Bill Text: IL HB3737 | 2023-2024 | 103rd General Assembly | Introduced
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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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Procurement Code is amended by | |||||||||||||||||||||||
5 | changing Section 20-10 and by adding Sections 50-95 and 50-100 | |||||||||||||||||||||||
6 | as follows:
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7 | (30 ILCS 500/20-10)
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8 | (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895, | |||||||||||||||||||||||
9 | 98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29) | |||||||||||||||||||||||
10 | Sec. 20-10. Competitive sealed bidding; reverse auction.
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11 | (a) Conditions for use. All contracts shall be awarded by
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12 | competitive sealed bidding
except as otherwise provided in | |||||||||||||||||||||||
13 | Section 20-5.
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14 | (b) Invitation for bids. An invitation for bids shall be
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15 | issued and shall include a
purchase description and the | |||||||||||||||||||||||
16 | material contractual terms and
conditions applicable to the
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17 | procurement.
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18 | (c) Public notice. Public notice of the invitation for | |||||||||||||||||||||||
19 | bids shall be
published in the Illinois Procurement Bulletin | |||||||||||||||||||||||
20 | at least 14 calendar days before the date
set in the invitation | |||||||||||||||||||||||
21 | for the opening of bids.
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22 | (d) Bid opening. Bids shall be opened publicly or through | |||||||||||||||||||||||
23 | an electronic procurement system in the
presence of one or |
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1 | more witnesses
at the time and place designated in the | ||||||
2 | invitation for bids. The
name of each bidder, including earned | ||||||
3 | and applied bid credit from the Illinois Works Jobs Program | ||||||
4 | Act, the amount
of each bid, and other relevant information as | ||||||
5 | may be specified by
rule shall be
recorded. After the award of | ||||||
6 | the contract, the winning bid and the
record of each | ||||||
7 | unsuccessful bid shall be open to
public inspection.
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8 | (e) Bid acceptance and bid evaluation. Bids shall be
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9 | unconditionally accepted without
alteration or correction, | ||||||
10 | except as authorized in this Code. Bids
shall be evaluated | ||||||
11 | based on the
requirements set forth in the invitation for | ||||||
12 | bids, which may
include criteria to determine
acceptability | ||||||
13 | such as inspection, testing, quality, workmanship,
delivery, | ||||||
14 | and suitability for a
particular purpose. Those criteria that | ||||||
15 | will affect the bid price and be considered in evaluation
for | ||||||
16 | award, such as discounts, transportation costs, and total or
| ||||||
17 | life cycle costs, shall be
objectively measurable. The | ||||||
18 | invitation for bids shall set forth
the evaluation criteria to | ||||||
19 | be used.
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20 | (f) Correction or withdrawal of bids. Correction or
| ||||||
21 | withdrawal of inadvertently
erroneous bids before or after | ||||||
22 | award, or cancellation of awards of
contracts based on bid
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23 | mistakes, shall be permitted in accordance with rules.
After | ||||||
24 | bid opening, no
changes in bid prices or other provisions of | ||||||
25 | bids prejudicial to
the interest of the State or fair
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26 | competition shall be permitted. All decisions to permit the
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1 | correction or withdrawal of bids
based on bid mistakes shall | ||||||
2 | be supported by written determination
made by a State | ||||||
3 | purchasing officer.
