Section 25IAC9-5-2. Noncompliance

   (a) The department shall notify the prime of program noncompliance by either the prime or subcontractor, or both, and will seek corrective action including the imposition of a material breach of contract, if any of the following are determined:

(1) The prime or subcontractor failed to:

(A) timely meet the affirmative obligations of this article;

(B) demonstrate a good faith effort to comply with this article; or

(C) cooperate in providing information necessary to comply with this article.

(2) The prime or subcontractor provided false or misleading information concerning IVBE contracting activity, ownership, or status as a bona fide entity, as required by IC 5-22-14 et seq. and this article.

(3) The prime engaged in discriminatory conduct.

(4) The prime failed to make prompt payment to a subcontractor for services, materials, or labor unless the prime, in good faith, contests the payment or any portion of an invoice or request for payment from the subcontractor.

  (b) If the commissioner determines that a prime or subcontractor fails to comply with any of this article, the department (or state agency) may elect to do one (1) or more of the following:

(1) Withhold payments on the specific contract in which the deficiency is known to exist until such time that satisfactory corrective measures are made.

(2) Adjust payments due or the permanent withholding of retainages of the specific contract in which the deficiency is known to exist.

(3) Suspend or terminate the contract in the event corrective action is not completed within a reasonable time.

(4) Suspend the prime or subcontractor from doing business with the state for a period not to exceed two (2) years.

(5) Suspend the IVBE from the program for a period not to exceed three (3) years.

(6) Any combination of the sanctions described in this subsection.

  (c) In the event that the contractor provides false or misleading information, the department may provide the information to the Center of Veterans Enterprise of the United States Department of Veterans Affairs, another state agency, or any local, state, or federal law enforcement agency for investigation and enforcement purposes.

  (d) In the event a remedy is required, the remedy is in the sole discretion of the commissioner. (Indiana Department of Administration; 25 IAC 9-5-2; filed Feb 28, 2014, 8:05 a.m.: 20140326-IR-025130402FRA)