CHAPTER 17. CONTRACTS
IC 5-22-17
Chapter 17. Contracts
IC 5-22-17-1
Cost plus a percentage of cost contract
Sec. 1. A governmental body may not enter into a cost plus a
percentage of cost contract.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-2
Cost reimbursement contract
Sec. 2. A governmental body may enter into a cost reimbursement
contract if the purchasing agent determines in writing that the
contract is likely to be less costly to the governmental body than any
other contract type, or that it is impracticable to obtain the supplies
required except under such a contract.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-3
Contracts for supplies; time periods
Sec. 3. (a) This section does not apply to a discounted contractual
arrangement for services or supplies funded through a designated
leasing entity.
(b) Subject to subsections (c) through (e) and section 5 of this
chapter, a contract for supplies may be entered into for a period not
to exceed four (4) years.
(c) County and municipal hospitals may contract for the purchase
of supplies for more than one (1) year but not more than five (5)
years if the supplies are purchased under IC 5-22-7.
(d) The contract must specify that payment and performance
obligations are subject to the appropriation and availability of funds.
(e) A political subdivision must have available a sufficient
appropriation balance or an approved additional appropriation before
a purchasing agent may award a contract.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-4
Renewal of contracts
Sec. 4. (a) A contract that contains a provision for escalation of
the price of the contract may be renewed under this section if the
price escalation is computed using:
(1) a commonly accepted index named in the contract; or
(2) a formula set forth in the contract.
(b) Subject to section 5 of this chapter, with the agreement of the
contractor and the purchasing agency, a contract may be renewed any
number of times.
(c) The term of a renewed contract may not be longer than the
term of the original contract.
As added by P.L.49-1997, SEC.1. Amended by P.L.153-1999, SEC.5.
IC 5-22-17-5
Funds not appropriated or not available; cancellation of contract
Sec. 5. (a) When the fiscal body of the governmental body makes
a written determination that funds are not appropriated or otherwise
available to support continuation of performance of a contract, the
contract is considered canceled.
(b) A determination by the fiscal body that funds are not
appropriated or otherwise available to support continuation of
performance is final and conclusive.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-6
Early performance; completion after termination date
Sec. 6. (a) The purchasing agent may specify in a contract that
early performance of the contract will result in increased
compensation at either:
(1) a percentage of the contract amount; or
(2) a specific dollar amount;
determined by the purchasing agent.
(b) The purchasing agent may specify in a contract that
completion of the contract after the termination date of the contract
will result in a deduction from the compensation in the contract at
either:
(1) a percentage of the contract amount; or
(2) a specific dollar amount;
determined by the purchasing agent.
(c) Notice of inclusion of contract provisions permitted under this
section in a contract must be included in the solicitation.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-7
Contract for remediation of hazardous waste site
Sec. 7. (a) As used in this section, "release" means any
discharging, disposing, dumping, emitting, emptying, escaping,
injecting, leaching, leaking, pouring, pumping, or spilling into the
environment. The term includes the abandonment or discarding of
barrels, containers, or other closed receptacles containing any
petroleum or hazardous substance.
(b) As used in this section, "remediation" means any of the
following:
(1) Actions necessary to prevent, minimize, or mitigate damages
to the public health or welfare or to the environment that may
otherwise result from a release or threat of a release.
(2) Actions consistent with a permanent remedy taken instead
of or in addition to removal actions in the event of a release of
petroleum or a hazardous substance into the environment to
eliminate the release of petroleum or hazardous substances so
that the petroleum or hazardous substances do not migrate to
cause substantial danger to present or future public health or
welfare or the environment.
(3) The cleanup or removal of released petroleum or hazardous
substances from the environment.
(c) Notwithstanding section 3 of this chapter, a contract for
remediation of a hazardous waste site may be entered into for any
period not to exceed ten (10) years. The other provisions of section
3 of this chapter apply to a contract for remediation of hazardous
waste.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-8
Contract for supplies and services to implement EBT program
Sec. 8. (a) As used in this section, "division" refers to the division
of family resources established by IC 12-13-1-1.