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4 | (g) Award. The contract shall be awarded with reasonable
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5 | promptness by written notice
to the lowest responsible and | ||||||
6 | responsive bidder whose bid meets
the requirements and | ||||||
7 | criteria
set forth in the invitation for bids, except when a | ||||||
8 | State purchasing officer
determines it is not in the best | ||||||
9 | interest of the State and by written
explanation determines | ||||||
10 | another bidder shall receive the award. The explanation
shall | ||||||
11 | appear in the appropriate volume of the Illinois Procurement | ||||||
12 | Bulletin. The written explanation must include:
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13 | (1) a description of the agency's needs; | ||||||
14 | (2) a determination that the anticipated cost will be | ||||||
15 | fair and reasonable; | ||||||
16 | (3) a listing of all responsible and responsive | ||||||
17 | bidders; and | ||||||
18 | (4) the name of the bidder selected, the total | ||||||
19 | contract price, and the reasons for selecting that bidder. | ||||||
20 | Each chief procurement officer may adopt guidelines to | ||||||
21 | implement the requirements of this subsection (g). | ||||||
22 | The written explanation shall be filed with the | ||||||
23 | Legislative Audit Commission, and the Commission on Equity and | ||||||
24 | Inclusion, and the Procurement Policy Board, and be made | ||||||
25 | available for inspection by the public, within 14 calendar | ||||||
26 | days after the agency's decision to award the contract. |
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1 | (g-5) Failed bid notice. In addition to the requirements | ||||||
2 | of subsection (g), if a bidder has failed to be awarded a | ||||||
3 | contract after 4 consecutive bids to provide the same services | ||||||
4 | to a single agency, the applicable chief procurement officer | ||||||
5 | for that agency shall in writing detail why all 4 bids were | ||||||
6 | rejected. The chief procurement officer shall submit by | ||||||
7 | certified copy to the bidder the reasoning for the rejection | ||||||
8 | of the bid within 60 days after the 4th bid is rejected. | ||||||
9 | (h) Multi-step sealed bidding. When it is considered
| ||||||
10 | impracticable to initially prepare
a purchase description to | ||||||
11 | support an award based on price, an
invitation for bids may be | ||||||
12 | issued
requesting the submission of unpriced offers to be | ||||||
13 | followed by an
invitation for bids limited to
those bidders | ||||||
14 | whose offers have been qualified under the criteria
set forth | ||||||
15 | in the first solicitation.
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16 | (i) Alternative procedures. Notwithstanding any other | ||||||
17 | provision of this Act to the contrary, the Director of the | ||||||
18 | Illinois Power Agency may create alternative bidding | ||||||
19 | procedures to be used in procuring professional services under | ||||||
20 | Section 1-56, subsections (a) and (c) of Section 1-75 and | ||||||
21 | subsection (d) of Section 1-78 of the Illinois Power Agency | ||||||
22 | Act and Section 16-111.5(c) of the Public Utilities Act and to | ||||||
23 | procure renewable energy resources under Section 1-56 of the | ||||||
24 | Illinois Power Agency Act. These alternative procedures shall | ||||||
25 | be set forth together with the other criteria contained in the | ||||||
26 | invitation for bids, and shall appear in the appropriate |
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1 | volume of the Illinois Procurement Bulletin.
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2 | (j) Reverse auction. Notwithstanding any other provision | ||||||
3 | of this Section and in accordance with rules adopted by the | ||||||
4 | chief procurement officer, that chief procurement officer may | ||||||
5 | procure supplies or services through a competitive electronic | ||||||
6 | auction bidding process after the chief procurement officer | ||||||
7 | determines that the use of such a process will be in the best | ||||||
8 | interest of the State. The chief procurement officer shall | ||||||
9 | publish that determination in his or her next volume of the | ||||||
10 | Illinois Procurement Bulletin. | ||||||
11 | An invitation for bids shall be issued and shall include | ||||||
12 | (i) a procurement description, (ii) all contractual terms, | ||||||
13 | whenever practical, and (iii) conditions applicable to the | ||||||
14 | procurement, including a notice that bids will be received in | ||||||
15 | an electronic auction manner. | ||||||
16 | Public notice of the invitation for bids shall be given in | ||||||
17 | the same manner as provided in subsection (c). | ||||||
18 | Bids shall be accepted electronically at the time and in | ||||||
19 | the manner designated in the invitation for bids. During the | ||||||
20 | auction, a bidder's price shall be disclosed to other bidders. | ||||||
21 | Bidders shall have the opportunity to reduce their bid prices | ||||||
22 | during the auction. At the conclusion of the auction, the | ||||||
23 | record of the bid prices received and the name of each bidder | ||||||
24 | shall be open to public inspection. | ||||||
25 | After the auction period has terminated, withdrawal of | ||||||
26 | bids shall be permitted as provided in subsection (f). |
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1 | The contract shall be awarded within 60 calendar days | ||||||
2 | after the auction by written notice to the lowest responsible | ||||||
3 | bidder, or all bids shall be rejected except as otherwise | ||||||
4 | provided in this Code. Extensions of the date for the award may | ||||||
5 | be made by mutual written consent of the State purchasing | ||||||
6 | officer and the lowest responsible bidder. | ||||||
7 | This subsection does not apply to (i) procurements of | ||||||
8 | professional and artistic services, (ii) telecommunications | ||||||
9 | services, communication services, and information services, | ||||||
10 | and (iii) contracts for construction projects, including | ||||||
11 | design professional services. | ||||||
12 | (Source: P.A. 100-43, eff. 8-9-17; 101-31, eff. 6-28-19; | ||||||
13 | 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
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14 | (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895, | ||||||
15 | 98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29)
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16 | Sec. 20-10. Competitive sealed bidding; reverse auction.
