AUTHORITY: Implementing and authorized by Section 1-30 of the Illinois Procurement Code [30 ILCS 500/1-30].

SOURCE: Adopted by emergency rule at 22 Ill. Reg. 13169, effective July 1, 1998, for a maximum of 150 days; adopted at 22 Ill. Reg. 15644, effective August 24, 1998; amended by emergency rule at 24 Ill. Reg. 358, effective January 1, 2000, for a maximum of 150 days; amended at 24 Ill. Reg. 8393, effective May 30, 2000; recodified Title of the Part at 39 Ill. Reg. 5903; amended at 40 Ill. Reg. 13847, effective September 23, 2016; amended at 43 Ill. Reg. 2275, effective January 31, 2019; amended at 48 Ill. Reg. 2924, effective February 7, 2024.

SUBPART A: GENERAL

 

Section 1400.505  Title

 

This Part may be cited as the Office of the Treasurer Procurement Rules.

 

Section 1400.510  Policy

 

All procurements by the Treasurer's office will be accomplished in a competitive, expeditious, economical and commercially reasonable manner in accordance with law, this Part, and other applicable rules.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.515  Applicability

 

a)         This Part applies to all procurements by the Treasurer's office with a Solicitation Date of July 1, 1998 or later with the exception of those items listed in subsection (b) of Section 1-10 of the Procurement Code, which include, but are not limited to, the following:

 

1)         contracts between the Treasurer's office and any federal, State, or local governmental body; [30 ILCS 500/1-10(b)(1)]

 

2)         agreements for the deposit of State moneys in interest bearing accounts or the investment of State moneys under the Deposit of State Moneys Act [15 ILCS 520] or the Public Funds Investment Act [30 ILCS 235];

 

3)         hiring employees, including contractual employees but not independent contractors, of the Treasurer's office;

 

4)         collective bargaining agreements; [30 ILCS 500/1-10(b)(5)]

 

5)         contracts approved by the Chief Legal Counsel as necessary to prepare for anticipated litigation, enforcement actions, or investigations. Anticipated litigation is legal action that may be prosecuted or defended before a court or administrative body and includes actions necessary to guard against litigation and prepare for and conduct effective legal prosecution or defense, including, but not limited to, the retention of counsel, investigators, expert witnesses and court reporters.  This Section is applicable to equipment or services necessary in the furtherance of covert activities lawfully conducted by the Treasurer's Office; [30 ILCS 500/1-10(b)(7)]

 

6)         grants, except that grant agreements shall be filed with the Comptroller as required by Section 20-80 of the Illinois Procurement Code [30 ILCS 500]. [30 ILCS 500/1-10(b)(2)]

 

b)         The terms and conditions and the rights and obligations under contracts resulting from procurements with a Solicitation Date that is earlier than the effective date of this Part will not be impaired.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.520  Definition of Terms

 

Each term listed in this Section has the meaning below unless its use clearly requires a different meaning.  Terms may be defined in particular Sections for use in those Sections.

 

"Award" – The determination that a particular vendor has been selected from among other potential vendors to enter into negotiations for the purpose of finalizing a contract.

 

"Bid" − A response to an Invitation for Bids.

 

"Bidder" − The person or entity submitting a bid.

 

"Brand Name or Equal Specification" − A specification that uses one or more manufacturer's names or catalogue numbers to describe the standard of quality, performance, and other characteristics needed to meet Treasurer's office requirements, and that allows the submission of equivalent products.

 

"Brand Name Specification" − A specification limited to one or more items by manufacturer's names or catalogue numbers.

 

"Code" means the Illinois Procurement Code [30 ILCS 500].

 

"Chief Legal Counsel" − An attorney for the Treasurer's office who reports directly to the Chief of Staff and is primarily responsible for the legal functioning of the Treasurer's office.

 

"Chief of Staff" − The Chief of Staff for the Treasurer's office.

 

"Chief Procurement Officer" − The employee of the Treasurer's office who is appointed by the Treasurer to be primarily responsible for the procurement of all goods and services by the Treasurer's office.

 

"Contract" − All types of State agreements, regardless of what they may be called:

 

for the procurement, use or disposal of supplies, services, professional or artistic services, or construction; or for leases of real property when the State is the lessee; or for capital improvements; and

 

including renewals, master contracts, contracts for financing through use of installment or lease-purchase arrangements, renegotiated contracts, amendments to contracts, and change orders.  [30 ILCS 500/1-15.30]

 

The term contract, as used in this Part, does not include: supplies or services the terms governing which are established by tariff of the Illinois Commerce Commission or the Federal Communications Commission and for which there is no authorized competition, bonds, or contracts related to bonds issued by or on behalf of a State agency when the contractor or vendor is neither selected nor paid by the Treasurer's office.

 

"Contract Award" − Except as otherwise defined in this Part for specific categories of procurements, the day that a Notice of Award is posted on the Treasurer's website, confirming that a particular vendor has been selected from among other potential vendors to receive a contract, subject to the successful completion of final negotiations.

 

"Contractor" or "Vendor" − The terms contractor and vendor are used interchangeably for purposes of this Part.  When appropriate, the term "vendor" shall also include subcontractors.

 

"Day" − Calendar day as opposed to business day.  In computing any period of time, the day of the event from which the designated period of time begins to run is not included, but the last day of the period is included unless it is a Saturday, Sunday, or a State holiday, in which event the period runs to the end of the next business day.

