HB 856 — TRANSPORTATION DEPT: Provides relative to Indefinite Delivery, Indefinite Quantity Construction Phase Contract (EN SEE FISC NOTE SG EX)

For federal aid projects, the department and the office of Louisiana highway construction, respectively, shall comply with all federal laws and regulations that are conditions to federal participation, including but not limited to provisions of 2 CFR 200 and 23 CFR Part 635, Subpart F, as amended.

In the event of a conflict between applicable required federal laws or regulations and the provisions of Title 48 and any state rules or regulations, the federal laws or regulations shall control on federal aid projects.

TheProcurements legislaturepursuant authorizes the department and the OLHC to usethis competitiveSection lowmay bidinclude orsingle bestaward value, or anyothermultiple formaward ofID/IQ ID/IQ,construction tocontracts. select a successful bidder or bidders.

ProcurementsThe underlegislature thisauthorizes Sectionthe maydepartment includeand singlethe awardoffice of Louisiana highway construction to procure ID/IQ contractsusinglowbidandbestvaluemethods,andtoawardsuchcontractsandany resulting work orders using low bid or multiplebest award.value, as specified in the solicitation documents.

TheAll procurement documents shallissued establishbythe proceduresdepartment forand determiningthe office of Louisiana highway construction, respectively, including the successfulNOI bidderand orRFP, bidders,shall suchindicate aswhether besta valuesingle evaluationaward factorsor wheremultiple applicable.awards will be made.

Materials separately acquired by the department or office of Louisiana highway construction may be provided to contractors for use under and as a condition of any ID/IQ contract.

ProcurementandProcurement awardofand ID/IQconstructionaward phaseof contractsID/IQ construction contacts shall meet the following requirements:

(1)Page Single3 awardof ID/IQ8 constructionCODING: phase contracts which will be awarded onalowbidbasisshallfolloweithertheadvertisementforlowbidcontractssetforth in R.S.

48:255 or the requirements for advertisements set forth in this Section.

If a single-award, low-bid ID/IQ construction phase contract is advertised pursuant to R.S.

48:255, award may also be made pursuant to R.S.

48:255.

If award is made pursuanttoR.S.48:255,thedepartmentandtheOLHCarenotrequiredtofollowthe provisions of this Section.

(2)(a) Prior to the award of any multiple award ID/IQ construction phase contractorasingleawardID/IQconstructionphasecontractnot advertisedpursuant to R.S.

48:255, the department and the OLHC shall issue a "notice of intent" (NOI) through advertisementon its designatedwebpageto requestlettersofinterest(LOI).

All notices shall be advertised a minimum of ten days prior to the deadline for receiptofresponses.

TheNOIshallcontainadescriptionoftheID/IQservicesto be procured.

The department and the OLHC mayreadvertise the NOIusing additional media or publications to solicit additional responses if the number of responses received by the department and the OLHC are deemed inadequate to encourage competition.

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HLS 26RS-1054 REENGROSSED HB NO.

856 (b)ENROLLED Following(1) receiptSingle ofaward lettersID/IQ ofconstruction interest,contracts theprocured departmenton anda thelow-bid OLHCbasis shallmay issuebe aadvertised "requestand forawarded proposals"using (RFP)one toof contractorsthe thatfollowing submitmethods: an LOI.

The(a) RFPIn shallaccordance include instructions for development and submittal of proposals, a description of how proposals will be evaluated, and estimated quantities and unit prices, and shall comply with theR.S. requirements of this Section.

All48:252 procurementand documents255 issuedfor byaward theto department and the OLHC,lowest includingresponsive the NOI and RFP,responsible shallbidder. indicate whether a single award or multiple awards will be made.

(b) In accordance with the advertisement and award procedures set forth in this Section.

(2) Multiple-award ID/IQ construction contracts may be procured on a low bid or best value basis, as determined by the department and office of Louisiana highway construction, respectively.

Such procurements shall be conducted in accordancewithapplicableLouisianapublicbidandprocurementlawsincludingthe requirements for advertisements and the procedures set forth in this Section.

(3)(a) The procurement of any multiple-award ID/IQ construction contract or a single award ID/IQ construction contract not advertised and awarded pursuant to R.S.

