GREEN SHEET REDIGEST
HB 845 2024 Regular Session Deshotel
PROCUREMENT: Provides relative to procurement of information technology.
DIGEST
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".
Proposed law further provides that the definition of "multiyear contract" does not include
contracts for fiscal intermediary services.
Proposed law further provides that except for consulting services ancillary to the
procurement of fiscal intermediary services by cooperative purchasing consulting services
contracts shall be limited to the lesser of twenty percent of the procurement amount or two
hundred fifty thousand dollars.
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.
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.
Proposed law provides that any agency of a statewide elected official or the office of
technology services, whether acting in their own capacity or on behalf of any other state
agency, may enter into contracts for the lease or purchase of information technology systems,
information technology services, software, and professional services contracts and consulting
services contracts related to information technology.
Proposed law provides that any agency of a statewide elected official or the office of
technology services that is engaged in an active multiyear contract as of August 1, 2024, shall
have the option to extend those contracts through the office of state procurement.
Page 1 of 5
Prepared by Matt Deville. 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 provides that additional extensions of the contract for up to three years may
be granted.
Present law provides for contracts for fiscal intermediary services to be awarded by
competitive sealed proposals or cooperative purchasing.
Proposed law provides that state agencies may enter into contracts for fiscal intermediary
services either by competitive sealed proposals, cooperative purchasing, or invitation to
negotiate.
Proposed law provides that if the agency uses the competitive sealed proposals procurement
method, the procurement shall be made in accordance with 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.
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.
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Prepared by Matt Deville. 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. 39:197(13) and (16), 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
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.
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Prepared by Matt Deville. 10.Require JLCTC to conduct a public 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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Prepared by Matt Deville. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Senate and Governmental
Affairs to the reengrossed bill
1. Make technical changes.
2. Provide for definitions.
3. Provide that any agency of a statewide elected official or the office of technology
services may enter into contracts for the lease or purchase of information
technology systems, information technology services, software, and professional
services contracts and consulting services contracts related to information
technology.
4. Provide that any agency of a statewide elected official or the office of technology
services that is engaged in an active multiyear contract as of August 1, 2024, shall
have the option to extend those contracts through the office of state procurement.
5. Provide that state agencies may enter into contracts for fiscal intermediary
services either by competitive sealed proposals, cooperative purchasing, or
invitation to negotiate.
6. Require justification for the contract to be submitted to the Joint Legislative
Committee on Technology and Cybersecurity at least 45 days prior to the
issuance of a solicitation for proposals.
7. Provide that no award of a contract shall be made until the Louisiana Department
of Health submits a notice of intention to award the contract to the Joint
Legislative Committee on Technology and Cybersecurity.
8. Provides that the Joint Legislative Committee on Technology and Cybersecurity
may hold a public hearing concerning the award within 30 days following the
receipt of a notice of intention to award the contract.
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Prepared by Matt Deville.