Citations Affected: IC 5-22.
Synopsis: Award of state contracts. Requires the state's procurement
practices to be supportive of retention and creation of jobs in Indiana.
Provides that a contract or solicitation for a contract to privatize any of
the functions performed by a governmental body's employees that
would result in the layoff or dismissal of any of those employees must:
(1) require an offeror to provide verifiable evidence that the cost of the
contract will be less than the cost of having the functions performed by
the governmental body's employees; (2) specify that the governmental
body may not pay the contractor more than the cost the governmental
body determined the governmental body would incur to perform the
functions using its own employees; (3) require the governmental body
to provide to an offeror an estimate of the cost of having the functions
performed by the governmental body's employees; and (4) contain a
statement that the governmental body may pursue certain remedies if
the contractor fails to comply with the contract. Permits a
representative of any group of the governmental body's employees to
submit an offer for the group to perform the functions and requires the
governmental body to award the contract to the group of employees
under certain circumstances. Excludes from these requirements
purchases from qualified nonprofit agencies for persons with severe
disabilities.
Effective: July 1, 2004.
November 18, 2003, read first time and referred to Committee on Economic Development
and Technology.
January 13, 2004, amended, reported favorably _ Do Pass.
January 27, 2004, read second time, amended, ordered engrossed.
January 28, 2004, engrossed.
February 2, 2004, read third time, passed. Yeas 39, nays 10.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
SECTION 1. IC 5-22-3-6.9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 6.9. The state's procurement practices must be
supportive of retention and creation of jobs in Indiana.
SECTION 2. IC 5-22-3-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 7. (a) This section applies to a solicitation for a
contract that would require the contractor to perform any of a
governmental body's functions that are performed at the time of
the solicitation by the governmental body's employees.
(b) A representative of any group of the governmental body's
employees may submit, in response to a solicitation described in
subsection (a), an offer for the group of employees to perform the
functions that are the subject of the solicitation.
(c) The governmental body shall award the contract to the
group of employees if this article would otherwise require the
contract to be awarded to a person that submitted the group's
offer.
SECTION 3. IC 5-22-5-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 9. (a) This section applies to a solicitation for a
contract that would require the contractor to perform any of a
governmental body's functions that:
(1) are performed at the time of the solicitation by the
governmental body's employees; and
(2) would result in the layoff or dismissal of any of the
governmental body's employees.
This section does not apply to a purchase under IC 5-22-13.
(b) A solicitation described in subsection (a) must include the
following:
(1) An estimate of the cost the governmental body would incur
in performing the functions covered by the contract with the
governmental body's employees during the period comprising
the term of the proposed contract. The estimate must include
labor, overhead, administrative, equipment, supply, and any
other costs.
(2) A requirement that the offeror must provide objective,
verifiable evidence that:
(A) is satisfactory to the governmental body; and
(B) demonstrates that if the offeror is awarded the
contract, the cost of the contract over the term of the
contract will be less than the amount described in
subdivision (1).
(3) A statement that the contract between the governmental
body and the offeror must contain a provision that the
governmental body may not pay to the offeror, over the term
of the contract, more than the amount described in
subdivision (1).
(4) A statement that the contract between the governmental
body and the offeror may provide for the deposit of surety
bonds, the making of good faith deposits, liquidated damages,
the right of reversion or repurchase, or other rights and
remedies if the offeror fails to comply with the contract.
SECTION 4. IC 5-22-13-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. (a) Supplies and
services purchased under this chapter must:
(1) meet the specifications and needs of the purchasing
governmental body; and
(2) be purchased at a fair market price.