La. Admin. Code tit. 34 § XV-903

Current through Register Vol. 50, No. 11, November 20, 2024

Section XV-903 - [Effective until 4/5/2025] Small Purchases

A. Unless otherwise provided by law, "small purchases" means any procurement of supplies or operating services not exceeding $25,000

B. Except as otherwise provided by this Chapter, all small purchases shall be made in accordance with the following minimum procedures:

1. no competitive process is required for purchases not exceeding $10,000 per single transaction.

2. price quotations shall be solicited from three or more bona fide, qualified vendors for purchases exceeding $10,000 but not exceeding $20,000.

a. Quotations may be made by telephone, facsimile, written, or other means and shall be awarded on the basis of the lowest responsive quotation unless such quotation is impracticable or unreasonable. Whenever possible, at least one of the bona fide, qualified vendors shall be a certified small entrepreneurship or a certified veteran owned small entrepreneurship.

i. LED files shall document and list all solicited vendors and each vendor's contact person, summarize quotations received, indicate the successful vendor and state the reason why any lower quotation was rejected. LED files shall also contain written confirmation of the quotation from the successful vendor.

b. When the price is determined by the secretary to be reasonable, the requirement to solicit three quotations may be waived when purchasing from a certified small entrepreneurship or a certified veteran owned small entrepreneurship. Reasonable is a best value determination based on price, delivery, service, and/or any other related factors. This determination is to be maintained in LED's file.

c. The requirement to solicit at least one (1) certified small entrepreneurship or certified veteran owned small entrepreneurship may be waived for procurements posted on LaPAC.

3. Price quotations shall be solicited from five (5) or more bona fide, qualified vendors for purchases exceeding $20,000 but not exceeding $25,000.

a. Quotations may be made by facsimile or written means and shall be awarded on the basis of the lowest responsive price quotation received unless such quotation is impracticable or unreasonable. Whenever possible, at least two of the bona fide, qualified vendors shall be certified small entrepreneurships or certified veteran owned small entrepreneurships. LED files shall document and list all solicited vendors and each vendor's response, summarize quotations received, indicate the awarded quotation, and state LED's reason for any rejection of lower quotations.

b. When the price is determined by the secretary to be reasonable, the requirement to solicit five quotations may be waived when purchasing from a certified small entrepreneurship or certified veteran owned small entrepreneurship. Reasonable is a best value determination based on price, delivery, service, and/or any other related factors. This determination is to be maintained in the LED file.

c. The requirement to solicit at least two certified small entrepreneurships or certified veteran owned small entrepreneurships may be waived for procurements posted on LaPac.

d. A minimum of three working days shall be allowed for receipt of quotations.

e. All written or facsimile 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 quotation. Precautionary measures shall be taken to safeguard the confidentiality of vendor responses prior to the closing time for receipt of quotations. No quotation shall be evaluated using criteria not disclosed in the solicitation.

C. The following items are considered small purchases and no competitive process is required for the following:

1. Repair parts for equipment obtained from the original equipment manufacturer or an authorized dealer. A Louisiana authorized dealer shall be used if practicable. This provision does not apply to the stocking of parts.

2. Equipment repairs obtained from the original equipment manufacturer or an authorized dealer. A Louisiana authorized dealer shall be used if practicable.

3. Vehicle repairs not covered by a competitive state contract or the state fleet maintenance repair contract obtained from an authorized dealer. A Louisiana authorized dealer shall be used if practicable.

4. Vehicle body repairs covered by insurance recovery and in accordance with insurance requirements.

5. Purchasing or selling transactions between LED and other state budget units or governmental agencies.

6. Publications, including electronic publications, subscriptions, and web-based subscription services, and/or copyrighted materials purchased directly from the publisher of copyright holder.

7. Publications and/or copyrighted materials purchased by libraries or text rental stores from either subscription services or wholesale dealers which distribute for publishers and/or copyright holders.

8. Public utilities and services.

9. Non-customized training, including educational instructor fees, and related resources (except equipment) used to enhance the performance of LED employees and good standing of LED, including memberships in and accreditations by professional societies and organizations.

10. Materials, supplies, exhibitor fees, and exhibit booths for conferences, seminars, and workshops, or similar events (business, educational, promotional, cultural etc.) for participants in promotional activities which enhance economic development or further LED's mission, duties and/or functions, with the approval of the secretary, if not covered by competitive state contract.

11. Wire, related equipment, time and material changes to accomplish repairs, adds, moves, and/or changes to telecommunication systems.

12. Food, materials, and supplies for teaching and per course training not exceeding $25,000, where the purchasing, preparing, and serving of food are part of the regularly prescribed course.

13. Renewal of termite service contracts.

14. Commercial internet service not exceeding $1,500 per subscription per year.

15. Advertising, where permitted by law and the secretary certifies that specific media is required to reach targeted audiences.

16. Publication of articles, manuscripts etc. in professional scientific, research of educational journals/media and/or the purchase of reprints.

17. Royalties and license fees for use rights to intellectual property, such as but not limited to: patents, trademarks, service marks, copyrights, music, artistic works, trade secrets, industrial designs, domain names etc.

18. Equipment moves by the original equipment manufacturer or authorized dealer to ensure equipment operation to original equipment manufacturer specifications, calibration, warrant etc.

19. Mailing lists.

20. Art exhibition rentals and/or loan agreements and associated costs of curatorial fees, transportation, and installation.

21. Parcel services, including but not limited to Federal Express, United Parcel Service, Airborne Express, and Express Mail, when not covered by a competitive state contract.

D. For the following items, when the purchase is in excess of $10,000 per single transaction, telephone, written, or facsimile price quotation shall be solicited, where feasible, from at least three bona fide, qualified vendors. Whenever possible, at least one of the bona fide, qualified vendors shall be a certified small entrepreneurship or a certified veteran owned small entrepreneurship.

1. Convention and meeting facilities including security services if applicable, provided that any associated food or lodging must be in accordance with PPM 49.

2. Gasoline and fuel purchases not covered by competitive state contract.

3. Air and bus charters in accordance with PPM 49, including group travel that does not qualify for commercial rates available to individual travelers.

E. In the absence of a good faith business basis, no purchase or procurement shall be artificially divided within a cost center, or its equivalent, to avoid the competitive process.

F. Methods of payment for small purchases may include, but not be limited to: P-Card, Purchase Orders, P-1 (ACH or check).

La. Admin. Code tit. 34, § XV-903

Promulgated by Louisiana Economic Development, LR 51, exp. 4/5/2025 (Emergency).

AUTHORITY NOTE: Promulgated in accordance with R.S. 36:104 and R.S. 39:1554.