§1540. Competition

            A. Every contract entered into by the state for the purchase of insurance or for obtaining services relating to the operation of the insurance program shall be awarded by either competitive sealed bidding or competitive negotiation. Competitive negotiation shall be initiated by the issuance of a request for proposals containing a description of the coverage required and the factors to be used in evaluating the proposals. Where there is more than one offeror, written or oral discussions shall be conducted with at least the three, or two if there are only two, highest qualified offerors who submit proposals determined in writing to be reasonably susceptible of being selected for award. The contract shall be awarded with reasonable promptness by written notice to the responsible offeror whose proposal meets the requirements and criteria set forth in the request for proposals and whose proposal is most beneficial to the state, considering the price and the evaluation factors set forth in the request for proposal. Public notice of the request for proposals shall be provided in the same manner as established in R.S. 39:1551, et seq.

            B.(1) The office of risk management, under the direction of the commissioner of administration, is authorized to contract for consulting services with one or more licensed insurance producers upon a finding by the commissioner that the contract is in the best interest of the state. The contract authorized pursuant to the provisions of this Subsection may authorize one or more producers to advise the office of risk management regarding the office's insurance programs and to directly procure insurance.

            (2) No contract executed for consulting services under the provisions of this Subsection shall be effective until it has been approved by the Joint Legislative Committee on the Budget.

            (3) The division of administration shall provide a financial analysis and shall report annually on contracts and lines of insurance coverage secured under this Subsection to the Joint Legislative Committee on the Budget. Additionally, the commissioner of administration shall report to the Joint Legislative Committee on the Budget any contract award and all associated proposals received for consulting services under these provisions in response to each request for proposals.

            Added by Acts 1980, No. 520, §1, eff. July 1, 1980; Acts 2014, No. 715, §1.