Introduction to Indiana Government Purchasing: Understanding Indiana Code

by | Mar 13, 2025 | BCS Management, Government Procurement | 0 comments

Navigating Indiana government purchasing requirements can be complex, especially for newly elected officials and procurement professionals. Understanding these Indiana procurement guidelines is crucial for compliance and efficient management of public resources. After all, these transactions involve taxpayer dollars, making adherence to the Indiana Code purchasing requirements essential. Having experts on your team helps leaders realize their vision without running afoul of the law.

This guide introduces you to key aspects of Indiana Code (IC) relevant to government purchasing. Let’s explore further.

 

Purchasing Requirements Based on Purchase Size in Indiana

Indiana Code (IC § 36-1-12) outlines specific procurement procedures based on purchase size, especially regarding supplies, equipment, and public works projects:

  • Small Purchases (Under $50,000) (IC § 5-22-8-1,2)
    • No formal competitive bidding required.
  • Medium Purchases ($50,000 – $150,000) (IC § 5-22-8-3)
    • Must solicit at least three (3) quotes.
  • Large Purchases (Over $150,000) (IC § 5-22-7)
    • Requires competitive bidding, formal request for proposals (RFPs), and compliance with unit-type specific procurement guidelines, including exceptions detailed in IC § 5-22-18.

A thorough exploration of each category and public works requirements warrants additional detailed articles. Note that only procurement of supplies and public works are parsed out by size. But what about professional services?

 

Indiana Requirements for Purchasing Professional Services

The procurement of professional services (e.g., owner representation, management & financial consultation, web development, and marketing) follows IC § 5-22-6. Unlike supplies or public works, Indiana provides flexibility for each governmental body to define their purchasing policies. Below is the current (2024) code:

IC 5-22-6-1 Procedures

     Sec. 1. The purchasing agency of a governmental body may purchase services using any procedure the governmental body or the purchasing agency of the governmental body considers appropriate.

As added by P.L.49-1997, SEC.1.

IC 5-22-6-2 Rules; policies

     Sec. 2. (a) A governmental body may adopt rules governing the purchase of services for the governmental body.

     (b) The purchasing agency of a governmental body may establish policies regarding the purchase of services for the governmental body.

As added by P.L.49-1997, SEC.1.

Government units should regularly review and update these internal policies to remain aligned with current best practices and compliance standards.

 

Staying Compliant with Indiana Procurement Code

To ensure compliance with Indiana procurement regulations:

  • Regularly consult the most recent version of the Indiana Code IC 5-22 and IC 36-1-12.
  • Engage qualified legal counsel familiar with Indiana procurement laws for legal advice and guidance.

BCS Management, a proud member of AIM (Accelerate Indiana Municipalities), recommends consulting AIM’s detailed guide on government purchasing for further insights (pdf linked here).

 

Need Further Assistance?

For professional support or detailed consultation on navigating Indiana procurement guidelines, contact BCS Management at (260) 227-7572 or via email at info@bcs-management.com.

Disclaimer: This content is informational only and does not constitute legal advice. Always consult a qualified attorney for specific guidance.