48:252 and 255, shall commence with the department and the office of Louisiana highway construction, respectively, issuing a "notice of intent" (NOI) through advertisement on their designated webpages to request letters of interest (LOI).TheNOIshallbeadvertisedforatleasttenbusinessdayspriortothedeadline for submission of LOI and shall include a description of the ID/IQ services to be procured.ThedepartmentandtheofficeofLouisianahighwayconstructionmayalso readvertise the NOI using additional media or publications and may readvertise as necessary if the number of responses received is deemed insufficient to ensure adequate competition.

(b) After the deadline for submission of LOI for a single-award or multiple-award ID/IQ construction contract,the department and office of Louisiana highwayconstruction shall issue a Request for Proposals ("RFP") to all contractors that submitted an LOI.

The RFP shall include instructions for proposal preparation andsubmission,adescriptionoftheevaluationmethodology,andshallcomplywith the requirements of this Section.

48:253 shall be specified in the department and the OLHC'soffice of Louisiana highway construction's standard specificationsPage or4 specialof provisions.8 CODING:

The department and the OLHC may waive the requirement for bid bonds for procurements under this Section.

(d) The assistant secretaryfor project delivery, with the concurrence of the secretary, and the executive director of the OLHC shall establish an evaluation committee for evaluation of proposals received by the department and the OLHC.

Theevaluationcommitteemay,initsdiscretion,beassistedbyotherdepartmentand OLHC personnel and external advisors in the evaluation of proposThe.

evaluation committee shall evaluate proposals as described in the RFP and make a recommendation of award to the secretary and executive director.

The secretary, executive director, or their designees shall make the final determination of award.

F.

The department and the OLHC may include the following items in its procurement documents or contract:

(1) Payment of mobilization or demobilization costs and the method for determining mobilization and demobilization reimbursement if the department and the OLHC opts to award those costs separate from an individual work order.

(2) The method for determining price escalation or de-escalation.

(3) Special provisions specific to ID/IQ construction phase contracts.

(4) Unit pricing or lists of work items specific to ID/IQ construction phase contracts.

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HLS 26RS-1054 REENGROSSED HB NO.

856 (5)ENROLLED Aspecifications minimum quantity or dollarspecial valueprovisions. of supplies or services that the department and the OLHC are obligated to order and the contractor is obligated to furnish, if the department and the OLHC opts to set a minimum.

The department and the office of Louisiana highway construction may waive the requirement for bid bonds for procurements under this Section.

(4)(a) The assistant secretary for project delivery, with the concurrence of the secretary or designee, and the executive director of the office of Louisiana highway construction , respectively, shall establish an evaluation committee for evaluation of proposals received in response to the RFP.

The evaluation committee may, in its discretion, be assisted by other departments and office of Louisiana highway construction personnel and external advisors in the evaluation the proposals.

(b) The evaluation committee shall evaluate the proposals and make a recommendation of award to the secretary and executive director.

The secretary, executive director, or their designees, shall make the final determination of award.

(5) Prior to issuing a work order under a multiple-award ID/IQ construction contract, the department and the office of Louisiana highway construction, respectively,shallsolicitcompetitiveresponsesfromthecontractorsawardedID/IQ contracts under the solicitation in accordancewith procedures set forth in the ID/IQ construction contract.

The procurement documents or contract shall state the procedures and selection criteria for issuance of work orders.

Work orders shall be awarded on a competitive low bid basis, or, where permitted byapplicable law and approved for use with federal funds, on a best value basis in which price is a significant evaluation factor.

(6) Proposals received by the department and the office of Louisiana highway construction and the evaluation committee's records, including the evaluation committee's findings, grading, score sheets, and recommendations, shall not be public records until the ID/IQ construction contract has been fully executed ortheprocurementhasbeencancelled.Followingcontractexecutionorcancellation, such records shall be subject to disclosure in accordance with applicable public records laws.

Proprietary, confidential, trade secret, or otherwise protected information will remain exempt to the extent permitted bylaw.

The meetings of the Page 5 of 8 CODING:

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HB NO.

