WHEREAS, R.S. 39:1596 expressly vests the governor with the authority to prescribe procedures for the procurement of small purchases, by providing that: Procurements not exceeding the amounts established by executive order of the governor may be made in accordance with small purchase procedures prescribed by such executive order, except that procurement requirements shall not be artificially divided so as to constitute a small purchase under this Section;
WHEREAS, Executive Order No. MJF 96-14, signed on June 4, 1996, established the procedure for the procurement of small purchases in accordance with the statutory guidelines of the Louisiana Procurement Code; and
WHEREAS, it is necessary to rescind and terminate Executive Order No. MJF 96-14 through the issuance of a replacement executive order;
NOW THEREFORE I, M.J. "MIKE" FOSTER, JR., Governor of the state of Louisiana, by virtue of the authority vested through the Constitution and laws of the state of Louisiana, do hereby order and direct as follows:
SECTION 1: All departments, institutions, boards, commissions, budget units, and agencies of the executive branch of state government (hereafter "agency") shall observe, be guided by, and implement the specific directives on small purchase procedures set forth in this Order.
SECTION 2: Unless the context clearly indicates otherwise, the words and terms used in this Order shall be defined as follows:
A. "Small purchases" means (1) any procurement not exceeding ten thousand dollars ($10,000), or (2) any procurement of those items listed in Section 5(A) or (B) of this Order, regardless of price, except as noted in Section 5(A)(14).
B. "Delegated purchasing authority" means the dollar amount delegated to an agency by the chief procurement officer of state central purchasing, as defined in R.S. 39:1556(3).
C. "Certified economically disadvantaged business" means a business certified as an economically disadvantaged business by the division of economically disadvantaged business development, Department of Economic Development, in accordance with the provisions of the Louisiana Economically Disadvantaged Business Act, R.S. 51:1751, et seq., and included on the most recent list of certified economically disadvantaged businesses issued by the division of economically disadvantaged business development.
SECTION 3: The following items are not subject to the procedures set forth in this Order:
SECTION 4: Except as otherwise provided in this Order, all small purchases shall be made in accordance with the following minimum procedures:
A. For purchases not exceeding five hundred dollars ($500), no competitive bidding is required.
B. For purchases exceeding five hundred dollars ($500), but not exceeding two thousand dollars ($2,000), contracts shall be awarded on the basis of the lowest responsive price2 quotation(s) solicited by telephone, facsimile, or other means, to at least three (3) bona fide, qualified bidders. Whenever possible, at least one (1) of the bona fide, qualified bidders shall be a certified economically disadvantaged business. Agency files shall document and list all solicited bidders and each bidder's contact person, summarize bid responses, indicate the awarded bid, and state the reason why any lower bid was rejected. If no bid was solicited from a certified economically disadvantaged business, agency files shall contain a written explanation of why such a bid was not solicited. Agency files should also contain written confirmation of the bid from the successful bidder.
C. For purchases exceeding two thousand dollars ($2,000), but not exceeding ten thousand dollars ($10,000), contracts shall be awarded on the basis of the lowest responsive price quotation(s) received pursuant to either facsimile or written solicitation to at least five (5) bona fide, qualified bidders. Whenever possible, at least two (2) of the bona fide, qualified bidders shall be certified economically disadvantaged businesses. Facsimile solicitations shall allow for bids to be accepted for a minimum period of five (5) calendar days. Written solicitations shall allow for bids to be accepted for a minimum period of ten (10) calendar days. All facsimile and/or written solicitations shall include the closing date, time, and all pertinent competitive specifications, including quantities, units of measure, packaging, delivery requirements, ship-to location, terms and conditions, and other information sufficient for a supplier to make an acceptable bid. Precautionary measures shall be taken to safeguard the confidentiality of bid responses prior to the closing time for receipt of bids. No bid shall be evaluated using criteria not disclosed in the solicitation. Agency files shall document and list all solicited bidders and each bidder's response, summarize bid responses, indicate the awarded bid, and state the reason why any lower bid was rejected. If less than two (2) bids were solicited from certified economically disadvantaged businesses, agency files shall contain a written explanation of why two (2) bids were not solicited.
