Louisiana Revised Statutes 39:1615 – Multiyear contracts
Terms Used In Louisiana Revised Statutes 39:1615
- Agency: as used in this Chapter shall have the same meaning ascribed to it as provided in Louisiana Revised Statutes 39:1556
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means all types of state agreements, regardless of what they may be called, including orders and documents purporting to represent grants, which are for the purchase or disposal of supplies, services, major repairs, or any other item. See Louisiana Revised Statutes 39:1556
- Contractor: means any person having a contract with a governmental body. See Louisiana Revised Statutes 39:1556
- Electronic: means electrical, digital, magnetic, optical, electromagnet, or any other similar technology. See Louisiana Revised Statutes 39:1556
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Governmental body: means any department, office, division, commission, council, board, bureau, committee, institution, agency, government corporation, or other establishment or official of the executive branch of state government. See Louisiana Revised Statutes 39:1556
- Grant: means the furnishing by the state of assistance, whether financial or otherwise, to any person to support a program authorized by law. See Louisiana Revised Statutes 39:1556
- in writing: means the product of any method of forming characters on paper, other materials, or viewable screen, which can be read, retrieved, and reproduced, including information that is electronically transmitted and stored. See Louisiana Revised Statutes 39:1556
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Major repairs: means those repairs payable with funds appropriated in the general appropriations act, except those funds transferred from the operating budget of one governmental body to supplement and complete a project under contract by the division of administration facility planning and control section. See Louisiana Revised Statutes 39:1556
- Procurement: means the buying, purchasing, renting, leasing, or otherwise obtaining any supplies, services, or major repairs. See Louisiana Revised Statutes 39:1556
- Services: means the furnishing of labor, time, or effort by a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply. See Louisiana Revised Statutes 39:1556
- Supplies: means all property, including but not limited to equipment, materials, insurance, and leases on immovable property excluding land or a permanent interest in land. See Louisiana Revised Statutes 39:1556
A. Specified Period. Unless otherwise provided by law, a contract for supplies or services may be entered into for periods of not more than five years, if funds for the first fiscal year of the contemplated contract are available at the time of contracting. Payment and performance obligations for succeeding fiscal years shall be subject to the availability and appropriation of funds therefor. No contract shall be entered into for more than one year unless the length of the contract was clearly stated in the specifications. Any lease or similar agreement affecting the allocation of space in the state capitol shall have the prior approval of the Legislative Budgetary Control Council if it extends for more than one year. A report of all multiyear contracts shall be provided to the Joint Legislative Committee on the Budget no later than ninety days after the end of each fiscal year.
B. Determination prior to use. Prior to the utilization of a multiyear contract for supplies, services, or major repairs, it shall be determined in writing:
(1) That estimated requirements cover the period of the contract and are reasonably firm and continuing.
(2) That such a contract will serve the best interests of the state by encouraging effective competition or otherwise prompting economies in state procurement.
A written resume of the supportive underlying facts for the foregoing determinations shall be included in the determination, and the resume shall state the estimated savings to be obtained by entering into a multiyear contract.
C. Termination due to unavailability of funds in succeeding years. When funds are not appropriated to support continuation of performance in a subsequent year of a multiyear contract for supplies, services, or major repairs, the contract for such subsequent year shall be terminated. When a contract is terminated under these conditions, no additional funds shall be paid to the contractor as a result of such action.
D. Educational institutions excepted. (1) An educational institution may enter into a multiyear nonexclusive contract, not to exceed ten years, with a vendor who has made a gift to the institution of equipment utilized for promoting products and university activities at a cost to the vendor in excess of fifty thousand dollars. Further, for this exception to be applicable, the contract shall cover products for resale within the institution.
(2) The state superintendent of education may enter into a multiyear contract, not to exceed ten years, with any public or private agency to act as the depository in the state for school books.
E. With respect to all multiyear contracts for supplies, services, or major repairs, there shall be no provisions for a penalty to the state for the cancellation or early payment of the contract.
