Answer

If the license is for subscription access to an online service, the license likely constitutes a professional service and not the purchase of software. Therefore, the purchase would not be subject to the Public Bid Law. Other fees for implementation, providing maintenance, and training would also constitute professional services. If the license is determined to constitute the purchase of software, the public entity will have to comply with the requirements of the Public Bid Law in R.S. 38:2212.1, unless an exception applies. As the costs include a combination of the professional services and purchase of software, the public entity should determine which element is the predominant portion of the contract. If the predominant component of the contract is for professional services, the Attorney General has noted that the contract may be treated as a contract for professional services and will not require bidding. However, if the predominant component of the contract is the purchase of software or other materials and supplies, the contract must be considered a contract for materials and supplies and comply with the requirements of R.S. 38:2212. Finally, the public entity could utilize the RFP process authorized pursuant to R.S. 38:2237 under the Telecommunications and Data Processing Procurement by Political Subdivisions Law, R.S. 38:2234, et seq. This RFP process is authorized to be used in lieu of bidding for any purchase of software or connected equipment along with related services. Louisiana Legislative Auditor website: 05/30/2025 07:53:38 PM