Professional Contracts
Professional Contracts
The Office of State Procurement is charged by law with adopting rules and regulations for the procurement, management, control and disposition of all professional, personal, consulting, and social services (PPCS) contracts utilized by state agencies. OSP's Professional Contracts section is responsible for exercising regulatory and approval oversight over all PPCS Contracts.
PPCS Contracts are received by OSP's Professional Contracts section and are reviewed for appropriateness of contract terms and language, signature authorities, evidence of funding and compliance with applicable laws, regulations, executive orders and policies. The Professional Contracts section also reviews agencies' procurement processes against competitive solicitation requirements of law. The review process also ensures that a central record of all PPCS contracts is maintained and that comparative statistics in the number and kinds of services needed can be developed for planning and reporting purposes.
As of January 1, 2015, the Louisiana Revised Statutes Title 39:1551-1755 provide for the laws governing PPCS contracts. A disposition table of previous citations (La. R.S. 39:1482-1526) to the new citations is posted under Legal Information. The official rules and regulations of the Office of State Procurement, PPCS contracts, appear in Title 34, Part V, of the Louisiana Administrative Code.
Please review JML 24-113 - Requires Cooperative Endeavor Agreements to be approved by the Division of Administration
Please see this template for Cooperative Endeavor Agreements
Please review JML 24-115 Accountability for Line Item Appropriations
In order to help agencies ensure compliance with the above executive order, please review OSP's Guidelines for Line Item Appropriation Cooperative Endeavors.
Also see this template Cooperative Endeavor for Line Item Appropriations.
Consulting service contracts greater than $74,999.99 in a 12 month period (maximum $224,997 in 36 months), must be let by a Request for Proposals process as outlined in the laws and regulations of OSP - Professional Contracts. See Louisiana R.S. 39:1621.
Social Services contracts greater than $249,999.99 in a 12 month period (maximum $749,997 in 36 months) must be let by a Request for Proposals process as outlined in the OSP laws and regulations, unless specifically exempt in accordance with Louisiana R.S. 39:1619.
1. What is an LDR Account Number?
The LDR number is a seven digit Louisiana State Revenue Department ID number. The number could be issued with up to 13 digits but LDR only requires the first seven digits.
2. What is the difference between an LDR number and a Tax ID number?
The LDR number is for LDR registration and the Tax ID number usually refers to the Federal Tax Identification number.
3. Will an individual have a State LDR Number?
Yes, even if the individual or sole proprietorship files with their social security number, they will have an LDR 7-digit number. Under no circumstances should a Social Security number be entered into any contract documents. If the vendor does not know their LDR number, they can contact LDR to get this number. There is LDR contact information at the end of this FAQ sheet. (See #24)
4. Can an individual use their Social Security number instead of their LDR number?
No. A social security number is considered confidential and the State will not accept any contract documents if they contain a Social Security number. Every entity that files with LDR using a Social Security number should have an LDR number.
5. What businesses are required to have tax clearance?
All vendors contracting with the State are required to have tax clearance before OSP-PC can approve the contract, if the contract falls into one of the specified types, Social, Professional, Personal or Consulting. These must all follow the requirements of Act 211. Cooperative Endeavor Agreements, Agency, or Governmental contracts are not included in this requirement for tax clearance.
6. What do non-profit organizations need to provide?
If a non-profit does not have an LDR number, they will need to provide a 501c3 Form.
7. If we do not have the LDR number, how do we get it?
The vendor/contractor is required to furnish this information. The Agency should instruct the vendor to obtain this number. There is LDR contact information that the vendor can use if they do not know their LDR number or need to obtain one. (See #24 and #25.)
8. What if they do not want to give the State LDR Account Number?
Act 211 was passed in the 2017 Regular Session and vendors are required to obtain a tax clearance prior to a contract being approved, and in order to get this approval, they must provide this number. Contracts for vendors who do not furnish this number will not
be approved.
9. Can we just submit the LDR number in PROACT?
No. The LDR number must be inserted in the contract. See the revised templates on the OSP-PC website, and the new required tax clause language which must also be entered in the contract. There is no other way to get a contract approved.
10. Do we actually need to enter the LDR number in the contract?
Yes. You will need to enter the LDR number either in the box on the OSP-PC template or in the paragraph with the required tax language.
11. Where in the contract or on a form do we include the LDR Account Number?
If you use the OSP-PC standard template there is a box to include the number. Otherwise, the insertion is in the body of the contract. Check the website templates for guidance. If the agency is using their own template, the same changes must be made to that form.
12. Can we include the LDR Number at the header part of our contract, or can we include it on the signature page?
No. You should include the LDR number in the box provided or the body of the contract along with the Act 211 required language. It cannot be included on the signature page.
