Kernan changes policies to allow more state contract opportunities

Gov. Joe Kernan announced Thursday he would make several policy changes to make it easier for companies to receive state contracts.\nThe changes are part of Kernan's Opportunity Indiana initiative, which he created in November to change the way Indiana does business and increase opportunities for local companies.\nSome of the policy changes include removing the requirement for companies to back their proposals with bid bonds, conducting in-person meetings to provide details on upcoming projects 60 days sooner and putting a greater emphasis on supporting in-state contractors and businesses owned by minorities and women.\n"What our Indiana companies will see is more opportunities to ask questions, more information on projects, more chances to bid on state contracts, and fewer hurdles," Kernan said in a statement. "These are the result of looking at our procedures, top to bottom, and making changes that make sense for businesses and for how we in state government operate."\nHaving to put up financial capital to bid some projects will no longer be a barrier for some businesses. Jonathan Swain, Kernan's press secretary, said waiving the bid bond requirement would benefit smaller businesses in Indiana.\n"Under the previous requirements, bid bonds were difficult for small businesses," Swain said. "In many cases, they would just say it wasn't worth the trouble or that they couldn't afford to even bid on a project."\nSwain said communication will also be better. E-mail lists and meetings up to 60 days earlier will help businesses know about upcoming contracts and "how they can get a piece of these projects." Swain said 2,400 new businesses have already signed up to be notified of upcoming contracts.\n"This is good news for our Indiana businesses," Lt. Gov. Kathy Davis said in a statement. "Just consider the benefits of the informational sessions. It means face-to-face conversations that will make it clear what our agencies are looking for and better ensure we find the right contractor to provide what we need."\nIndiana Department of Administration Commissioner Chuck Martindale said the policy changes will allow for greater consideration for in-state companies when giving out contracts. Projects can also split into several sub-contracts which would allow in-state companies or smaller businesses to vie for a piece of the contract. Martindale said all out-of-state contractors would have to report how much of their funds would go toward Indiana employees or sub-contracts with businesses owned by minorities or women.\n"Quite simply, we're asking contractors how the taxpayers' dollars we spend on a product or service are being reinvested in Indiana," Kernan said. "It sends a clear message that we want to see our homegrown companies and our women- and minority-owned businesses submitting bids and also involved as subcontractors."\nMartindale said this would be a huge boost to Indiana businesses. Currently 85 percent of all contacts go to in-state companies, and he said these changes may increase that number.\nOverall, Kernan said he believes this is a win-win situation, where the state can spend the money it needs to spend and still inject it into the Indiana economy.\n"State government has the responsibility to purchase a large amount of goods and services on behalf of Hoosiers," Kernan said. "There's no reason our purchasing shouldn't go hand-in-hand with our job creation and business investment efforts."\n-- Contact staff writer Adam Aasen at aaasen@indiana.edu.