1. A. A protestor who has timely protested an award in accordance with R.S. 39:1671(A) may apply for a stay of such award in strict accordance with the following procedures:

   1. 1. The protestor must apply for the stay of an award during the protest period provided in R.S. 39:1671(A).

   2. 2.

      1. a. The protestor must present during the protest period provided in R.S. 39:1671(A) a surety bond, cashier’s check, or certified check to the Office of State Procurement as security. In no circumstance will cash, EFT, credit card, other valuables, or a personal or similar business check be accepted.
      2. b. If the protestor elects to present a bond, the bond must be posted with a good and solvent surety or insurance company currently on the U.S. Department of the Treasury Financial Management Service list of approved bonding companies which is published annually in the Federal Register, or a Louisiana domiciled insurance company with at least an A-rating in the latest printing of the A.M. Best’s Key Rating Guide to write individual bonds up to 10 percent of policyholders’ surplus.
      3. c. If the protestor elects to present a cashier’s check or certified check as security, such check must be drawn on a bank, credit union, or savings institution which is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, payable at sight or unconditionally assigned.

   3. 3.

      1. a. The bond or security shall be presented to the Office of State Procurement in a form approved by the Office of State Procurement, as detailed in Section 1605 of this Chapter.

      2. b. For delivery in person, by package service, or USPS:

         Office of State Procurement

         Attn: OSP Director / State CPO

         Suite 2-160, Claiborne Bldg.

         1201 N Third St., Baton Rouge, LA 70802

   4. 4. The amount of the bond or other security submitted shall be in accordance with R.S. 39:1671(F)(2).
   5. 5. Any surety bond, cashier’s check, or certified check presented must be valid on its face for a period of at least 6 months from the date of issuance. In the event the surety bond, cashier’s check, or certified check contains an expiration date or otherwise expires or lapses prior to final resolution of the protest, it shall be the responsibility of the protestor to immediately provide a replacement, working with the surety if applicable, without prompting by the Office of the State Procurement. Expiration or lapsing of a surety bond, cashier’s check, or certified check without timely remedy may be grounds for lifting of the stay of award without relieving the protestor of any liability it may have for claims against the amount of the bond, cashier’s check or certified check initially pledged, in the event the protest is eventually rejected.
   6. 6. The Office of State Procurement shall be the obligee and custodian of the bond, cashier’s check, or certified check until the protest and stay have been finally resolved. The Office of State Procurement shall not deposit or access such funds or draw interest on them.
   7. 7. Any protestor may request at any time to irrevocably cancel or lift their own stay, and request the return of the bond or security without penalty. The Office of State Procurement may approve or deny such a request.
   8. 8. If the protest is upheld and the award is cancelled, or if the award or solicitation is cancelled prior to final resolution of the protest, or if the protestor succeeds in an administrative or judicial appeal of an adverse protest decision, the bond or security shall be returned to the person who submitted same without penalty or delay, or securely destroyed after a period of 90 days thereafter if return is not practicable.
   9. 9. If the protest is rejected, and the award is upheld, a claim may be made against the bond or security by the using agency in an amount equal to the expenses incurred and other monetary losses suffered by the state resulting from the unsuccessful protest.
   10. 10. The State Chief Procurement Officer shall hold an informal hearing on the claim and may elect to use a briefing process to enable all parties to address the claim amount(s).
   11. 11. Upon proof presented at the informal hearing, the State Chief Procurement Officer shall determine the amount of expenses incurred and other monetary losses suffered by the state resulting from the unsuccessful protest. The state may allow the protestor to choose to satisfy payment of the amount by other means (for example, by remitting funds directly by wire in lieu of a claim against the surety bond, or providing a new cashier’s check for the net amount as a substitute of the original security’s face amount), but the original bond or security shall not be released until the amount owed has been satisfied entirely.
   12. 12. If there has been no specific claim amount determined by the state chief procurement officer against the bond or security within 90 days after the final disposition of the protest (that is, 90 days after the protest decision if not appealed, or 90 days after the final appeal decision if appealed), the protestor may request the return or secure destruction of the bond or security without penalty, such permission not to be unreasonably withheld.
   13. 13. Failure by the protestor and/or the surety to comply with the provisions of this Chapter may be evaluated as an indicator of responsibility for the protestor and/or the surety, and accordingly may also constitute a cause for debarment of the protestor and/or surety in accordance with R.S. 39:1672(C).
   14. 14. Any value remaining in the bond or security after resolving and paying out the determined amount(s) shall be returned to the person who posted the bond or security without delay.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1581 and 39:1671.

Historical Note

HISTORICAL NOTE: Promulgated by the Office of the Governor, Division of Administration, Office of State Procurement, LR 52:36 (January 2026).