TITLE 65 STATE LOTTERY COMMISSION

Amends 65 IAC 2-1-1 through 65 IAC 2-1-5, 65 IAC 2-1-7 through 65 IAC 2-1-10.1, 65 IAC 2-1-12, 65 IAC 2-1-13, 65 IAC 2-1-15, 65 IAC 2-1-16, 65 IAC 2-2-1, and 65 IAC 2-3-1 to update the commission's procurement practices and to make numerous technical and ministerial changes. Effective June 28, 2013.

SECTION 1. 65 IAC 2-1-1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 1. (a) The director shall have the full and complete authority to enter into all contracts on behalf of the commission for the procurement of goods and services.

(b) The director shall may appoint one (1) person employed by the commission to supervise and manage:

(c) The director may designate one (1) or more persons to act as purchasing agents for the commission and who shall act with such the authority as that the director shall delegate delegates in writing with respect to each purchasing agent.

SECTION 2. 65 IAC 2-1-2 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 2. (a) In all procurement making decisions the director shall take into account the particularly sensitive nature of the lottery and shall consider the competence, quality of product, experience, and timely performance of the vendors in order to promote and ensure security, honesty, fairness, and integrity in the operation and administration of the lottery and the objective of raising net revenues for the benefit of the public purposes described in IC 4-30. under this article, the director shall also take into account the requirements of IC 4-30, the desirability of an efficient and effective procurement process, and the legislative finding that the operation of a lottery is a unique activity for state government and that policies and procedures appropriate for the performance of other governmental functions are not necessarily appropriate for the operation of a lottery.

(b) All decisions made under this article are actions concerning the acquisition, leasing, or disposition of property or procurement of goods or services by contract. the commission. All such decisions by the director shall be final except as otherwise specifically set forth in this article.

SECTION 3. 65 IAC 2-1-3 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 3. (a) This article applies to every expenditure of commission funds under any contract for the procurement of goods or services except for the following:

(b) In determining the applicability of this article to a specific contract, the substantial purpose of the contract shall be controlling. This article shall not apply to the acquisition of goods or services under a contract to which this article would not otherwise apply if the acquisition of such goods or services is not the substantial purpose of the contract.

SECTION 4. 65 IAC 2-1-4 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 4. The director or the director's designee shall procure goods or services through either through the Indiana department of administration procurement division, or the use of one (1) or any combination of the following procurement methods, or any combination thereof: which are further described in this article:

SECTION 5. 65 IAC 2-1-5 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 5. (a) The procedure in this section shall be followed in awarding contracts by invitation to bid as follows:

(b) Bids shall be evaluated based only on the any criteria set forth in the invitation to bid and any amendments thereto.

(c) Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on such mistakes, shall be permitted at the discretion of the director. After bid opening, changes in bid prices bids or other provisions of bids prejudicial actions that the director deems contrary to the interest best interests of the commission or fair competition shall not be permitted.

(d) If a bidder inserts contract terms or bids on items not specified in the invitation for bids, the director shall treat the additional material as a proposal for addition to the contract and may:

(e) A contract shall be awarded with reasonable promptness by written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids and offers the best value to the commission as determined by the director or the director's designee.

(f) The director may utilize a two (2) multiple step bid process by requiring that bidders initially submit unpriced offers in response to an invitation to bid. Submission of priced bids may then be restricted to only those bidders whose offer qualified under the criteria set forth in the original invitation.

SECTION 6. 65 IAC 2-1-7 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8-2

Sec. 7. (a) The director may award a contract using the procedure in this section.

(b) Proposals shall be solicited through a request for proposals, which must shall include the terms determined by the director to be in the best interests of the commission, and may include the following:

(c) Public notice shall be given in the manner required by section 12 of this rule.

(d) If provided in the request for proposals or determined by the director to be desirable, discussions may be conducted with responsible offerors, who submit proposals determined to be reasonably susceptible of being selected for award, for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements or correcting errors or omissions in the proposal.

(e) Award shall be made to the responsible offeror whose proposal is determined in writing to be most advantageous to the state, commission, taking into consideration price and other evaluation factors set forth in the request for proposals.

(f) Offerors Only proposals determined by the director to be reasonably susceptible of being selected for award must be accorded fair and equal treatment with respect to need be given any opportunity for discussion and or revision of proposals to the extent such opportunity was specified in the process pertaining to request for proposals.

(g) The only factors or criteria that may be used in the evaluation of proposals are shall be determined by the director and be in the best interests of the commission, which shall include those specified in the request for proposals.

(h) The director may use a multiple step bid process by requiring that bidders initially submit unpriced offers in response to an invitation to proposals. Submission of priced bids may then be restricted to only those bidders whose offer qualified under the criteria set forth in the original proposals.