856 ENROLLED evaluationcommitteewillnotbesubjecttotheOpenMeetingsLawinTitle44ofthe Louisiana Revised Statutes.

F.

The department and the office of Louisiana highway construction may include the following items in their procurement documents or contracts:

(1) Themethodfordeterminingpriceescalationorde-escalationprocedures when warranted byparticular circumstances.

(2) Special provisions specific to ID/IQ construction contracts.

(3) Unit pricing or lists of work items specific to the ID/IQ construction contract.

(4) A minimum quantity or dollar value if the department and the office of Louisiana highway construction opts to set a minimum.

(5) A statement of procedures and selection criteria the department and office of Louisiana highway construction shall use in issuing work orders.

(6) Any other information, terms, or requirements the department and the officeofLouisianahighwayconstruction deem necessaryto includein procurement documents or contracts.

ThetermoftheinitialID/IQconstructionphasecontractandanyoptionalThe term of the initial ID/IQ construction contract and any optional contract extensions shall not exceed five years.

The duration of the initial term and the terms of individual contract extensions shall be determined by the department and the OLHC.office of Louisiana highway construction, respectiveThe ID/IQ construction contract shall serve as the underlying agreement that establishes the generaltermsandconditionsgoverningtherelationshipbetweenthedepartmentand the office of Louisiana highway construction, respectively, and the selected bidder.

TheExecution ID/IQof construction phase contractshall serveas the underlyingID/IQ agreementconstruction thatcontract establishesshall thenot generalauthorize termswork andor conditionsserve governingas thea relationshipnotice betweento theproceed. department and the OLHC and the selected bidder.

ExecutionoftheID/IQconstructionphasecontractshallnotauthorizeworkorserve as a notice to proceed.

48:251, and the general requirements of Part XIII of Chapter 1 of this Title shall applyapplyto to the value and completion of work under an individual work order rather than the value and completion of all work under the ID/IQ construction phasePage contract6 unless otherwise specified in the ID/IQ construction phase contract or the individual work order, or otherwise provided in a special provision of the8 departmentCODING: and the OLHC.

TheWordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored requirementare ofadditions. issuance of payment, performance, and retainage bonds shall be at the time of execution of an individual work order unless otherwise specified by the ID/IQ construction phase contract, the individual work order, or a special provision developed by the department and the OLHC.

HB NO.

856 ENROLLED contract unless otherwise specified in the ID/IQ construction contract or the individualworkorder,orotherwiseprovidedinaspecialprovisionofthedepartment and the office of Louisiana highway construction, respectively.

The issuance of payment,performance,andretainagebondsshallberequiredatthetimeofexecution of an individual work order unless otherwise specified by the ID/IQ construction contract, the individual work order, or a special provision developed by the department and the office of Louisiana highway construction, respectively.

InsuranceRequired insurance policies and the extent and type of coverage required shall be as determined by the department and the OLHC.office of Louisiana highway construction, respectively.

This Subsection shall also applytoapply to low bid ID/IQ contracts as advertised and awarded pursuant to R.S.

48:252 and R.S.

This Section shall not apply to engineering and design service contracts orotherconsultingcontractsofthedepartmentandtheOLHCauthorizedbythisPartor Pageother 5consulting contracts of 9the CODING:department and the office of Louisiana highway construction, respectively, authorized by this Part or federal aid projects governed by 23 CFR Part 172, except that these services may be included in ID/IQ construction contracts to the extent that they support the construction of projects.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1054 REENGROSSED HB NO.

856 orfederalaidprojectsgovernedby23CFRPart172,exceptthatdesignservicesmay be included in these contracts to the extent that they support the construction phase of projects.

Except as otherwise provided in this Section, the provisions of this Part shall apply to ID/IQ construction phase contracting.

In the event of a conflict, the provisionsofthisprovisions SectionshallprevailandshallsupersedeanyconflictingprovisionofthisSectionshallprevailandshallsupersedeanyconflictingprovision of state law.

The department and the OLHCoffice of Louisiana highway construction, respectively, may establish guidelines, standard specifications, special provisions, handbooks, or other required documents for elements of ID/IQ construction phase contracting not explicitly provided for in this Section or otherwise subject to the Administrative Procedure Act.