SECTION 5: Except as provided in subsection A(14), the following items are considered small purchases regardless of price and may be procured in the following manner:
A. No competitive bidding is required for the following items:
(1) Repair parts for equipment obtained from an authorized dealer;3
(2) Equipment repairs obtained from an authorized dealer or by telephone or facsimile solicitation to at least three (3) bona fide, qualified bidders; whenever possible, at least one (1) of the bona fide, qualified bidders shall be a certified economically disadvantaged business;
(3) Vehicle repairs not covered by a competitive state contract or the state fleet maintenance repair contract, obtained from an authorized dealer or by telephone or facsimile solicitation to at least three (3) bona fide, qualified bidders; whenever possible, at least one (1) of the bona fide, qualified bidders shall be a certified economically disadvantaged business;
(4) Vehicle body repairs covered by insurance recovery and in accordance with insurance requirements;
(5) Livestock purchased at public auction;
(6) Purchasing or selling transactions between state budget units and other governmental agencies;
(7) Publications and/or copyrighted materials purchased directly from the publisher or copyright holder;
(8) Publications and/or copyrighted materials purchased by the state library or libraries at colleges and universities when using subscription services;
(9) Public utilities and services provided by local governments;
(10) Prosthetic devices, implantable devices, and devices for physical restoration, which are not covered by a competitive state contract;
(11) Educational training and related resources (except equipment) used to enhance the performance of state employees, including memberships in professional societies and organizations, except for customized training which is covered under R.S. 39:1481, et seq;
(12) Purchases for clients of Blind and Vocational Rehabilitation programs not covered by competitive state contract which are federally funded at a rate of at least 78.7%, regulated by Title 34, Parts 361, 365, 370, and 395 of the Code of Federal Regulations, and in accordance with OMB Circular A-102;
(13) Materials, supplies, exhibitor fees, and exhibit booths at conferences, seminars, and work shops, for participation in promotional activities which enhance economic development may be procured in accordance with this section with the approval of the department secretary if not covered by competitive state contract;
(14) Wire, related equipment, time and material charges to accomplish adds, moves, and/or changes to telecommunications systems not exceeding two thousand dollars ($2,000);
(15) Working class animals trained to perform special tasks, including but not limited to narcotics detection, bomb detection, arson investigation, and rescue techniques;
(16) Food, materials and supplies for teaching and training where the purchasing, preparing, and serving of food is part of the regularly prescribed course;
(17) Shipping charges and associated overseas screening and broker fees from an international origin to a domestic destination;
(18) Parcel services, including but not limited to Federal Express, United Parcel Service, Airborne Express, and Express Mail;
(19) Renewal of termite service contracts;
(20) Purchase of supplies, operating services, or equipment for Louisiana Rehabilitation Services, Traumatic Head and Spinal Cord Injury Trust Fund Program;4
(21) Purchasing of clothing at retail necessary to individualize clients at state developmental centers in compliance with Federal Regulations for ICF/MR facilities;
(22) Health insurance for the managers of Randolph-Sheppard programs, as defined by 20 U.S.C. 107, et seq., and paid from income generated by unmanned vending locations; or
(23) Purchases made to resell as part of a merchandising program with the written approval on file from the secretary of the department, or agency equivalent, when it is not practical or feasible to obtain competitive price quotations.
B. For the following items, telephone or facsimile price quotations shall be solicited, where feasible, to at least three (3) bona fide, qualified bidders. Whenever possible, at least one (1) of the bona fide, qualified bidders shall be a certified economically disadvantaged business. The file shall contain justification if fewer than three (3) bids are solicited and, if no bid was solicited from a certified economically disadvantaged business, a written explanation of why the bid was not solicited.
(1) Farm products including, but not limited to, fresh vegetables, milk, eggs, fish, or other perishable foods, when it is determined that market conditions are unstable and the bidding process is not conducive for obtaining the lowest prices;
(2) Food, materials, and supplies needed for: (a) Operation of boats and/or facilities in isolated localities where only limited outlets of such supplies are available; and/or (b) Juvenile detention homes and rehabilitation facilities/homes where the number of inmates, students, or clients is unstable and unpredictable;
(3) Convention and meeting facilities;5
(4) Gasoline and fuel purchases not covered by competitive state contract;
(5) Equipment for blind operated facilities not covered by competitive state contract;
(6) Feed commodities, including but not limited to soybean meal, cottonseed meal, and oats for use on prison farms;
(7) Aircraft parts, repairs, inspections, and modifications approved by the head of the agency, head of Division of Administration Flight Operations, or its designee and performed by an FAA-certified mechanic and/or at an FAA-certified repair station in accordance with FAA requirements; and/or
(8) Air and bus charters, in accordance with Policy & Procedure Memorandum No. 49 - General Travel Regulations.
SECTION 6: All departments, commissions, boards, agencies, and officers of the state, or any political subdivision thereof, are authorized and directed to cooperate in the implementation of the provisions of this Order.
SECTION 7: Executive Order No. MJF 96-14 is hereby rescinded and terminated.
SECTION 8: The provisions of this Order are effective upon signature and shall remain in effect until amended, modified, terminated, or rescinded by the governor, or terminated by operation of law. 1 This provision does not apply to those agencies which are exempt from state central purchasing under R.S. 30:1572. 2 The terms "price" and "bid" are used interchangeably in this Order to mean the amount of money offered as consideration for the sale of a specified item. 3 This provision does not apply to the stocking of parts. 4 Although competitive bidding is not required under this provision, whenever practicable, three (3) bid quotations from bona fide, qualified bidders should be obtained. Whenever possible, at least one (1) of the bona fide, qualified bidders shall be a certified economically disadvantaged business. 5 However, any associated food or lodging must be in accordance with Policy & Procedure Memorandum No. 49 General Travel Regulations.
IN WITNESS WHEREOF, I have set my hand officially and caused to be affixed the Great Seal of the state of Louisiana, at the Capitol, in the city of Baton Rouge, on this 4th day of May, 1998.
M.J. "Mike" Foster
Secretary of State