Bill Text: IN HB1309 | 2011 | Regular Session | Introduced
Bill Title: Public works projects cost thresholds.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-01-27 - Representative Welch added as coauthor [HB1309 Detail]
Download: Indiana-2011-HB1309-Introduced.html
Citations Affected: IC 36-1-12.
Synopsis: Public works projects cost thresholds. Provides that a
political subdivision may perform a public works project using its own
work force if the cost of the project is less than $150,000 (under current
law the threshold is $100,000). Increases the cost threshold to at least
one hundred fifty thousand dollars ($150,000) at which bids are
required under the local public works statute. Changes the cost
threshold to at least $50,000 and less than $150,000 at which quotes
are required under the local public works statute (current law provides
different thresholds for various political subdivisions).
Effective: July 1, 2011.
January 13, 2011, read first time and referred to Committee on Employment, Labor and
Pensions.
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A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
(b) When the project involves the rental of equipment with an operator furnished by the owner, or the installation or application of materials by the supplier of the materials, the project is considered to
be a public work project and subject to this chapter. However, an
annual contract may be awarded for equipment rental and materials to
be installed or applied during a calendar or fiscal year if the proposed
project or projects are described in the bid specifications.
(c) A board of aviation commissioners or an airport authority board
may purchase or lease materials in the manner provided in IC 5-22 and
perform any public work by means of its own workforce and owned or
leased equipment, in the construction, maintenance, and repair of any
airport roadway, runway, taxiway, or aircraft parking apron whenever
the cost of that public work project is estimated to be less than fifty
thousand dollars ($50,000).
(d) Municipal and county hospitals must comply with this chapter
for all contracts for public work that are financed in whole or in part
with cumulative building fund revenue, as provided in section 1(c) of
this chapter. However, if the cost of the public work is estimated to be
less than fifty thousand dollars ($50,000), as reflected in the board
minutes, the hospital board may have the public work done without
receiving bids, by purchasing the materials and performing the work by
means of its own workforce and owned or leased equipment.
(e) If a public works project involves a structure, an improvement,
or a facility under the control of a department (as defined in
IC 4-3-19-2(2)), the department may not artificially divide the project
to bring any part of the project under this section.
(b) The board must comply with the following procedure:
(1) The board shall prepare general plans and specifications describing the kind of public work required, but shall avoid specifications which might unduly limit competition. If the project involves the resurfacing (as defined by IC 8-14-2-1) of a road, street, or bridge, the specifications must show how the
weight or volume of the materials will be accurately measured
and verified.
(2) The board shall file the plans and specifications in a place
reasonably accessible to the public, which shall be specified in the
notice required by subdivision (3).
(3) Upon the filing of the plans and specifications, the board shall
publish notice in accordance with IC 5-3-1 calling for sealed
proposals for the public work needed.
(4) The notice must specify the place where the plans and
specifications are on file and the date fixed for receiving bids.
(5) The period of time between the date of the first publication
and the date of receiving bids shall be governed by the size of the
contemplated project in the discretion of the board. The period of
time between the date of the first publication and receiving bids
may not be more than:
(A) six (6) weeks if the estimated cost of the public works
project is less than twenty-five million dollars ($25,000,000);
and
(B) ten (10) weeks if the estimated cost of the public works
project is at least twenty-five million dollars ($25,000,000).
(6) If the cost of a project is one hundred thousand dollars
($100,000) or more, The board shall require the bidder to submit
a financial statement, a statement of experience, a proposed plan
or plans for performing the public work, and the equipment that
the bidder has available for the performance of the public work.
The statement shall be submitted on forms prescribed by the state
board of accounts.
(7) The board may not require a bidder to submit a bid before the
meeting at which bids are to be received. The meeting for
receiving bids must be open to the public. All bids received shall
be opened publicly and read aloud at the time and place
designated and not before.
(8) Except as provided in subsection (c), the board shall:
(A) award the contract for public work or improvements to the
lowest responsible and responsive bidder; or
(B) reject all bids submitted.
(9) If the board awards the contract to a bidder other than the
lowest bidder, the board must state in the minutes or memoranda,
at the time the award is made, the factors used to determine which
bidder is the lowest responsible and responsive bidder and to
justify the award. The board shall keep a copy of the minutes or
memoranda available for public inspection.
(10) In determining whether a bidder is responsive, the board may consider the following factors:
(A) Whether the bidder has submitted a bid or quote that conforms in all material respects to the specifications.
(B) Whether the bidder has submitted a bid that complies specifically with the invitation to bid and the instructions to bidders.
(C) Whether the bidder has complied with all applicable statutes, ordinances, resolutions, or rules pertaining to the award of a public contract.
(11) In determining whether a bidder is a responsible bidder, the board may consider the following factors:
(A) The ability and capacity of the bidder to perform the work.
(B) The integrity, character, and reputation of the bidder.
(C) The competence and experience of the bidder.
(12) The board shall require the bidder to submit an affidavit:
(A) that the bidder has not entered into a combination or agreement:
(i) relative to the price to be bid by a person;
(ii) to prevent a person from bidding; or
(iii) to induce a person to refrain from bidding; and
(B) that the bidder's bid is made without reference to any other bid.
(c) Notwithstanding subsection (b)(8), a county may award sand, gravel, asphalt paving materials, or crushed stone contracts to more than one (1) responsible and responsive bidder if the specifications allow for bids to be based upon service to specific geographic areas and the contracts are awarded by geographic area. The geographic areas do not need to be described in the specifications.
IC 13-26; or
(2) at least twenty-five thousand dollars ($25,000) and less than
fifty thousand dollars ($50,000) in a political subdivision or
agency not described in subdivision (1).
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons
known to deal in the class of work proposed to be done by mailing
them a notice stating that plans and specifications are on file in a
specified office. The notice must be mailed not less than seven (7)
days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before
the meeting at which quotes are to be received. The meeting for
receiving quotes must be open to the public. All quotes received
shall be opened publicly and read aloud at the time and place
designated and not before.
(3) The board shall award the contract for the public work to the
lowest responsible and responsive quoter.
(4) The board may reject all quotes submitted.
