LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 884 HLS 24RS 2084
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 15, 2024 10:21 AM Author: HUGHES
Dept./Agy.: Higher Education
Subject: Procurement of social and consulting services contracts Analyst: Chris Henry
PROCUREMENT EN SEE FISC NOTE GF EX Page 1 of 1
Provides relative to procurement of certain services by public postsecondary education management boards
Proposed legislation would allow postsecondary education management boards to enter into master service contracts on
behalf of the institutions under their supervision and control for both social services contracts and consulting services
contracts. Master service agreements for social services do not necessitate competitive bidding if the compensation for each
campus serviced does not exceed $250,000 annually. Master service agreements for consulting services do not necessitate
competitive bidding if the compensation for each campus serviced does not exceed $75,000 annually.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is the potential for savings across the operating budgets of postsecondary education institutions from the increased
flexibility provided for the procurement of social and consulting services contracts and from utilizing economies of scale to
integrate multiple procurements into a larger, single combined effort. There is also the potential effect of higher costs from
reducing open competition in the procurement process. The primary funding of these budgets is comprised of SGF and SGR
from tuition and fees as seen in the table above. Most institutions report the proposed measure could also result in savings
from a reduction in administrative workload.
Current law presently allows a postsecondary institution on its own accord to enter into social services and consulting
services contracts without competitive bids if they are below a threshold of $250,000 or $75,000 respectively. Proposed law
would allow the management board to combine its member institution’s thresholds into one and retain the noncompetitive
aspect of the procurement. As an illustrative example of the proposed impact, the University of Louisiana System (ULS)
could now award a three-year social services contract on behalf of its nine institutions for a total of $6.75 M ($250,000 x 9 x
3 years) without undergoing a competitive process such as a request for proposals (RFP).
Note: The majority of institutions in the Louisiana State University System (excluding the Health Science Centers) utilize the
unique Higher Education Procurement Code in lieu of the Louisiana Procurement Code as authorized through the Louisiana
Granting Resources and Autonomy for Diplomas (La Grad) Act (R.S. 17:3139.5). Amendments adopted by the House
Committee on Appropriations added management boards, which participate in this alternative procurement system.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB884 Original: 39:1619(B)
HB884 Engrossed: 39:1619(B)
HB884 Enrolled: 39:1619(B)