Committee clears bill to let DOTD use cost‑plus contracts for state ferries

The House Transportation Committee voted to report House Bill 6‑55 favorably after DOTD explained why the department needs contract flexibility for some state ferry operations. The bill, by Rep. Breaux, authorizes DOTD to enter cost‑plus contracts for operation and maintenance of state ferry systems.

DOTD Secretary Glenn Ladday told the committee the change “allows us really more flexibility in the way that we contract for the operation and maintenance of ferry systems,” and said it would help match variable maintenance costs that are hard to fix in a single price. Ladday said the department is evaluating options including potential privatization of the Cameron Ferry and wants statutory clarity to permit competitive, best‑value solicitations that include cost pieces.

Rep. Brose said HB 6‑55 “clarifies some existing law” and noted the authorization applies to state‑run ferries only, not parish or local ferry services. Committee members asked about typical profit percentages on cost‑plus contracts; Ladday replied that the market range is around 15% for the profit component but that exact rates will be set by solicitation and market conditions.

Chair moved to report the bill favorable; with no objections, the committee recorded HB 6‑55 as reported favorably. The committee also noted two cards in support from Harrison Gitz and Keane Jones; neither wished to speak.

The bill will next move to the House floor under the standard committee reporting process.