requests for proposals (rfp)
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
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 firstname.lastname@example.org.
If the using agency has obtained prior delegated authority from OSP, the contract may be approved by the using agency without the need for Professional Contracts review and approval. However, such agencies must submit Monthly Reports to Professional Contracts via OSP-Reports@la.gov.
Consulting service contracts for $75,000 or more must be let by a Request for Proposals process as outlined in the regulations of Professional Contracts.
If you are in doubt as to whether a contract is for consulting services, please get in touch with the office of Professional Contracts.
Social Services contracts for $250,000 or more annually must be let by a Request for Proposals process as outlined in the regulations of the office of Professional Contracts unless specifically exempt in accordance with Louisiana Revised Statutes Title 39:1619.
Contracts for professional and personal services may be awarded without the necessity of competitive bidding or competitive negotiation.