
15 solicitation, and shall be subject to all of the following conditions:
16 (1) The solicitation shall specifically allow for the possibility of negotiation
17 and describe, with as much specificity as possible, how negotiations may be
18 conducted.
19 (2) Only those vendors whose proposals or offers are determined to be
20 acceptable, in accordance with criteria for negotiations set forth in the solicitation,
21 shall be candidates for negotiations.
22 (3) Negotiations shall be conducted with all acceptable candidates in
23 accordance with the terms of the solicitation.
24 (4) Auction techniques and disclosure of information derived from
25 competing proposals are prohibited while negotiations are underway.
26 (5) Any clarifications or changes resulting from negotiations shall be
27 documented in writing.
28 (6) If negotiations as provided for in this Section fail to result in a contract,
29 as determined by the office of state procurement, the solicitation may be canceled.
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1 D. The office of state procurement may terminate negotiations at any time,
2 in the best interest of the state, and shall provide the reasons therefor in writing.
3 E. The contract file for the vendor selection through an invitation to
4 negotiate shall contain a short plain statement that explains the basis for the selection
5 of the vendor and that sets forth the vendor's deliverables and price, pursuant to the
6 contract, along with an explanation of how the deliverables and price provide the
7 best value to the state.
8 F. In accordance with the Administrative Procedure Act, the division of
9 administration, office of state procurement, is hereby authorized and directed to
10 adopt and promulgate rules necessary for the administration of the provisions of this
11 Section.
12 Section 3. R.S. 39:198(G)(4) and 200(I) are hereby repealed in their entirety.
13 Section 4. The Louisiana State Law Institute is hereby authorized and directed to
14arrange in alphabetical order and renumber the definitions provided in R.S. 39:197 and 1556
15as amended by this Act.
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 845 Reengrossed 2024 Regular Session Deshotel
Abstract: Provides for methods of procurement for information technology.
Present law provides for the creation of the Joint Legislative Committee on Technology and
Cybersecurity (JLCTC). Provides for the duties and functions of the committee, which
include the authority to review budget or expenditure requests related to technology or
cybersecurity.
Proposed law retains present law and adds the authority to review and approve procurement
requests related to technology or cybersecurity.
Present law provides for definitions related to the procurement of information technology.
Proposed law retains present law and adds the definitions of "consulting service", "invitation
to negotiate", and "professional service".
Present law provides for the types of contracts permitted in the procurement of information
technology systems, information technology services, and software. Provides for contracts
to be entered into through a request for proposals.
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Proposed law retains present law and adds professional services contracts and consulting
services contracts related to information technology to the types of contracts permitted in
present law provisions that govern procurement of information technology. Adds
competitive sealed bids, competitive sealed proposals, reverse auction, cooperative
purchasing, and an invitation to negotiate as methods of procurement for information
technology.
Present law provides for multi-year contracts in the procurement of information technology
systems, information technology services, and software.
Proposed law retains present law and adds professional services contracts and consulting
services contracts related to information technology to the types of contracts eligible for
multi-year contracts. Provides that professional services contracts and consulting services
contracts related to information technology shall not exceed an initial term of six years with
two options for two-year extensions for a maximum of ten years. Provides that contracts for
electronic benefit issuance system services shall be for an initial contract period of six years
with an option for two options for two-year extensions up to a maximum of ten years.
Present law requires all multi-year contracts to contain language concerning the
appropriation of funds to fulfill the requirements of the contracts. Proposed law retains
present law and provides for when funds are not appropriated to continue a multi-year
contract and the cost of cancellation of a contract.
Present law provides for the procurement of contacts for fiscal intermediary services.
Provides for the term of the contract to be one hundred twenty months. Provides for
additional one-year extensions.
Proposed law removes the authorization for additional one-year extensions.
Present law provides for contracts for fiscal intermediary services to be awarded by
competitive sealed proposals or cooperative purchasing. Proposed law requires competitive
sealed proposals or cooperative purchasing for fiscal intermediary contracts with a value of
$10 million or less. Further requires competitive sealed proposals for fiscal intermediary
contracts with a value greater than $10 million. Otherwise retains present law.
Present law requires justification for a fiscal intermediary contract to be submitted to the
Joint Legislative Committee on the Budget (JLCB). Further authorizes JLCB to conduct a
public hearing on the justification which was submitted. Proposed law changes the authority
of JLCB to JLCTC.
Present law requires certain provisions to be included in fiscal intermediary contracts.
Proposed law retains present law.
Present law requires the issuance of specifications for a solicitation of proposals on a
contract for fiscal intermediary services to be made at least 12 months prior to the
termination of the existing contract. Proposed law removes this requirement for contracts
for fiscal intermediary services when procured by competitive sealed proposals or
cooperative purchasing with a total contract value of $10 million or less. Proposed law
limits the requirement regarding issuance of specifications to contracts procured by a
competitive sealed proposal with a total contract value greater than $10 million. Proposed
law further requires contracts for fiscal intermediary services with a total contract value
greater than $10 million to be in compliance with all other provisions regarding multi-year
contracts.
Present law provides for JLCB to review a notice of intention by the Louisiana Dept. of
Health (LDH) to exercise an option to renew a fiscal intermediary contract. Further provides
for JLCB to hold a public hearing concerning the renewal following the receipt of notice of
intention. Proposed law changes the authority of JLCB to JLCTC.