 

"Deputy Treasurer" – An individual with the title Deputy Treasurer, appointed by the Treasurer, who reports directly to the Treasurer.

 

"Emergency Statement" – The statement filed setting forth the actual or estimated amount expended, the name of the contractor involved, and the conditions and circumstances requiring the emergency procurement.

 

"Invitation for Bids" or "IFB" − A document prepared and distributed by the Treasurer's office soliciting bids for the provision of goods or services to the Treasurer's office.

 

"Multiple Award" − An award that is made to 2 or more bidders or offerors for similar supplies, services, or construction-related services.  [30 ILCS 500/1-15.48]

 

"Offer" − A bid, proposal, or response solicited by the Treasurer's office.

 

"Offeror" − The person or entity submitting a bid, proposal or response solicited by the Treasurer's office.

 

"Procurement Review Board" − A board composed of the Chief of Staff, the Chief Legal Counsel, and the Deputy Treasurer for the Treasurer's office.  Where one of the above positions is vacant, designees may be appointed by the following:

 

Chief of Staff,

 

Deputy Treasurer, if the Chief of Staff position is vacant, or

 

Chief Legal Counsel, if both Deputy Treasurer and Chief of Staff positions are vacant.

 

"Professional and Artistic Services" − Those services provided under contract to the Treasurer's office by a person or business, acting as an independent contractor, qualified by education, experience, and technical ability. [30 ILCS 500/1-15.60]

 

"Proposal" − A response to a Request for Proposals.

 

"Proposer" − The person or entity submitting a proposal.

 

"Purchasing Officer" − One or more employees of the Treasurer's office that serve at the direction of the Chief Procurement Officer and are responsible for coordinating the procurement activity of the Treasurer's office.

 

"Request for Information" or "RFI" − The process of requesting information from interested parties to aid the Treasurer's office in decision making.  This type of RFI is not a procurement method and will not result in a participant receiving a contract.

 

"Request for Information for Real Property" or "RFI-Real Property Leases" − The process of seeking proposals for leases of real property or capital improvements.

 

"Request for Proposals" or "RFP" − The process by which the Treasurer's office requests information from offerors, including all documents, whether attached or incorporated by reference, used for soliciting proposals for the provision of goods or services to the Treasurer's office. [30 ILCS 500/1-15.75]

 

"Respondent" − The person or entity submitting a response to a Request for Information or a Request for Proposals from the Treasurer's office.

 

"Response" − A response to a Request for Information.

 

"Responsible Bidder, Proposer or Respondent" − A person or entity that is capable in all respects of performing fully the contract requirements and has the integrity and reliability that will assure good faith performance.

 

"Responsive Bidder" − A person or entity that has submitted a bid conforming in all material respects to an Invitation for Bids or Request for Proposal.

 

"Small Business Specialist" − An employee of the Treasurer's office who is responsible for assisting small businesses in submitting offers to the Treasurer's office for the provision of goods and services.

 

"Solicitation" − An Invitation for Bids, Request for Proposals or Request for Information.

 

"Solicitation Date" − The date that bids or proposals are solicited for the provision of goods or services to the Treasurer's office by communicating the solicitation orally, depositing the solicitation in the U.S. Mail or posting the solicitation electronically, whichever occurs first.

 

"Specification" − Any description of the physical, functional or performance characteristics or of the nature of a supply, a service, or construction items. A specification includes, as appropriate, requirements for inspecting, testing, or preparing a supply, a service, or construction item for delivery. [30 ILCS 500/1-15.95]

 

"Subcontract" means a contract between a person and a person who has a contract subject to this Part, pursuant to which the subcontractor provides to the contractor, or, if the contract price exceeds the small purchase maximum then in effect pursuant to Section 1400.2020(a), another subcontractor, some or all of the goods, services, real property, remuneration, or other monetary forms of consideration that are the subject of the primary contract and includes, among other things, subleases from a lessee of a State agency. For purposes of this Part, a "subcontract" does not include purchases of goods or supplies that are incidental to the performance of a contract by a person who has a contract subject to the Code. [30 ILCS 500/1-15.107]

 

"Subcontractor" means a person or entity that enters into a contractual agreement with a total value that exceeds the small purchase maximum then in effect pursuant to Section 1400.2020(a) with a person or entity who has a contract subject to this Part pursuant to which the person or entity provides some or all of the goods, services, real property, remuneration, or other monetary forms of consideration that are the subject of the primary State contract, including subleases from a lessee of a State contract. For purposes of this Part, a person or entity is not a "subcontractor" if that person only provides goods or supplies that are incidental to the performance of a contract by a person who has a contract subject to this Part. [30 ILCS 500/1-15.108]

 

"Treasurer's Web Site" − The Web Site of the Office of the Illinois State Treasurer at www.illinoistreasurer.gov or successor.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.525  Property Rights

 

No person shall have any right to a specific contract with the State unless that person has a contract that has been signed by an officer or employee of the purchasing agency with appropriate signature authority.  The State shall be under no obligation to issue an award or execute a contract.  [30 ILCS 500/1-25] No person who participates in a procurement action has any right to an award or subsequent contract.  Receipt of a solicitation or submission of any bid, proposal or response to a solicitation confers no right to receive an award or contract, nor does it obligate the State in any manner.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.530  Joint Purchasing

 

a)         The Treasurer's office may, without soliciting independent bids, proposals or responses, procure goods and services from vendors selected by the Department of Central Management Services (CMS), the federal General Services Administration, or another governmental unit in accordance with a competitive selection process established pursuant to the Governmental Joint Purchasing Act [30 ILCS 525].

