Bill Text: IL HB3737 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Requires State agencies to create an annual report detailing their procurement practices. Provides that, if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, then the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bidders, which must include a line item for the ability of the bidder to meet the agency's DBE/BEP goals. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3737 Detail]

Download: Illinois-2023-HB3737-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3737 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
30 ILCS 500/20-10
30 ILCS 500/50-95 new
30 ILCS 500/50-100 new
Amends the Illinois Procurement Code. Requires State agencies to create an annual report detailing their procurement practices. Provides that, if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, then the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bidders, which must include a line item for the ability of the bidder to meet the agency's DBE/BEP goals. Effective immediately.
LRB103 26826 HLH 53190 b
A BILL FOR
HB3737 LRB103 26826 HLH 53190 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
changing Section 20-10 and by adding Sections 50-95 and 50-100
as follows:
(30 ILCS 500/20-10)
(Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,
98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for
bids shall be published in the Illinois Procurement Bulletin
at least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or

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more witnesses at the time and place designated in the
invitation for bids. The name of each bidder, including earned
and applied bid credit from the Illinois Works Jobs Program
Act, the amount of each bid, and other relevant information as
may be specified by rule shall be recorded. After the award of
the contract, the winning bid and the record of each
unsuccessful bid shall be open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for
bids, which may include criteria to determine acceptability
such as inspection, testing, quality, workmanship, delivery,
and suitability for a particular purpose. Those criteria that
will affect the bid price and be considered in evaluation for
award, such as discounts, transportation costs, and total or
life cycle costs, shall be objectively measurable. The
invitation for bids shall set forth the evaluation criteria to
be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the

HB3737 - 3 - LRB103 26826 HLH 53190 b
correction or withdrawal of bids based on bid mistakes shall
be supported by written determination made by a State
purchasing officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and
criteria set forth in the invitation for bids, except when a
State purchasing officer determines it is not in the best
interest of the State and by written explanation determines
another bidder shall receive the award. The explanation shall
appear in the appropriate volume of the Illinois Procurement
Bulletin. The written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total
contract price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the
Legislative Audit Commission, and the Commission on Equity and
Inclusion, and the Procurement Policy Board, and be made
available for inspection by the public, within 14 calendar
days after the agency's decision to award the contract.

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(g-5) Failed bid notice. In addition to the requirements
of subsection (g), if a bidder has failed to be awarded a
contract after 4 consecutive bids to provide the same services
to a single agency, the applicable chief procurement officer
for that agency shall in writing detail why all 4 bids were
rejected. The chief procurement officer shall submit by
certified copy to the bidder the reasoning for the rejection
of the bid within 60 days after the 4th bid is rejected.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
Section 1-56, subsections (a) and (c) of Section 1-75 and
subsection (d) of Section 1-78 of the Illinois Power Agency
Act and Section 16-111.5(c) of the Public Utilities Act and to
procure renewable energy resources under Section 1-56 of the
Illinois Power Agency Act. These alternative procedures shall
be set forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate

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volume of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of
bids shall be permitted as provided in subsection (f).

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The contract shall be awarded within 60 calendar days
after the auction by written notice to the lowest responsible
bidder, or all bids shall be rejected except as otherwise
provided in this Code. Extensions of the date for the award may
be made by mutual written consent of the State purchasing
officer and the lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 100-43, eff. 8-9-17; 101-31, eff. 6-28-19;
101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
(Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29)
Sec. 20-10. Competitive sealed bidding; reverse auction.
(a) Conditions for use. All contracts shall be awarded by
competitive sealed bidding except as otherwise provided in
Section 20-5.
(b) Invitation for bids. An invitation for bids shall be
issued and shall include a purchase description and the
material contractual terms and conditions applicable to the
procurement.
(c) Public notice. Public notice of the invitation for
bids shall be published in the Illinois Procurement Bulletin

HB3737 - 7 - LRB103 26826 HLH 53190 b
at least 14 calendar days before the date set in the invitation
for the opening of bids.
(d) Bid opening. Bids shall be opened publicly or through
an electronic procurement system in the presence of one or
more witnesses at the time and place designated in the
invitation for bids. The name of each bidder, including earned
and applied bid credit from the Illinois Works Jobs Program
Act, the amount of each bid, and other relevant information as
may be specified by rule shall be recorded. After the award of
the contract, the winning bid and the record of each
unsuccessful bid shall be open to public inspection.
(e) Bid acceptance and bid evaluation. Bids shall be
unconditionally accepted without alteration or correction,
except as authorized in this Code. Bids shall be evaluated
based on the requirements set forth in the invitation for
bids, which may include criteria to determine acceptability
such as inspection, testing, quality, workmanship, delivery,
and suitability for a particular purpose. Those criteria that
will affect the bid price and be considered in evaluation for
award, such as discounts, transportation costs, and total or
life cycle costs, shall be objectively measurable. The
invitation for bids shall set forth the evaluation criteria to
be used.
(f) Correction or withdrawal of bids. Correction or
withdrawal of inadvertently erroneous bids before or after
award, or cancellation of awards of contracts based on bid

