2014 Louisiana Laws
Revised Statutes
TITLE 39 - Public Finance
RS 39:1600 - Other procurement methods

§1600. Other procurement methods

A. Unstable market conditions

Notwithstanding any other provisions of this Chapter to the contrary and in accordance with rules and regulations promulgated by the commissioner in accordance with the Administrative Procedure Act, the state chief procurement officer or director of purchasing at a college or university, with the approval of the commissioner, may procure by solicitation requiring written response from at least three bona fide bidders under the provisions of this Section, when it is determined that market conditions are unstable and the competitive bid process is not conducive for best pricing for products, supplies and other materials. The provisions of this Section shall be applicable only if the value of the contract is fifty thousand dollars or less and only after sufficient documentation is provided to the commissioner by the director to substantiate the unstable market.

B. Group purchasing

(1) The Louisiana State University Health Sciences Center may contract with a group purchasing organization through a competitive request for proposals process for medical and laboratory supplies and medical equipment required for the purpose of diagnosis or direct treatment of a patient by a health care provider in a hospital or clinic setting.

(2) Prior to the award of such contract, the proposed contract shall be approved by the commissioner of administration provided the Louisiana State University Health Sciences Center makes a written determination that prices from the group purchasing organization are fair market prices and that the contract is in the best interest of the state.

(3) No later than sixty days after a purchasing agency submits a proposed contract to the commissioner for approval, the commissioner shall notify the purchasing agency in writing as to whether the proposed contract has been approved or rejected. If the commissioner does not timely notify the purchasing agency of his decision, the request for approval on the proposed contract shall be deemed to have been approved. The commissioner shall not unreasonably withhold his approval.

C. Used equipment

(1) Any agency covered by this Chapter may procure any equipment which is used or which has been previously purchased by an individual or corporation where the agency proposing to make such procurement can present satisfactory information to the procurement officer to illustrate that the procurement of said equipment is cost effective to the state.

(2)(a) The used equipment shall be purchased by the head of the agency, college, or university, within the price range set by the state chief procurement officer, or the directors of purchasing at colleges and universities, in a statement of written approval for the purchase which must be obtained by the head of the agency, college, or university, prior to the purchase.

(b) The head of the agency, college, or university, shall certify in writing to the state chief procurement officer, or the directors of purchasing at colleges and universities, all of the following:

(i) The price for which the used equipment may be obtained.

(ii) The plan for maintenance and repair of the equipment and the cost thereof.

(iii) The savings that will accrue to the state because of the purchase of the used equipment.

(iv) The fact that following the procedures set out in the Louisiana Procurement Code will result in the loss of the opportunity to purchase the equipment.

D. Reverse auction

(1) Notwithstanding the provisions of Subpart A of this Part, with the approval of the state chief procurement officer and the determination of the head of the using agency that the best interests of the state would be served and that electronic online bidding is more advantageous than other procurement methods provided in this Chapter, a reverse auction may be utilized for the acquisition of materials, supplies, services, products, or equipment.

(2) Prior to the implementation of this Subsection, the state chief procurement officer shall develop policies, procedures, and promulgate regulations, in accordance with the Administrative Procedure Act. Such policies and procedures may require that:

(a) Vendors shall register before the opening date and time, and as part of the registration, require that the vendors agree to any terms and conditions and other requirements of the solicitation.

(b) Vendors shall be prequalified prior to placing bids and allow only bidders who are prequalified to submit bids.

(c) The solicitation shall designate an opening date and time and the closing date and time. The closing date and time may be fixed or remain open depending on the nature of the item being bid.

(d) At the opening date and time, the using agency shall begin accepting online bids and continue accepting bids until the bid is officially closed. Registered bidders shall be allowed to lower the price of their bid below the lowest bid posted on the Internet until the closing date and time.

(e) Bidders' identities shall not be revealed during the bidding process; only the successively lower prices, ranks, scores, and related bid details shall be revealed.

(f) All bids shall be posted electronically and updated on a real-time basis.

(g) The using agency shall retain the right to cancel the solicitation if it determines that it is in the agency's or the state's best interest.

(h) The using agency shall retain its existing authority to determine the criteria that shall be used as a basis for making awards.

(3) Adequate public notice for the purchase of materials, supplies, services, or equipment using a reverse auction shall be given as follows:

(a) The advertisement or notice shall be published one time in the official journal of the state at least twenty days before the opening date of the reverse auction.

(b) In the case of any purchase to meet the needs of a single budget unit, the advertisement shall be published also in a newspaper of general circulation printed in the parish in which the budget unit is situated, or, if there is not a newspaper printed in the parish, in a newspaper printed in the nearest parish that has a general circulation in the parish in which the budget unit is situated.

E. Negotiation of noncompetitive contracts.

The head of the using agency or the agency procurement officer shall negotiate with the highest qualified persons for sole source or emergency procurements or for professional, personal, or those consulting services for less than fifty thousand dollars, or those social services qualifying under R.S. 39:1619(B) at compensation which the head of the using agency determines in writing to be fair and reasonable to the state. In making this determination, the head of the using agency shall take into account, in the following order of importance, the professional or technical competence of proposers, the technical merits of proposals, and the compensation for which the services are to be rendered, including fee. Negotiation of consulting services for fifty thousand dollars or more or social services not qualifying under R.S. 39:1619(B) shall be conducted in accordance with R.S. 39:1595(B) hereof.

Acts 2014, No. 864, §2, eff. Jan. 1, 2015.