 

b)         The Treasurer's office may enter into agreements to make joint purchases pursuant to the Governmental Joint Purchasing Act and may act as a lead state or a participant state.  The purchases of all personal property, supplies and services under the Governmental Joint Purchasing Act, except for small purchases, shall be based on competitive solicitations.  All purchases, orders or contracts shall be awarded to the lowest responsible bidder or highest-ranked offeror, taking into consideration the qualities of the articles or services supplied, their conformity with the specifications, their suitability to the requirements of the participating governmental units and the delivery terms. [30 ILCS 525/4]

 

c)         The Treasurer's office may procure goods or services through awards made by any cooperatives and consortia approved for use by the Chief Procurement Officer or the Chief Procurement Officer for General Services.  Where practicable, including where the cooperative or consortium may have made multiple awards for the same good or service, the Treasurer's office shall: 

 

1)         select the vendor that represents the low cost or best value for the good or service; and

 

2)         maximize competition by soliciting quotes or other information where the low cost or best value is not apparent on the face of the award made by the cooperative or consortium.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

SUBPART B: PROCUREMENT AUTHORITY

 

Section 1400.1005  Chief Procurement Officer

 

The Chief Procurement Officer shall ensure that all procurements of the Treasurer's office are in accordance with this Part and in the best interest of the State.  The Chief Procurement Officer is responsible for the activities of the Purchasing Officers and the Small Business Specialist who serve under his or her direction and supervision.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.1010  Purchasing Officer

 

a)         The Chief Procurement Officer, subject to the approval of the Treasurer, may appoint one or more employees under his or her direction and supervision to serve as Purchasing Officers.

 

b)         Before making an appointment, the Chief Procurement Officer shall, among other factors, consider each individual's character and fitness and understanding of the procurement process.

 

Section 1400.1015  Small Business Specialist

 

a)         The Chief Procurement Officer, subject to the approval of the Treasurer, may designate an employee of the Treasurer's office with experience negotiating contracts to serve as the Small Business Specialist.

 

b)         Before making the designation, the Chief Procurement Officer shall, among other factors, consider the individual's demeanor, organizational skills, knowledge of the Treasurer's office, and awareness of the issues confronting small businesses.

SUBPART C: PUBLICATION, SOLICITATION AND DOCUMENTATION

 

Section 1400.1505  Publication

 

a)         Electronic Publication

Every solicitation for bids, proposals, requests for information, or responses required under this Part must be published on the Treasurer's Web Site at least 14 calendar days before the date set in the solicitation for the opening of the bids, proposals, or responses.  Every notice of intention to enter into a sole source contract must be published on the Treasurer's Web Site at least 14 calendar days before the award of the contract.  All other documents required to be published under this Part must be published on the Treasurer's Web Site as soon as practicable and no later than 30 days from the date on which the document was produced. There is no fee assessed for access to the page of the Treasurer's Web Site containing procurement information.

 

b)         Paper Publication

All documents published on the Treasurer's Web Site may be printed in a paper format and made available upon request as of the date that it is published electronically.  The Treasurer's office may charge a minimal fee that does not exceed the limits established by the Treasurer's Office pursuant to the Freedom of Information Act [5 ILCS 140].  The paper publication will be available for inspection free of charge at locations in Springfield and Chicago by appointment.

 

c)         Content of Publications

 

1)         Solicitations.  Every solicitation must include the following:

 

A)        the date of the solicitation;

 

B)        the specifications;

 

C)        a procurement reference number if used;

 

D)        the date, time and location of any bidders' conferences;

 

E)        the date, time and location for making submissions;

 

F)         method of source selection;

 

G)        name of the Chief Procurement Officer and the Treasurer;

 

H)        instructions on how to obtain additional information;

 

I)         encouragement to prospective vendors to hire qualified veterans; and

 

J)         encouragement to prospective vendors to hire qualified Illinois minorities, women, persons with disabilities and residents discharged from any Illinois adult correctional center.

 

2)         Notices of Contract Awarded.  Every notice of contract awarded must contain the following information:

 

A)        the name of the vendor selected for the award;

 

B)        a brief description of what the vendor will do or provide;

 

C)        the contract amount, which may be an amount not-to-exceed, along with the applicable rate and unit of measurement of the goods, supplies or services;

 

D)        the number of unsuccessful vendors;

 

E)        the date the solicitation was first published;

 

F)         the date, time and location for making submissions that led to the contract award;

 

G)        name of the Chief Procurement Officer and the Treasurer; and

 

H)        instructions on how to obtain additional information.

 

3)         Notices of Cancellation or Rejection.  The notices of cancellation of a solicitation or rejection of offers must:

 

A)        identify the solicitation;

 

B)        briefly explain the reason for the cancellation or rejection; and

 

C)        when appropriate, explain that an opportunity will be given to compete on any resolicitation or any future procurement of similar goods or services.

 

4)         If an award to other than the lowest responsive and responsible bidder results pursuant to Section 20-10(g) of the Code, the notice of award must include a written explanation containing the following:

 

A)        a description of the Treasurer's office's needs;

 

B)        a determination that the anticipated cost will be fair and reasonable;

 

C)        a listing of all responsible and responsive bidders; and

 

D)        the name of the bidder selected, the total contract price, and the reasons for selecting that bidder.

