CHAPTER 1. PURCHASES AND LEASES OF PERSONAL PROPERTY BY STATE AGENCIES
IC 5-17
ARTICLE 17. PUBLIC PURCHASES
IC 5-17-1
Chapter 1. Purchases and Leases of Personal Property by State
Agencies
IC 5-17-1-1
Compliance with requirements of chapter; limits; exemptions
Sec. 1. (a) This chapter applies to leases of equipment whether or
not title passes from the lessor to the lessee. The term "purchaser" as
used in this chapter includes persons who make leases for equipment.
(b) Any person, officer, board, commissioner, department,
commission, or purchasing agent (designated as purchaser in this
chapter) duly authorized and empowered by law or delegated and
entrusted with authority to make purchases of material or materials,
equipment, goods, and supplies, except current utility bills, or leases
of equipment, for any unit of the state shall comply with the
requirements of this chapter whenever the total amount of any
purchase exceeds ten thousand dollars ($10,000) or total annual
rental payment under any lease exceeds five thousand dollars
($5,000).
(c) In all cases of purchase of materials and supplies where the
total amount of any such purchase does not exceed the sum of ten
thousand dollars ($10,000), and in all cases of the lease of equipment
where the annual rental payment does not exceed five thousand
dollars ($5,000), the purchaser or lessee may buy or lease in the open
market without the giving of notice or the receiving of bids.
(d) All purchases of similar materials, equipment, goods, and
supplies by any government unit from a person during a six (6)
month period under subsection (c) may not exceed ten thousand
dollars ($10,000), and the total annual rental payments to a person
under all leases for equipment under subsection (c) may not exceed
five thousand dollars ($5,000).
(e) Materials, equipment, goods, and supplies may be purchased,
or such equipment may be leased, from the United States government
or any agency, division, or instrumentality thereof, without the giving
of notice or the receiving of bids.
(Formerly: Acts 1945, c.99, s.1; Acts 1953, c.32, s.1; Acts 1963,
c.328, s.1; Acts 1969, c.483, s.1.) As amended by Acts 1977, P.L.61,
SEC.1; Acts 1979, P.L.45, SEC.1; Acts 1981, P.L.57, SEC.13;
P.L.53-1986, SEC.1.
IC 5-17-1-2
Advertising for purchase of materials, etc., and lease of equipment;
specifications; notice of time and place for receiving bids;
procedures; open market; submission of certified check or bond by
bidder; rejection
Sec. 2. (a) In all cases of advertising for the purchase of materials,
equipment, goods and supplies, and the lease of equipment, the
purchaser shall prepare specifications describing with reasonable
particularity the kind, quantity and quality of all materials,
equipment, goods, and supplies which may be needed for any
designated period. It may be provided in such specifications that bids
will be received and contracts let, separately, for each line or class of
materials, equipment, or supplies, or the specifications may provide
that bids will be received and contracts let for the purchase or lease
of an unspecified number of items at a fixed price per unit.
(b) Notice of the time and place for receiving of bids for the
purchase or lease shall be given in accordance with IC 5-3-1.
(c) If the cost of the materials, equipment, goods, and supplies to
be purchased does not exceed ten thousand dollars ($10,000) or the
equipment to be leased does not exceed five thousand dollars
($5,000), the purchaser may invite bids from not less than three (3)
persons, firms, limited liability companies, or corporations, known
to deal in the particular class or classes of materials, equipment,
goods, or supplies described in the specifications, by mailing to each
person, firm, limited liability company, or corporation a copy of such
specifications not less than three (3) days before the time fixed for
receiving bids. Said purchaser or purchasers shall, after a satisfactory
bid is received, award a contract to the lowest and best bidder for
each class of supplies, equipment, goods, or materials required,
except that if less than three (3) bids are received, to the best bid so
received.
(d) If any purchaser invites or advertises for bids for any material,
materials, equipment, goods or supplies, pursuant to the provisions
of this chapter, and does not receive a valid bid therefor or for any
item thereof, in that event any such item or items of material,
materials, equipment, goods or supplies so sought or advertised for
may be purchased or equipment may be leased on the open market
without further advertisement for bids.
(e) Any bidder may submit with his bid a certified check or the
bond of a surety company admitted to do business in this state in the
amount determined and specified by the purchasing agent in the
notice of the letting.
(f) The purchaser may reject any and all bids and ask for new
bids.
(Formerly: Acts 1945, c.99, s.2; Acts 1969, c.483, s.2.) As amended
by Acts 1977, P.L.61, SEC.2; Acts 1979, P.L.45, SEC.2; Acts 1981,
P.L.57, SEC.14; P.L.38-1984, SEC.1; P.L.8-1993, SEC.69.
IC 5-17-1-2.5
Road or street work contracts; open price; material price
adjustments; limitation
Sec. 2.5. (a) Notwithstanding sections 2 and 3 of this chapter and
IC 8-23-9, the Indiana department of transportation may award a
public works contract for road or street work subject to the open
price provisions of IC 26-1-2-305.
(b) Such a contract may provide that prices for construction
materials, including but not limited to liquid asphalts, are subject to
price of materials adjustment. When price adjustments are part of the
contract, the method of price adjustment shall be specified in the
contract.
