CHAPTER 10. QUALIFICATIONS OF BIDDERS FOR CONTRACTS
IC 8-23-10
Chapter 10. Qualifications of Bidders for Contracts
IC 8-23-10-1
Qualified bidders required
Sec. 1. It is unlawful to award a contract to any person other thana bidder previously qualified in compliance with this chapter.
As added by P.L.18-1990, SEC.219.
IC 8-23-10-2
Qualification applications; investigation; certificates ofqualification; revocation of certificates
Sec. 2. (a) A bidder desiring to submit to the department a bid forthe performance of a contract the department proposes to let mustapply to the department for qualification and must use for thatpurpose the forms prescribed and furnished by the department. Allapplications must be verified by the applicant.
(b) The department shall act within thirty (30) days upon anapplication for qualification. Upon the receipt of an application forqualification, the department shall examine and may investigate theapplication and shall determine whether the applicant is competentand responsible and possesses the financial resources that satisfy thischapter.
(c) If the applicant is found to possess the qualificationsprescribed by this chapter and by the rules adopted by thedepartment, the department shall issue a certificate of qualification,which shall be valid for the period of one (1) year, or a shorter periodof time that the department prescribes, unless revoked by thedepartment for cause. The certificate of qualification must contain astatement fixing the aggregate amount of uncompleted work that theapplicant will be permitted to have at any time under a contract withthe department and may also, in the discretion of the department,contain a statement limiting a bidder to the submission of bids upona certain class or classes of work. Subject to any restrictions as toamount or class of work, the certificate of qualification authorizes itsholder to bid on all work on which bids are taken by the departmentduring the period of time specified.
(d) A certificate of qualification may be revoked by thedepartment only after notice to the qualified bidder and anopportunity to be heard. The notice must be in writing and must statethe grounds of the proposed revocation.
As added by P.L.18-1990, SEC.219.
IC 8-23-10-3
Financial statements of applicants
Sec. 3. (a) A bidder may not be given a certificate of qualificationunless the bidder's financial statement and the investigation made bythe department show that the bidder possesses net current assetssufficient in the judgment of the department to render it probable thatthe bidder can satisfactorily execute contracts and meet obligations
incurred. All applications for qualification must expressly authorizethe department to obtain all information considered pertinent withrespect to the financial worth and assets and liabilities of theapplicant from banks or other financial institutions, suretycompanies, dealers in material, equipment, or supplies, or otherpersons having business transactions with an applicant and mustexpressly authorize all financial institutions or other persons tofurnish information requested by the department.
(b) The financial statement furnished by an applicant forqualification of more than one million dollars ($1,000,000) must beprepared and attested as audited by an independent:
(1) certified public accountant registered and in good standingin any state; or
(2) public accountant registered and in good standing inIndiana.
(c) The financial statement furnished by an applicant forqualification of more than two hundred thousand dollars ($200,000)but not more than one million dollars ($1,000,000) must be preparedand attested as reviewed by an independent:
(1) certified public accountant registered and in good standingin any state; or
(2) public accountant registered and in good standing inIndiana.
(d) A qualification of two hundred thousand dollars ($200,000) orless may be granted by the department if the financial statementfurnished by the applicant is certified as correct by an officer of thecompany. The department may require all qualified bidders to filefinancial statements from time to time at intervals it prescribes.
(e) This chapter shall be administered without reference to theresidence of applicants, and its provisions and the rules of thedepartment adopted under this chapter apply equally to residents andnonresidents of Indiana. This chapter does not apply to the purchaseof material, equipment, and supplies or to the construction andmaintenance of buildings.
(f) Notwithstanding IC 5-14-3-4(a)(5), a financial statementsubmitted to the department under this chapter is consideredconfidential financial information for the purposes of IC 5-14-3.
As added by P.L.18-1990, SEC.219. Amended by P.L.111-1993,SEC.1; P.L.119-1995, SEC.1.
