Bill Text: IN HB1223 | 2012 | Regular Session | Amended
Bill Title: State public works contracting.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-26 - Second reading: ordered engrossed [HB1223 Detail]
Download: Indiana-2012-HB1223-Amended.html
Citations Affected: IC 4-13.6; IC 5-22.
Synopsis: State public works contracting. Changes the manner by
which the department of administration (department) solicits bids for
state public works projects by: (1) eliminating mail solicitations to
contractors; and (2) requiring notice to be given as other public notices
for contracts are given. Eliminates the requirement that a bid for a state
public works project be submitted in a sealed envelope that is opened
in public and read aloud at a public bid opening. Eliminates a
requirement that contractors on state public works projects cannot be
required to submit bids earlier than the time specified in the
instructions for the opening of bids. Requires bids for state public
works projects to be opened so as not to disclose their contents to other
bidders and be evaluated based on requirements in the invitation for
bids. Requires state public works contracts to be awarded with
reasonable promptness by written notice to the lowest responsible and
responsive bidder. Provides for an Indiana business price preference in
state public works contracting. Repeals a statute that provides a price
preference to an Indiana business in state public works contracts if a
bidder on the project is from a state that provides preferences
unfavorable to Indiana businesses. Repeals a statute that requires the
award of state public works contracts within 60 days of bid opening.
Effective: July 1, 2012.
January 9, 2012, read first time and referred to Committee on Government and Regulatory
Reform.
January 23, 2012, reported _ Do Pass.
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(b) The division shall solicit sealed bids by public notice inserted once each week for two (2) successive weeks before the final date of submitting bids in:
(1) one (1) newspaper of general circulation in Marion County, Indiana; and
(2) if any part of the project is located in an area outside Marion County, Indiana, one (1) newspaper of general circulation in that area.
The commissioner shall designate the newspapers for these publications. The commissioner may designate different newspapers according to the nature of the project and may direct that additional notices be published.
(c) The division shall:
projects by:
(1) sending notices by mail to prospective contractors known to
the division; give notice of the invitation for bids in the manner
required by IC 5-3-1; and
(2) posting notices on a public bulletin board in its office; and
(3) (2) providing provide electronic access to notices the notice
through the computer gateway administered by the office of
technology established by IC 4-13.1-2-1.
at least seven (7) days before the final date for submitting bids for the
public works project.
(b) Individuals other than employees of the division may not be present at an opening of bids unless the bids are opened publicly.
(1) opened so as to avoid disclosure of their contents to competing bidders during the process of negotiation; and
(2) evaluated based on the requirements provided in the invitation for bids.
(1) A business whose principal place of business is located in Indiana.
(2) A business that pays a majority of its payroll (in dollar volume) to residents of Indiana.
(3) A business that employs Indiana residents as a majority of its employees.
(4) A business that makes significant capital investments in Indiana.
(5) A business that has a substantial positive economic impact on Indiana as described in 5-22-15-20.5.
(b) The following price preferences are available for a public works contract performed by an Indiana business:
(1) Five percent (5%) for a contract expected by the division to be less than five hundred thousand dollars ($500,000).
(2) Three percent (3%) for a contract expected by the division 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 contract expected by the division to be at least one million dollars ($1,000,000).
(c) If an Indiana business offers to provide supplies manufactured, assembled, or produced in Indiana, and if two (2) or more bids submitted were the same, the following price preference is available to the Indiana business, in addition to the price preference available under subsection (b):
(1) Three percent (3%) for a contract expected by the division to be less than five hundred thousand dollars ($500,000).
(2) Two percent (2%) for a contract expected by the division 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 contract expected by the division to be at least one million dollars ($1,000,000).
The Indiana department of administration shall adopt rules under IC 4-22-2 to establish guidelines for determining when supplies are manufactured or assembled in Indiana.
(d) A business that wants to claim a preference provided under this section must do all of the following:
(1) State in the business's bid that the business claims the preference provided by this section.
(2) Provide the following information to the department:
(A) The location of the business's principal place of business. If the business claims the preference as an Indiana business described in subsection (a)(1), a statement
explaining the reasons the business considers the location
named as the business's principal place of business.
(B) The amount of the business's total payroll and the
amount of the business's payroll paid to Indiana residents.
(C) The number of the business's employees and the
number of the business's employees who are Indiana
residents.
(D) If the business claims the preference as an Indiana
business described in subsection (a)(4), a description of the
capital investments made in Indiana and a statement of the
amount of those capital investments.
(E) If the business claims the preference as an Indiana
business described in subsection (a)(5), a description of the
substantial positive economic impact the business has on
Indiana.
of time to the division to award a contract, to execute the contract, and
to give notice to proceed. The date that an extension of time granted
under this subsection expires must be a date upon which the division
and the successful contractor agree.
(c) After the sixty (60) day period set by subsection (a) and all
extension periods set under subsection (b) have expired, a successful
contractor may elect to withdraw its bid and reject the contract only by
delivering a written notice to the division that grants the division at
least fifteen (15) additional days to award a contract to the successful
contractor.
(1) An Indiana business preference under rules adopted under section 20 of this chapter.
(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 section 23 of this chapter.
(4) An Indiana farm product preference as provided by section 23.5 of this chapter.
(b) An offeror may not claim more than one (1) preference as provided by sections 16, 18, 19, and 24 of this chapter for a given supply item.
