
January 5, 2000
PUBLIC BID LAW CHANGES
By:John GallagherThe 1999 Regular Session of the Louisiana Legislature brought a major change to the Public Bid Law in order to clarify the existing law. Act 768 reorganized the Public Bid Law, placing provisions relating to the purchase of materials and supplies by public entities in a separate section.
The Public Bid Law is found in R.S. 38:2211 - 2233.2. The requirement to publicly bid a contract depends on the object of the contract and its estimated value. Generally, contracts for the purchase of materials and supplies (including purchases of everything from office supplies to gravel and trucks to backhoes) and the construction of public works projects (including construction or major repair of buildings, roads, sewers and the like) are to be publicly bid when they exceed certain dollar values. Generally, contracts for services, including insurance, trash collection, and professional services are not required to be publicly bid.
Materials and Supplies
R.S. 38:2212.1 requires purchases of materials and supplies in excess of $15,000 to be publicly bid. Purchases of less than $15,000 but equal to or exceeding $7,500 require three telephone or facsimile quotations. In such case, a written confirmation of the accepted offer must be obtained and made a part of the purchase file, and the reasons for rejection shall be recorded in the file if quotations lower than the accepted quotation are received. Purchases of less than $7,500 are under no state bid law requirement.
There are several exceptions to the general law set forth above:
1. Purchases of surplus supplies from another public entity (R.S. 38:2212 (L)). However, in such cases, there must be an ordinance declaring the property as surplus and establishing the minimum price (R.S. 33:4712).
2. Purchases through existing state contracts. (R.S. 39:1702 (A))
3. Purchases through contracts of other political subdivisions, a/k/a "Piggy Back Contracts". (R.S. 33:1324).
4. Bulk purchases through a public trust. (R.S. 38:2212.3).
5. Request for proposals for purchase, rent or lease of telecommunications or data processing equipment and related services. (R.S. 38:2234, et seq).
6. Request for proposals for used fire and emergency response vehicles (R.S. 38:2238, et seq).
Public Work
Pursuant to R.S. 38:2212, all public work exceeding the $100,000 is required to be publicly bid. In addition to labor and materials, administrative overhead (not to exceed 15%*) and equipment, as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate Book (a/k/a the Green Book), must be included in determining the estimated value of the contract.
The Green Book is a listing of the national average rental rates for various types of construction equipment and is available from K-III Directory Corp. at 1-800-669-3282. The Louisiana Municipal Association and the Louisiana Associated General Contractors also have the latest edition of the Green Book as a reference.
Projects that do not exceed the contract limit of $100,000 after this calculation, need not be publicly bid. Generally a municipality has two options in letting public works contracts that do not exceed $100,000. The first option is to enter into a private negotiated contract with a qualified contractor. The second option is to undertake the project with municipal employees. There is a general limitation on the use of public employees--municipal employees may not be utilized in the construction of buildings. As such, all contracts for the construction of buildings must be let to a private contractor.
R.S. 38:2212 (E), which deals with publicly-owned utilities, such as electrical power plants and gas systems, provides that public utilities contemplating projects which are valued less than the contract limit but in excess of $10,000 must invite proposals from five bona fide qualified bidders rather than simply contracting with a private contractor, per R.S. 38:2212 E(1)(a). This requirement does not apply to projects performed or maintenance conducted by municipal employees pertaining to said publicly owned and operated utilities. The restriction from public employees constructing buildings is, however, retained.
According to the decisions in various cases, items that are not considered as "materials and supplies" and, therefore, not required to be bid include services (professional and otherwise), insurance, and leases of equipment. It should be noted that a "pure" lease of equipment is not required to be bid; however, a lease with an option to purchase is subject to the Public Bid Law, according to Attorney General's opinions.
Advertising requirements are established in R.S. 38:2212, which provides that any contract for public works shall be published once a week for three different weeks in a newspaper in the locality, the first advertisement to appear at least 25 days before the opening of bids. Any contract for materials or supplies shall be published two times in a newspaper in the locality, the first advertisement to appear at least 15 days before the opening of bids. The first publication can not occur on a Saturday, Sunday, or legal holiday, and plans must be available to bidders on the day of the first advertisement and be available until 24 hours before the bid opening date.
The requirements for advertising and letting to the lowest responsible bidder do not apply in cases of "extreme public emergency." It should be noted that the definition of "emergency" [R.S. 38:2211(A)(6)]) is very limited, being defined as an unforeseen mischance bringing with it destruction or injury of life or property or the imminent threat of such destruction or injury or as the result of an order from any judicial body to take any immediate action which requires construction or repairs absent compliance with the public bid requisites. In the case of an "emergency," such emergency must be certified by the public entity and notice of the emergency must be published in the official journal of the public entity within 10 days thereof. Every contract negotiated by a public entity in the event of an emergency must be supported by a written determination and findings by the public entity justifying the use of the emergency authority. When contract action is taken pursuant to telephone or other oral offers, a written confirmation of the accepted offer must be obtained and made a part of the contract file. Also, a record must be established by the public entity which shall contain:
Ë A description of the work to be performed;
Ë The name and address of each offeror quoting; and,
Ë The performance time and terms of each offer.