 

5)         Other Publications.  All other publications required by this Part must contain any and all information that is required by this Part.

 

6)         Publicizing Award

Successful bidders shall be notified of award and that notification may be in the form of a letter, purchase order or other clear communication.  Notice of award shall be issued by either paper or electronic means to all offerors submitting responses to the solicitation.

 

7)         Retention of Publication Information

Information published on the Treasurer's Web Site may be removed from the Treasurer's Web Site after a period of one year after first publication or sooner if determined necessary by the Chief Procurement Officer, provided that a copy of that information is maintained in the appropriate procurement file maintained in accordance with the State Records Act [5 ILCS 160].

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.1510  Solicitation

 

In addition to publishing solicitation notices electronically and in a paper format, the Treasurer's office may directly contact prospective vendors. Direct solicitation may be oral or in writing, but care must be taken to ensure that all vendors receive the same information.  At least three vendors should be contacted whenever possible.

 

Section 1400.1515  Documentation

 

a)         Minutes

Minutes of all meetings of the Procurement Review Board will be created and made available for inspection and copying.

 

b)         Procurement File

All official procurement records, notices, contracts, written determinations, minutes, forms, and any other documents required under this Part must be made part of the procurement file maintained by the Chief Procurement Officer.  The procurement file must be open to inspection and copying under conditions established by the Chief Procurement Officer and in compliance with the Freedom of Information Act (FOIA).

 

c)         Contract Filing

Filing of contracts with the Comptroller must be done in accordance with Section 20-80 of the Illinois Procurement Code [30 ILCS 500] and any rules promulgated by the Comptroller.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

SUBPART D: PROCUREMENT METHODS

 

Section 1400.2005  Competitive Sealed Bidding

 

a)         Application

Competitive sealed bidding is the required method of source selection except as allowed by this Part.  The provisions of this Section apply to every procurement required to be conducted by competitive sealed bidding.

 

b)         The Invitation for Bids

 

1)         Use.  The Invitation for Bids is used to initiate a competitive sealed bid procurement.

 

2)         Content.  The Invitation for Bids must include, at a minimum, the following:

 

A)        instructions and information to bidders concerning the bid submission requirements, including the time and date set for receipt of bids, the address of the office to which bids are to be delivered, the maximum time for bid acceptance by the Treasurer's office, and any other special information;

 

B)        the specification, evaluation factors, delivery or performance schedule, and any inspection and acceptance requirements as are not included in the specification; and

 

C)        the contract terms and conditions, including warranty, collateralization, bonding or other security requirements, as applicable.

 

3)         Incorporation by Reference.  The Invitation for Bids may incorporate documents by reference if the Invitation for Bids specifies where the documents can be obtained.

 

4)         Publication and Documentation of the Invitation for Bids.  The Invitation for Bids must be published as provided in Section 1400.1505 and made a part of the procurement file.

 

c)         Optional Bid Requirements

 

1)         Bid Form.  The Invitation for Bids may provide a form which includes a space in which the bid price may be inserted and which the bidder must sign and submit along with all other necessary submissions.

 

2)         Bid Samples and Descriptive Literature.

 

A)        Bid samples or descriptive literature may be required when it is necessary to evaluate required characteristics of the items bid.

 

B)        Unsolicited bid samples or descriptive literature submitted at the bidder's risk may not be examined or tested, will not be deemed to vary any of the provisions of the Invitation for Bids, and may not be utilized by the vendor to contest a decision or understanding with the Treasurer's office.

 

d)         Prequalification

 

1)         The Chief Procurement Officer may require that vendors be prequalified as a condition of being placed on the bid list.  Any bid lists developed will be updated by June 30 of each year.  Vendors will be given an opportunity to prequalify prior to each update of the list.  The opportunity to prequalify and whether prequalification will be a condition of being awarded a contract must be published as provided in Section 1400.1505.

 

2)         The fact that a prospective vendor has been prequalified does not necessarily represent a finding of responsibility for a particular procurement.

 

3)         Distribution of and responses to the solicitation may be limited to prequalified vendors and award of a contract may be denied because a vendor was not prequalified.

 

e)         Bidders' Conferences

Bidders' conferences may be conducted to enhance understanding of the procurement requirements.  The conferences must be announced to all prospective bidders known to have received an Invitation for Bids.  The conference may be designated as attendance mandatory or attendance optional.  The conference must be held long enough after the Invitation for Bids has been issued to allow bidders to become familiar with it, but sufficiently before bid opening to allow consideration of the conference results in preparing their bids.  Any questions posed in a bidders' conference shall be subsequently submitted in writing and, along with the answers, shall be published on the Treasurer's Web Site as provided in Section 1400.1505.  Nothing stated in the bidders' conference changes the Invitation for Bids unless a change is made by written amendment to the Invitation for Bids.  The Chief Procurement Officer shall cause a listing of all attendees at a bidders' conference to be prepared and made a part of the procurement file.

 

f)         Amendments to Invitations for Bids

 

1)         Form.  Amendments to Invitations for Bids must be identified and must require that the bidder acknowledge receipt of all amendments issued.  The amendment must reference the portions of the Invitation for Bids it amends.

 

2)         Distribution.  Amendments must be sent to all prospective bidders known to have received an Invitation for Bids.

 

3)         Timeliness.  Amendments must be distributed within a reasonable time to allow prospective bidders to consider them in preparing their bids.  If necessary, the Chief Procurement Officer may extend the response time in writing, or by e-mail or telephone and confirmed in writing.

