Answer


For a local political subdivision purchasing materials and supplies, such as a vehicle, off of the state contract is an exception to the Public Bid Law. The Town is not required to purchase off of the state contract. It is required to follow the Public Bid Law but may, at its option, purchase off of the state contract.

The Public Bid Law requires that for purchases between $30,000 and $60,000 the Town obtain 3 quotes and written confirmation of the accepted offer. If selecting other than the lowest quote, written documentation must be included in the file supporting why selection was in the best interest of the public entity. From the facts presented, the Town has been following the Public Bid Law for this purchase.

It should be noted, that if the Town chooses to use the state contract exception instead of the Public Bid Law, they may still be able to purchase from the local dealership. R.S. 39:1710 provides that when a local governing authority purchases an item at the state bid price through a local vendor, the local governing authority may pay to the local vendor the costs for shipping, preparation, and delivery of the item, provided that these costs shall not exceed the state bid price by seven percent on purchases up to ten thousand dollars, five percent on purchases over ten thousand dollars and up to twenty thousand dollars, and three percent on purchases over twenty thousand dollars.

The Town would then contact the local vendor for the item to determine if he/she can provide the item meeting the exact same specification as the state contract item and obtain a written price quote for delivery of the item to the local governing authority

If the delivered price offered by the local vendor is within the percentages set forth in the statute for contracts of various values, a purchase order may be issued by the local governing authority to the local vendor, reflecting the state contract number, state contract specification, state contract price and the markup allowed to the local vendor for shipping, preparation and delivery of the item (in this case, 3%).

A copy of the local governing authority's purchase order shall be furnished to the State Central Purchasing Office for monitoring compliance with the provisions of R.S. 39:1710. See, AG Op. No. 96-0044.


Louisiana Legislative Auditor website: 06/24/2026 08:23:22 PM