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Contract Compliance

The Division of Supplier Diversity (DSD) monitors and enforces compliance to contracted MBE/WBE & IVOSB's commitments. DSD conducts compliance checks on awarded contracts and works to ensure prime contractors use MBE/WBE & IVOSB firms at the level they committed to in the contract. In addition, the DSD investigates complaints of non-compliance. Firms found to be in DSD's utilization non-compliance can be subject to one or more of the sanctions found in 25 IAC 5-7-8(b) and exclusion from future procurements.

The Indiana Department of Administration (IDOA) introduced the Pay Audit System in December 2011 to manage DSD compliance. The Pay Audit System is used by Prime Vendors and their Subcontractors to independently report payments from the Prime Vendor to the Subcontractor on State contracts.

The system allows DSD to monitor progress toward the contracted goals of the Prime Vendor, identify where additional focus is needed and develop corrective action plans when needed.

DSD is the final approval authority on requests to change MBE/WBE and IVOSB subcontractor participation plans. Vendor education, whether to the primary contractor or the subcontractor, is crucial to all parties. The flow chart below demonstrates the process of amending the contract as it relates to the MBE/WBE and IVOSB participation plans. A prime vendor initiates this process by submitting a letter requesting the change to DSD along with additional documentation. Subcontractors whose participation is increased or added to the participation plan must provide a signed Letter of Commitment on their company letterhead and firms whose participation is reduced or removed must sign the Change in MBE/WBE/IVOSB Participation Notification.

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