 

g)         Pre-Opening, Modification or Withdrawal of Bids

 

1)         Procedure.  Bids may be modified or withdrawn by written notice received in the office designated in the Invitation for Bids prior to the time and date set for bid opening.  An e-mail modification or withdrawal, or withdrawal received by telephone prior to the time and date set for bid opening, will be effective if followed in writing.

 

2)         Disposition of Bid Security.  If a bid is withdrawn in accordance with this Section, the bid security, if any, will be returned to the bidder.

 

3)         Records.  All documents relating to the modification or withdrawal of bids must be made a part of the procurement file.

 

h)         Receipt, Opening and Recording of Bids

 

1)         Receipt.  Upon its receipt, each bid and modification must be recorded but not opened and must be stored in a secure place until the time and date set for bid opening.  If a bid is opened in error, the file must so state.

 

2)         Opening and Recording.

 

A)        Bids and modifications must be opened publicly, in the presence of one or more witnesses, at the time, date and place designated in the Invitation for Bids.  The name of each bidder, the bid price and any other information that the Chief Procurement Officer deems appropriate must be recorded.

 

B)        The winning bid must be available for public inspection after award, along with the record of the other bids.

 

i)          Bid Evaluation and Award

 

1)         General.  The contract is to be awarded to the lowest bid by a responsible and responsive bidder, unless otherwise permitted in this subsection (i).  No bid may be evaluated for any requirements or criteria that are not disclosed in the Invitation for Bids.

 

2)         Determination of Bidder as Responsible and Responsive.  The Chief Procurement Officer shall reach the determination of whether each bidder is responsible and responsive.  The determination must be conducted to determine whether each bid is acceptable and appropriate for further evaluation and not for the purpose of determining whether one bidder's product or service capability is superior to another.  If any bidder is determined to be nonresponsive and/or not responsible, that determination shall be reduced to writing and made part of the procurement file.

 

3)         Product Quality or Service Capability.  The Chief Procurement Officer shall also evaluate and make a notation of any differences in the product quality or service capability among the responsible and responsive bidders before reaching the determination of the lowest bidder.

 

4)         Determination of Lowest Responsible and Responsive Bidder.  Bids must be evaluated to determine which responsible and responsive bidder offers the lowest cost to the State in accordance with the evaluation criteria in the Invitation for Bids.  Only objectively measurable criteria in the Invitation for Bids may be applied in determining the lowest bidder.

 

5)         Award.  The Chief Procurement Officer shall award the contract to the lowest responsible and responsive bidder, unless the differences in product quality or service capability suggest that the selection of another bid is in the best interest of the State.

 

6)         Price Negotiation. The Chief Procurement Officer or designee may negotiate with the low bidder to obtain a lower price for the item bid.

 

j)          Notification, Publication and Documentation of Award

Following the award, a notice of contract must be provided to the successful bidder, published as provided in Section 1400.1505, and made a part of the procurement file. The notice of contract awarded must indicate if a bidder other than the lowest responsible and responsive bidder was selected and the basis for the selection.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.2010  Multi-Step Sealed Bidding

 

When it is considered impracticable to initially prepare a definitive purchase description to support an award based on price, an IFB may be issued requesting the submission of unpriced offers to be followed by an IFB limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.2015  Competitive Sealed Proposals

 

a)         Supplies and services may be procured through the competitive sealed proposal method of source selection, on a case-by-case basis, when it is determined by the Chief Procurement Officer that competitive sealed bidding is either not practicable or advantageous to the State.

 

b)         The types of procurements for which the competitive sealed proposals method of source selection may be used without a determination that competitive sealed bidding is either not practicable or advantageous include the following:

 

1)         electronic data processing equipment, software, and services;

 

2)         telecommunications equipment, software, and services;

 

3)         consulting services; and

 

4)         banking services.

 

c)         Factors to be considered in determining whether competitive sealed bidding is either not practical or advantageous include the following:

 

1)         the nature of the procurement does not permit an award to a low bidder who agrees by its bid to perform without condition or reservation in accordance with the specification, delivery or performance schedule, and all other terms and conditions of the Invitation for Bids;

 

2)         evaluation factors involve the relative abilities of offerors to perform, including degrees of experience or expertise, where the types of supplies or services may require the use of comparative, judgmental evaluations to evaluate them adequately, or where the type of need to be satisfied involves weighing aesthetic values to the extent that price is a secondary consideration;

 

3)         whether oral or written discussions may need to be conducted with offerors concerning technical and price aspects of their proposals;

 

4)         whether offerors may need to be afforded the opportunity to revise their proposals, including price;

 

5)         whether the award may need to be based upon a comparative evaluation, as stated in the Request for Proposals, of differing price, quality, and contractual factors in order to determine the most advantageous offering to the Treasurer's office.  Quality factors include technical and performance capability and the content of the technical proposal; and

 

6)         it is otherwise not advantageous to the State, even though practicable, to use competitive sealed bidding.

 

d)         Prequalification

The Chief Procurement Officer may require that vendors are prequalified in the manner described in Section 1400.2005 for competitive sealed bidding.

 

e)         Request for Proposals

 

1)         Solicitation.  Proposals must be solicited through a Request for Proposals that must contain the following information:

 

A)        A requirement that proposals are submitted in two parts.  The first part should cover all items except price and the second part should cover price.

 

B)        A statement that discussions may be conducted with offerors who submit proposals determined to be reasonably capable of being selected for award, but that proposals may be accepted without a discussion.

