Reverse Auctions in Louisiana

Title 34. Government Contracts, Procurement and Property Control
Part I. Purchasing
Subpart 1. Central Purchasing Procedures
Chapter 6. Reverse Auctions
§ 601. Definition
§ 603. Application
§ 605. Addenda Modifying a Reverse Auction
§ 607. Price Submittals
§ 609. Withdrawal of Bids
§ 611. Tie Bids
§ 613. Rejected Bids
§ 615. Public Viewing of Auction Event
§ 617. Security

§ 601. Definition

A. For the purpose of this Section, using agency means the Office of State Purchasing using the reverse auction process on its own behalf or on behalf of other state agencies.

§ 603. Application

A. Where the using agency utilizes the reverse auction process on behalf of a single state agency, the head of the state agency requesting a reverse auction shall provide:
1. reasons that the best interest of the state would be served and that electronic online bidding is more advantageous than other procurement methods;
2. specifications and terms and conditions to be used for the procurement.
B. When the using agency uses the reverse auction process on its own behalf or on behalf of multiple state agencies, the director of state purchasing shall be considered the department head of the using agency.
C. Vendors shall register before the opening date and time, and as part of the registration, shall agree to any terms and conditions and other requirements of the solicitation.
D. Vendors and/or products shall be prequalified prior to placing bids and only bidders who are prequalified will be allowed to submit bids.
1. The prequalification criteria shall be prescribed in the solicitation.
2. The prequalification period shall be announced in the solicitation.
3. The prequalification period shall end 10 days prior to the beginning of the auction.
4. Bidders shall be notified as to whether they have been prequalified in writing at least seven days prior to the beginning of the auction.
5. When applicable, prequalified products for a particular solicitation shall be announced on the state's internet-based system for posting vendor opportunities seven days prior to the beginning of the auction.
6. Any bidder aggrieved by the pre-qualification process shall have the right to protest the solicitation in accordance with the provisions of R.S. 39:1671.
E. The solicitation shall designate an opening date and time and the closing date and time. The closing date and time may be fixed or remain open depending on the nature of the item being bid.
1. Online reverse auctions shall last no less than one hour.
F. At the opening date and time, the using agency shall begin accepting online bids and continue accepting bids until the bid is officially closed. Registered bidders shall be allowed to lower the price of their bid below the lowest bid posted on the Internet until the closing date and time.
G. Bidders' identities shall not be revealed during the bidding process; only the successively lower prices, ranks, scores, and related bid details shall be revealed.
H. All bids shall be posted electronically and updated on a real-time basis. All prices must be received in the state's system by the announced closing time regardless of what time it was submitted by the vendor.
I. The using agency shall retain the right to cancel the solicitation if it determines that it is in the agency's or the state's best interest.
J. The using agency shall retain its existing authority to determine the criteria that shall be used as a basis for making awards.
AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1581.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Division of Administration, Office of State Purchasing, LR 38:1406 (June 2012), repromulgated LR 40:1354 (July 2014), LR 40:2555 (December 2014).
Current through rules published in the Louisiana Register dated November 20, 2015, excluding new Title 17.
La. Admin Code. tit. 34, pt. V, § 503, 34 LA ADC Pt V, § 503

§ 605. Addenda Modifying a Reverse Auction

A. Addenda will be issued in accordance with §505 of these rules.
B. It is the responsibility of the bidder to obtain any solicitation amendment(s) if the solicitation and addenda are posted on the state's internet-based system for posting bid opportunities.
AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1581.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Division of Administration, Office of State Purchasing, LR 38:1406 (June 2012), repromulgated LR 40:1355 (July 2014), LR 40:2555 (December 2014).
Current through rules published in the Louisiana Register dated November 20, 2015, excluding new Title 17.
La. Admin Code. tit. 34, pt. V, § 505, 34 LA ADC Pt V, § 505

§ 607. Price Submittals

A. Bidders may submit multiple prices during the event. The lowest price offered will become the price portion of the bid response.
B. The preference provisions of R.S. 39:1595, 1595.1, 1595.2, 1595.3, 1595.6, and 1595.7 shall apply to the reverse auction process.
AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1581.
HISTORICAL NOTE: Promulgated by the Office of the Governor, Division of Administration, Office of State Purchasing, LR 38:1407 (June 2012), repromulgated LR 40:1355 (July 2014), LR 40:2555 (December 2014).
Current through rules published in the Louisiana Register dated November 20, 2015, excluding new Title 17.
La. Admin Code. tit. 34, pt. V, § 507, 34 LA ADC Pt V, § 507

§ 609. Withdrawal of Bids

A. Withdrawal of bids will be handled in accordance with §521 of these rules.

§ 611. Tie Bids

A. In the event that multiple bidders submit identical prices for the same goods or services, the bid received first will be considered to be the lowest. Any other identical bids received later will be considered in the order received.

§ 613. Rejected Bids

A. The awarding authority may reject any bid, in whole or in part, if any of the following occur:
1. bids offered for materials, supplies, services, products, or equipment that are not in compliance with the requirements, specifications, terms or conditions as stated in the reverse auction;
2. the price of the lowest responsive and responsible bid exceeds the amount budgeted for the procurement;
3. it is determined that awarding any item is not in the best interest of the agency/department.

§ 615. Public Viewing of Auction Event

A. The public may view the internet auction event which will be conducted such that the names of the bidders will not be disclosed until after the completion of the auction, at which time the event record will be available to the public.

§ 617. Security

A. All reverse auctions shall be conducted in accordance with the electronic security requirements of the Office of Information Technology.

La. Admin. Code tit. 34, pt. I, §§ 601 – 617