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Proposed law authorizes state agencies to limit a proposal for fiscal intermediary services
to a limited list of pre-qualified suppliers when using a competitive sealed proposal with a
total contract value greater than $10 million that references a prior fiscal intermediary
services procurement approved by CMS and the prior procurement resulted in multiple pre-
qualified suppliers.
Present law provides for a report of all multi-year contracts to be provided to JLCB each
fiscal year. Provides that any contract entered into for more than three years is subject to
approval by JLCB.
Proposed law retains present law and adds that the report shall also be provided to JLCTC.
Proposed law requires that any contract entered into for more than three years, inclusive of
contract extension options, and with a cost of more than $10 million is subject to review and
approval by JLCTC. Requires review and approval by JLCTC of an extension of such a
contract if the extension would increase the total cost more than 5%. Provides a deadline for
such review by JLCTC and provides for the referral of the contract to JLCB when JLCTC
does not approve the contract prior to the deadline. Requires any contract approved by
JLCTC to be reported to JLCB. Authorizes the chairman of JLCTC, at his discretion, to refer
any contract for review and approval to JLCB. Requires a contract procured through an
invitation to negotiate to be reviewed by JLCTC. Further requires the office of technology
services to submit a monthly report of all multi-year contracts with a cost of more than $1
million to JLCTC.
Proposed law provides for the invitation to negotiate and sets the parameters for the
procurement method.
Present law requires certain contracts to be entered into with the assistance of a procurement
support team. Requires assistance in the evaluation of bids and negotiation of contracts.
Provides for the composition of the procurement support team.
Proposed law repeals present law.
(Amends R.S. 24:673(A) and (C) and R.S. 39:198(A), (B)(intro. para.) and (1), (C)(1),
(D)(intro. para.), (1), and (2), (E)(intro. para.) and (4), (G)(intro. para.) and (1)(a), (c), and
(d), (I), and (M); Adds R.S. 39:197(20)-(22), 1556(63), 1593(6)(f), and 1600.2; Repeals R.S.
39:198(G)(4) and 200(I))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Authorize the Joint Legislative Committee on Technology and Cybersecurity
(JLCTC) to approve budget requests, expenditure requests, or procurement
requests.
2. Remove language concerning items that may be procured with an invitation to
negotiate. Remove commodities or contractual services and replace with
information technology systems, information technology services, software,
professional services, or consulting services.
3. Authorize the office of technology services to enter into multi-year contracts for
up to ten years, with an initial contract period of six years and two options to
extend a contract for two-year extensions.
4. Authorize the office of technology services to award a contract for fiscal
intermediary services with a total contract value of $10 million or less using
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HB NO. 845
competitive sealed proposals or cooperative purchasing. Require this type of
contract to be reviewed by JLCTC prior to the award of a contract.
5. Authorize the office of technology services to award a contract for fiscal
intermediary services with a total contract value greater than $10 million using
competitive sealed proposals. Require this type of contract to issue specification
for a solicitation of proposals to be made at least 12 months prior to the
termination date of an existing contract. Require this type of contract to be in
compliance with the requirements for all other multi-year contracts.
6. Change the authority to review and approve a fiscal intermediary contract, the
option to renew, or an extension of a contract from the Joint Legislative
Committee on the Budget (JLCB) to JLCTC.
7. Authorize state agencies to limit a proposal for fiscal intermediary services to a
limited list of pre-qualified suppliers when using a competitive sealed proposal
with a total contract value greater than $10 million that references a prior fiscal
intermediary services procurement approved by CMS and the prior procurement
resulted in multiple pre-qualified suppliers.
8. Change the threshold for a multi-year contract to be reviewed and approved from
$2 million to $10 million.
9. Change the authority to review and approve a multi-year contract for a period of
more than three years or with a cost of more than $10 million from JLCB to
JLCTC. Remove the provision that the review of this type of contract would also
apply to the extension of the contract.
10.Require JLCTC to conduct a public a hearing to consider the approval of a
contract no later than 30 days after the contract is submitted by the issuing
agency. Authorize any contract not approved within the 30 days shall
automatically be referred by the chairman of JLCTC to JLCB for review and
approval.
11.Require any contract approved by JLCTC to be reported to JLCB.
12.Authorize the chairman of JLCTC, at his discretion, to refer any request for
review and approval directly to JLCB.
13.Remove the requirement that pending multi-year contracts be reported to JLCTC.
14.Remove the language that an invitation to negotiate may be utilized for the
acquisition of materials, supplies, services of any type, products, equipment, or
consulting services of any monetary amount, including small purchases. Add
language that the invitation to negotiate may be utilized for procurement of any
monetary amount, including small purchases.
15.Provide that auction techniques and disclosure of information derived from
competing proposals are prohibited during negotiations.
16.Remove language regarding ranking proposals or offers resulting from an
invitation to negotiate.
17.Make technical changes.
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HB NO. 845
The House Floor Amendments to the engrossed bill:
1. Restore source selection methods for the procurement of maintenance services,
software, software maintenance and support services, and the purchase of
equipment being leased or rented.
2. Change the review and approval a multi-year contract from those executed for
a period of more than three years or with a cost of more than $10 million to those
executed for a period of more than three years and with a cost of more than $10
million.
3. Require review and approval by JLCTC of an extension of a contract executed
for a period of more than 3 years and with a cost of more than $10 million if the
extension would increase the total cost more than 5%.
4. Make technical changes.
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