(b) As used in this section, "EBT program" refers to an electronic
benefits transfer program.
(c) Notwithstanding section 3 of this chapter, the division may
enter into a contract for supplies and services to implement an EBT
program for an initial period not to exceed five (5) years. The
division may renew the contract for any number of successive
periods not to exceed two (2) years each.
As added by P.L.49-1997, SEC.1. Amended by P.L.145-2006,
SEC.15.
IC 5-22-17-9
Extension of offers to political subdivisions
Sec. 9. A contract entered into by a state agency may require the
contractor to offer to political subdivisions the services or supplies
that are the subject of the contract under conditions specified in the
contract.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-10
Contract for petroleum products
Sec. 10. (a) As used in this section, "petroleum products" includes
the following:
(1) Gasoline.
(2) Fuel oils.
(3) Lubricants.
(4) Liquid asphalt.
(b) A purchasing agent may award a contract for petroleum
products to:
(1) the lowest responsible and responsive offeror; or
(2) all responsible and responsive offerors.
(c) A contract entered into under this section may allow for the
escalation or de-escalation of price.
(d) This subsection applies to a petroleum products contract that
is awarded to all responsible and responsive offerors as provided in
subsection (b). The purchasing agent must purchase the petroleum
products from the lowest of the responsible and responsive bidders.
The contract must provide that the bidder from whom petroleum
products are being purchased shall provide five (5) business days
written notice of any change in price. Upon receipt of written notice,
the purchasing agent shall request current price quotes in writing
based upon terms and conditions of the original offer (as awarded)
from all successful responsible and responsive offerors. The
purchasing agent shall record the quotes in minutes or memoranda.
The purchasing agent shall purchase the petroleum products from the
lowest responsible and responsive offeror, taking into account the
price change of the current supplier and the price quotes of the other
responsible and responsive offerors.
As added by P.L.49-1997, SEC.1.
IC 5-22-17-11
Contract for sand, gravel, asphalt, paving materials, or crushed
stone
Sec. 11. A county may award a sand, gravel, asphalt paving
materials, or crushed stone contract to more than one (1) responsible
and responsive offeror if both of the following apply:
(1) The specifications allow for offers to be based upon service
to specific geographic areas.
(2) The contracts are awarded by geographic area.
The county is not required to describe the geographic areas in the
specifications.
As added by P.L.7-1998, SEC.7.
IC 5-22-17-12
Separate contracts; awarding contract to an offeror other than the
lowest offeror
Sec. 12. (a) A solicitation may provide that offers will be received
and contracts will be awarded separately or for any combination of
a line or a class of supplies or services contained in the solicitation.
(b) If the solicitation does not indicate how separate contracts
might be awarded, the purchasing agent may award separate
contracts to different offerors under this section only if the
purchasing agent makes a written determination showing that the
award of separate contracts is in the interest of efficiency or
economy.
(c) If the purchasing agent awards a contract for a line or class of
supplies or services, or any combination of lines or classes, to an
offeror other than the lowest offeror, the purchasing agent must make
a written determination stating the reasons for awarding a contract to
that offeror.
As added by P.L.7-1998, SEC.8.
IC 5-22-17-13
Contracts for supplies or services for an unspecified number of
items at a fixed price per unit
Sec. 13. A solicitation may provide that the purchasing agent will
award a contract for supplies or services for an unspecified number
of items at a fixed price per unit. Such a contract may include a
formula or a method for escalation of the unit price.
As added by P.L.7-1998, SEC.9.
IC 5-22-17-14
Contracts involving steel products
Sec. 14. A contract awarded under this article must include the
requirements of IC 5-22-15-25(c) unless the head of the purchasing
agency makes a determination under IC 5-22-15-25(d).
As added by P.L.194-2001, SEC.3.