13. Will a tax clearance be required each year of a three-year contract?
No, tax clearance is only submitted when a contract is submitted for review and approval. There will not be a new clearance required for each year of the contract.
14. Are contracts approved under an agency’s delegated authority required to have the LDR tax clearance?
No. Contracts approved under an agency’s delegated authority are not required to have the tax clearance at this time.
15. Should the clause be incorporated in all contracts to be submitted to OSP-PC?
Yes, the required language will have to be included in all contracts subject to the requirements of Act 211 and the language as spelled out in the sample template on our website must be used. *Contracts not requiring LDR clearance will not be required to contain this clause.
16. Is the State LDR number and Federal Tax ID number to be incorporated into thebody of the contract?
The OSP-PC standard template has a separate box for each ID number; however, if the standard template is not utilized you will need to incorporate both numbers in the body of the contract.
17. Is Act 211 tax clearance required on contracts with out-of-state vendors and out-of-country vendors?
There is an LDR form (R-7101) that has been developed for vendors that fall into these two categories. This form can be obtained from LDR, completed by the vendor, and submitted to LDR at LDR-OSPClearances@la.gov.
18. We are currently drafting an amendment, should the LDR number be included in the amendment?
The LDR number is not required on amendments.
19. If we have contracts already in progress, do we have to redo them with the Act 211 clause?
If you have a contract that was submitted to OSP-PC and approved prior to 10/1/17, the process is not required.
20. If we have a contract that is in the process but it has not been received by OSP-PC, do we have to include the revised tax clause?
Yes, you will need to include the revised tax language and the LDR number if the contract was not submitted prior to 10/1/17.
21. Do we need to make a place on the CF-1 for this number?
If you use the OSP-PC standard template, there is a box to include the LDR number. If your agency uses an OSP-PC approved template, the revised tax language and the LDR number must be incorporated into the template.
22. Have the templates for RFP and Contracts been updated to include this information?
Yes, all of the templates on the OSP-PC website have been updated to include the language and the LDR number requirement.
23. Will LDR tax clearance be generated in LaGov?
Tax clearance by LDR will not be generated in LaGov at this time. OSP-PC will be requesting the tax clearance from LDR for each contract and agencies will be notified only if vendors have not cleared. Once clearance is received, if all other parts of the contract are in order, contract will be approved and you will be notified through the usual method.
24. How do I reach the Louisiana Department of Revenue in order to obtain my LDR number or have additional questions?
Contact the Louisiana Department of Revenue with questions relating to LDR numbers and Act 211 by dialing 1-855-307-3893 and selecting OPTION 2 and then OPTION 2 again. Or by e-mail at LDR-OSPClearances@la.gov.
25. How does a vendor get an LDR number if they currently do not have one?
Vendors can register at https://latap.revenue.louisiana.gov to obtain an LDR number. If they have questions regarding the registration process, they can call (225) 219-2955 or send questions to centralreg@la.gov.
Forms and Formats
The following are sample forms and letters prepared by the Office of State Procurement as a guide for using agencies who issue RFPs for Consulting and Social Service contracts. These forms and letters are for illustration purposes only.
**The documents below are related to the RFP process for activities that will result in a Social Service or Consulting contract only.
If your purchasing activity is related to high technology acquisition, complex services, or group purchasing, please go to this website for further information.
The Office of State Procurement, Professional Contracts must verify funding availability, at least for the first fiscal year of the contract prior to final approval. See the links below for instructions on how to prepare a form BA-22 and for a sample form which must be used by state agencies or you may contact your agency's budget office for additional information.
Below is a sample board resolution. When a contractor is a corporation, either for-profit or non-profit, a formal, dated board resolution must be secured and attached to the contract indicating that the signatory is a corporate representative and authorized to sign said contract. This resolution shall be no more than two (2) years old.
MEETING OF THE BOARD OF DIRECTORS OF
(CORPORATION'S NAME)
A meeting of the Board of Directors of (CORPORATION'S NAME) was held on (DATE), whereby a resolution was passed authorizing (NAME AND TITLE OF THE INDIVIDUAL AUTHORIZED TO SIGN ON BEHALF OF THE CORPORATION) by his signature, to enter into any and all contractual obligations on behalf of this corporation.
______________________________________
Secretary and/or Chairman
The following are sample letters prepared by Office of State Procurement (OSP), Professional Contracts as a guide for using agencies.