(c) Nothing in this section authorizes the expenditure of money
over and above the total amount of money appropriated by the state
for road and street contracts.
As added by Acts 1980, P.L.34, SEC.1. Amended by Acts 1981,
P.L.57, SEC.15; P.L.18-1990, SEC.15.
IC 5-17-1-3
Prescribed forms for trust bids, offers, proposals, estimates, or
contracts
Sec. 3. (a) A purchaser may not make any purchase or contract for
the purchase of any material, equipment, goods, or supplies or the
lease of equipment unless the bid, offer, proposal, estimate, or
contract of any person, firm, limited liability company, or
corporation offering any and all such articles for sale or equipment
for lease is executed upon the forms prescribed by the state board of
accounts setting forth the quantity, quality, and purchase or lease
price of every article and thing proposed for sale or lease.
(b) A bid, offer, proposal, estimate, or contract submitted by a
trust (as defined in IC 30-4-1-1(a)) must identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
(Formerly: Acts 1945, c.99, s.3.) As amended by Acts 1977, P.L.61,
SEC.3; P.L.336-1989(ss), SEC.16; P.L.8-1993, SEC.70.
IC 5-17-1-4
Delivery of original purchase order or lease; filing copies
Sec. 4. Within thirty (30) days after the acceptance of any bid,
offer, proposal, estimate, or contract for purchase of materials,
equipment, goods, and supplies, or lease of equipment, the purchaser
or purchasers shall:
(1) deliver in person or mail to the seller or lessor the original
of each purchase order or lease;
(2) retain a copy for his own records; and
(3) when any purchase or lease is made for the state or any
agency or instrumentality thereof, file a copy of the purchase
order or lease with the disbursing officer for the unit.
(Formerly: Acts 1945, c.99, s.4.) As amended by Acts 1977, P.L.61,
SEC.4; Acts 1980, P.L.74, SEC.13; Acts 1981, P.L.57, SEC.16;
P.L.53-1986, SEC.2.
IC 5-17-1-5
Bidders; violations; felony; sanction
Sec. 5. A person making any such bid, offer, proposal, estimate or
contract to sell or lease, who knowingly violates this chapter
commits a Class D felony and may not be a party to or benefit from
any contract with a public body in the state for two (2) years from the
date of his conviction.
(Formerly: Acts 1945, c.99, s.5.) As amended by Acts 1977, P.L.61,
SEC.5; Acts 1978, P.L.2, SEC.520.
IC 5-17-1-6
Violations; felony
Sec. 6. Any person, officer, board, commissioner, department
commission or purchasing agent who knowingly violates any of the
terms of this chapter commits a Class D felony.
(Formerly: Acts 1945, c.99, s.6.) As amended by Acts 1977, P.L.61,
SEC.7.
IC 5-17-1-7
Liability of purchasers for wrongful performance
Sec. 7. Where in this chapter a duty is imposed upon the
purchasers, such duty shall be performed by the person, officer,
clerk, or employee whose duty or employment require that they act
for any board, commission, department, or unit of government
making any such purchase, and any such person, officer, clerk, or
employee shall be liable on his bond for any loss or damage resulting
from a wrongful performance of such duty or from any violation of
any of the provisions of this chapter.
(Formerly: Acts 1945, c.99, s.7.) As amended by P.L.25-1986,
SEC.94.
IC 5-17-1-8
Repealed
(Repealed by Acts 1981, P.L.57, SEC.45.)
IC 5-17-1-8.1
Chapter to be supplemental to all laws; limitations
Sec. 8.1. (a) This chapter is supplemental to all laws concerning
the purchase of material, equipment, goods, and supplies and the
lease of equipment by the state. However, this chapter does not
preclude the extension beyond the contractual time period of
contracts let pursuant to the provision of this chapter as an alternative
to advertising for new bids.
(b) This chapter does not apply to:
(1) purchases or leases made by the Indiana department of
transportation;
(2) purchases made under IC 5-22;
(3) state educational institutions;
(4) the legislative department of state government; or
(5) the judicial department of state government;
except that copies of purchase orders or leases shall be kept on file
and be open to public inspection.
As added by Acts 1981, P.L.57, SEC.17. Amended by P.L.53-1986,
SEC.3; P.L.18-1990, SEC.16; P.L.49-1997, SEC.31; P.L.2-2007,
SEC.105.
IC 5-17-1-9
Repealed
(Repealed by Acts 1981, P.L.57, SEC.45.)
IC 5-17-1-10
Procurement preferences
Sec. 10. A purchase under this chapter is subject to procurement
preferences provided under IC 5-22-15.
As added by P.L.19-1990, SEC.4. Amended by P.L.49-1997, SEC.32.
IC 5-17-1-11
Payment of gross retail tax condition of doing business
Sec. 11. IC 5-22-16-4(b) applies to a lease or purchase of personal
property made after June 30, 2003, by an agency (as defined in
IC 4-13-2-1) or a state educational institution to the same extent as
if the lease or purchase were subject to IC 5-22.
As added by P.L.254-2003, SEC.2. Amended by P.L.2-2007,
SEC.106.