HB3737 - 8 - LRB103 26826 HLH 53190 b
mistakes, shall be permitted in accordance with rules. After
bid opening, no changes in bid prices or other provisions of
bids prejudicial to the interest of the State or fair
competition shall be permitted. All decisions to permit the
correction or withdrawal of bids based on bid mistakes shall
be supported by written determination made by a State
purchasing officer.
(g) Award. The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and
responsive bidder whose bid meets the requirements and
criteria set forth in the invitation for bids, except when a
State purchasing officer determines it is not in the best
interest of the State and by written explanation determines
another bidder shall receive the award. The explanation shall
appear in the appropriate volume of the Illinois Procurement
Bulletin. The written explanation must include:
(1) a description of the agency's needs;
(2) a determination that the anticipated cost will be
fair and reasonable;
(3) a listing of all responsible and responsive
bidders; and
(4) the name of the bidder selected, the total
contract price, and the reasons for selecting that bidder.
Each chief procurement officer may adopt guidelines to
implement the requirements of this subsection (g).
The written explanation shall be filed with the

HB3737 - 9 - LRB103 26826 HLH 53190 b
Legislative Audit Commission, and the Commission on Equity and
Inclusion, and the Procurement Policy Board, and be made
available for inspection by the public, within 14 days after
the agency's decision to award the contract.
(g-5) Failed bid notice. In addition to the requirements
of subsection (g), if a bidder has failed to be awarded a
contract after 4 consecutive bids to provide the same services
to a single agency, the applicable chief procurement officer
for that agency shall in writing detail why all 4 bids were
rejected. The chief procurement officer shall submit by
certified copy to the bidder the reasoning for the rejection
of the bid within 60 days after the 4th bid is rejected.
(h) Multi-step sealed bidding. When it is considered
impracticable to initially prepare a purchase description to
support an award based on price, an invitation for bids may be
issued requesting the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders
whose offers have been qualified under the criteria set forth
in the first solicitation.
(i) Alternative procedures. Notwithstanding any other
provision of this Act to the contrary, the Director of the
Illinois Power Agency may create alternative bidding
procedures to be used in procuring professional services under
subsections (a) and (c) of Section 1-75 and subsection (d) of
Section 1-78 of the Illinois Power Agency Act and Section
16-111.5(c) of the Public Utilities Act and to procure

HB3737 - 10 - LRB103 26826 HLH 53190 b
renewable energy resources under Section 1-56 of the Illinois
Power Agency Act. These alternative procedures shall be set
forth together with the other criteria contained in the
invitation for bids, and shall appear in the appropriate
volume of the Illinois Procurement Bulletin.
(j) Reverse auction. Notwithstanding any other provision
of this Section and in accordance with rules adopted by the
chief procurement officer, that chief procurement officer may
procure supplies or services through a competitive electronic
auction bidding process after the chief procurement officer
determines that the use of such a process will be in the best
interest of the State. The chief procurement officer shall
publish that determination in his or her next volume of the
Illinois Procurement Bulletin.
An invitation for bids shall be issued and shall include
(i) a procurement description, (ii) all contractual terms,
whenever practical, and (iii) conditions applicable to the
procurement, including a notice that bids will be received in
an electronic auction manner.
Public notice of the invitation for bids shall be given in
the same manner as provided in subsection (c).
Bids shall be accepted electronically at the time and in
the manner designated in the invitation for bids. During the
auction, a bidder's price shall be disclosed to other bidders.
Bidders shall have the opportunity to reduce their bid prices
during the auction. At the conclusion of the auction, the

HB3737 - 11 - LRB103 26826 HLH 53190 b
record of the bid prices received and the name of each bidder
shall be open to public inspection.
After the auction period has terminated, withdrawal of
bids shall be permitted as provided in subsection (f).
The contract shall be awarded within 60 calendar days
after the auction by written notice to the lowest responsible
bidder, or all bids shall be rejected except as otherwise
provided in this Code. Extensions of the date for the award may
be made by mutual written consent of the State purchasing
officer and the lowest responsible bidder.
This subsection does not apply to (i) procurements of
professional and artistic services, (ii) telecommunications
services, communication services, and information services,
and (iii) contracts for construction projects, including
design professional services.
(Source: P.A. 101-31, eff. 6-28-19; 101-657, eff. 1-1-22;
102-29, eff. 6-25-21.)
(30 ILCS 500/50-95 new)
Sec. 50-95. Annual report.
(a) Each State agency shall create an annual report
detailing its procurement practices. Reports shall be due no
later than October 1 of each calendar year and shall cover the
State fiscal year ending on June 30 of that calendar year. The
first report shall be due no later than October 1, 2023 and
shall cover the State fiscal year ending on June 30, 2023. The

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reports shall include the following:
(1) the total dollar amount awarded by the State
agency during the previous fiscal year for contracts that
are subject to this Code separated by (i) all services,
(ii) construction services, and (iii) professional
services;
(2) the total dollar amount actually expended by the
State agency under contracts that are subject to this Code
separated by (i) all services, (ii) construction services,
and (iii) professional services;
(3) a statement of the State agency's disadvantaged
business enterprise (DBE) program goal and whether or not
the agency met that goal;
(4) a statement of the State agency's small business
goal and whether or not the agency met that goal;
(5) a demographic breakdown of the State agency's
vendors and contractors;
(6) the top 5 prime contractors used by the agency and
the dollar amount awarded to each of those contractors;
and
(7) the top 5 DBE/BEP contractors used by the agency
and the dollar amount awarded to each of those
contractors.
(b) The report under this Section shall be publicly
accessible and shall be distributed to at least 10 television
news outlets in the State.

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(30 ILCS 500/50-100 new)
Sec. 50-100. Scorecard. The Department of Central
Management Services shall, in consultation with State
agencies, develop a scorecard for the assessment of bidders,
which must include a line item for the ability of the bidder to
meet the agency's DBE/BEP goals.
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.