purchasing

Indiana Resident Bidder Preference

Revised March 2, 2015

Indiana Code, §5-22-15-20. A governmental body, except the Indiana state lottery commission, may adopt rules to give preference to Indiana businesses submitting offers for purchase if an out-of-state business submits and offer and the out-of-state business is from a state that gives purchase preferences unfavorable to Indiana businesses. The rules may not give preference that is more favorable to Indiana business than the other state's preference to that same state's businesses. The rules must also provide that a contract must be awarded to lowest responsive and responsible offeror, regardless of these preferences, if the offeror is Indiana business or is a business from a state bordering Indiana that does not provide a preference to its own businesses that is more favorable than is provided by Indiana law to Indiana businesses.

Indiana Code, §5-22-15-20.5. Price preferences are provided by state agencies for supplies purchased from Indiana businesses as follows: 5.0% for a purchase expected to be less than $500,000, 3.0% for a purchase expected to be at least $500,000 but less than $1,000,000, and 1.0% for a purchase expected to be at least 1,000,000. In addition to this price preference, if an Indiana business offers to provide supplies manufactured, assembled, or produced in Indiana and two or more bids are the same, the following price preference is available to the Indiana business: 3.0% for a purchase expected to be less than $500,000, 2.0% for a purchase expected to be at least $500,000 but less than $1,000,000, and 1.0% for a purchase expected to be at least 1,000,000. For these preferences, an "Indiana business" is one whose principal place of business is in Indiana, one that pays a majority of its payroll to Indiana residents, one that employs a majority of Indiana residents, one that makes significant capital investments in Indiana, or one that has a "substantial positive economic impact on Indiana" as defined by criteria established by the Indiana department of administration. Businesses must take certain specified actions to claim these preferences.

Indiana Code, §5-22-15-22. Whenever a purchasing agent purchases coal for use as fuel, the purchasing agent shall give an absolute preference to coal mined in Indiana except under circumstances in which federal law requires the use of low sulphur coal.

Indiana Code, §5-22-15-23. Governmental body must give a 15% preference for supplies to Indiana small businesses (defined as independently owned and operated, not dominant in the field, and satisfying other criteria relating to size or veteran ownership).

State Policy: Establishment of the "Buy Indiana" presumption, Indiana Executive Order No. 05-05 (January 10, 2005). State procurement is subject to a "Buy Indiana" presumption requiring state agencies to buy their supplies and services from "Indiana businesses." The Department of Administration is required to undertake efforts to increase the percentage of state procurement from Indiana businesses to 90% of state's total procurement volume. The Department of Administration utilizes five guidelines for a company to qualify as an Indiana business: one whose principal place of business is in Indiana, one that pays a majority of its payroll to Indiana residents, one that employs a majority of Indiana residents, one that makes significant capital investments in Indiana, or one that has a "substantial positive economic impact on Indiana" (is in the top 500 companies for number of employees, unemployment taxes, payroll withholding taxes, corporate income taxes, or other impact as determined by the Department of Administration). Bids are subject to Indiana Code 5-22-15-20.5. Requests for proposals and professional services use a revised scoring system for determining the award as follows: 40 points for management assessment/quality, 35 points for price, 5 points for "Buy Indiana Indiana Company," 5 points for Indiana economic impact, 5 points for veteran's business enterprise, and 10 points for minority and/or women-owned business enterprise (MWBE) (five points each for women and minority participation).

Indiana Executive Order No. 13-04 (January 14, 2013). The Department of Administration is required to undertake efforts to increase contracting opportunities for Indiana veteran-owned businesses by setting a goal to procure 3.0% of state contracts with Indiana veteran-owned businesses. Program eligibility requires, among other things, that a business be an Indiana firm with its principal place of business located in Indiana.

INDIANA RECIPROCAL PREFERENCE

Indiana Code, §4-13.6-6-2.5. The Indiana Department of Administration may adopt rules giving a preference in public works contracts to an Indiana business that submits a bid if an out-of-state business submits a bid and the out-of-state business is from a state that gives public works preferences unfavorable to Indiana businesses. The preference may not be more favorable to Indiana businesses than the other state's preference is to the other state's businesses.