Policy 5205 – Exceptions to Competitive Bidding
Revision Date: 1/23/2017
Responsible Office: Purchasing Officer
Reference: JBE 2016-39
ITEMS OUTLINED IN JBE 2016-39; SECTION 5
The following items are considered small purchases and may be procured in the following manner:
A. No competitive process is required for the following items:
- Repair parts for equipment obtained from an authorized dealer. A Louisiana authorized dealer shall be used if available. This provision does not apply to the stocking of parts;
- Equipment repairs obtained from an authorized dealer. A Louisiana authorized dealer shall be used if available;
- 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 available;
- Vehicle body repairs covered by insurance recovery and in accordance with insurance requirements;
- Livestock procured at public auction or from an individual which has purebred certification approved by the Department of Agriculture and Forestry;
- Purchasing or selling transactions between state budget units and other governmental agencies;
- Publications and/or copyrighted materials purchased directly from the publisher or copyright holder not exceeding ten thousand dollars ($10,000);
- 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 not exceeding fifteen thousand dollars ($15,000);
- Public utilities and services provided by local governments;
- Prosthetic devices, implantable devices, and devices for physical restoration which are not covered by a competitive state contract;
- Educational training, including instructor fees, and related resources (except equipment) used to enhance the performance of state employees and good standing of state agencies, including memberships in and accreditations by professional societies and organizations, not exceeding ten thousand dollars ($10,000), except for customized training which is covered under La. R.S. 39:1551 et seq.;
- Procurements 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;
- Materials, supplies, exhibitor fees, and exhibit booths for conferences, seminars, and workshops, or similar events (business, educational, promotional, cultural, etc.) for participation in promotional activities which enhance economic development or further the department’s mission, duties and/or functions, not exceeding ten thousand dollars ($10,000) with the approval of the department secretary, or agency equivalent, if not covered by competitive state contract;
- Wire, related equipment, time and material charges to accomplish repairs, adds, moves, and/or changes to telecommunications systems not exceeding two thousand five hundred dollars ($2,500);
- Working class animals trained to perform special tasks, including but not limited to, narcotics detection, bomb detection, arson investigation, and rescue techniques;
- Food, materials, and supplies for teaching and training not exceeding ten thousand dollars ($10,000), where the purchasing, preparing, and serving of food are part of the regularly prescribed course;
- Shipping charges and associated overseas screening and broker fees between international and domestic origins and destinations not exceeding ten thousand dollars ($10,000) per transaction;
- Renewal of termite service contracts;
- Purchase of supplies, operating services, or equipment for Louisiana Rehabilitation Services, Traumatic Head and Spinal Cord Injury Trust Fund Program. Although competitive bidding is not required under this paragraph, whenever practicable, three (3) quotations from bona fide, qualified vendors should be obtained. Whenever possible, at least one (1) of the bona fide, qualified vendors shall be a certified small and emerging business, a small entrepreneurship; or a veteran or service-connected disabled veteran-owned small entrepreneurship;
- Purchasing of clothing at retail necessary to individualize clients at state developmental centers in compliance with Federal Regulations for ICFIMR facilities;
- 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;
- 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;
- Commercial Internet Service not exceeding one thousand five hundred dollars ($1,500) per subscription per year;
- Advertising, where permitted by law, and the head of an agency or designee certifies that specific media is required to reach targeted audiences;
- Scientific and laboratory supplies and equipment when procured by colleges and universities for laboratory or scientific research not to exceed twenty-five thousand dollars ($25,000) per transaction;
- Publication of articles, manuscripts, etc. in professional scientific, research, or educational journals/media and/or the purchase of reprints not exceeding ten thousand dollars ($10,000);
- Livestock sperm and ova;
- 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.;
- Equipment moves by the original equipment manufacturer or authorized dealer to ensure equipment operation to original equipment manufacturer specifications, calibration, warranty, etcetera, not to exceed twenty-five thousand dollars ($25,000) per transaction;
- Mailing list rentals or purchases not exceeding ten thousand dollars ($10,000); and
- Art Exhibition rentals and/or loan agreements and associated costs of curatorial fees, transportation, and installation.
B. For the following items, telephone or facsimile price quotations shall be solicited, where feasible, from at least three (3) bona fide, qualified vendors. Whenever possible, at least one (1) of the bona fide, qualified vendors shall be a certified small and emerging business, a small entrepreneurship, or a veteran or service connected disabled veteran-owned small entrepreneurship.
