Authority: IC 4-13-1.3-4

Affected: IC 5-22-7; IC 5-22-7.3; IC 5-22-16; IC 5-22-16.5; IC 5-22-18

Sec. 13. (a) Prior to opening, a solicitation may be cancelled in whole or in part when the Commissioner or department determines in writing that such action is in the best interest of the State for reasons including, but not limited to:

1. (1) The State no longer requires the supplies or services;
2. (2) The State no longer can reasonably expect to fund the procurement;
3. (3) Proposed amendments to the solicitation would be of such magnitude that a new solicitation is desirable.

When a solicitation is cancelled prior to opening, notice of cancellation shall be sent to all businesses which have received a solicitation.

The notice of cancellation shall: (a) identify the solicitation, and (b) cite the reason for cancellation.

The reason for cancellation shall be made part of the procurement file and shall be available for public inspection.

(b) After opening but prior to award, all bids or proposals may be rejected in whole or in part when the Commissioner or the department determines in writing that such action is in the State's best interest for reasons including but not limited to:

1. (1) The supplies or services being procured are no longer required;
2. (2) Ambiguous or otherwise inadequate specifications were part of the solicitation;
3. (3) Prices exceed available funds and it would not be appropriate to adjust quantities to come within available funds;
4. (4) All otherwise acceptable bids or proposals received are at clearly unreasonable prices;
5. (5) There is reason to believe that the bids or proposals may not have been independently arrived at in open competition, may have been collusive, or may have been submitted in bad faith;

A notice of rejection shall be sent to all businesses which submitted bids or proposals.

The reason for rejection shall be made part of the procurement file and shall be available for public inspection.

(c) After opening but prior to award, individual bids or proposals may be formally rejected when the department or Commissioner makes a written determination that:

1. (1) The business that submitted the bid is nonresponsible pursuant to IC 5-22-16 and IC 5-22-16.5.
2. (2) The bid is not responsive in that it does not conform in all material respects to the requirements of the solicitation.
3. (3) The supply or service offered is unacceptable by reason of its failure to meet the requirements of the specifications or permissible alternatives or other acceptability criteria set forth in the solicitation.

The determination shall be made a part of the contract file.

(Indiana Department of Administration; 25 IAC 1.1-1-13; filed Dec 15, 1981, 1:45 pm: 5 IR 242; readopted filed Nov 20, 2001, 9:30 a.m.: 25 IR 1265; readopted filed Aug 26, 2008, 8:31 a.m.: 20080910-IR-025080549RFA; readopted filed Oct 31, 2014, 1:19 p.m.: 20141126-IR-025140349RFA; errata filed Sep 9, 2020, 11:02 a.m.: 20200923-IR-025200469ACA; readopted filed Oct 20, 2020, 1:55 p.m.: 20201118-IR-025200463RFA; readopted filed Oct 25, 2024, 12:07 p.m.: 20241120-IR-025240218RFA)