La. Admin. Code tit. 42 § IX-1305

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

Section IX-1305 - Major Procurement Procedures

A. Applicability of Section. The provisions of this Section shall apply to all major procurement.

B. Initiation of Procurement. The corporation shall initiate a major procurement by preparation of a "Procurement Authorization Form" which authorized the procurement. The procurement authorization form shall to the extent possible clearly state the goods or services to be procured, the corporation's need for the goods or services, an estimate of the anticipated range of cost of the procurement and a listing of potential contractors. The listing of potential contractors shall include all businesses on the list of interested contractors as provided in these rules and who are known to the corporation as being in the business of supplying the desire goods or services and any business from whom a response to the corporation's request for proposals would, in the opinion of the procurement agent, enhance the competition among businesses for the procurement contract. The board may by resolution authorize and designate a person or persons to sign procurement authorizations.

C. Preparation of Request for Proposals. Upon execution of a procurement authorization, the corporation shall prepare a request for proposals which shall include, at a minimum, the following information:

1. Specifications of the goods or services required by the corporation, prepared in such a manner as to promote comparability of responses by potential contractors;

2. a requirement that all responding proposals be in writing and the time by and place at which all responding potential contractors should submit proposals; and

3. a listing of the criteria the corporation will use in evaluating proposals by responding potential contractors and the relative weight the corporation will give the respective criteria.

D. Dissemination of RFP. The corporation shall give public notice of the RFP by advertising its issuance in the official journal of the state or the corporation. The advertisement shall appear at least 20 days before the last day that the corporation will accept proposals by potential contractors unless a shorter period is authorized by the board. The advertisement shall generally specify the goods or services required by the corporation, the last date that the corporation will accept proposals and an address at which a copy of the RFP can be obtained. The corporation may advertise the issuance of a RFP in trade journals which serve the interests of businesses likely to respond to the RFP. Additionally, the corporation shall mail or make available a copy of the RFP to potential contractors who have requested in writing to be notified of major procurement for acquisition of specific products or services in accordance with these procurement rules.

E. Cancellation or Amendment of RFP. The corporation may cancel or amend any outstanding RFP by written notice to all businesses to which the RFP was sent or given. The reasons for cancellation or amendment of an RFP shall be stated in the notice sent by the corporation. The corporation shall deliver a copy of the notice and reasons to the directors.

F. Acceptance and Evaluation of Proposals

1. The corporation shall consider and evaluate all proposals responding to the RFP which are submitted in compliance with the deadline and other requirements stated in the RFP. The corporation may waive any deficiency or nonconformity of a proposal or provide the responding business a reasonable period of time to cure the deficiency or nonconformity, provided that the board determines such action does not prejudice the status of other proposals. At any time prior to completion of the evaluation process, the corporation may request any responding potential contractors to clarify or expand upon provisions of their proposals. The corporation shall evaluate proposals in a manner consistent with the RFP. The procurement contract shall be awarded in the corporation's sole and uncontrolled discretion.

2. The RFP may allow potential contractors or bidders to submit written requests for clarification and the procurement agent or the board may conduct one or more bidder conferences which shall be open to all potential bidders or contractors. All potential bidders who have requested clarification or notice thereof shall be transmitted all clarification information.

G. Acceptance of RFP Terms and Criteria; Objections to RFP. The submission of a proposal for a major, emergency or minor procurement, without prior written objection to the form, criteria or content of the RFP shall constitute a waiver of any objection thereto. Such a submission shall also constitute and be and express agreement to be bound by the form, specification, evaluation criteria and content of the RFP as well as the decision of the corporation in awarding the Procurement.

H. Preparation of Contract. Upon completion of the evaluation and mutual acceptance of all terms of the proposal by the corporation and the contractor, the corporation shall prepare the contract. The contract shall unless specifically otherwise authorized by the board contain, at a minimum, the following:

1. the name and address of the contractor;

2. the goods to be delivered or the services to be performed under the contract;

3. the term of the contract and a statement giving the corporation the right to terminate the contract unilaterally upon 90 days written notice;

4. a provision giving the corporation the right to audit those financial records of the contractor which relate to the contract;

5. a provision that the contractor shall not transfer any interest in the contract without the prior written consent of the corporation (except that claims for money due or to become due to the contractor from the corporation under the contract may be assigned to a bank, trust company or other financial institution but that the corporation shall not be bound by the assignment unless furnished timely and sufficient notice of it);

6. a provision that the contractor shall bear responsibility for paying any taxes which become due as a result of payments to the contractor under the contract;

7. a provision that upon termination of the contract all records, reports, worksheets or any other materials related to the contract may at the discretion of the corporation become the property of the corporation;

8. a provision obligating the contractor to provide the corporation with notice of any material adverse change in its condition, financial or otherwise;

9. a provision requiring the payment of liquidated damages to the corporation upon a material breach of the contract by the contractor; and

10. a provision that Louisiana Laws will govern the contract.

I. Authorization and Execution of Contract. The corporation shall not execute a contract for a major procurement unless the board reviews and approves the contract. The board may authorize execution of the contract in a form substantially similar to the form presented to the board for review or approval.

J. Preservation of Integrity of Procurement. In order to preserve the honesty, fairness and competitiveness of the procurement process, the following restrictions on dissemination of information shall apply, and noncompliance with any of them shall constitute a violation of the rules of conduct of the corporation:

1. prior to board consideration of final proposal, directors, officers and employees of the corporation shall not disclose or discuss with any person not employed by the corporation or its consultants, the contents of a proposal or a communication, regarding a proposal, to or with, a potential contractor unless otherwise authorized by the board;

2. directors, officers and employees of the corporation shall not disclose to any potential contractor any information proprietary to the corporation and pertinent to the procurement for which the potential contractor may submit a proposal.

K. Emergency or Special Procurement

1. Notwithstanding any other provision of these policies and rules to the contrary, the corporation may make any class of procurement, including major procurement, without complying strictly with the procedures stated in this Section if, to the best of the board's knowledge, any of the following special or emergency circumstances then exist and these circumstances do not reasonably allow compliance with the procurement procedures otherwise required by this Chapter:

a. a threat to public health, welfare or safety or the integrity or operation of the corporation;

b. a unique, non-recurring opportunity to obtain goods or services at a substantial cost savings;

c. a sponsorship arrangement permitting the corporation to acquire goods or services at a reduced cost or cost-free;

d. the structure of the applicable market does not permit the corporation to procure the goods or services via a competitive bidding process;

e. the goods or services which meet the corporation's reasonable requirements can be provided only by a single business;

f. due to time constraints not caused by the corporation, compliance with each of the policies and rules stated in this Section would materially impair the financial performance of the corporation; or

g. the corporation can not commence initial operation without the required goods or services specifically including, but not limited to, initial and temporary office space, office equipment, telecommunications and duplication services, insurance coverage including liability insurance and health insurance, office supplies, banking and financial services, office assistance, consulting services, security services, clerical services, and data processing.

2. An emergency or special procurement shall be made only after the board, president, or procurement agent determines the existence of any of the emergency special circumstances and states the reasons for the determination in a report delivered to the board. It must be made in compliance with as many of the requirements of this Section as practicable under the circumstances as determined by the board or the president. The board may, by affirmative action prior to the completion of the emergency and special procurement, reverse the president's determination and direct the corporation not to make the emergency or special procurement.

La. Admin. Code tit. 42, § IX-1305

Promulgated by the Louisiana Economic Development and Gaming Corporation, LR 19:1018 (August 1993).

AUTHORITY NOTE: Promulgated in accordance with R.S. 4:601 et seq.