The law further requires the reasons for rejection to be recorded and made part of the contract file, if quotations lower than the accepted quotation are received, and requires all records to be retained for at least six years following the purchase or completion of the work.
GENERAL BID LAW GUIDE
Materials and Supplies
Over $15,000 - BID Between $15,000 & $7,500 - 3 Quotes Under $7,500 - NOTHING
No Bids required for State Contracts, Piggy Back Contracts, or Other Municipalities’ Surplus
Public Works
Contract Limit = $100,000 - Includes Labor, Materials, Admin. Overhead & Equipment
Above $100,00 - BID
Below $100,000
Buildings - Private Contract
Other Projects - Private Contract or Municipal Employees
Utilities - 5 Invitations for Proposals
A copy of the more pertinent sections of the revised bid law can be found in the Appendix. You should discuss these changes with your City Attorney, and feel free to contact me at the LMA if you have any questions at (225) 344-5001 or (800) 234-8274.
APPENDIX: THE PUBLIC BID LAW
WEST'S LOUISIANA STATUTES ANNOTATED
LOUISIANA REVISED STATUTES
TITLE 38. PUBLIC CONTRACTS, WORKS AND IMPROVEMENTS
CHAPTER 10. PUBLIC CONTRACTS
PART II. LETTING CONTRACTS
Current through all 1999 Reg. Sess. Acts
(1999 Revisions noted in italics; 1999 Act Numbers listed at end of amended text.)
§ 2211. Definitions
A. As used in this Chapter unless the context clearly indicates otherwise, the following terms shall mean:
(1) "Bidding documents" means the bid notice, plans and specifications, bidding form, bidding instructions, addenda, special provisions, and all other written instruments prepared by or on behalf of a public entity for use by prospective bidders on a public contract.
(2) "Change order" means an alteration, deviation, addition, or omission as to a preexisting public work contract.
(3) "Change order outside the scope of the contract" means a change order which alters the nature of the thing to be constructed or which is not an integral part of the project objective.
(4) "Change order within the scope of the contract" means a change order which does not alter the nature of the thing to be constructed and which is an integral part of the project objective.
(5) "Contractor" means any person or other legal entity who enters into a public contract.
(6) An "emergency" means an unforeseen mischance bringing with it destruction or injury of life or property or the imminent threat of such destruction or injury or as the result of an order from any judicial body to take any immediate action which requires construction or repairs absent compliance with the formalities of this Part, where the mischance or court order will not admit of the delay incident to advertising as provided in this Part. In regard to a municipally owned public utility, an emergency shall be deemed to exist and the public entity may negotiate as provided by R.S. 38:2212(D) for the purchase of fuel for the generation of its electric power where the public entity has first advertised for bids as provided by this Part but has failed to receive more than one bid.
(7)(a) For the purposes of this Section, a "Louisiana resident contractor" includes any person, partnership, association, corporation, or other legal entity and is defined as one that either:
(i) Is an individual who has been a resident of Louisiana for two years or more immediately prior to bidding on work,
(ii) Is any partnership, association, corporation, or other legal entity whose majority interest is owned by and controlled by residents of Louisiana, or
(iii) For two years prior to bidding has maintained a valid Louisiana contractor's license and has operated a permanent facility in the state of Louisiana and has not had a change in ownership or control throughout those two years.
(b) For the purposes of Item (7)(a)(ii), ownership percentages shall be determined on the basis of:
(i) In the case of corporations, all common and preferred stock, whether voting or nonvoting, and all bonds,
debentures, warrants, or other instruments convertible into common and/or preferred stock.
(ii) In the case of partnerships, capital accounts together with any and all other capital advances, loans, bonds, debentures, whether or not convertible into capital accounts.
(8) "Negotiate" means the process of making purchases and entering into contracts without formal advertising and public bidding with the intention of obtaining the best price and terms possible under the circumstances.
(9) "Public contract" or "contract" means any contract awarded by any public entity for the making of any public works or for the purchase of any materials or supplies.
(10) "Public entity" means and includes the state of Louisiana, or any agency, board, commission, department, or public corporation of the state, created by the constitution or statute or pursuant thereto, or any political subdivision of the state, including but not limited to any political subdivision as defined in Article VI Section 44 of the Constitution of Louisiana, and any public housing authority, public school board, or any public officer whether or not an officer of a public corporation or political subdivision. "Public entity" shall not include a public body or officer where the particular transaction of the public body or officer is governed by the provisions of the model procurement code.
(11) "Public work" means the erection, construction, alteration, improvement, or repair of any public facility or immovable property owned, used, or leased by a public entity.