IC 8-23-10-4
Subcontractors; qualification
Sec. 4. It is unlawful for a successful bidder to enter into asubcontract with any other person involving the performance of anypart of any work upon which the bidder may be engaged for thedepartment in an amount in excess of three hundred thousand dollars($300,000) unless the subcontractor has been properly qualifiedunder the terms of this chapter for the work sublet to thesubcontractor. However, the department may reduce this amountbased on the subcontractor's performance with the department and
others. The prequalification requirements of this section do not applyto the following:
(1) Professional services.
(2) Hauling materials or supplies to or from a job site.
As added by P.L.18-1990, SEC.219. Amended by P.L.92-2004,SEC.1.
IC 8-23-10-5
Notice of action on application; reapplication
Sec. 5. (a) All applicants for qualification shall be promptlynotified by the department of its final action on their applications. Anapplicant aggrieved by the decision of the department may, withinten (10) days after receiving notification of the decision, request inwriting a reconsideration of the application by the department, andmay submit additional evidence bearing on qualifications. Thedepartment shall again consider the matter and may either adhere toor modify its previous decision. The department shall act upon anyrequest for reconsideration within fifteen (15) days after the filing ofthe request and shall notify the applicant of the action taken.
(b) An applicant who has been refused qualification, or who isdissatisfied with the department's decision as to the aggregate amountof uncompleted work to be permitted under contract at any one time,or with any limitation as to the class or classes of work on which thebidder is authorized to bid, may at any time after the expiration ofninety (90) days from the date of the department's decision on thelast application file a new application for qualification. The newapplication shall be promptly considered and acted upon by thedepartment.
As added by P.L.18-1990, SEC.219.
IC 8-23-10-6
Unqualified bidders; rejection of bids
Sec. 6. The department may not consider a bid filed with it by aperson who has not been qualified under this chapter. Bids fromunqualified bidders discovered by the department before the readingof the bids shall be returned without being read. If the departmentfinds subsequent to the opening of bids that facts exist that woulddisqualify the lowest bidder, or that the bidder is not competent andresponsible, the department shall reject the bid despite the fact ofprior qualification of the bidder. It is unlawful to award a contract toa bidder not qualified to bid at the time fixed for receiving bids.
As added by P.L.18-1990, SEC.219.
IC 8-23-10-7
Revenue department; access to names of bidders, contractors, andsubcontractors; bidders on tax warrant list
Sec. 7. (a) The department may allow the department of staterevenue access to the name of each person who is either:
(1) bidding on a contract to be awarded under this chapter; or
(2) a contractor or a subcontractor under this chapter. (b) If the department is notified by the department of state revenuethat a bidder is on the most recent tax warrant list, the departmentmay not award a contract to that bidder until:
(1) the bidder provides to the department a statement from thedepartment of state revenue that the bidder's delinquent taxliability has been satisfied; or
(2) the department receives a notice from the commissioner ofthe department of state revenue under IC 6-8.1-8-2(k).
(c) The department of state revenue may notify:
(1) the department; and
(2) the auditor of state;
that a contractor or subcontractor under this chapter is on the mostrecent tax warrant list, including the amount that the person owes indelinquent taxes. The auditor of state shall deduct from thecontractor's or subcontractor's payment the amount owed indelinquent taxes. The auditor of state shall remit this amount to thedepartment of state revenue and pay the remaining balance to thecontractor or subcontractor.
As added by P.L.18-1990, SEC.219.
IC 8-23-10-8
False statements; penalty
Sec. 8. It is a Class C infraction for an applicant for qualificationto knowingly make a false statement with respect to the applicant'sfinancial worth in an application for qualification, financialstatement, or other written instrument filed by the applicant with thedepartment under this chapter or rules adopted under this chapter. Aperson who violates this section is disqualified from submitting bidson contracts advertised for letting by the department for a period oftwo (2) years following the date of conviction.
As added by P.L.18-1990, SEC.219.