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Indiana Department of Administration

IDOA > Procurement > Programs that Impact Awards > Buy Indiana Buy Indiana

The Buy Indiana initiative establishes a goal for state agencies to procure 90 cents of each dollar from Indiana businesses. The criteria for defining an Indiana business establishes five guidelines wherein a company may qualify as an Indiana business. Buy Indiana policies and procedures were developed by the Indiana Department of Administration (IDOA), the Office of Management and Budget (OMB), and the Indiana Economic Development Corporation (IEDC).

Defining an Indiana Business

An entity qualifies as an Indiana business if it meets any one of the five conditions as set out in I.C. 5-22-15-20.5.

    1. A business whose principal place of business is located in Indiana.
    2. A business that pays a majority of its payroll (in dollar volume) to residents of Indiana.
    3. A business that employs Indiana residents as a majority of its employees.
    4. A business that makes significant capital investments in Indiana as defined below.
    5. A business that has a substantial positive economic impact on Indiana as defined below.

Substantial Capital Investment

Any company that can demonstrate a minimum capital investment of $5 million or more in plant and/or equipment or annual lease payments of $2.5 million or more shall qualify as an Indiana business under category #4. If an out of state company does not meet one of these criteria, it may submit documentation/justification to the state for additional review and consideration for inclusion under this category.

Substantial Indiana Economic Impact

Any company that is in the top 500 companies for one of the following categories: number of employees (DWD), unemployment taxes (DWD), payroll withholding taxes (DOR), or corporate income taxes (DOR); shall qualify as an Indiana business under category #5. If an out of state company does not meet one of these criteria, it may submit documentation/justification to the state for additional review and consideration for inclusion under this category. For assistance in determining whether a business qualifies under this criterion, please send an email inquiry to buyindianainvest@idoa.in.gov.

The Buy Indiana Preference

Depending on the size of the state's purchase, the Buy Indiana preference is applied as follows:

    • 1% on purchase of $1 million and up,
    • 3% on 500,000 to $1 million purchases, and
    • 5% on purchases valued at less than 500,000.

Procurement Methods and Basis for Award

Bids - follows the process set forth in statute - I.C. 5-22-15-20.5.

Request for Proposals and Professional Services - uses a revised scoring system for determining the award as follows:

 
Management Assessment/Quality 30 pts
Price 30 pts
Buy Indiana
Indiana Company 10 pts;
Indiana Economic Impact 5 pts)
15 pts
Veteran's Business Enterprise
5 pts
MWBE Requirement 20 pts
10 pts each for Women and Minority participation
Total 100 pts

A more complete review of how point calculations are awarded is included in every state-issued RFP and RFS.

If you have previously registered your business with IDOA, please update your existing business registration profile. Click on the link titled Buy Indiana. Please select the appropriate category for your business. You may only select one category. The next step is to certify the selection by clicking the check box next to the certification paragraph. Once this is complete, please save your selection and exit your account.

If you have not previously registered with IDOA, please register your business with the Department of Administration. During the registration process, you will follow the steps outlined in the paragraph above to certify your status.

IDOA is committed to revitalizing Indiana's economy. A key component of this endeavor is for state government to invest in and support those firms that have made, and continue to make, significant economic investment in Indiana. 

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