| ||||||
17 | (a) Conditions for use. All contracts shall be awarded by
| ||||||
18 | competitive sealed bidding
except as otherwise provided in | ||||||
19 | Section 20-5.
| ||||||
20 | (b) Invitation for bids. An invitation for bids shall be
| ||||||
21 | issued and shall include a
purchase description and the | ||||||
22 | material contractual terms and
conditions applicable to the
| ||||||
23 | procurement.
| ||||||
24 | (c) Public notice. Public notice of the invitation for | ||||||
25 | bids shall be
published in the Illinois Procurement Bulletin |
| |||||||
| |||||||
1 | at least 14 calendar days before the date
set in the invitation | ||||||
2 | for the opening of bids.
| ||||||
3 | (d) Bid opening. Bids shall be opened publicly or through | ||||||
4 | an electronic procurement system in the
presence of one or | ||||||
5 | more witnesses
at the time and place designated in the | ||||||
6 | invitation for bids. The
name of each bidder, including earned | ||||||
7 | and applied bid credit from the Illinois Works Jobs Program | ||||||
8 | Act, the amount
of each bid, and other relevant information as | ||||||
9 | may be specified by
rule shall be
recorded. After the award of | ||||||
10 | the contract, the winning bid and the
record of each | ||||||
11 | unsuccessful bid shall be open to
public inspection.
| ||||||
12 | (e) Bid acceptance and bid evaluation. Bids shall be
| ||||||
13 | unconditionally accepted without
alteration or correction, | ||||||
14 | except as authorized in this Code. Bids
shall be evaluated | ||||||
15 | based on the
requirements set forth in the invitation for | ||||||
16 | bids, which may
include criteria to determine
acceptability | ||||||
17 | such as inspection, testing, quality, workmanship,
delivery, | ||||||
18 | and suitability for a
particular purpose. Those criteria that | ||||||
19 | will affect the bid price and be considered in evaluation
for | ||||||
20 | award, such as discounts, transportation costs, and total or
| ||||||
21 | life cycle costs, shall be
objectively measurable. The | ||||||
22 | invitation for bids shall set forth
the evaluation criteria to | ||||||
23 | be used.
| ||||||
24 | (f) Correction or withdrawal of bids. Correction or
| ||||||
25 | withdrawal of inadvertently
erroneous bids before or after | ||||||
26 | award, or cancellation of awards of
contracts based on bid
|
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| |||||||
1 | mistakes, shall be permitted in accordance with rules.
After | ||||||
2 | bid opening, no
changes in bid prices or other provisions of | ||||||
3 | bids prejudicial to
the interest of the State or fair
| ||||||
4 | competition shall be permitted. All decisions to permit the
| ||||||
5 | correction or withdrawal of bids
based on bid mistakes shall | ||||||
6 | be supported by written determination
made by a State | ||||||
7 | purchasing officer.
