Indiana

Key Agency(ies): 

• Indiana Department of Administration (IDOA) is the Executive purchasing authority. IDOA is broken into various divisions, including:

• The Public Works Division
• The State Resource Management Division
• The Procurement Division
• The Supplier Diversity Division

Key Statute:

• Title 4 of the Indiana Code governs state public works.
• Link
• Title 5, Article 22 of the Indiana Code is the Public Purchasing Statute and governs “every expenditure of public funds by a governmental body.”
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• Title 36, Article 1, Chapter 12 of the Indiana Code governs local works project.
• Link

Key Regulations:

• Pertinent regulations, enacted by the IDOA, are at Title 25 of the IAC. The following articles apply:
• Ind. Admin. Code § 25-1.1, State Procurement
• Ind. Admin. Code § 25-1.5, Small Business Procurements and Projects
• Ind. Admin. Code § 25-2, Public Works Division
• Ind. Admin. Code  § 25-5, Minority and Women’s Business Enterprises
• Office of Management and Budget Circular 1.3 also provides guidance on Indiana’s policies for receiving, reviewing, and responding to protests from bidders and offerors involved in the state procurement process.
• Link

Procurement Types/Highlights:

• Competitive Sealed Bidding (Invitation for Bids, IFB)
• Default method for supplies and most public works
• For projects ≥ $150,000, competitive bidding is required
• Negotiated Bidding
• Used by Executive branch agencies for purchases > $200,000
• Request for Proposals (RFP)
• Small purchases
• Purchases < $50,000
• Purchases < $150,000 for DPAP-certified agents under SEA 5/OMB Circular 1-1
• Special Purchasing Methods
• Emergencies, Sole Source, Substantial Savings

Bid Protests:

Regs Governing Bid Protests:

• Indiana has no general bid protest forum or procedure for public works or INDOT.
• However, IDOA has published a procurement protest policy that outlines the rules governing Indiana protests for the IDOA.
• Link

Eligible Protesters:

• Only individuals or entities that directly participated in the solicitation process – specifically bidders or offerors – may file a protest.

Timeliness Rules:

• Specification protests must be received by IDOA no later than 10 business days prior to the bid response due date.
• Award recommendation protests must be received by IDOA within five business days after the date of the Award Recommendation Letter.
• Reverse Auction Protests must be received by IDOA within five business days after notification of rejection.

Protest Process:

• The protester’s letter of protest must include the solicitation number and protester’s contact information, and must specify the grounds for relief.
• The protest coordinator will acknowledge receipt within five business days.
• The coordinator will respond in writing in a timely manner.
• Contract execution or auction may be delayed until the protest is resolved.
• IDOA’s decision is final unless appealed to the Commissioner of IDOA.

Appeals:

• If a bidder or offeror receives an adverse determination, they may submit a request for appeal to the Commissioner of IDOA.
• The letter of appeal must:

1) Be in writing;

2) State only grounds for relief that were raised in the original protest; and

3) Be received by close of business within five business days of the Department’s written response to the protest.

• The Commissioner will make a determination as soon as reasonably possible.
• The Commissioner’s decision is final and conclusive, subject to judicial review for parties with standing.

Claims:

• Indiana’s procurement framework does not provide a CDA-style administrative adjudicator for contract money claims. Instead, disputes are first handled through the terms of the contract.
• If unresolved, a contractor’s sole recourse is to file a civil action under Ind. Admin. Code § 34-13-1 (Contract Claims Against the State). These claims are tried to the court without a jury, and appeals go directly to the Indiana Supreme Court.

Suspension & Debarment:

• The IDOA may place vendors on surveillance or suspension.
• Vendors on surveillance may conduct business with the state but are closely monitored.
• Vendors on suspension may not conduct business with the state.
• Suspension/surveillance may result from failure to perform a previous contract satisfactorily, violation of procurement rules, or other written determinations by the director.
• Sanctions, including debarment for up to two years, may be imposed if a bidder is determined to be other than a small business (in the context of small business set-asides).
• Debarment may be imposed for violations such as collusion, fraud, or misrepresentation in procurement processes.

Interesting/Distinctions:

• Indiana law provides for small business set-asides with specific criteria for qualification (i.e., annual sales, number of employees, etc.). The state also offers purchasing preferences for Indiana businesses, recycled/soy-based products, high-calcium foods, and coal/steel products from Indiana, among others.
• Indiana sets annual participation goals for minority-owned businesses, woman-owned businesses, and veteran-owned businesses. These goals vary by contract type.
• Professional services (architecture, engineering, etc.) are not subject to the same competitive bidding requirements as other procurements.