(12) "Licensed design professional" means the architect, landscape architect, or engineer who shall have the primary responsibility for the total design services performed in connection with a public works project. Such professional shall be licensed as appropriate and shall be registered under the laws of the state of Louisiana.
B. Unless clearly indicated otherwise, compliance with this Part required of any public entity shall be done by the governing authority of such public entity if it has a governing authority.
§ 2211.1. [Blank].
§ 2212. Advertisement and letting to lowest responsible bidder; public work
A. (1)(a) All public work exceeding the contract limit as defined in this Section, including labor and materials, to be done by a public entity shall be advertised and let by contract to the lowest responsible bidder who had bid according to the contract, plans, and specifications as advertised, and no such public work shall be done except as provided in this Part.
(b) The provisions and requirements of this Section, those stated in the advertisement for bids, and those required on the bid form shall not be considered as informalities and shall not be waived by any public entity.
(c)(i) Evidence of agency, corporate, or partnership authority shall be required for submission of a bid to the division of administration or the state of Louisiana. The authority of the signature of the person submitting the bid shall be deemed sufficient and acceptable if any of the following conditions are met:
(aa) The signature on the bid is that of any corporate officer listed on the most current annual report on file with the secretary of state, or the signature on the bid is that of any member of a partnership or partnership in commendam listed in the most current partnership records on file with the secretary of state.
(bb) The signature on the bid is that of an authorized representative of the corporation, partnership, or other legal entity and the bid is accompanied by a corporate resolution, certification as to the corporate principal, or other documents indicating authority which are acceptable to the public entity.
(cc) The corporation, partnership, or other legal entity has filed in the appropriate records of the secretary of state
in which the public entity is located, an affidavit, resolution, or other acknowledged or authentic document indicating the names of all parties authorized to submit bids for public contracts. Such document on file with the secretary of state shall remain in effect and shall be binding upon the principal until specifically rescinded and canceled from the records of the office.
(ii) Except as provided in Subparagraph (f) of this Paragraph, each bid shall be either hand delivered by the bidder or his agent in which instance the deliverer shall be handed a written receipt, or such bid shall be sent by registered or certified mail with a return receipt requested. However, the requirement that all bids be sent by registered or certified mail shall not apply to bids received by municipal and parochial governing authorities. No public entity shall accept or take any bids, including receiving any hand delivered bids, on days which are recognized as holidays by the United States Postal Service. The Department of Transportation and Development and facility planning and control section under the division of administration shall keep on file a list of all states which have passed a bid preference law.
(d) The term "contract limit" as used herein shall be equal to the sum of one hundred thousand dollars per project, including labor, materials, and equipment as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate Book and administrative overhead not to exceed fifteen percent; however:
(i) When the Department of Public Safety and Corrections intends to use inmates as labor in connection with projects which occur on the grounds or to the buildings, structures, or facilities located on the grounds of prisons or correctional institutions, the term contract limit shall be fifty thousand dollars per project, for the calendar year 1982 and for each succeeding calendar year, shall be increased by a factor equal to three percent per year for each of the next ten calendar years.
(ii) repealed by Act 619, effective June 30, 1999.
(e) Each public entity advertising and letting for bid a public works contract under the provisions of this Section shall furnish all prime bidders who request bid documents and who are properly licensed by the Louisiana State Licensing Board for Contractors with at least one set of complete bid documents. The public entity may require a deposit on the bid documents; however, the total cost of the deposit, including handling fees and other costs shall not exceed twice the actual cost of reproduction. Deposits on the first set of documents furnished bona fide prime bidders will be fully refunded upon return of the documents no later than ten days after receipt of bids. On other sets of documents furnished to bidders the deposit less actual cost of reproduction, will be refunded upon return of the documents no later than ten days after receipt of bids. Where the public entity, itself, prepares and distributes the contract documents, the public entity may, in lieu of a deposit, charge a fee for the documents, which shall not exceed the actual cost of reproduction.
(f) & (g) repealed by Act 768.
(2) The bid specification may contemplate a fixed escalation or de_escalation in accordance with the United States Bureau of Labor Statistic's Consumer Price Index and/or Wholesale Price Index. Bids based on specifications which are subject to a recognized escalation index shall be legal and valid.
(3)(a) The advertisement required by this Section for any contract for public works shall be published once a week for three different weeks in a newspaper in the locality and the first advertisement shall appear at least twenty_five days before the opening of bids.
Act 684
(b) repealed by Act 768.
(c) redesignated as R.S. 38:2212.1(B)(2) by Act 768.
(d) When a design professional or public entity mandates attendance by bidders at pre_bid conferences as a prerequisite to bid, the date, place, and time of the pre_bid conference shall be stated in the first advertisement notice.
(4) All public work contracts shall contain provisions authorizing the issuance of change orders within the scope of the contract.
(5) All change orders shall be in writing.
(6) Any change order outside the scope of the contract in excess of the contract limit as defined herein shall be let out for public bid as provided by this Part.
