in-20260722-IR-105260213RAA: $1,209.8

TITLE 105 INDIANA DEPARTMENT OF TRANSPORTATION Regulatory Analysis LSA Document #26-213

I. Description of Rule

The Indiana Department of Transportation (INDOT) seeks to amend 105 IAC 11 to modernize the prequalification process for contractors and to add language to include the prequalification of consultants. The amendment simplifies the prequalification process for businesses, clarifies appeal rights, and defines the role of the prequalification committee.

II. Fiscal Impact Analysis

Year 2026 2027 2028 2029 2030 Estimated Federal Funds $1,209.8 $1,133.5 $1,134.9 $1,136.5 $1,061.3 Estimated Capital Program $2,590.3 $2,079.1 $2,112.6 $2,034.5 $2,067.6 % of Total Program Comprised of Federal Funds 35% 37% 37% 38% 36% II. Impacted Parties The rules will continue to impact contractors bidding on work that is valued at $300,000.00 and above. In FY 2025, there were 87 total unique, prime contractor bid winners. To date, there are 305 prequalified consultants; 412 prequalified contractors; and 486 registered subcontractors engaged in work for the department under contracts that total less than $300,000. IV. Changes in Proposed Rule Section Summary of Change Imposed by another source of law? Incorporates Agency Standard? Comments 105 IAC 11-1-1 Applicability Adds language regarding applicability No No 105 IAC 11-1-2 Advertisement Deletes electronic notice language from definition of “advertisement” No No Simplifies language 105 IAC 11-1-2.1 Aggregate rating Adds definition of “aggregate rating” No No 105 IAC 11-1-3 Applicant Repeals definition of “applicant” No No 105 IAC 11-1-4 Application Repeals definition of “application” No No 105 IAC 11-1-5 Award Repeals definition of “award” No No 105 IAC 11-1-6 Bid bond Repeals definition of “bid bond” No No 105 IAC 11-1-7 Bidder Amends definition of “bidder” to include any contractor or consultant who submits a proposal No No Simplifies language 105 IAC 11-1-7.1 Bidding capacity Adds definition of “bidding capacity” No No 105 IAC 11-1-7.2 Capacity rating Adds definition of “capacity rating” No No 105 IAC 11-1-8 Certificate of qualification Adds language to definition of “certificate of qualification” to include consultants No No 105 IAC 11-1-8.1 Consultant Adds definition of “consultant” No No 105 IAC 11-1-9 Commissioner Repeals definition of “commissioner” No No 105 IAC 11-1-10 Contract Repeals definition of “contract” No No 105 IAC 11-1-11 Contractor Amends definition of “contractor” to mirror definition for “consultant” No No Simplifies language 105 IAC 11-1-12 Date of receipt Repeals definition of “date of receipt” No No 105 IAC 11-1-12.1 Day Adds definition of “day” No No 105 IAC 11-1-13 Department Adds language to definition of “department” to specify that the term includes the division that manages prequalification No No Simplifies language 105 IAC 11-1-13.1 Maximum bidding capacity Adds definition of “maximum bidding capacity” No No 105 IAC 11-1-13.3 Designated electronic medium Repeals definition of “designated electronic medium” No No 105 IAC 11-1-14 Document Repeals definition of “document” No No 105 IAC 11-1-15 Engineer's estimate Repeals definition of “engineer's estimate” No No 105 IAC 11-1-16 Notice to contractors Repeals definition of “notice to contractors” No No 105 IAC 11-1-17 Notice to proceed Repeals definition of “notice to proceed” No No 105 IAC 11-1-18 Performance bond Repeals definition of “performance bond” No No 105 IAC 11-1-19 Plans Repeals definition of “plans” No No 105 IAC 11-1-20 Prequalification committee Amends definition of “prequalification committee” to include consultants; amends rule to include review of qualifications and recommendations by committee No No 105 IAC 11-1-21 Prequalification engineer Repeals definition of “prequalification engineer” No No 105 IAC 11-1-22 Prequalification files Repeals definition of “prequalification files” No No 105 IAC 11-1-23 Project Repeals definition of “project” No No 105 IAC 11-1-24 Proposal bid Repeals definition of “proposal bid” No No 105 IAC 11-1-24.3 Proposal form Repeals definition of “proposal form” No No 105 IAC 11-1-25 Quorum Amends definition of “quorum” to remove language that chairperson of prequalification committee is not a voting member No No Simplifies language 105 IAC 11-1-25.5 Signed Repeals definition of “signed” No No 105 IAC 11-1-26 Special provisions Repeals definition of “special provisions” No No 105 IAC 11-1-27 Specifications Amends definition of “specifications” to add language clarifying that “specification” refers to specific projects No No Simplifies language 105 IAC 11-1-28 Standard specifications Repeals definition of “standard specifications” No No 105 IAC 11-1-29 Statement Repeals definition of “statement” No No 105 IAC 11-1-29.5 Subconsultant Adds definition of “subconsultant” No No 105 IAC 11-1-30 Subcontractor Expands definition of “subcontractor” No No 105 IAC 11-1-31 Supplemental specifications Repeals definition of “supplemental specifications” No No 105 IAC 11-1-32 Surety Repeals definition of “surety” No No 105 IAC 11-1-32.1 Tier one prequalification Adds definition of “tier one prequalification” for the aggregate rating determined by audited financial statement No No 105 IAC 11-1-32.2 Tier two prequalification Adds definition of “tier two prequalification” for the aggregate rating determined by reviewed financial statement No No 105 IAC 11-1-32.3 Tier three prequalification Adds definition of “tier three prequalification” for the aggregate rating determined by self-certified financial statement No No 105 IAC 11-1-32.4 Tier four registration Adds definition of “tier four registration” for level of registration assigned to performing work in aggregate for an amount less than set forth in IC 8-23-10-4; applies definition to those performing work set forth in IC 8-23-10-4 No No 105 IAC 11-1-33 Unearned work Amends definition of “unearned work” to remove language referring to value of unearned work. No No Simplifies language 105 IAC 11-2-1 General requirements Repeals current rule outlining the general requirements for contractors desiring to offer bids No No 105 IAC 11-2-1.5 Contractor general requirements Adds requirements to become prequalified by the department; adds requirements for applying for new certificate of qualification prior to expiration of current certificate; adds requirements for reporting significant changes in financial position or equipment 23 CFR 35.110 INDOT is drafting a manual will prescribe manner of submitting verified statement and define current assets 105 IAC 11-2-2 Preparation and filing Repeals current rule outlining the preparation and filing requirements for contractors No No 105 IAC 11-2-2.1 Contractor prequalification financial requirements Adds financial requirements for prequalification levels or registration No No 105 IAC 11-2-3 Classification and capacity rating Repeals current rule outlining the classification and capacity rating process No No 105 IAC 11-2-3.1 Contractor classification and capacity rating Adds factors in determining contractors' eligibility to bid on certain types of work No No 105 IAC 11-2-3.2 Consultant general requirements Adds requirements to become prequalified by the department; adds requirements for applying for new certificate of qualification prior to expiration of current certificate; adds requirements for reporting significant changes in financial position or personnel 23 CFR 35.110 INDOT is drafting a manual that will prescribe manner and form of statement and update 105 IAC 11-2-3.3 Reporting requirements for existing prequalification certificates Adds reporting requirements for existing prequalification certificates No No 105 IAC 11-2-3.4 Modification of existing prequalification certificates Adds procedures for modifying an existing prequalification certificate No No 105 IAC 11-2-3.5 General attitude towards the department and general public Adds language from repealed rule 105 IAC 11-2-1(f) into stand-alone rule No No 105 IAC 11-2-4 Prequalification committee Repeals current rule creating the prequalification committee No No 105 IAC 11-2-4.1 Prequalification committee Amends creation of prequalification committee and roles and responsibilities of prequalification committee No No Simplifies language 105 IAC 11-2-5 Change in certificate of qualification Amends language to refer to IC 4-21.5-3 for appeal of change in certificate of qualification No No 105 IAC 11-2-6 Suspension of certificate of qualification Amends language to refer to IC 4-21.5-3 for appeal of suspension of certificate of qualification No No 105 IAC 11-2-7 Withdrawal of certificate of qualification Deletes requirements for withdrawal of application for certificate of qualification or withdrawal of existing certificate of qualification No No 105 IAC 11-2-8 Revocation of certificate of qualification Repeals the current rule outlining the process for revoking a certification of qualification No No 105 IAC 11-2-9 Appeals procedure Adds language referring to appeal procedures set forth in IC 4-21.5; clarifies that a contractor or consultant with a revoked or suspended certificate may not perform any new ork on a department contract No No Simplifies language 105 IAC 11-2-10 Subcontractors Repeals the current rule outlining the requirements for subcontractors No No 105 IAC 11-2-10.1 Subcontractors Adds language regarding requirements for approval to work on a department contract No No Simplifies language 105 IAC 11-2-11 False statements Deletes and adds language to clarify that applicability to any portion of the prequalification process IC 8-23-10-8 No Simplifies language 105 IAC 11-2-12 Gifts Repeals the current rule prohibiting a contractor from offering gifts 42 IAC 1-5-1 No 105 IAC 11-3-4 Bidding capacity Amends language to refer to dollar amount set forth in IC 8-23-10 No No 105 IAC 11-3-5 Joint ventures Deletes and adds language for bidding by joint ventures No No Simplifies language