 

C)        A statement of when and how price should be submitted.

 

2)         Publication and Documentation of the Request for Proposals.  The Request for Proposals must be published as provided in Section 1400.1505 and made part of the procurement file.

 

f)         Receipt, Opening and Recording of Proposals

The date and time of receipt of proposals and modifications must be recorded upon receipt, but the proposal and modifications must not be opened and shall be held in a secure place until the established due date.  Proposals must be opened publicly in the presence of at least one witness at the time and place designated in the Request for Proposals, but proposals must be opened in a manner to avoid disclosure of their contents to competing offerors.  A record of proposals must be prepared and must be open for inspection after contract is awarded.  The record of proposals must include for all proposals the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the supply or service item offered.  The record of proposals must be made part of the procurement file and be open to public inspection after award of the contract.

 

g)         Evaluation of Proposals

 

1)         Evaluation Factors in the Request for Proposals.  The RFP must state all of the evaluation factors, including price, and their relative importance.  All evaluation factors stated will be considered equally unless otherwise indicated in the RFP.

 

2)         Evaluation.  The evaluation must be based on the evaluation factors in the RFP.  Factors not specified in the RFP must not be considered.  Numerical rating systems may be used but are not required.  The first part of all proposals covering items other than price must be evaluated and ranked independently of the second part of all proposals.

 

h)         Proposal Discussions with Individual Offerors

 

1)         Offerors may be given a fair and equal opportunity to discuss their proposals.

 

2)         Purposes of Discussions.  Discussions are held to:

 

A)        promote understanding of the Treasurer's office requirements and the offerors' proposals; and

 

B)        facilitate arriving at a contract that is most advantageous to the State taking into consideration price and the other evaluation factors in the Request for Proposals.

 

3)         Clarification of the Request for Proposals.  If during discussions there is a need for any substantial clarification of, or change in, the Request for Proposals, the Request for Proposals must be amended to incorporate the clarification or change.  Any substantial oral clarification of a proposal must be reduced to writing by the offeror.

 

4)         Best and Final Offers.  The Chief Procurement Officer may request best and final offers with a common date and time for submission of the offers.  The Chief Procurement Officer, or his or her designee, may conduct additional discussions or change the Treasurer's office requirements and require another submission of best and final offers.  If an offeror does not submit either a notice of withdrawal or another best and final offer, that offeror's immediately previous offer will be construed as its best and final offer.

 

5)         Disclosure of Information.  In conducting discussions there must be no disclosure of any information derived from proposals submitted by competing offerors.  Any other information that is disclosed to any offeror must be provided to all competing offerors.

 

i)          Award

 

1)         Determination.  The Chief Procurement Officer must make the award in accordance with a written determination showing the basis on which the award was found to be the most advantageous to the State, based on the Request for Proposals.

 

2)         Notification, Publication and Documentation of the Award.  The successful offeror will be promptly notified of the award.  The notification of the award and the written determination must be published as provided in Section 1400.1505 and made part of the procurement file.

 

3)         Unsuccessful offerors may be allowed a debriefing when determined by the Chief Procurement Officer to be in the best interests of the State.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.2020  Small Purchases

 

a)         Application

Any individual procurement of supplies or services that does not exceed $100,000 may, at the discretion of the Chief Procurement Officer, be made without notice, competition, publication, or use of any prescribed method of source selection.  Each July 1 the small purchase maximum shall be subject to the annual cost of living increases set forth in subsection (b).  Procurements of less than $100,000 for professional and artistic services, and that have a nonrenewable term of one year or less, may, at the discretion of the Chief Procurement Officer, be made without advance notice, competition or use of any prescribed method of source selection.

 

b)         Adjustment

The small purchase maximums may be adjusted for inflation as determined by the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor and rounded to the nearest $100.  In determining the annual small purchase maximums, the CPO may rely upon a published adjustment of the small purchase limits announced by the Chief Procurement Office for General Services pursuant to the procedure found at 44 Ill. Adm. Code 1.2020.

 

c)         In determining whether a contract is under the limit, the value of the contract for the full term and any optional renewals, as well as the stated value of the goods or services plus any optional goods and services, determined in good faith, must be utilized.  Where the term is calculated month-to-month or in a similar fashion, the amount must be calculated for a 12-month period.

 

d)         Procurement requirements must not be artificially divided to avoid using one of the other source selection methods described in this Part.

 

e)         If, after signing the contract, the actual need is determined to be more than the limits provided in this Section, and the Chief Procurement Officer determines that reprocurement is not appropriate, the Chief Procurement Officer may follow the procedures for sole source or emergency procurement, if applicable, to obtain the additional supplies or services.

 

(Source:  Amended at 43 Ill. Reg. 2275, effective January 31, 2019)

 

Section 1400.2025  Sole Source Procurements

 

a)         Application

The provisions of this Section apply to procurement from a sole economically feasible source (referred to as sole source) that is above the limit for small purchases in Section 1400.2020 and does not qualify as an emergency procurement as defined in Section 1400.2030.

