Policy and Procedures » 109 Contracting Services

Contracting for Services Policy

Good business practices dictate that written contracts be executed for any arrangement entered into by the town for services (professional and otherwise) performed by a third-party.

Although the Louisiana Public Bid Law does not require services to be bid, a competitive atmosphere ensures that fees paid for services are cost-effective. Therefore, management is to use the dollar thresholds contained in the Public Bid Law [R.S 38:2211-2226] as a guide in contracting for services.  At least three telephone or facsimile quotations are to be obtained for services costing between $10,000 and $30,000, and bids should be solicited/obtained for the purchase of services exceeding $30,000 annually.  Any exception to this policy must be approved by the council in an open meeting.

Before any contract can be executed, the contract must be (1) reviewed by legal counsel and recommended for approval in writing; and (2) presented to the council for approval and documented in the minutes.

Mayor/Clerk is to implement and monitor controls over contracts to ensure the services are necessary and that contracting out the service is the most cost-effective manner for accomplishing its objectives.

Also, management must ensure that:

  • An open and competitive atmosphere is to be provided when contracting for services
  • Contracts with related parties (family and business interests) are strictly prohibited
  • Payments are made in accordance with the terms and conditions of the contract
  • Any additions or modifications of existing contracts are presented to the council for approval
  • Contracts and related documentation are maintained in an organized manner and in a central location