| ||||||
8 | (g) Award. The contract shall be awarded with reasonable
| ||||||
9 | promptness by written notice
to the lowest responsible and | ||||||
10 | responsive bidder whose bid meets
the requirements and | ||||||
11 | criteria
set forth in the invitation for bids, except when a | ||||||
12 | State purchasing officer
determines it is not in the best | ||||||
13 | interest of the State and by written
explanation determines | ||||||
14 | another bidder shall receive the award. The explanation
shall | ||||||
15 | appear in the appropriate volume of the Illinois Procurement | ||||||
16 | Bulletin. The written explanation must include:
| ||||||
17 | (1) a description of the agency's needs; | ||||||
18 | (2) a determination that the anticipated cost will be | ||||||
19 | fair and reasonable; | ||||||
20 | (3) a listing of all responsible and responsive | ||||||
21 | bidders; and | ||||||
22 | (4) the name of the bidder selected, the total | ||||||
23 | contract price, and the reasons for selecting that bidder. | ||||||
24 | Each chief procurement officer may adopt guidelines to | ||||||
25 | implement the requirements of this subsection (g). | ||||||
26 | The written explanation shall be filed with the |
| |||||||
| |||||||
1 | Legislative Audit Commission, and the Commission on Equity and | ||||||
2 | Inclusion, and the Procurement Policy Board, and be made | ||||||
3 | available for inspection by the public, within 14 days after | ||||||
4 | the agency's decision to award the contract. | ||||||
5 | (g-5) Failed bid notice. In addition to the requirements | ||||||
6 | of subsection (g), if a bidder has failed to be awarded a | ||||||
7 | contract after 4 consecutive bids to provide the same services | ||||||
8 | to a single agency, the applicable chief procurement officer | ||||||
9 | for that agency shall in writing detail why all 4 bids were | ||||||
10 | rejected. The chief procurement officer shall submit by | ||||||
11 | certified copy to the bidder the reasoning for the rejection | ||||||
12 | of the bid within 60 days after the 4th bid is rejected. | ||||||
13 | (h) Multi-step sealed bidding. When it is considered
| ||||||
14 | impracticable to initially prepare
a purchase description to | ||||||
15 | support an award based on price, an
invitation for bids may be | ||||||
16 | issued
requesting the submission of unpriced offers to be | ||||||
17 | followed by an
invitation for bids limited to
those bidders | ||||||
18 | whose offers have been qualified under the criteria
set forth | ||||||
19 | in the first solicitation.
| ||||||
20 | (i) Alternative procedures. Notwithstanding any other | ||||||
21 | provision of this Act to the contrary, the Director of the | ||||||
22 | Illinois Power Agency may create alternative bidding | ||||||
23 | procedures to be used in procuring professional services under | ||||||
24 | subsections (a) and (c) of Section 1-75 and subsection (d) of | ||||||
25 | Section 1-78 of the Illinois Power Agency Act and Section | ||||||
26 | 16-111.5(c) of the Public Utilities Act and to procure |
| |||||||
| |||||||
1 | renewable energy resources under Section 1-56 of the Illinois | ||||||
2 | Power Agency Act. These alternative procedures shall be set | ||||||
3 | forth together with the other criteria contained in the | ||||||
4 | invitation for bids, and shall appear in the appropriate | ||||||
5 | volume of the Illinois Procurement Bulletin.
