Senate moves to modernize procurement code, raising purchase thresholds and adding protest bond requirement

Senate Bill 151, a measure to update the Louisiana procurement code, passed the Senate on April 28 after floor debate about purchases thresholds and protest procedures.

Senator Maizell, sponsor of the bill, told the chamber the measure was intended to modernize an “outdated” procurement process and to make state purchasing more efficient. Key provisions include raising the threshold for purchases of goods or services from $75,000 to $150,000, permitting advertisement of procurements online (in addition to the official journal), increasing allowable leased square footage before higher-level approvals are required, and authorizing competitive sealed proposals in specified circumstances.

The bill requires a protester to post a surety bond as part of a procurement protest; Maizell said the bond is a 25% surety and is intended to deter frivolous protests that can delay contract awards. Senator Luna questioned whether the bond would deter legitimate protests and observed that other states’ bonds vary from 1% to 120%.

Sponsor Maizell said the surety bond is intended to prevent protesters from indefinitely delaying contracts that have been lawfully awarded. Colleagues asked whether a losing protester would forfeit the bond; Maizell said the bond is returned when the decision is resolved and that the provision aims to reduce frivolous challenges. The measure also allows procurement notices to be posted online to modernize public notice.

SB151 passed 37 yeas, 0 nays. The sponsor moved to reconsider and the motion was tabled without objection.