The department and the OLHCoffice of Louisiana highway construction, respectively, may promulgate rules and regulations to implement and enforce the provisionsPage of7 this Section in accordance with the provisions of the8 AdministrativeCODING: Procedure Act.

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

856 ENROLLED provisions of this Section in accordance with the provisions of the Administrative Procedure Act.

If vetoed bythe governor and subsequentlysubsequentlyapproved approvedbythe by the legislature, this act shall become effective on the dayfollowing such approval.

DIGESTSPEAKER ThedigestprintedbelowwaspreparedbyHouseLegislativeOF Services.THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

ItPage constitutes8 nopart of the8 legislativeCODING: instrument.

The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 856 Reengrossed 2026 Regular Session Fontenot Abstract:

Establishes the use of indefinite delivery, indefinite quantity construction phase contracts by the Department of Transportation and Development and the office of Louisiana Highway Construction.

Provides procedures, definitions, and requirements to govern the contracts while providing flexibility for project-specific needs.

Proposed law declares that improving efficiency in highway and bridge construction and maintenance is in the public interest.

Authorizes the Dept.

of Transportation and Development(DOTD)andtheofficeofLa.Hwy.Construction (OLHC)toawardindefinite delivery, indefinite quantity construction phase contracts for maintenance, repair, Page 6 of 9 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HLS 26RS-1054 REENGROSSED HB NO.

856 reconstruction, and construction projects when the secretary and the executive director determines it is in the best interest of taxpayers.

Proposed law provides for definitions of the following:

(1) "Best value" means a selection process in which proposals contain price and qualitative components and award of the indefinite delivery, indefinite quantity construction phase contract based upon a combination of price and qualitative considerations as provided in the solicitation documents.

(2) "Indefinitedelivery, indefinitequantity(ID/IQ)"meansamethodofcontractingthat allows for delivery of an indefinite quantity of services over a fixed duration under which delivery of specific services is authorized by task orders.

(3) "ID/IQ construction phase contract" means the contract awarded to an ID/IQ contractor pursuant to the requirements of this Section.

(4) "Low bid" means a selection process in which proposals are evaluated based on the proposed price from the lowest responsible bidder.

(5) "Multiple award"means an ID/IQ procurement where awards of ID/IQ construction phase contracts for the same scope of services are made to multiple ID/IQ contractors through a single procurement.

(6) "Singleaward"meansanID/IQprocurementwhereawardoftheID/IQconstruction phase contract is made to a single ID/IQ contractor.

(7) "Work order" means a contract document issued for a definite scope of work pursuanttoanID/IQconstructionphasecontractandprovidesthelocation,time,and scope of work required and authorizes the ID/IQ contractor to deliver the scope of servicesdescribedin the workorder.

It alsoprovidesrequiredpayitems, quantities, and unit prices, as applicable.

Proposed law requires the DOTD and the OLHC to comply with all applicable federal regulations forfederal-aidprojectsandprovidesthatfederalregulations controlin theevent of a conflict with state law or rules.

Proposedlawrequiresthatsingle-award,low-bidID/IQconstructionphasecontractsfollow eitheradvertisingproceduresinpresentlawortheadvertisingrequirementsofproposedlaw.

Authorizes the DOTD and the OLHC to award the contract.

Proposed law requires the DOTD and the OLHC, before awarding multiple-award or single-award ID/IQ construction phase contracts not advertised under existing low-bid procedures to issue a “notice of intent” (NOI) on its designated webpage to solicit letters of interest (LOI).

Requires notices to be advertised at least 10 days before the response deadline and include a description of the ID/IQ services.

Further authorizes the DOTD and the OLHC to readvertisethe NOIthrough additional media or publications if the number of responses is deemed insufficient to encourage competition.

ProposedlawrequirestheDOTD and the OLHC to issue a “requestfor proposals”(RFP) to contractors that submitted an LOI.

Further requires that the RFP include instructions for preparingandsubmittingproposals,evaluationcriteria,estimatedquantitiesandunitprices, and indicate whether a single or multiple awards will be made.

Additionally, requires that all procurement documents, including the NOI and RFP, comply with proposed law.

