Senate Bill No. [insert bill number] proposes the establishment of a pilot program that allows local governmental subdivisions and political subdivisions in Louisiana to utilize the average bid method for awarding public works contracts. This method will be limited to fifteen projects per year and requires approval from the Senate and House committees on transportation, highways, and public works. The bill defines key terms such as "average bid method" and "responsive bid," and outlines the process for specifying this method in bidding documents. Additionally, it mandates that at least sixty days prior to advertising for bids, a written notification detailing the project and justification for using the average bid method must be submitted to the relevant legislative committees.

Furthermore, the bill allows the Department of Transportation and Development (DOTD) to apply the average bid method for road and highway construction projects. If five or more responsive bids are received, the DOTD will average the bids while excluding the highest and lowest bids, awarding the contract to the bidder whose bid is closest to this average. If fewer than three responsive bids are received, all bids will be rejected. The provisions of this bill do not apply to professional services, ensuring that the average bid method is specifically tailored for public works contracts. The bill is set to take effect on August 1, 2026.