(7) Any change order pertaining to public work, not required by this Part to be put out for public bid, shall either be negotiated in the best interest of the public entity or let out for public bid as provided by this Part. Where the change order is negotiated, the public entity shall require that said change order be fully documented and itemized as to costs, including material quantities, material costs, taxes, insurance, employee benefits, other related costs, profit and overhead. Where certain unit prices are contained in the initial contract, no deviations shall be allowed in computing negotiated change order costs.
(8) Repealed by Acts 1980, No. 329, § 2.
B. Those contracts let by any public entity for public works estimated to cost in excess of the contract limit as defined herein shall be advertised and let by contract to the lowest responsible bidder. Public works, other than the construction of buildings which are estimated to cost less than the contract limit as defined herein, may be undertaken by the public entity with its own employees. Nothing contained herein shall be construed as reducing those powers established by law in Chapter 3-B of Title 3 of the Louisiana Revised Statutes.
Act 787
C. (1) Except as provided by Paragraph (2) of Subsection C of this Section, the public entity may, through the issuance of an addendum, extend the bid period for up to thirty days, without the requirement of readvertising as provided by Subsection A of this Section.
(2) No public entity shall issue or cause to be issued any addenda modifying plans and specifications within a period of seventy_two hours prior to the advertised time for the opening of bids, excluding Saturdays, Sundays, and any other legal holidays; however, if the necessity arises to issue an addendum modifying plans and specifications within the seventy_two hour period prior to the advertised time for the opening of bids, then the opening of bids shall be extended for at least seven days, but not to exceed twenty-one days, without the requirement of readvertising as provided by Subsection A of this Section. The addendum shall state the revised time and date for the opening of bids.
Act 684
D. (1) This Section shall not apply in cases of extreme public emergency where such emergency has been certified to by the public entity and notice of such public emergency shall, within ten days thereof, be published in the official journal of the public entity proposing or declaring such public emergency.
(2) Limitations.
(a) Every contract negotiated by a public entity under the authority of this Subsection shall be supported by a written determination and findings by the public entity justifying use of the authority.
(b) When contract action under this authority is taken pursuant to telephone or other oral offers, a written confirmation of the accepted offer shall be obtained and made a part of the contract case file. In addition, whenever contract action is taken as authorized by this Subsection, a record shall be established by the public entity which shall contain, as a minimum, the following information with respect to each offer: a description of the work to be performed, the name and address of each offeror quoting, and the performance time and terms of each offer. If quotations lower than the accepted quotation are received, the reasons for their rejection shall be recorded and made a part of the contract case file. Such records shall be retained for a minimum of six years following the purchase or completion of the public work.
E. (1) (a) Contracts for public works in excess of the contract limit, as defined in this Section, by publicly_owned utilities shall be let as provided in Subsection A of this Section. Such contracts aggregating less than the contract limit but in excess of ten thousand dollars shall be let in accordance with the following provisions unless the public entity elects to perform the work with its own employees:
(i) The public entity shall send out written invitations for quotations to at least five bona fide, qualified bidders.
(ii) Written invitations for quotations shall contain complete specifications and the quantity required, and any other information, including the delivery point, which is necessary for a supplier to make an acceptable bid.
(iii) Quotations shall be publicly opened and read at a specific date, time, and location. Each bidder shall be notified of the date, time, and location.
(iv) The public entity, at its discretion, may advertise for bids.
(b) The provisions of this Section shall not prevent municipalities, police juries, or other governmental entities from using their own regular maintenance employees for labor necessary in the maintenance, construction, or extension of municipally or governmentally owned and operated electric public utilities. With respect to the construction or extension of all other public utilities, the provisions of this Section shall not prevent municipalities, police juries, or other governmental entities from using their own regular maintenance employees when the cost of the work per project does not exceed one hundred thousand dollars, including both labor and materials. All purchases of materials or supplies exceeding the sum provided for in Subsection A shall be let by public bid as provided in this Part.
(2) The provisions of this Section shall not prevent municipalities or other public bodies from maintaining publicly owned and operated utilities with their own regular maintenance employees, however, not to include the construction of buildings.
(3) Such municipalities or other public entities are herein prohibited from owning and/or operating manufacturing plants whereby such municipalities or public entities manufacture construction materials. Any such facilities owned and/or operated prior to the effective date of this Act are excluded from these provisions.
G. Notwithstanding the provisions of Subsection M of this Section relative to the financing of public works contracts by a contractor, public entities are hereby authorized to enter into professional maintenance contracts for the repair and maintenance of water storage tanks owned, controlled, or operated by a public entity for a fixed annual fee. Such contracts shall extend for a duration of not less than two years. Any such contract entered into by a public entity shall include a nonappropriation clause and shall not be considered a debt of the public entity. Such a professional maintenance contract shall not be considered a public works contract. Act 478
H. Under no circumstances shall there be a division or separation of any public work project into smaller projects which division or separation would have the effect of avoiding the requirement that public work be advertised and let by contract to the lowest responsible bidder as provided in this Section.
