CHAPTER 15. PURCHASING PREFERENCES
IC 5-22-15
Chapter 15. Purchasing Preferences
IC 5-22-15-1
Applicability of chapter
Sec. 1. This chapter applies to the following:
(1) A purchase of supplies under this article by any of thefollowing:
(A) A governmental body.
(B) A state educational institution.
(C) An instrumentality of the state that performs essentialgovernmental functions on either a statewide or local basis.
(D) The state lottery commission created by IC 4-30-3-1.
(2) A purchase made under IC 5-17-1.
(3) An offer to conduct an indoor air quality inspection andevaluation program under IC 16-41-37.5.
As added by P.L.49-1997, SEC.1. Amended by P.L.79-2008, SEC.1.
IC 5-22-15-2
"Absolute preference" defined
Sec. 2. As used in this chapter, "absolute preference" means arequirement that a governmental body must purchase suppliesdescribed under this chapter, regardless of price.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-3
"Adjusted offer" defined
Sec. 3. As used in this chapter, "adjusted offer" means the offerprice of an offeror for:
(1) preferred supplies; or
(2) conducting an indoor air quality inspection and evaluationprogram under IC 16-41-37.5;
as determined under section 10 of this chapter.
As added by P.L.49-1997, SEC.1. Amended by P.L.79-2008, SEC.2.
IC 5-22-15-4
"Preferred supplies" defined
Sec. 4. As used in this chapter, "preferred supplies" meanssupplies that are given a preference under this chapter.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-5
"Price preference percentage" defined
Sec. 5. As used in this chapter, "price preference percentage"means the percentage preference provided by this chapter for eitherof the following:
(1) A specified kind or item of supplies.
(2) An offer to conduct an indoor air quality inspection andevaluation program under IC 16-41-37.5.
As added by P.L.49-1997, SEC.1. Amended by P.L.79-2008, SEC.3.
IC 5-22-15-6
"Total adjusted offer" defined
Sec. 6. As used in this chapter, "total adjusted offer" means thesum of the offers and adjusted offers of an offeror for each item ofsupplies.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-7
Allowable preferences; limitations
Sec. 7. (a) An offeror may claim one (1) of the following types ofpreference for which the offeror is eligible:
(1) An Indiana business preference under rules adopted undersection 20 of this chapter or IC 4-13.6-6-2.5.
(2) A preference for supplies as provided by sections 16, 18, 19,and 24 of this chapter.
(3) An Indiana small business preference as provided by section23 of this chapter.
(b) An offeror may not claim more than one (1) preference asprovided by sections 16, 18, 19, and 24 of this chapter for a givensupply item.
(c) This section does not:
(1) apply to; or
(2) limit;
action of the Indiana department of administration under rulesadopted under section 21 of this chapter.
As added by P.L.49-1997, SEC.1. Amended by P.L.153-1999, SEC.2;P.L.209-2001, SEC.1.
IC 5-22-15-8
Offer must indicate preferred supply or service
Sec. 8. (a) An offeror who wants to claim a preference providedunder this chapter for a given supply item must indicate in the offerwhat supply item in the offer is a preferred supply.
(b) An offeror who wants to claim a preference provided underthis chapter to conduct an indoor air quality inspection andevaluation program under IC 16-41-37.5 must indicate in the offerthat the indoor air quality inspection and evaluation program issubject to a price preference.
As added by P.L.49-1997, SEC.1. Amended by P.L.79-2008, SEC.4.
IC 5-22-15-9
Certification that supply meets required qualifications
Sec. 9. A purchasing agent may require an offeror who claims apreference for a given supply item under section 8 of this chapter tocertify that the supply offered meets the qualifications set forpreferred supplies under this chapter.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-10
Computation of adjusted offer; formula Sec. 10. (a) This section does not apply to an absolute preference.
(b) If an offeror offers a preferred supply for a given supply item,the purchasing agent shall compute an adjusted offer for that itemaccording to the following formula:
STEP ONE: Determine the price preference percentage for thesupply item under this chapter.
STEP TWO: Multiply the offeror's offer for the supply item bythe percentage determined under STEP ONE.
STEP THREE: Subtract the number determined under STEPTWO from the offeror's offer for the supply item.
(c) If an offeror offers to conduct an indoor air quality inspectionand evaluation program under IC 16-41-37.5, the purchasing agentshall compute an adjusted offer to conduct that indoor air qualityinspection and evaluation program according to the followingformula:
STEP ONE: Determine the price preference percentage for theindoor air quality inspection and evaluation program eligible toan offeror under section 20.7 of this chapter.
