Louisiana Administrative Code
Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL
Part V - Procurement
Chapter 17 - Types of Contracts
Section V-1703 - Policy Regarding Selection of Contract Types [Formerly LAC 34:I.1703]

Universal Citation: LA Admin Code V-1703

Current through Register Vol. 50, No. 9, September 20, 2024

A. The selection of an appropriate contract type depends on factors such as the nature of the supplies, services, or major repairs to be procured, the uncertainties which may be involved in contract performance, and the extent to which the state or the contractor is to assume the risk of the cost of performance of the contract.

B. The objective when selecting a contract type is to obtain the greatest value of supplies, services, or major repairs at the lowest overall cost to the state. In order to achieve this objective, the chief procurement officer, before choosing a contract type, should review those elements of the procurement which directly affect the cost and risk of performance and profit incentives bearing on the performance.

C. Among the factors to be considered in selecting any type of contract are:

1. the type and complexity of the supply, service, or major repair items being procured;

2. the difficulty of estimating performance costs such as the inability of the state to develop definitive specifications to identify the risks to the contractor inherent in the nature of the work to be performed, or otherwise to establish clearly the requirements of the contract;

3. the administrative costs to both parties;

4. the degree to which the state must provide technical coordination during the performance of the contract;

5. the effect of the choice of the type of contract on the amount of competition to be expected;

6. the stability of material or commodity market prices or wage levels;

7. the urgency of the requirement; and

8. the length of contract performance.

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1591.

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