I. (1) This Section shall not apply to labor necessary for the maintenance of public works built and completed.
(2) Volunteer citizen labor used for the construction of a project which is funded by the Louisiana Community Development Block Grant Louisiana Small Town Environment Program shall not be subject to the requirements of this Section. However, the value of the donated volunteer service shall not be used as a component of any bid if the public work has to be bid or to determine which is the lowest responsible bid.
Act 1030; Act 684
J. If the public entity letting the contract proposes to disqualify any bidder, on grounds that such bidder is not a "responsible bidder" such public entity shall:
(1) Give written notice of the proposed disqualification to such bidder and include in the written notice all reasons for the proposed disqualification; and
(2) Give such bidder, who is proposed to be disqualified the opportunity to be heard at an informal hearing at which such bidder is afforded the opportunity to refute the reasons for the disqualification.
K & L repealed by Act 768
M. No public entity shall enter into a contract for the purpose of public works with a contractor who then finances the project. Under no circumstances shall the agreement of a contractor to finance a public works project be used in any way to avoid the requirement that public work be advertised and let by contract to the lowest responsible bidder as provided in this Section.
O. Whenever evidence of agency, corporate, or partnership authority is required for submission of a bid to a public entity, such fact shall be contained in the bid documents and such proof shall be provided in accordance with the provisions of this Section. The authority of the signature of the person submitting the bid shall be deemed sufficient and acceptable if any of the following conditions are met:
(1) The signature on the bid is that of any corporate officer listed on the most current annual report on file with the secretary of state, or the signature on the bid is that of any member of a partnership or partnership in commendam listed in the most current partnership records on file with the secretary of state.
(2) The signature on the bid is that of an authorized representative of the corporation, partnership, or other legal entity and the bid is accompanied by a corporate resolution, certification as to the corporate principal, or other documents indicating authority which are acceptable to the public entity.
(3) The corporation, partnership, or other legal entity has filed in the appropriate records of the secretary of state or the clerk of court of the parish in which the public entity is located, an affidavit, resolution, or other acknowledged or authentic document indicating the names of all parties authorized to submit bids for public contracts. Such document on file with the secretary of state or the clerk of court shall remain in effect and shall be binding upon the principal until specifically rescinded and canceled from the records of the respective offices.
P. & Q. repealed by Act 768
R.. In the bid selection process for any contract for a public work or for all purchases of materials and supplies exceeding the sum of fifteen thousand dollars to be paid out of public funds under the provisions of this Chapter, any public entity may include provisions in bid documents relative to participation in a mentor-protégé program as provided by R.S. 51:1753.1.
(2) In determination of compensation, the agency may provide for additional incentives for mentor-protégé participants for any contract which provides incentives for work performed or deliveries completed ahead of schedule. Incentives for mentor-protégé participants shall be not less than five percent greater than incentives awarded to persons who are not participants in the program.
(3) Advertisements for bids must specify bid selection and incentive provisions for mentor-protégé participation.
(4) Political subdivisions may participate in the mentor-protégé program as provided by R.S. 51:1753.1 or may adopt a program to provide for incentives in the bid selection process or incentives for participation.
Act 1284
S. The provisions of this Section shall not apply to purchases of material and supplies by contractors awarded public works contracts by a public entity; or to subcontractors of said contractors, who have been appointed or designated agents for the purchase of materials and supplies to be incorporated into a public work pursuant to a contract properly bid in accordance with this Chapter when acting pursuant to said appointment or
designation.
Act 1288
§ 2212.1. Advertisement and letting to lowest responsible bidder; materials and supplies
A.(1)(a) All purchases of any materials or supplies exceeding the sum of fifteen thousand dollars to be paid out of public funds shall be advertised and let by contract to the lowest responsible bidder who had bid according to the specifications as advertised, and no such no such purchase shall be made except as provided in this Part.
(b) However, purchases of seven thousand five hundred dollars or more, but less than fifteen thousand dollars shall be made by obtaining not less than three telephone or facsimile quotations. A written confirmation of the accepted offer shall be obtained and made a part of the purchase file. If quotations lower than the accepted quotation are received, the reasons for their rejection shall be recorded in the purchase file.
(2) Any purchase by a local governmental unit of a used or new motor vehicle for conversion into a law enforcement vehicle, which purchase cost does not exceed the sum of fifteen thousand dollars shall not be subject to the threshold delineated in Paragraph (1) of this Subsection. Written specifications, quotations, and confirmation of accepted offers for such purchase shall be obtained and made a part of the purchase file. However, any such purchase which sum is in excess of fifteen thousand dollars shall be advertised and let for bid under the procedures outlined by the provisions of this Section.
B.(1) The advertisement required by this Section for any contract for materials or supplies shall be published two times in a newspaper in the locality, the first advertisement to appear at least fifteen days before the opening of the bids.