 

b)         Conditions for Use of Sole Source Procurement

Sole source procurement is permissible when a good or service is available from only a single supplier or when only one supplier is deemed economically feasible.  A requirement for a particular proprietary item by itself does not justify a sole source procurement if there is more than one potential bidder or offeror authorized to provide that item.  The following are examples of circumstances that could necessitate sole or sole economically feasible source procurement:

 

1)         compatibility of equipment, accessories, replacement parts or service is a paramount consideration;

 

2)         items are needed for trial use or testing of that specific product or service;

 

3)         item is for commercial resale;

 

4)         noncompetitive public utility services;

 

5)         item is proprietary, copyrighted or patented and the item or service is not available except from the named vendor or, where applicable, holder of the copyright or patent;

 

6)         media for advertising;

 

7)         art, entertainment services or athletic events;

 

8)         radio and television broadcast rights;

 

9)         procurements related to participation in educational, professional, research, public service activities of organizations of which the Treasurer's office is a member, professional memberships and related expenses.  These procurements may include, but are not limited to, dues and membership fees, travel and lodging, and facility usage fees;

 

10)        federal or State grant requires contract with named vendor;

 

11)        items required by franchise agreements; and

 

12)        changes to existing contracts (see subsection (c)).

 

c)         Changes to existing contracts germane to the original contract that are necessary or desirable to complete the project, and that can be best accomplished by the contract holder, may be procured under this provision.

 

d)         The determination as to whether a procurement may be made as a sole source must be made by the Chief Procurement Officer in writing and must include an explanation of why no other source would be suitable or acceptable.  The determination must be made part of the procurement file.

 

e)         The Chief Procurement Officer shall, having defined a sole economically feasible source, issue a notice of intent to utilize the sole source method of procurement that sets forth a description of the item to be procured and the intended sole source contractor.  A notice containing the following information must be published as provided in Section 1400.1505:

 

1)         name of the Chief Procurement Officer who made the determination to utilize the sole source procurement;

 

2)         name of the vendor;

 

3)         brief description of what the vendor will do or provide;

 

4)         contract price (to the extent known); and

 

5)         reason why the vendor was determined to be the sole economically feasible source.

 

f)         If a written protest is filed by an interested party pursuant to Section 1400.4005 requesting a public hearing, then the Chief Procurement Officer shall, after posting a notice as provided in Section 1400.1505, hold a public hearing and take public testimony concerning the proposed sole source designation.  If there is no protest to the Chief Procurement Officer's determination or if the Chief Procurement Officer is convinced that the sole source designation is appropriate after considering the protest, a contract may be executed with the selected sole source vendor.  If a written protest is received and, after considering the protest, the Chief Procurement Officer is convinced that the sole source designation is not appropriate, the Chief Procurement Officer shall commence a competitive method of procurement unless an emergency situation exists.

 

g)         Negotiation in Sole Source Procurement

The Chief Procurement Officer shall conduct negotiations, as appropriate, in an effort to obtain the most favorable price, delivery and other terms and conditions available for the State.

 

h)         Maintenance of Record

The Chief Procurement Officer shall maintain a record of sole source procurements in the procurement file showing:

 

1)         the vendor's name;

 

2)         the amount and type of the contract; and

 

3)         a listing of the goods or services procured under each contract.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.2030  Emergency Procurements

 

a)         Applications

The provisions of this Part apply to every procurement over the small purchase limit set in Section 1400.2020 made under emergency conditions.  The Chief Procurement Officer shall have the authority to make emergency procurements when an emergency condition arises and the need cannot be met through normal procurement methods.  An emergency condition exists when:

 

1)         there exists a threat to health, safety, or collection of substantial revenues;

 

2)         immediate expenditure is needed for repairs to State property in order to protect against further loss or damage to State property;

 

3)         action is needed to prevent or minimize serious disruption in the operation of the Treasurer's office;

 

4)         action is needed to ensure the integrity of State records;

 

5)         a supplier of needed goods or services makes an announcement that gives the Chief Procurement Officer reason to determine that making a purchase immediately is in the State's best interest, including, but not limited to, an announcement of bankruptcy, going out of business, or loss of franchise;

 

6)         items are available on the spot at prices that are favorable enough that good business judgment mandates a purchase;

 

7)         legal services to assist the Treasurer's office in the formulation of policy, in drafting or evaluating documents, or in determining the extent of statutory authority are needed more quickly than an alternative method of procurement under this Part would allow;

 

8)         escrow agent services for general obligation bonds and procurements for escrow agent services and registrar and paying agent services for college savings bonds are needed more quickly than an alternative method of procurement under this Part would allow; or

 

9)         bids or proposals received in accordance with a competitive sealed bid or competitive sealed proposal method are unreasonable, noncompetitive, or the price exceeds available funds, and time or other circumstances will not permit the delay required to resolicit competitive sealed bids or proposals;

 

10)       rare items, such as articles of historical value or art collections, that are available for a limited time;

 

11)       the opportunity to obtain entertainment, speakers and athletic and other events or performances is available for a limited time; or

 

12)       immediate action is necessary to avoid lapsing or loss of federal or donated funds.

 

b)         Scope of Emergency Conditions

Emergency procurements must be limited to those supplies, services, or construction items necessary to meet the emergency.

 

c)         Authority to Make Emergency Procurements

The Chief Procurement Officer may make emergency procurements when the need cannot be met through normal procurement methods, but, whenever practicable, existing contracts must be utilized.

 

d)         Source Selection Methods

Any method of source selection, whether or not identified in this Part, may be used to conduct the procurement in emergency situations provided that, whenever practical, existing State contracts shall be utilized and competitive sources shall be considered if practical.  The procedure used shall be selected to assure that the required items are procured in time to meet the emergency.  As much competition as is practicable shall be obtained.