STEP TWO: Multiply the offeror's offer for the indoor airquality inspection and evaluation program by the percentagedetermined under STEP ONE.
STEP THREE: Subtract the number determined under STEPTWO from the offeror's offer to conduct the indoor air qualityinspection and evaluation program.
As added by P.L.49-1997, SEC.1. Amended by P.L.79-2008, SEC.5.
IC 5-22-15-11
Award to offeror with lowest total adjusted offer
Sec. 11. Notwithstanding any statute requiring the award of acontract to the lowest offeror, but subject to section 12 of thischapter, a purchasing agent shall award a contract to the offerorwhose total adjusted offer is lower than the total adjusted offer ofeach other offeror.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-12
Award of contract; requirements
Sec. 12. Award of a contract under section 11 of this chapter issubject to the following:
(1) A requirement of an applicable statute to award a contractto a responsible and responsive bidder.
(2) A requirement of an applicable statute to award a contract:
(A) to the best bidder; or
(B) in the case of a purchase under IC 5-22-9, to the offerorwhose offer is most advantageous to the governmental body.
(3) The authority of the purchasing agent under IC 5-22-17-12to award contracts separately or for a combination of a line orclass of supplies.
As added by P.L.49-1997, SEC.1. Amended by P.L.7-1998, SEC.6.
IC 5-22-15-13
Contracts awarded separately; combination of line or class ofsupplies
Sec. 13. If a purchasing agent awards contracts separately, or fora combination of a line or class of supplies under an applicable law,the purchasing agent shall compute total adjusted offers and awardcontracts as if each combination of lines or classes of supplies to beawarded a contract had been solicited separately.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-14
Price
Sec. 14. The price paid for preferred supplies purchased under acontract awarded under this chapter shall be the price offered for thesupplies and not the adjusted offer price of the supplies.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-15
Rules
Sec. 15. A governmental body may adopt rules to implement thischapter.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-16
Price preference for supplies that contain recycled orpost-consumer materials
Sec. 16. (a) This section does not apply when the purchasedescription is limited to a supply that meets the description set forthin subsection (b).
(b) There is a price preference for supplies that contain recycledmaterials or post-consumer materials.
(c) The amount of the price preference and the recycled materials'composition of the supplies must be set by one (1) of the following:
(1) Rules adopted by the governmental body.
(2) Policies established by the purchasing agency.
(3) The solicitation.
The preference shall be set to maximize the use of recycled materialswhen economically practical.
(d) A price preference set under subsection (c) may not be lessthan ten percent (10%) or exceed fifteen percent (15%).
As added by P.L.49-1997, SEC.1. Amended by P.L.153-1999, SEC.3.
IC 5-22-15-17
Repealed
(Repealed by P.L.153-1999, SEC.6.)
IC 5-22-15-18
Price preference for soybean oil based ink
Sec. 18. (a) Notwithstanding section 1 of this chapter, this sectiondoes not apply to a purchase of supplies by any of the following: (1) A political subdivision.
(2) A state educational institution.
(b) This section does not apply when the purchase description islimited to soybean oil based ink.
(c) There is a price preference of ten percent (10%) for soybeanoil based ink.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-19
Price preference for soy diesel/bio diesel
Sec. 19. (a) This section does not apply when the purchasedescription is limited to a fuel of which at least twenty percent (20%)by volume is soy diesel/bio diesel.
(b) As used in this section, "soy diesel/bio diesel" includes fuels(other than alcohol) that are primarily esters derived from biologicalmaterials, including oilseeds and animal fats, for use in compressionand ignition engines.
(c) There is a price preference of ten percent (10%) for soydiesel/bio diesel.
(d) The price preference under this section applies to a purchaseof fuel of which at least twenty percent (20%) by volume is soydiesel/bio diesel.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-20
Preferences to Indiana businesses; rules
Sec. 20. (a) This section does not apply to the state lotterycommission created by IC 4-30-3-1.
(b) As used in this section, "out-of-state business" refers to abusiness that is not an Indiana business.
(c) A governmental body may adopt rules to give a preference toan Indiana business that submits an offer for a purchase under thisarticle if all of the following apply:
(1) An out-of-state business submits an offer for the purchase.
(2) The out-of-state business is a business from a state thatgives purchase preferences unfavorable to Indiana businesses.
