Purchasing Authority
Indiana Department of AdministrationAs mandated by Indiana Code (IC 5-22-4-1), the Indiana Department of Administration (IDOA) is ultimately responsible for all State of Indiana procurements for agencies of the executive branch. | Agencies Delegated Purchasing AuthorityIDOA may delegate their authority to agencies and individuals deemed qualified and responsible to make their own purchases according to the laws, policies, and procedures put in place to protect the integrity of the procurement process. These agencies may use Small Purchasing Procedures for requisitions not exceeding $75,000. Purchasing Contact: Agency Head Procurement Agents | INDOT and Public WorksThe Indiana Department of Transportation and the Division of Public Works maintain separate purchasing activities for certain goods and services specific to those agencies. If your product or service is one in which they would be interested, you should review their purchasing processes and requirements. |
IDOA Procurement Processes
The estimated dollar amount and type of goods or services to be purchased generally determines the procurement method required.
- QPA
- $500 to $2,500
- $2,500 to $75,000
- Greater than $75,000
- Small Business Set-Aside Program
- Contracts
- Special Procurements
Quantity Purchase Agreement (QPA)
The Quantity Purchase Agreement is an opportunity for the State or a particular agency to enter into an agreement by which a selected vendor provides an estimated quantity of goods and services at a stated unit price guaranteed for a specific time frame, usually a year.
Products or services available on QPA must be purchased from these contracts. There are two exceptions: a substantial cost savings or the agency functional requirements cannot be met.
The State establishes ASA (All State Agency) QPAs, from which any agency may submit a purchase order to receive a commodity/service. The processing time of a QPA purchase order is much less than those of a purchase order resulting from a quotation – an average of only 2-5 days once it reaches the Procurement Division (if over an agency’s delegation).
State QPAs are available as a list on the All Current QPAs web page. QPAs are generally in effect for two years, but may be renewed according to the terms of the original contract. The State generally limits the length of a QPA to four years total (original term plus renewals).
$500 to $2,500 - Requests for Quotation (RFQ)
Requests for Quotation less than $2,500 are solicited by the agency. The agency may contact bidders by phone or in writing. The agency must select at least three (3) known bidders to contact concerning the Requests for Quotation, along with the specifications. There is not a set time frame by law that these quotations must be on the street. However, we ask the agencies to allow at least seven days whenever possible. After quotations are received by the bidders and they have responded, the agency reviews the quotations and makes an award. Upon an award, a purchase order is issued. The agency will make payment for POs within this dollar amount by claim voucher.
$2,500 to $75,000 - Requests for Quotation (RFQ)
Requests for Quotation with an estimated dollar amount greater than $2,500 but less than $75,000 are solicited by the agency. The agency determines the need and writes the specification(s). The agency then selects at least three (3) known bidders to send the Requests for Quotation along with the specifications (IC 5-22-8-3(b)). The agencies must allow the solicitation to remain open for at least seven (7) days whenever possible. After quotations are received from the bidders and they have been reviewed, the agency awards the quote and creates the PO up to their authority. If the solicitation is above their authority, the agency sends the request with all necessary paperwork to the Procurement Division for processing. A Procurement Division Purchasing Administrator reviews the quotations and makes an award. Upon an award, a purchase order is issued. Agencies will make payment for the PO created by claim voucher up to $75,000. If the PO is above the delegation, the funds will be encumbered by Procurement with the Auditor of State.
Greater than $75,000
Invitation for Bid (IFB)
Invitations for Bid vary from Requests for Quotation only in procedural requirements in that the processing of IFB is done by the Procurement Division.
Negotiated Bidding
Negotiated Bids vary from an Invitation for Bid in several procedural requirements. Per IC 5-22-7.3, unlike an Invitation for Bid, Negotiated Bids are not opened publicly but opened by two (2) or more employees of the purchasing agency. Negotiated Bids are only for purchasing by agencies under the Executive Branch.
The most significant difference is that a solicitation designated as a Negotiated Bid will allow the purchasing agency to conduct discussions with bidders before a contract is awarded. During the discussions with bidders all discussions must be consistent with fair competition among all bidders. Also, bidders will be provided details of the process for any bid that is released as a negotiated bid.
Request for Proposal (RFP)
The Request for Proposal method is used for procurements in which factors other than cost play a significant role. Per IC 5-22-9, when a purchasing agent makes a written determination that the use of competitive sealed bidding is either not practicable or not advantageous to the governmental body, the purchasing agent may award a contract using this procedure instead of competitive sealed bidding. This provides a formal process for the procurement of goods and/or services for which price is not the sole factor in the selection of a vendor or vendors.
By using the RFP process, the State intends to award a contract to the responsive/responsible Respondent(s) whose proposal is determined to provide the "best value" to the State. Because the requesting agency determines the specifications of what is being solicited through the RFP, it allows the agency more control over the process, which in turn helps the agency to obtain the "best fit" for its needs. Because the evaluation criterion is explained throughout the RFP, respondents have the opportunity to concentrate, in their proposals, on the areas most critical to the requesting agency. The RFP provides an agency with the opportunity to enter into contract negotiations with the respondent or respondents that submit the best and most cost effective proposal(s).
Request for Information (RFI)
An agency may choose to research information on a proposed RFP without having to commit to doing an RFP by doing a Request for Information (RFI). The RFI is used by agencies to gain information on specifications and pricing for new products, programs or services.
The RFI is not used as a tool to "pre-select" vendors.
Responses to the RFI will remain confidential until after the RFP is complete. If no RFP is issued, the RFI responses become public information after the decision is made not to proceed with an RFP.
Small Business Set-Aside Program
Created by IC 5-22-14, the Small Business Set-Aside program was put in place to promote the growth and success of small businesses.
Commodities (including printing) have been chosen to participate based on the small business community that is known to be capable of supporting the needs of the State, while still allowing fair and equitable competition in the procurement process.
| Item | UNSPSC Code |
First Aid/Safety Equipment | 42170000, 42290000, 46180000 |
Hardware and relative items | 24110000, 31162700, 46171500 |
Badges/Emblems | 55120000 |
Hand Tools | 27111500 |
Personal Computer Hardware/Peripherals | 43000000, 26121600 |
Personal Computer Software | 43190000, 43230000 |
Police Equipment | 46000000 |
Plumbing Equipment | 30180000 |
Building Maintenance Materials | 72100000 |
Printing | 82121500 |
The program is applicable to commodity purchases between $5,000 and $25,000, and printing purchases between $5,000 and $15,000.
Purchases that qualify under the Small Business Set-Aside requirement should be done using the same documents and the same processes as would be used for any other purchase within these estimated dollar amounts. Indiana Code (IC) 5-22-14-6, however, dictates that only bidders who qualify as small businesses should be solicited.
Contracts
A procurement contract is used whenever a State agency wishes to buy, lease, or exchange property or services for the direct benefit of a State agency. Also a contract is required when a State agency’s principal purpose is to acquire an intermediary’s services, which ultimately may or may not be delivered to an authorized recipient.
A contract contains the following essential elements:
- competent parties
- lawful subject matter
- sufficient consideration
- consent of minds
Special Procurements
Special/Emergency purchasing methods may be used when unique circumstances exist, as provided for by Indiana Code IC 5-22-10, allowing standard practices to be circumvented. The need for this type of purchase must qualify under at least one of the criteria defined in IC 5-22-10 sections four to nineteen and justification must be provided explaining why this type of purchasing method applies.