(2) The first publication of the advertisement shall not occur on a Saturday, Sunday, or legal holiday. Plans and specifications shall be available to bidders on the day of the first advertisement and shall be available until twenty_four hours before the bid opening date.
(3) Any proposal shall include no more than three alternates. An alternate bid by any name is still an alternate. Alternates, if accepted, shall be accepted in the order in which they are listed on the bid form. Determination of the low bidder shall be on the basis of the sum of the base bid and any alternates accepted. However, the public entity shall reserve the right to accept alternates in any order which does not affect determination of the low bidder.
C. (1) Whenever a public entity desires to purchase technical equipment, apparatus, machinery, materials, or supplies of a certain type and such purchases are clearly in the public interest, the public entity may specify a particular brand, make, or manufacturer in the specifications let out for public bid as provided by this Part. If a particular brand, make, or manufacturer is specified, the model or catalog number also shall be specified.
(2) Wherever in specifications the name of a certain brand, make, manufacturer, or definite specification is utilized, the specifications shall state clearly that they are used only to denote the quality standard of product desired and that they do not restrict bidders to the specific brand, make, manufacturer, or specification named; that they are used only to set forth and convey to prospective bidders the general style, type, character, and quality of product desired; and that equivalent products will be acceptable.
D. The provisions of this Section shall not apply to a public entity purchasing surplus materials and supplies from another public entity or the government of the United States when the particular transaction is governed by the procurement code.
E. Any public entity may procure materials, supplies, and equipment from federal General Services Administration supply schedules in compliance with the Federal Acquisitions Streamlining Act (Public Law 103_355) and regulations adopted pursuant to that law, and with rules and regulations which may be adopted by
the central purchasing agency of the division of administration. Such purchases need not comply with the competitive bidding requirements of this Chapter. However, such materials, supplies, or equipment shall not be purchased at a price higher than the price of the same item listed on any available state purchasing contract. No use shall be made of federal General Services Administration supply schedules under the provisions of this Section without the participation of a Louisiana licensed dealer or distributor.
F. Any public entity may purchase materials, supplies, and equipment pursuant to the cooperative purchasing provisions of Part VII of Chapter 17 of Subtitle II of Title 39 of the Louisiana Revised Statutes of 1950, R.S. 39:1701, et. seq.
G. (1) Notwithstanding any provision of this Part, any hospital owned or operated by a hospital service district, a municipality, the state, or any other public entity may enter into an agreement with one or more qualified group purchasing organizations for the purpose of obtaining bids for the purchase of materials and supplies. Any such agreement shall provide that the qualified group purchasing organization shall submit a price list for those materials and supplies offered by it, and shall further provide that the prices quoted on the list shall remain in effect for a stated period of time not less than three months. Any such price list shall thereafter be considered for all purposes to be a valid and binding bid by the qualified group purchasing organization during the effective period of the agreement, and no additional bid by the qualified group purchasing organization shall be necessary.
(2) Any price lists submitted by a qualified group purchasing organization shall not be a public record and shall not be available for public inspection. The agreement setting forth the existence of the price list and the effective date thereof shall, however, be a public record, and that portion of the price list setting forth the price of the materials or supplies being purchased shall become a public record at the time of opening of bids for those materials or supplies.
(3) As used herein, "qualified group purchasing organization" shall mean an organization, whether for profit or not for profit, which has contracts for the sale of materials or supplies with at least fifteen hospitals within the United States.
(4) A hospital owned by the state may purchase equipment from a qualified group purchasing organization if the price is less than that for the same or comparable equipment on the state bid list. For that equipment not contained on the state bid list, the Department of Health and Hospitals shall, pursuant to the Administrative Procedure Act, promulgate rules containing a mechanism for determining that the purchase of the equipment through a qualified group without bidding is cost effective and is in the best interest of the state. Until said rules become effective, no equipment not contained on the state bid list shall be purchased from qualified group purchasing organizations without complying with all other applicable laws.
H. The commissioners, governing board, or governing authority of any hospital owned or operated by a hospital service district, a public trust, any municipality, or any other public entity may authorize by resolution, and the secretary of the Department of Health and Hospitals for any hospital owned or operated by the state, may authorize the participation in, or the purchasing from, a qualified group purchasing organization for the purchase of supplies and materials, without complying with this Section or any other applicable provision of law when it appears to any such authority or said secretary that participation would affect the economic situation or efficiency of operations of the hospital in a positive manner. A positive effect on the economic situation or efficiency of operations shall be presumed when the total price of items to be purchased from the qualified group purchasing organization is less than the total price of those items if purchased from the state bid list.
I. (1) Whenever a political subdivision enters into an estimated use or delivery contract for a perishable food item, the political subdivision shall be prohibited from awarding another estimated use contract for the same perishable food item without first having taken delivery of at least seventy_five percent of the perishable food item under the existing contract.
(2) "Perishable food items" as used in this Subsection shall mean consumable food items which have a shelf
life of less than six months.