(d) Rules adopted under subsection (c) must establish criteria fordetermining the following:
(1) Whether an offeror qualifies as an Indiana business underthe rules.
(2) When another state's preference is unfavorable to Indianabusinesses.
(3) The method by which the preference for Indiana businessesis to be computed.
(e) Rules adopted under subsection (c) may not give a preferenceto an Indiana business that is more favorable to the Indiana businessthan the other state's preference is to the other state's businesses.
(f) Rules adopted under subsection (c) must provide that acontract shall be awarded to the lowest responsive and responsibleofferor, regardless of the preference provided under this section, if: (1) the offeror is an Indiana business; or
(2) the offeror is a business from a state bordering Indiana andthe offeror's home state does not provide a preference to thehome state's businesses more favorable than is provided byIndiana law to Indiana businesses.
As added by P.L.49-1997, SEC.1. Amended by P.L.66-2004, SEC.3.
IC 5-22-15-20.5
"Indiana business"; criteria; price preferences; awarding ofcontracts; exception
Sec. 20.5. (a) This section applies only to a contract awarded bya state agency.
(b) As used in this section, "Indiana business" refers to any of thefollowing:
(1) A business whose principal place of business is located inIndiana.
(2) A business that pays a majority of its payroll (in dollarvolume) to residents of Indiana.
(3) A business that employs Indiana residents as a majority ofits employees.
(4) A business that makes significant capital investments inIndiana.
(5) A business that has a substantial positive economic impacton Indiana as defined by criteria developed under subsection(c).
(c) The Indiana department of administration shall consult withthe Indiana economic development corporation in developing criteriafor determining whether a business is an Indiana business undersubsection (b). The Indiana department of administration mayconsult with the Indiana economic development corporation todetermine whether a particular business meets the requirements ofthis section and the criteria developed under this subsection.
(d) There are the following price preferences for suppliespurchased from an Indiana business:
(1) Five percent (5%) for a purchase expected by the stateagency to be less than five hundred thousand dollars($500,000).
(2) Three percent (3%) for a purchase expected by the stateagency to be at least five hundred thousand dollars ($500,000)but less than one million dollars ($1,000,000).
(3) One percent (1%) for a purchase expected by the stateagency to be at least one million dollars ($1,000,000).
(e) Notwithstanding subsection (d), a state agency shall award acontract to the lowest responsive and responsible offeror, regardlessof the preference provided in this section, if:
(1) the offeror is an Indiana business; or
(2) the offeror is a business from a state bordering Indiana andthe business's home state does not provide a preference to thehome state's businesses more favorable than is provided byIndiana law to Indiana businesses. (f) A business that wants to claim a preference provided under thissection must do all of the following:
(1) State in the business's bid that the business claims thepreference provided by this section.
(2) Provide the following information to the department:
(A) The location of the business's principal place ofbusiness. If the business claims the preference as an Indianabusiness described in subsection (b)(1), a statementexplaining the reasons the business considers the locationnamed as the business's principal place of business.
(B) The amount of the business's total payroll and theamount of the business's payroll paid to Indiana residents.
(C) The number of the business's employees and the numberof the business's employees who are Indiana residents.
(D) If the business claims the preference as an Indianabusiness described in subsection (b)(4), a description of thecapital investments made in Indiana and a statement of theamount of those capital investments.
(E) If the business claims the preference as an Indianabusiness described in subsection (b)(5), a description of thesubstantial positive economic impact the business has onIndiana.
As added by P.L.66-2004, SEC.4. Amended by P.L.4-2005, SEC.33;P.L.123-2009, SEC.1.
IC 5-22-15-20.7
Price preference for indoor air quality inspection and evaluationprogram
Sec. 20.7. (a) As used in this section, "Indiana business" has themeaning set forth in section 20.5 of this chapter.
(b) There is a price preference of ten percent (10%) for an Indianabusiness that submits an offer to conduct an indoor air qualityinspection and evaluation program under IC 16-41-37.5.
As added by P.L.79-2008, SEC.6.
IC 5-22-15-21
Promotion of purchase of supplies manufactured in the UnitedStates; rules
Sec. 21. (a) This section does not apply to the state lotterycommission created by IC 4-30-3-1.
(b) A governmental body shall adopt rules to promote thepurchase of supplies manufactured in the United States.
(c) Rules adopted under subsection (b) shall provide that suppliesmanufactured in the United States shall be specified and purchasedunless the governmental body determines that any of the followingapply:
(1) The supplies are not manufactured in the United States inreasonably available quantities.