| ||||||
6 | (j) Reverse auction. Notwithstanding any other provision | ||||||
7 | of this Section and in accordance with rules adopted by the | ||||||
8 | chief procurement officer, that chief procurement officer may | ||||||
9 | procure supplies or services through a competitive electronic | ||||||
10 | auction bidding process after the chief procurement officer | ||||||
11 | determines that the use of such a process will be in the best | ||||||
12 | interest of the State. The chief procurement officer shall | ||||||
13 | publish that determination in his or her next volume of the | ||||||
14 | Illinois Procurement Bulletin. | ||||||
15 | An invitation for bids shall be issued and shall include | ||||||
16 | (i) a procurement description, (ii) all contractual terms, | ||||||
17 | whenever practical, and (iii) conditions applicable to the | ||||||
18 | procurement, including a notice that bids will be received in | ||||||
19 | an electronic auction manner. | ||||||
20 | Public notice of the invitation for bids shall be given in | ||||||
21 | the same manner as provided in subsection (c). | ||||||
22 | Bids shall be accepted electronically at the time and in | ||||||
23 | the manner designated in the invitation for bids. During the | ||||||
24 | auction, a bidder's price shall be disclosed to other bidders. | ||||||
25 | Bidders shall have the opportunity to reduce their bid prices | ||||||
26 | during the auction. At the conclusion of the auction, the |
| |||||||
| |||||||
1 | record of the bid prices received and the name of each bidder | ||||||
2 | shall be open to public inspection. | ||||||
3 | After the auction period has terminated, withdrawal of | ||||||
4 | bids shall be permitted as provided in subsection (f). | ||||||
5 | The contract shall be awarded within 60 calendar days | ||||||
6 | after the auction by written notice to the lowest responsible | ||||||
7 | bidder, or all bids shall be rejected except as otherwise | ||||||
8 | provided in this Code. Extensions of the date for the award may | ||||||
9 | be made by mutual written consent of the State purchasing | ||||||
10 | officer and the lowest responsible bidder. | ||||||
11 | This subsection does not apply to (i) procurements of | ||||||
12 | professional and artistic services, (ii) telecommunications | ||||||
13 | services, communication services, and information services,
| ||||||
14 | and (iii) contracts for construction projects, including | ||||||
15 | design professional services. | ||||||
16 | (Source: P.A. 101-31, eff. 6-28-19; 101-657, eff. 1-1-22; | ||||||
17 | 102-29, eff. 6-25-21 .)
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18 | (30 ILCS 500/50-95 new) | ||||||
19 | Sec. 50-95. Annual report. | ||||||
20 | (a) Each State agency shall create an annual report | ||||||
21 | detailing its procurement practices. Reports shall be due no | ||||||
22 | later than October 1 of each calendar year and shall cover the | ||||||
23 | State fiscal year ending on June 30 of that calendar year. The | ||||||
24 | first report shall be due no later than October 1, 2023 and | ||||||
25 | shall cover the State fiscal year ending on June 30, 2023. The |
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1 | reports shall include the following: | ||||||
2 | (1) the total dollar amount awarded by the State | ||||||
3 | agency during the previous fiscal year for contracts that | ||||||
4 | are subject to this Code separated by (i) all services, | ||||||
5 | (ii) construction services, and (iii) professional | ||||||
6 | services; | ||||||
7 | (2) the total dollar amount actually expended by the | ||||||
8 | State agency under contracts that are subject to this Code | ||||||
9 | separated by (i) all services, (ii) construction services, | ||||||
10 | and (iii) professional services; | ||||||
11 | (3) a statement of the State agency's disadvantaged | ||||||
12 | business enterprise (DBE) program goal and whether or not | ||||||
13 | the agency met that goal; | ||||||
14 | (4) a statement of the State agency's small business | ||||||
15 | goal and whether or not the agency met that goal; | ||||||
16 | (5) a demographic breakdown of the State agency's | ||||||
17 | vendors and contractors; | ||||||
18 | (6) the top 5 prime contractors used by the agency and | ||||||
19 | the dollar amount awarded to each of those contractors; | ||||||
20 | and | ||||||
21 | (7) the top 5 DBE/BEP contractors used by the agency | ||||||
22 | and the dollar amount awarded to each of those | ||||||
23 | contractors. | ||||||
24 | (b) The report under this Section shall be publicly | ||||||
25 | accessible and shall be distributed to at least 10 television | ||||||
26 | news outlets in the State.
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1 | (30 ILCS 500/50-100 new) | ||||||
2 | Sec. 50-100. Scorecard. The Department of Central | ||||||
3 | Management Services shall, in consultation with State | ||||||
4 | agencies, develop a scorecard for the assessment of bidders, | ||||||
5 | which must include a line item for the ability of the bidder to | ||||||
6 | meet the agency's DBE/BEP goals.
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7 | Section 95. No acceleration or delay. Where this Act makes | ||||||
8 | changes in a statute that is represented in this Act by text | ||||||
9 | that is not yet or no longer in effect (for example, a Section | ||||||
10 | represented by multiple versions), the use of that text does | ||||||
11 | not accelerate or delay the taking effect of (i) the changes | ||||||
12 | made by this Act or (ii) provisions derived from any other | ||||||
13 | Public Act.
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.
|