(3) Sheriffs and other political subdivisions which operate jails in the various parishes of the state shall be required to purchase food wholesale at the lowest prices quoted for quality products or at prices no greater than the wholesale rate for the same item.
J. The opening of bids shall be governed by the provisions of R.S. 38:2214.
K. The purchase of materials or supplies in the case of an extreme public emergency shall be governed by the provisions of R.S. 38:2212(D).
L. The public entity purchasing the materials or supplies may require a written contract or bond as provided in R.S. 38:2216(B).
M. Purchases made by a public safety agency following the guidelines and restrictions established pursuant to the expenditure of federal grant dollars shall be made by obtaining not less than three telephone or facsimile quotations.
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§ 2214. Designation of time and place for opening bids; right to reject bids
A. The public entity desiring to let a public contract shall, in its resolution providing for the contract or purchase and for the advertisement for bids, designate the time and place that the bids will be received and shall at that time and place publicly open the bids and read them aloud. However, no public entity shall accept or take any bids, including receiving any hand delivered bids, on days which are recognized as holidays by the United States Postal Service.
B. The public entity may reject any and all bids for just cause. Just cause for the purpose of the construction of public works is defined, but is not limited to the following circumstances:
(1) The public entity's unavailability of funds sufficient for the construction of the proposed public work.
(2) The failure of any bidder to submit a bid within an established threshold of the preconstruction estimates for that public work, as part of the bid specifications.
(3) A substantial change by the public entity prior to the award in the scope or design of the proposed public work.
(4) A determination by the public entity not to build the proposed public work within twelve months of the date for the public opening and reading of bids.
(5) The disqualification by the public entity of all bidders.
C. Bids containing patently obvious, unintentional, and substantial mechanical, clerical, or mathematical errors, or errors of unintentional omission of a substantial quantity of work, labor, material, or services made directly in the compilation of the bid, may be withdrawn by the contractor if clear and convincing sworn, written evidence of such errors is furnished to the public entity within forty_eight hours of the bid opening excluding Saturdays, Sundays, and legal holidays. Such errors must be clearly shown by objective evidence drawn from inspection of the original work papers, documents, or materials used in the preparation of the bid sought to be withdrawn. If the public entity determines that the error is a patently obvious mechanical, clerical, or mathematical error, or unintentional omission of a substantial quantity of work, labor, material, or services, as opposed to a judgment error, and that the bid was submitted in good faith it shall accept the withdrawal and return the bid security to the contractor.
D. (1) A contractor who attempts to withdraw a bid under the provisions of this Section shall not be allowed to resubmit a bid on the project. If the bid withdrawn is the lowest bid, the next lowest bid may be accepted. If all bids are rejected no withdrawal of the bid which would result in the award of the contract on another bid of the same bidder, his partner, or to a corporation or business venture owned by or in which he has an interest shall be permitted. No bidder who is permitted to withdraw a bid shall supply any material or labor to, or perform any subcontract work agreement for, any person to whom a contract or subcontract is awarded in the performance of the contract for which the withdrawn bid was submitted.
(2) Whoever violates the provisions of the foregoing sentence shall be imprisoned for not more than six months, or fined not more than two thousand dollars, or both.
§ 2215. Time period for holding bids; issuance of work orders to commence work; exceptions
A. The state or any state agency upon receipt of bids for the undertaking of any public works contract shall act within thirty calendar days of such receipt to award said contract to the lowest responsible bidder or reject all bids. A political subdivision upon receipt of bids for the undertaking of any public works contract shall act within forty_five calendar days of such receipt to award said contract to the lowest responsible bidder or reject all bids. However, the public entity and the lowest responsible bidder, by mutually written consent, may agree to extend the deadline for award by one or more extensions of thirty calendar days.
B. The provisions of this Section shall not be applicable when the contract is to be financed by bonds which are required to be sold after receipt of bids on the contract, or when the contract is to be financed in whole or in part by federal or other funds which will not be readily available at the time bids are received, or on contracts which require a poll of the legislature of Louisiana before funds are available to fund the contract. In the event the time limit stipulated herein is not applicable because of one of the exceptions outlined above, this fact shall be mentioned in the specifications for the project and in the official advertisement for bids required in accordance with R.S. 38:2212.
C. Upon the execution of the contract, the public entity, within thirty days thereafter, shall issue to the contractor a notice to proceed with the project. However, upon mutual consent by both parties, the notice to proceed may be extended.
D. These provisions shall not be subject to waiver.
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WEST'S LOUISIANA STATUTES ANNOTATED
LOUISIANA REVISED STATUTES
TITLE 38. PUBLIC CONTRACTS, WORKS AND IMPROVEMENTS
CHAPTER 10. PUBLIC CONTRACTS
PART II_C. USED FIRE AND EMERGENCY RESPONSE VEHICLE PROCUREMENT BY POLITICAL SUBDIVISIONS
§ 2238. Short title and application
A. This Part shall be known as the "Political Subdivisions Used Fire and Emergency Response Vehicle Procurement Law".
B. The provisions of this Part shall be applicable to any political subdivision of the state as defined in Article VI, Section 44 of the Constitution of Louisiana for the procurement of used fire and emergency response vehicles, including associated equipment, with a per unit purchase cost of less than one hundred thousand dollars and only as such vehicles and associated equipment are defined in this Part.