(2) The price of the supplies manufactured in the United Statesexceeds by an unreasonable amount the price of available and
comparable supplies manufactured outside the United States.
(3) The quality of the supplies is substantially less than thequality of comparably priced available supplies manufacturedoutside the United States.
(4) The purchase of supplies manufactured in the United Statesis not in the public interest.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-22
Absolute preference to coal mined in Indiana
Sec. 22. (a) This section does not apply to the state lotterycommission created by IC 4-30-3-1.
(b) This section does not apply if federal law requires the use oflow sulphur coal in the circumstances for which the coal ispurchased.
(c) Whenever a purchasing agent purchases coal for use as fuel,the purchasing agent shall give an absolute preference to coal minedin Indiana.
As added by P.L.49-1997, SEC.1.
IC 5-22-15-23
Price preference for supplies to Indiana small business
Sec. 23. (a) A governmental body shall give a fifteen percent(15%) preference for supplies to an Indiana small business (asdefined in IC 5-22-14-1) that submits an offer for purchase under thisarticle.
(b) The governmental body may adopt rules to establish criteriato carry out this section.
As added by P.L.153-1999, SEC.4.
IC 5-22-15-24
Purchasing agents for government entities to give high calciumfoods preference
Sec. 24. (a) This section applies in addition to any requirementsplaced upon a governmental entity by the United States Departmentof Agriculture under the National School Lunch Program or theSchool Breakfast Program.
(b) This section applies to:
(1) a governmental entity listed in section 1 of this chapter; or
(2) a business that contracts with a governmental entity listed insection 1 of this chapter;
that purchases food or beverages to be processed and served in abuilding or room owned or operated by the governmental entity.
(c) High calcium foods and beverages are preferred supplies. Apurchasing agent shall give a preference to foods and beverages that:
(1) contain a higher level of calcium than products of the sametype and quality; and
(2) are equal in price to or lower in price than products of thesame type and quality.
(d) Notwithstanding subsection (c), if the director of a state
institution (as defined in IC 12-7-2-184) determines that a highcalcium food or beverage that is preferred under subsection (c)would interfere with the proper treatment and care of a patient of thestate institution, the purchasing agent for the state institution is notrequired to purchase the high calcium food or beverage for thatpatient.
As added by P.L.209-2001, SEC.2.
IC 5-22-15-24.2
Forced labor; supplies prohibition
Sec. 24.2. (a) As used in this section, "forced labor" has themeaning set forth in 19 U.S.C. 1307.
(b) If an offeror offers to furnish supplies made in a country otherthan the United States, a governmental body may not award acontract to the offeror for those supplies if the supplies were madeusing forced labor.
(c) A governmental body shall inform offerors in the solicitationof the provisions of this section.
As added by P.L.194-2001, SEC.1.
IC 5-22-15-25
Steel products
Sec. 25. (a) As used in this section, "steel products" meansproducts rolled, formed, shaped, drawn, extruded, forged, cast,fabricated, or otherwise similarly processed, or processed by acombination of two (2) or more such operations, by the open hearth,basic oxygen, electric furnace, Bessemer, or other steel makingprocess.
(b) As used in this section, "United States" includes all territory,continental or insular, subject to the jurisdiction of the United States.
(c) Unless the head of the purchasing agency makes a writtendetermination described in subsection (d), a solicitation must requirethat if any steel products are used in:
(1) the manufacture of the supplies required under the contract;or
(2) supplies used in the performance of the services under thecontract by the contractor or a subcontractor of the contractor;
the steel products must be manufactured in the United States.
(d) Subsection (c) does not apply if the:
(1) head of the purchasing agency determines in writing that:
(A) the cost of the contract with the requirements ofsubsection (c) would be greater than one hundred fifteenpercent (115%) of the cost of the contract without therequirements of subsection (c); and
(B) failure to impose the requirements of subsection (c)would not in any way:
(i) harm the business of a facility that manufactures steelproducts in Indiana; or
(ii) result in the reduction of employment or wages andbenefits of employees of a facility described in item (i); or (2) purchase is:
(A) less than ten thousand dollars ($10,000); and
(B) made under the small purchase policies (as described inIC 5-22-8-2(b)) established by the purchasing agency orunder rules adopted by the governmental body.
(e) A purchasing agency shall inform offerors in the solicitationof the provisions of this section.
As added by P.L.194-2001, SEC.2.