CHAPTER 14. SMALL BUSINESS SET-ASIDE PURCHASES
IC 5-22-14
Chapter 14. Small Business Set-Aside Purchases
IC 5-22-14-1
"Small business" defined
Sec. 1. As used in this chapter, "small business" means a businessthat:
(1) is independently owned and operated;
(2) is not dominant in its field of operation; and
(3) satisfies the criteria in the rules adopted under section 3 ofthis chapter.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-2
"Small business set-aside" defined
Sec. 2. As used in this chapter, "small business set-aside" meansa purchase in which the solicitation states that offers will be acceptedonly by small businesses.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-3
Rules; businesses that are not small businesses
Sec. 3. (a) A governmental body may adopt rules to implementthis chapter. The Indiana department of administration shall adoptrules under IC 4-22-2 to implement this chapter.
(b) The rules adopted by a governmental body must establishcriteria for determining qualifications as a small business. Inestablishing criteria, the rules may use any standards established fordetermination of small business status that are used by an agency ofthe federal government. A governmental body may also receiveassistance from the Indiana economic development corporation toestablish criteria or to implement the rules.
(c) The rules adopted by a governmental body may consider thenumber of employees employed by an offeror and the dollar volumeof the offeror's business. The rules must provide that whencomputing the size of an offeror, the annual sales and receipts of theofferor and all of its affiliates must be included.
(d) The rules adopted by a governmental body must include thefollowing criteria:
(1) A wholesale business is not a small business if its annualsales for its most recently completed fiscal year exceed fourmillion dollars ($4,000,000).
(2) A construction business is not a small business if its averageannual receipts for the preceding three (3) fiscal years exceedfour million dollars ($4,000,000).
(3) A retail business or business selling services is not a smallbusiness if its annual sales and receipts exceed five hundredthousand dollars ($500,000).
(4) A manufacturing business is not a small business if itemploys more than one hundred (100) persons. (5) A business in any of the following sectors is not a smallbusiness if it employs more than one hundred (100) persons orif its annual sales exceed five million dollars ($5,000,000):
(A) Information technology.
(B) Life sciences.
(C) Transportation.
(D) Logistics.
As added by P.L.49-1997, SEC.1. Amended by P.L.4-2005, SEC.31;P.L.160-2006, SEC.10.
IC 5-22-14-4
Identification of supplies; designation as small business; notice
Sec. 4. (a) A governmental body that has adopted rules under thischapter may identify as a small business set-aside specific suppliesfor which purchase has been requested under this article.
(b) A small business designation must be made before thesolicitation for the purchase is issued and the public notice of thepurchase must state that the purchase is a small business set-aside.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-5
Reasonable expectation of two offers
Sec. 5. A governmental body may not designate a purchase as asmall business set-aside unless there is a reasonable expectation thatoffers will be obtained from at least two (2) small businesses capableof furnishing the desired supplies or service at a fair and reasonableprice.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-6
Solicitation confined to small businesses
Sec. 6. If a purchase is designated as a small business set-aside,the solicitation must be confined to small businesses.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-7
Award of contract
Sec. 7. A contract shall be awarded to the lowest responsible andresponsive offeror among the small businesses in accordance withthe rules of the governmental body.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-8
Acceptance of offer resulting in unreasonable price
Sec. 8. If the purchasing agent determines that acceptance of thelowest responsible and responsive offer will result in the payment ofan unreasonable price, the purchasing agent shall reject all offers andmay withdraw designation of the purchase as a small businessset-aside.
As added by P.L.49-1997, SEC.1.
IC 5-22-14-9
Assistance from Indiana economic development corporation
Sec. 9. The Indiana economic development corporation may assista governmental body in doing any of the following:
(1) Compiling and maintaining a comprehensive list of smallbusinesses.
(2) Assisting small businesses in complying with the proceduresfor bidding on governmental contracts.
(3) Examining requests from governmental bodies for thepurchase of supplies to help determine which purchases are tobe designated small business set-asides.
(4) Simplifying specifications and contract terms to increase theopportunities for small business participation in governmentalcontracts.
(5) Investigations by a governmental body to determine theresponsibility of offerors on small business set-asides.
As added by P.L.49-1997, SEC.1. Amended by P.L.4-2005, SEC.32.
IC 5-22-14-10
Purchases subject to other provisions and rules; conflict of laws
Sec. 10. A purchase from a small business under this chapter issubject to:
(1) all other provisions of this article; and
(2) the rules of the governmental body.
If there is a conflict between the laws described in subdivisions (1)and (2) and this chapter, this chapter governs.
As added by P.L.49-1997, SEC.1.