SECTION 7. 65 IAC 2-1-8 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 8. (a) Notwithstanding any other provision of this article, the director may make, or authorize others to make, special procurements:

(b) A special procurement must be made with such competition as is to further the best interests of the commission and to the extent practicable under the circumstances as determined by the director to foster competition.

(c) A written determination of the basis for the special procurement must be included in the contract file.

SECTION 8. 65 IAC 2-1-9 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 9. A contract in an amount which that does not exceed three hundred thousand dollars ($300,000) may be made under any practice or procedure as may be considered desirable by that the director provided that, desires subject to the following restrictions:

SECTION 9. 65 IAC 2-1-10 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 10. The director may procure any supplies or services from any a vendor based on prices set by a contract between the state of Indiana and that vendor.

SECTION 10. 65 IAC 2-1-10.1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 10.1. A contract may be awarded for a supply or service without competition when the director, or the director's designee, states in writing the determination that there is only one (1) known or available source for the required supply or service and its procurement furthers the best interests of the commission. A copy of such determination shall be made a part of the contract file.

SECTION 11. 65 IAC 2-1-12 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 12. (a) Whenever public notice is required by this rule, the notice shall be given in the manner prescribed by this section.

(b) If the ultimate expenditure involved in a procurement is estimated by the director, or the director's designee, to exceed three hundred thousand dollars ($300,000), a notice shall be published at least once.

(c) The director, or the director's designee, may provide for publication of additional notices, even if no publication is required by this subsection. Whenever publication of notice is required by this section, the notice shall be published at least in one (1) newspaper of general circulation in Marion County, Indiana. If any of the services or supplies being procured are for a specific use located outside Marion County, Indiana, the notice may also be published in one (1) or more newspapers of general circulation in the area in which the services or supplies are to be used. The director, or the director's designee, may designate additional newspapers for the publication of notice according to the nature of the procurement.

(d) The director, or the director's designee, may send notices, invitations to bid, requests to bid, requests for offers, or requests for proposals to prospective bidders or offerors known to the director, or the director's designee, to be reasonably disposed to bid on a procurement. However, failure to give notice to a particular bidder or offeror does not invalidate a procurement under this rule.

(e) In lieu of publication of notice as otherwise provided in this rule, the director, or the director's designee, may post any notice on the website of the commission in the event the director determines such would not be contrary to the best interests of the commission.

SECTION 12. 65 IAC 2-1-13 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-2-5

Sec. 13. (a) All offerors for a major procurement as defined in IC 4-30 IC 4-30-2-5 shall submit the information required by IC 4-30 at the time of submission of its bid, proposal, or offer. required by the director. Immediately prior to execution of a contract by a vendor, the commission may require the vendor shall to update the disclosures. The vendor shall be under a continuous duty to correct any such information as may be that is later found to have been incorrect or incomplete when submitted. The vendor shall be under a duty to update and revise such disclosure only its disclosures in accordance with the provisions of the vendor's contract and as required by the director.

(b) The director may require such additional disclosures as may be desired for the purpose of enforcing, auditing, investigating, or confirming the accuracy of the disclosures or for any another proper purpose.

SECTION 13. 65 IAC 2-1-15 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30-3-16; IC 4-30-8

Sec. 15. No contract shall obligate the commission for a period in excess of four (4) years without the prior approval of the commission. Any A contract may contain one (1) or more option periods or provisions for extensions of the contract term, provided that: but only if an individual option period or extension:

SECTION 14. 65 IAC 2-1-16 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30

Sec. 16. Any A contract with the commission may contain any terms and conditions and any contract clauses which that are not prohibited by the Indiana state lottery statute IC 4-30 or federal law.

SECTION 15. 65 IAC 2-2-1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30

Sec. 1. (a) The director of the state lottery commission shall have the authority to lease all real property that is necessary for the efficient operation of the lottery and for the conducting of the business of the commission and the director, including, but not limited to, office space, warehouse facilities, parking facilities, and fixtures and improvements related thereto and services related to the use and occupancy of the property.

(b) The term of such a the lease may not exceed four (4) years without the prior approval of the commission.

(c) The lease may contain option periods or extensions of the lease term provided that: if:

SECTION 16. 65 IAC 2-3-1 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 4-30

Sec. 1. The director may contract with any state agency or official for any purpose. provided that the term of such a contract does not exceed four (4) years. If the director concludes that the state agency, whether for reasons of economy, convenience, or otherwise, should supply goods or services to the commission which the agency procures for from a third party other than a state employee, then such a contract must require that the agency's procurement of those goods or services be accomplished in accordance with any applicable safeguards and procedures of IC 4-13.4 and not pursuant to the agency's use of the exception set forth in IC 4-30-8-9. the commission's contract with the agency may include an obligation by the agency to use a competitive bidding process aimed at procuring the highest quality goods and services at the lowest reasonable price.

DIN: 20130710-IR-065130297ERA

Composed: Apr 19,2024 1:06:12PM EDT

A PDF version of this document.