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Indiana Resident Bidder Preference
Revised August 14, 2024
Indiana Code
Title 4. State Offices and Administration
Article 13.6. State Public Works
Chapter 6. Bid Opening and Award of Contracts
(a) As used in this section, "out-of-state business" refers to a business that is not an Indiana business.
(b) The department may adopt rules under IC 4-22-2 to give a preference to an Indiana business that submits a bid under this article if all of the following apply:
(1) An out-of-state business submits a bid.
(2) The out-of-state business is a business from a state that gives public works preferences unfavorable to Indiana businesses.
(c) Rules adopted under subsection (b) must establish criteria for determining the following:
(1) Whether a bidder qualifies as an Indiana business under the rules.
(2) When another state's preference is unfavorable to Indiana businesses.
(3) The method by which the preference for Indiana businesses is to be computed.
(d) Rules adopted under subsection (b) may not give a preference to an Indiana business that is more favorable to the Indiana business than the other state's preference is to the other state's businesses.
Indiana Code
Title 5. State and Local Administration
Article 22. Public Purchasing
Chapter 15. Purchasing Preferences
5-22-15 . “Absolute preference”
As used in this chapter, “absolute preference” means a requirement that a governmental body must purchase supplies described under this chapter, regardless of price.
5-22-15-20. Preferences to Indiana businesses; rules
(a) This section does not apply to the state lottery commission created by IC 4-30-3-1 .
(b) As used in this section, "out-of-state business" refers to a business that is not an Indiana business.
(c) A governmental body may adopt rules to give a preference to an Indiana business that submits an offer for a purchase under this article 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 that gives purchase preferences unfavorable to Indiana businesses.
(d) Rules adopted under subsection (c) must establish criteria for determining the following:
(1) Whether an offeror qualifies as an Indiana business under the rules.
(2) When another state's preference is unfavorable to Indiana businesses.
(3) The method by which the preference for Indiana businesses is to be computed.
(e) Rules adopted under subsection (c) may not give a preference to an Indiana business that is more favorable to the Indiana business than the other state's preference is to the other state's businesses.
(f) Rules adopted under subsection (c) must provide that a contract shall be awarded to the lowest responsive and responsible offeror, 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 and the offeror's home state does not provide a preference to the home state's businesses more favorable than is provided by Indiana law to Indiana businesses.
5-22-15-20.5
(a) This section applies only to a contract awarded by a state agency.
(b) As used in this section, "Indiana business" refers to any of the following:
(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 defined by criteria developed under subsection (c).
(c) The Indiana department of administration shall consult with the Indiana economic development corporation in developing criteria for determining whether a business is an Indiana business under subsection (b). The Indiana department of administration may consult with the Indiana economic development corporation to determine whether a particular business meets the requirements of this section and the criteria developed under this subsection.
(d) There are the following price preferences for supplies purchased from an Indiana business:
(1) Five percent (5%) for a purchase expected by the state agency to be less than five hundred thousand dollars ($500,000).
(2) Three percent (3%) for a purchase expected by the state agency 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 state agency to be at least one million dollars ($1,000,000).
(e) 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 (d):
(1) Three percent (3%) for a purchase expected by the state agency to be less than five hundred thousand dollars ($500,000).
(2) Two percent (2%) for a purchase expected by the state agency 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 state agency 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.
(f) 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 (b)(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 (b)(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 (b)(5), a description of the substantial positive economic impact the business has on Indiana.
5-22-15-20.9. Price preferences for supplies purchased from local businesses
(a) This section applies only to a contract awarded by a political subdivision if the political subdivision provides in the solicitation that this section applies to the purchase.
(b) As used in this section, "affected county" refers to an Indiana county:
(1) in which the political subdivision awarding a contract under this article is located; or
(2) that is adjacent to the county described in subdivision (1).
(c) As used in this section, "local Indiana business" refers to any of the following:
(1) A business whose principal place of business is located in an affected county.
(2) A business that pays a majority of its payroll (in dollar volume) to residents of affected counties.
(3) A business that employs residents of affected counties as a majority of its employees.
(4) A business that makes significant capital investments in the affected counties as defined in rules adopted by the political subdivision.
(5) A business that has a substantial positive economic impact on the affected counties as defined by criteria in rules adopted by the political subdivision.
(d) There are the following price preferences for supplies purchased from a local Indiana business:
(1) Five percent (5%) for a purchase expected by the purchasing agency to be less than fifty thousand dollars ($50,000).
(2) Three percent (3%) for a purchase expected by the purchasing agency to be at least fifty thousand dollars ($50,000) but less than one hundred thousand dollars ($100,000).
(3) One percent (1%) for a purchase expected by the purchasing agency to be at least one hundred thousand dollars ($100,000).
(e) Notwithstanding subsection (d), a purchasing agency may award a contract to the lowest responsive and responsible offeror, regardless of the preference provided in this section, if the lowest responsive and responsible offeror is a local Indiana business.
(f) A business that wants to claim a preference provided under this section must do all 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 purchasing agency:
(A) The location of the business's principal place of business. If the business claims the preference as a local Indiana business described in subsection (c)(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 residents of affected counties.
(C) The number of the business's employees and the number of the business's employees who are residents of affected counties.
(D) If the business claims the preference as a local Indiana business described in subsection (c)(4), a description of the capital investments made in the affected counties and a statement of the amount of those capital investments.
(E) If the business claims the preference as a local Indiana business described in subsection (c)(5), a description of the substantial positive economic impact the business has on the affected counties.
5-22-15-22. Absolute preference to coal mined in Indiana
(a) This section does not apply to the state lottery commission created by IC 4-30-3-1 .
(b) This section does not apply if federal law requires the use of low sulphur coal in the circumstances for which the coal is purchased.
(c) Whenever a purchasing agent purchases coal for use as fuel, the purchasing agent shall give an absolute preference to coal mined in Indiana.
5-22-15-23. Price preference for supplies to Indiana small businesses
(a) A governmental body shall give a fifteen percent (15%) preference for supplies to:
(1) an Indiana small business (as defined in IC 5-22-14-1 ); or
(2) a veteran owned small business (as defined in IC 4-13-16.5-1 );
that submits an offer for purchase under this article.
(b) The governmental body may adopt rules to establish criteria to carry out this section.
5-22-15-23.5. Price preference for Indiana agricultural products
(a) A governmental body may give up to a ten percent (10%) price preference for agricultural products grown, produced, or processed in Indiana.
(b) A governmental body may adopt rules to establish criteria to carry out this section.