§ 39:1615 — Multiyear contracts

§1615. Multiyear contracts
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 R.S. 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 R.S.
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 R.S. 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.

Legislative History

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.