Proposed law requires that bid bonds be specified in the DOTD and the OLHC's standard specifications or special provisions.

Authorizes the DOTD and the OLHC to waive the requirement for bid bonds for procurements under proposed law.

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HLS 26RS-1054 REENGROSSED HB NO.

856 Proposed law requires the assistant secretary for project delivery, with the secretary and executive director's concurrence, to establish an evaluation committee to review proposals andauthorizesassistancetothecommitteebyotherDOTDandOLHCpersonnelorexternal advisors.

Requires the committee to evaluate proposals as described in the RFP and recommend an award to the secretary and the executive director, who makes the final determination.

Proposed law authorizes the DOTD and the OLHC to include the following in its procurement documents or contracts:

(1) Payment of mobilization or demobilization costs and the method for determining reimbursement if such costs are awarded separatelyfrom an individual work order.

(2) The method for determining price escalation or de-escalation.

(3) Special provisions specific to ID/IQ construction phase contracts.

(4) Unit pricing or lists of work items specific to ID/IQ construction phase contracts.

(5) A minimum quantity or dollar value of supplies or services the DOTD and the OLHC is obligated to order and the contractor is obligated to furnish, if the department chooses to set a minimum.

Proposed law limits the term of the initial ID/IQ construction phase contract and any extensions to a maximum of five years and provides that the DOTD and the OLHC determines the duration of the initial term and anyindividual extensions.

Requires that the ID/IQ construction phase contract establishes the general terms and conditions governing therelationshipbetweentheDOTD,theOLHC,andtheselectedbidder.

Prohibitsexecution of the ID/IQ construction phase contract from authorizing work or serving as a notice to proceed.

Proposed law requires that payment bonds, performance bonds, retainage bonds, minimum warrantyperiods,andgeneralrequirementsofpresentlawapplytothevalueandcompletion of individual work orders rather than the entire ID/IQ construction phase contract, unless otherwise specified in the contract, work order, or special provisions.

Further requires that payment, performance, and retainage bonds be issued at the time of execution of each individual work order, unless otherwise specified.

Provides that stipulated damages apply toindividualworkordersandarecalculatedbasedoneachworkorder’srequiredcompletion date.

Additionally, authorizes the DOTD and the OLHC to determine insurance policies coverage extent, and type.

Further requires that proposed law also apply to low bid ID/IQ contracts.

Proposedlawexcludesengineeringanddesignservicecontracts,otherauthorizedconsulting contracts, and federal-aid projects, but allows design services to be included in these contracts to the extent that they support the construction phase of projects.

Proposed law provides that the provisions of present law applyto ID/IQ construction phase contracting.

Proposed law provides that, in the event of a conflict, the provisions of proposed law prevail and supersede anyconflicting state law.

Proposed law authorizes the DOTD and the OLHC to establish guidelines, standard specifications,specialprovisions,handbooks,orotherrequirementsdocumentsforelements of ID/IQ construction phase contracting not explicitly provided for in proposed law or present law.

Proposed law authorizes the DOTD and the OLHC to promulgate rules and regulations to implement and enforce proposed law.

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HLS 26RS-1054 REENGROSSED HB NO.

856 Effective upon signature of governor or lapse of time for gubernatorial action.

(Adds R.S.

48:250.5) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Transportation, Highways and Public Works to the original bill:

1.

Change "Indefinite Delivery, Indefinite Quality contracts" to "Indefinite Delivery, Indefinite Quality Construction Phase contracts".

2.

Add the office of Louisiana Highway Construction as authorized to engage in Indefinite Delivery, Indefinite Quality Construction Phase contracting.

3.

Provides certain authority to executive director of the office of Louisiana Highway Construction.

4.

Make technical changes.

The House Floor Amendments to the engrossed bill:

1.

Make technical changes.

2.

Remove "task order" from the list of definitions contained in proposed law.

3.

Add that payment bonds, performance bonds, retainage bonds, the minimum requiredwarrantyperiod, and the general requirements of present law (Part XIII of Chapter 1 of Title 48) also apply to low bid Indefinite Delivery, Indefinite Quantity construction phase contracts.

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