§ 2239. Definitions
A. For the purposes of this Part, the following words and phrases shall be defined as follows:
(1)(a) "Fire and emergency response vehicles" shall mean and shall be strictly limited to the following:
(i) Fire trucks, pumper units, hook and ladder trucks, and any other motorized vehicles or wheeled units used by a fire department in transporting firefighters or equipment to fires and emergency calls and supporting extinguishing operations such as water, pumps, ladders, special service apparatus, hose, foam, air, lights, rescue equipment, and utility equipment.
(ii) Ambulances, crash or rescue trucks, or any other speciality vehicles used to support the activities of police, fire and emergency medical personnel in responding to emergencies.
(iii) Associated equipment shall be any equipment included on the vehicle which is not a component part of the vehicle, but is used in firefighting operations, emergency medical activities, and rescue operations. Associated equipment shall include but not be limited to hoses, nozzles, helmets, axes, air packs, protective clothing, emergency medical supplies, medical devices, chain saws, or fibrillators.
(b) "Fire and emergency response vehicles" shall expressly not include sedans, pickup trucks, mobile crime labs, tow trucks, or buses, used by law enforcement, medical personnel, emergency response or fire fighting personnel, or any other vehicle not explicitly described in Subparagraph (a) of this Paragraph.
(2) "Procurement" or "procure" means the acquisition by purchasing, buying, or otherwise obtaining fire or emergency response vehicles, as well as all processes or procedures engaged in with the objective of purchasing, buying, or otherwise obtaining such vehicles by a political subdivision.
(3) "Used motor vehicle" shall mean a motor vehicle the legal title of which has be transferred by a manufacturer, distributor, or dealer to an ultimate purchaser.
(4) "Vehicle" shall mean a motorized car, truck, or van which is required to be registered and which is used, or designed to be used, for the transporting of passengers or goods for public, private, commercial, or for hire purposes. For the purposes of this Part, "vehicle" may also include a non-motorized wheeled unit.
§ 2240. Methods of procurement
A. A political subdivision may procure used fire or emergency response vehicles through a request for proposals which shall conform to the following requirements:
(1) Specifications for the used fire or emergency response vehicles and associated equipment shall be prepared in advance and shall designate the specific class or classes of vehicles desired and may include all features associated with such class or classes of vehicles. The specifications may also include requirements for the maintenance of the vehicles if desired.
(2)(a) Public notice of the request for proposals shall be given at least twenty-five days prior to the date scheduled for opening the request for proposals. The public notice under this Part shall require the publication of at least one advertisement in a newspaper in the locality.
(b) Within twenty-four hours of the public notice, written notice of the request for proposals shall be mailed to persons, firms, or corporations who are known to be in a position to furnish such vehicles and associated equipment. In addition, copies of the request for proposals shall be available upon request within twenty-four hours of the public notice.
(3) The request for proposals shall:
(a) Indicate the relative importance of price, warranties, and other evaluation factors.
(b) Clearly define the tasks to be performed under the contract.
(c) Delineate the functional specifications.
(d) Indicate criteria to be used in evaluating the proposals.
(e) Specify the time frame for delivery.
(4) An award shall be made to the responsible offeror whose proposal is determined in writing by the governing authority of the political subdivision to be the most advantageous, taking into consideration price, warranties, and other evaluation factors set forth in the request for proposals. No other basis of evaluation shall be used except those set out in the request for proposals.
(5) The governing authority of the political subdivision may reject all proposals when it is deemed that such action is in the best interest of such political subdivision.
(6) Where written proposals are submitted by vendors, the proposals of the successful vendor shall be incorporated into the final contract consummated with that vendor.
(7) The governing authority shall have the right to reject the vehicle before accepting final delivery upon the inspection of the vehicle.
B. Political subdivisions may, at their option, procure such used fire or emergency response vehicles in accordance with the provisions of any other applicable law which governs such acquisitions or purchases by political subdivisions of the state, including but not limited to R.S. 38:2211 et seq. However, it shall be the responsibility of the political subdivision to clearly include in its public notice which procurement provisions shall be utilized.
§ 2240.1. Exclusion
The provisions of this Part shall not apply to the procurement of used fire and emergency response vehicles acquired by any political subdivision in the state through the use of funds obtained, either by grant or by loan, through the Louisiana Community Development Block Grant Program authorized for administration by the state in 1982 under the provisions of Title I of the Housing and Community Development Act of 1974. Any use of such monies for these purposes is expressly prohibited by law, and the acquisition of such used vehicles under these provisions shall be null, void, and of no effect.