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- Sample Letter of Justification for Late Contract Submittal
- Contracts should be submitted prior to their effective dates. No contract shall be approved which has been submitted 60 days after its effective date, unless written justification is provided by the using agency and approval is granted by the Director of OSP or his/her designee. This sample is the minimum requirement for the Office of State Procurement's consideration of a contract's late submittal. (LAC 34.V. 2521 (A))
- Contracts should be submitted prior to their effective dates. No contract shall be approved which has been submitted 60 days after its effective date, unless written justification is provided by the using agency and approval is granted by the Director of OSP or his/her designee. This sample is the minimum requirement for the Office of State Procurement's consideration of a contract's late submittal. (LAC 34.V. 2521 (A))
- Sample Letter of Justification for Multi-Year Contract
- This sample document contains minimum language for justifying a contract that will extend beyond twelve months.
- Sample Letter of Justification for Late Contract Submittal
A performance evaluation for every personal, professional, consulting or social service contract shall be prepared by the using agency in accordance with Louisiana Revised Statutes Title 39:1569.1. The performance evaluation shall be retained by the using agency for all contracts approved under delegated authority. For all other contracts, the performance evaluation shall be submitted to the Office of State Procurement, Professional Contracts within sixty (60) days after the completion of performance and no contract may be entered into by any using agency with any contractor for which a delinquent final evaluation report remains outstanding.
Additionally, the using agency shall submit final evaluation reports for contracts greater than or equal to $250,000 to the Legislative Auditor.
Below are suggested samples of the type of performance evaluation to be prepared by the Agency and contains the minimum information required by law.
Professional Services Contract Evaluation Form
Purchasing Contract Evaluation Form
This sample letter can be used as the cover letter when submitting a contract for review by OSP, Professional Contracts.
Click here to download the Sample Agency Transmittal Letter (revised 10/13/17)
Sample Contracts/Amendments
Click here to download the Sample Generic Contract (revised 09/26/2024).
For Attorney contracts, please use Legal Services Contract Template.
- Order of Precedence Clause - to be used in contracts awarded by RFP
- In the event of any inconsistent or incompatible provisions, this signed agreement (excluding the RFP and Contractor's proposal) shall take precedence, followed by the provisions of the RFP, and then by the terms of the Contractor's proposal.
- In the event of any inconsistent or incompatible provisions, this signed agreement (excluding the RFP and Contractor's proposal) shall take precedence, followed by the provisions of the RFP, and then by the terms of the Contractor's proposal.
- Entire Agreement Clause - to be used in contracts awarded by RFP
- This contract, together with the RFP and addenda issued thereto by the Department, the proposal submitted by the Contractor in response to the Department's RFP, and any exhibits specifically incorporated herein by reference, constitute the entire agreement between the parties with respect to the subject matter.
- This contract, together with the RFP and addenda issued thereto by the Department, the proposal submitted by the Contractor in response to the Department's RFP, and any exhibits specifically incorporated herein by reference, constitute the entire agreement between the parties with respect to the subject matter.
- Independent Assurances - for contracts which outsource key internal controls
- The State of Louisiana /State Agency will also require the Contractor and /or subcontractors, if
performing a key internal control, to submit to an independent SSAE 16 SOC 1 and/or type II
audit of its internal controls and other financial and performance audits from outside companies
to assure both the financial viability of the (outsourced) program and the operational viability,
including the policies and procedures placed into operation. The audit firm will conduct tests
and render an independent opinion on the operating effectiveness of the controls and procedures.
When required by the state agency, the contractor shall be required to provide a quality control
plan, such as third party Quality Assurance (QA), Independent Verification and Validation (IV
&V), and other internal project/ program reviews and audits.
These audits will require the Contractor to provide any assistance, records access, information
system access, staff access, and space access to the party selected to perform the independent
audit. The audit firm will submit to the State Agency and/or Contractor a final report on controls
placed in operations for the project and include a detailed description of the audit firm’s tests of
the operating effectiveness of controls.
The Contractor shall supply the Department with an exact copy of the report within thirty (30)
calendar days of completion. When required by the State agency, such audits may be performed
annually during the term of the contract. The Contractor shall agree to implement
recommendations as suggested by the audits within three months of report issuance at no cost to
the State Agency. If cost of the audit is to be borne by the Contractor, it was included in the
response to the RFP.
- The State of Louisiana /State Agency will also require the Contractor and /or subcontractors, if
- Travel Reimbursements - to be used in RFP documents or contracts where travel is reimbursed
- If the Proposer will be required to travel in the performance of the contract, and/or the State Agency will be reimbursing the Contractor separately for travel expenses, the RFP and/or the contract shall clearly state that “Travel and other allowable expenses shall be reimbursed in accordance with the Division of Administration State General Travel Regulations, within the limits established for State Employees as defined in Division of Administration Policy and Procedure Memorandum No. 49. All out of state travel will be subject to prior approval by the Secretary of the agency or his/her designee.”