- 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 competitive sealed bidding process is not conducive for obtaining the lowest prices;
- 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 the cost of the food, materials, and supplies do not exceed twenty-five thousand dollars ($25,000); and/or
- B. Juvenile detention homes and rehabilitation facilities/homes where the number of inmates, students, or clients is unstable and unpredictable;
- Convention and meeting facilities not exceeding twenty five thousand dollars ($25,000), provided that any associated food or lodging must be in accordance with Policy & Procedure Memorandum No. 49- General Travel Regulations;
- Gasoline and fuel purchases not exceeding ten thousand dollars ($10,000);
- Equipment for blind operated facilities not covered by competitive state contract;
- Livestock feed commodities, including but not limited to soybean meal, cottonseed meal, and oats not exceeding ten thousand dollars ($10,000);
- Seed commodities, including but not limited to rye grass, soybean seed, com seed, cotton seed, etc. as well as related fertilizers, herbicides, insecticides, and fungicides when not covered by competitive state contract;
- FAA PMA approved aircraft parts and/or repairs, inspections, and modifications performed by an FAA certified mechanic and/or at an FAA certified repair station in accordance with FAA requirements with approval by the head of the agency or head of Office of Aircraft Services, Division of Administration; and
- Air and bus charters in accordance with PPM 49, including group travel that does not qualify for commercial rates available to individual travelers.
Memorandum OSP 17-04 – Executive Order JBE 16-39 Exemption
Executive Order JBE 16-39 prescribes small purchases procedures in accordance with La. R.S. 39:1596 of the Louisiana Procurement Code (La. R.S. 39:1551 et seq.). In Sections 5(A)(7) and (8), the Executive Order allows for the procurement of publications and/or copyrighted materials purchased directly from the publisher or copyrighted holder without competition up to $10,000, and of 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 copyrighted holders without competition up to $15,000.
Public Institutions of Higher Education, the State Library and local public school boards are exempt for Fiscal Year 2016-2017 from the monetary caps set forth in Sections 5(A)(7) and (8) of E.O. JBE 16-39 with respect to the procurement of publications and/or copyrighted materials purchased directly from the publisher or copyright holder, and 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.
PURCHASES SPECIFIED IN THE LOUISIANA PROCUREMENT CODE RS 39:1551-1738
If a competitive statewide contract exists, items can be purchased without bidding.
Competitive bids are not required for software purchase but must be accompanied by price documentation. Note: Software and/or Hardware purchases exceeding $100,000 require processing through the Office of State Purchasing Procurement Support Team.
Sole Source Procurement is permissible only if a requirement is available from a single supplier. If there is more than one potential bidder, it is not a sole source. These purchases are reported annually to the Louisiana State Legislature.
Before a department commits funds or places an order using sole source as a factor, Purchasing must determine and approve. In case of reasonable doubt, competition should be solicited. Any request by a using department that a procurement be restricted to one potential vendor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need as follows:
- Requirements for Sole Source:
- Letter or statement from manufacturer stating that they are the sole supplier, &
- Statement or explanation from Requesting Department as to why no other product will be suitable or acceptable to meet the need. The need must be identified, &
- Bid or other documentation of price with order information.
- Examples of circumstances which could necessitate sole source procurement are:
- Where the compatibility of equipment, accessories or replacement parts is the paramount consideration.
- Where a sole supplier item is needed for trial use or testing.
- Procurement of items for resale.
- Procurement of public utility services.
- Procurement of registered breeding stock.
- Livestock may be purchased on a selective basis.
An emergency condition is a situation that creates a threat to public health, welfare, or safety. The existence of such condition creates an immediate and serious need for supplies, services, or major repairs that cannot be met through normal procurement methods, and the lack of which would seriously threaten:
- The function of Louisiana Government;
- The preservation or protection of property; or
- The health or safety of any person.
These purchases are reported annually to Louisiana State Legislature.
The emergency quotation tabulation form is used whenever an emergency exists that is justified in accordance with RS 39:1598. A written determination must be made on why an emergency purchase was required and justification if the award was to other than the low bidder.
All vendors contacted must be listed along with the information of unit price, delivery time, terms, and F.O.B. Point. The name and phone number of the person quoting must also be given. Attach the completed form to the requisition and send to Purchasing for the issuance of a purchase order. If additional forms are needed, please duplicate the sample form. Prior approval from the Purchasing Office is required before telephone quotes will be accepted. Prior approval from the Purchasing Office is required before telephone quotes will be accepted.
Antiques, Used, or Demonstrator Equipment
The purchase of used equipment is discouraged, but if it should be necessary, certain requirements must be met:
Revised Statute 39:1645 reads as follows and the documents/certifications required should be forwarded to the purchasing department for approval:
Procurement of Used Equipment
Any agency covered by this Chapter may procure any equipment which is used or which has been previously purchased by an individual or corporation where the agency proposing to make such procurement can present satisfactory information to the procurement officer to illustrate that the procurement of said equipment is cost effective to the state.
(1) The used equipment shall be purchased by the head of the agency, college, or university, within the price range set by the director of state purchasing, or the directors of purchasing at colleges and universities, in a statement of written approval for the purchase which must be obtained by the head of the agency, college, or university, prior to the purchase.
(2) The head of the agency, college, or university, shall certify in writing to the director of state purchasing, or the directors of purchasing at colleges and universities, all of the following:
- The price for which the used equipment may be obtained.
- The plan for maintenance and repair of the equipment and the cost thereof.
- The savings that will accrue to the state because of the purchase of the used equipment.
- The fact that following the procedures set out in the Louisiana Procurement Code will result in the loss of the opportunity to purchase the equipment.”