F. The Department of Environmental Quality may enter into a multiyear contract, not to exceed seven years, for the operation of privately operated vehicle emission inspection facilities pursuant to La. Rev. Stat. 30:2054(B)(8). The secretary shall seek and consider proposals for an enhanced inspection maintenance program to be implemented no sooner than January 1, 1995, from contractors proposing to implement currently evolving, cost-effective technologies, presenting minimal public inconvenience, designed to bring Louisiana into compliance with federal ambient air quality standards and meeting EPA required program standards.
G.(1) Unless otherwise provided in the statutes making appropriations therefor, a contract for professional, personal, consulting, or social services may be entered into for periods of not more than five years, except that:
(a) Contracts for management of food services at public universities and colleges, contracts of retirement systems for investment management services and investment advisory services, contracts for electronic disbursement services for child support payments, contracts for prisoner dialysis, and contracts for central banking services for the state may be entered into for periods of up to five years.
(b) Contracts for electronic benefits issuance system services as required under La. Rev. Stat. 46:450.1 may be entered into for periods of up to ten years. The contracts shall be for an initial contract period of six years with the state having two options for two-year extensions up to a maximum of ten years.
(c) Contracts for national norm-referenced testing or other testing services which are to be used as part of the school and district accountability system as provided in La. Rev. Stat. 17:10.1 et seq. may be entered into for a period of up to twelve years. Modifications to existing contracts may be made in order to ensure the acquisition and usage of the most current tests offered by the contractor.
(d)(i) Contracts or amendments to existing contracts issued to institutions of higher education under the authority of grants or joint agreements between the Board of Regents and federal agencies for research, educational, or infrastructure development activities, and contracts or amendments to existing contracts issued by such institutions under the authority of grants or joint agreements issued by federal agencies or private grants, may be entered into for a period corresponding to the performance period of the grant or agreement.
(ii) Contracts or amendments to existing contracts issued to institutions of higher education under the authority of the Board of Regents to award grants for educational and research purposes with funds available from the Louisiana Quality Education Support Fund, the Louisiana Fund, and the Health Excellence Fund may be entered into for periods of not more than six years. However, such contracts may be extended beyond the six-year limit up to an additional two years provided no additional costs are incurred.
(e) Contracts for the administration of the Medicaid early periodic screening diagnosis and treatment program (EPSDT), primary care case management (PCCM), and home and community-based services waivers may be entered into by the Louisiana Department of Health for periods of up to five years.
(2) Any such contract may be cancelled by the governmental body, provided the governmental body gives thirty days notice of such cancellation. If funds for the first fiscal year of the contemplated contract are available at the time of contracting, payment and performance obligations for succeeding fiscal years shall be subject to the availability of funds therefor.
H. Prior to the utilization of a multi-year contract for professional, personal, consulting, or social services, it shall be determined in writing by the commissioner of administration that (1) estimated requirements cover the period of the contract and are reasonably firm and continuing and (2) such a contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement.
I. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent year of a multi-year contract for professional, personal, consulting, or social services, the contract for such subsequent year shall be cancelled and the contractor shall be reimbursed in accordance with the terms of the contract for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the services delivered under the contract. The cost of cancellation may be paid from (1) appropriations currently available for performance of the contract; (2) appropriations currently available for procurement of similar services and not otherwise obligated, or (3) appropriations made specifically for the payment of such cancellation costs.
J. Except for those contracts provided in Subparagraph (G)(1)(a) through (e) of this Section, any contract for professional, personal, consulting, or social services entered into for a period of not more than five years but for a period of more than three years as authorized by this Section shall be subject to prior approval of the Joint Legislative Committee on the Budget.
Added by Acts 1979, No. 715, §1, eff. July 1, 1980; Acts 1983, No. 253, §1; Acts 1984, No. 616, §1, eff. July 12, 1984; Acts 1992, No. 240, §1; Acts 1993, No. 570, §5; Acts 1999, No. 190, §2; Acts 1999, No. 725, §1, eff. July 1, 1999; Acts 2014, No. 864, §2, eff. Jan. 1, 2015.