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 business
that:
(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 of
this 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" means
a purchase in which the solicitation states that offers will be accepted
only 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 implement
this chapter. The Indiana department of administration shall adopt
rules under IC 4-22-2 to implement this chapter.
(b) The rules adopted by a governmental body must establish
criteria for determining qualifications as a small business. In
establishing criteria, the rules may use any standards established for
determination of small business status that are used by an agency of
the federal government. A governmental body may also receive
assistance from the Indiana economic development corporation to
establish criteria or to implement the rules.
(c) The rules adopted by a governmental body may consider the
number of employees employed by an offeror and the dollar volume
of the offeror's business. The rules must provide that when
computing the size of an offeror, the annual sales and receipts of the
offeror and all of its affiliates must be included.
(d) The rules adopted by a governmental body must include the
following criteria:
(1) A wholesale business is not a small business if its annual
sales for its most recently completed fiscal year exceed four
million dollars ($4,000,000).
(2) A construction business is not a small business if its average
annual receipts for the preceding three (3) fiscal years exceed
four million dollars ($4,000,000).
(3) A retail business or business selling services is not a small
business if its annual sales and receipts exceed five hundred
thousand dollars ($500,000).
(4) A manufacturing business is not a small business if it
employs more than one hundred (100) persons.
(5) A business in any of the following sectors is not a small
business if it employs more than one hundred (100) persons or
if 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 this
chapter may identify as a small business set-aside specific supplies
for which purchase has been requested under this article.
(b) A small business designation must be made before the
solicitation for the purchase is issued and the public notice of the
purchase 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 a
small business set-aside unless there is a reasonable expectation that
offers will be obtained from at least two (2) small businesses capable
of furnishing the desired supplies or service at a fair and reasonable
price.
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 and
responsive offeror among the small businesses in accordance with
the 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 the
lowest responsible and responsive offer will result in the payment of
an unreasonable price, the purchasing agent shall reject all offers and
may withdraw designation of the purchase as a small business
set-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 assist
a governmental body in doing any of the following:
(1) Compiling and maintaining a comprehensive list of small
businesses.
(2) Assisting small businesses in complying with the procedures
for bidding on governmental contracts.
(3) Examining requests from governmental bodies for the
purchase of supplies to help determine which purchases are to
be designated small business set-asides.
(4) Simplifying specifications and contract terms to increase the
opportunities for small business participation in governmental
contracts.
(5) Investigations by a governmental body to determine the
responsibility 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 is
subject 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.