Preferences

The State of Indiana is committed to making purchases that promote the economy, the environment, and the nation. In support of this commitment, “preferences” have been put in place providing advantages to certain types of businesses, services and products. Respondents must follow instructions in the solicitation package in order for preferences to be applied or considered.

Absolute Preferences

An absolute preference allows respondents meeting certain criteria to receive an award without regard to other criteria unless another respondent also claims the preference, meaning that the respondent offering the lowest cost may not be the correct choice for award. There is one absolute preference offered.  See IC 5-22-15-2.

Commodity-Based Preferences

Indiana Code allows procurement agents to consider giving preference to purchasing commodities that meet the conditions and specifications defined in the statute.  This category includes the U.S. Manufactured and Steel Products Preferences.

Price Preferences

A price preference is offered to allow certain types of businesses, services or products to compete for the State’s business while taking into consideration a preference.

If a respondent claims a price preference, a given percentage will be deducted from the proposed price of the item(s) that meet the criteria for that preference, and the newly figured price(s) will be used for evaluation purposes to determine the award.

If such a respondent claiming a price preference receives an award, the original proposed amount will be paid for the products or services.

Only one price preference may be applied to each item, even if the respondent has indicated they wish to claim multiple preferences. The preference that is most beneficial should be applied. The only exceptions to this rule are

• the Indiana Manufactured Preference - this may be claimed in addition to the Indiana Business Preference.
• the Business Providing Specialized Employee Services may be combined with another preference.