 

e)         Filing with the Auditor General

The Chief Procurement Officer shall file an emergency statement with the Auditor General within 10 days after the contract is awarded setting forth the amount expended, the name of the contractor involved, and the conditions and circumstances requiring the emergency procurement.  When only an estimate of the cost is available, the estimate should be provided in the emergency statement and the actual cost must be reported immediately after it is determined.

 

f)         Determination, Record and Publication of Emergency Procurements

 

1)         Determination.  The Chief Procurement Officer shall make a written determination stating the basis for an emergency procurement and for the selection of the particular vendor.  Documentation of efforts to obtain competition shall be made part of the procurement file. These determinations shall be kept in the contract file.

 

2)         Record.  A record of each emergency procurement must be made no later than 5 calendar days after the contract is awarded and must include the following information:

 

A)        the vendor's name;

 

B)        the amount and type of the contract (if only an estimate of the amount is available immediately, the record must be supplemented with the final amount once known);

 

C)        a description of what the vendor will do or provide;

 

D)        the reasons for using the emergency procurement method of source selection;

 

3)         Emergency Contract Award

 

A)        For purposes of an emergency, an emergency contract is awarded on the earliest of the date that:

 

i)          the Treasurer's office communicates to a vendor to start work;

 

ii)         publication is made on the Treasurer's website identifying the selected vendor; or

 

iii)        the contract is signed by both parties.

 

B)        Documentation of the contract award date shall be part of the procurement file.

 

4)         The written determination and the record of the emergency procurement must be made part of the procurement file and must be published as provided in Section 1400.1505 no later than 5 calendar days after the contract is awarded.

 

5)         Provided it contains all information and is published as required by this subsection (f), the emergency statement may be used to meet the requirements of this subsection.

 

g)         Duration of Emergency Contract

 

1)         The term of the emergency contract shall be limited to the time reasonably needed for a competitive procurement, not to exceed 90 days.

 

2)         An emergency contract may be extended beyond 90 days if the Chief Procurement Officer determines additional time is necessary and the contract scope and duration are limited to the emergency.  Prior to execution of the extension, a public hearing shall be held at which any person may present testimony.

 

3)         Notice of Extension

Notice of intent to extend an emergency contract shall be published on the Treasurer's website no later than 14 days prior to a public hearing.  Notice shall include at least a description of the need for the emergency extension, the contractor, and the date, time and location of the public hearing.

 

4)         Hearing Procedure

Provided members of the public are allowed to present testimony and notice is provided as required in this subsection (g), the hearing need not comply with all requirements of 74 Ill. Adm. Code 730.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.2035  Procurement of Professional and Artistic Services

 

a)         The provisions of this Section apply to the procurement of professional and artistic services with the exception of the following:

 

1)         sole source procurements;

 

2)         emergency procurements; 

 

3)         any procurement of professional and artistic services less than the small purchase threshold then in effect pursuant to Section 1400.2020(a) for a nonrenewable term of less than one year made as a small purchase; and

 

4)         architect, engineering and land surveying services procured pursuant to the procedures of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act [30 ILCS 535].

 

b)         Written Determinations Required Prior to Request for Proposals

Prior to announcing the need for professional or artistic services, the Chief Procurement Officer shall make a written determination that explains the nature of the services and how the Chief Procurement Officer reached the determination that the services are professional or artistic.  The written determination must be made part of the procurement file.

 

c)         Professional and artistic services shall be procured using a Request for Proposals.

 

1)         Contents.  The RFP must be drafted or approved by the Chief Procurement Officer and must contain at least the following information:

 

A)        the type and scope of services required;

 

B)        a date by which proposals for the performance of the services must be submitted;

 

C)        the type of information and data required of each offeror;

 

D)        how the price should be presented;

 

E)        the factors to be used in the evaluation and selection process and their relative importance (all evaluation factors stated will be considered equally unless otherwise indicated in the RFP); and

 

F)         when practicable, a draft contract with a notice to the vendors that by submitting a response they are consenting to the terms and conditions of the draft agreement and agree to be bound by a final agreement that is substantially similar to the draft.

 

2)         Evaluation.  Proposals must be evaluated only on the basis of evaluation factors stated in the Request for Proposals.  The relative importance of the evaluation factors will vary according to the type of services being procured. Factors may include:

 

A)        the plan for performing the required services;

 

B)        ability to perform the services as reflected by technical training and education, general experience, specific experience in providing the required services, and the qualifications and abilities of personnel proposed to be assigned to perform the services;

 

C)        the personnel, equipment, and facilities to perform the services currently available or demonstrated to be made available at the time of contracting; and

 

D)        a record of past performance of similar work.

 

3)         Publication and Filing.  The Request for Proposal must be published as provided in Section 1400.1505 and must be made part of the procurement file.

 

d)         Bidders' Conferences

Bidders' conferences may be conducted to enhance understanding of the procurement requirements.  The conference may be designated as attendance mandatory or attendance optional.  The conference should be held long enough after the Request for Proposals has been issued to allow proposers to become familiar with it, but sufficiently before the opening of proposals to allow consideration of the conference results in preparing their proposals.  Any questions posed in a bidders' conference shall be subsequently submitted in writing and, along with the answers, shall be published on the Treasurer's Web Site as provided in Section 1400.1505. Nothing stated in the bidders' conference changes the Request for Proposals unless a change is made by written amendment to the Request for Proposals. The Chief Procurement Officer shall cause a listing of all attendees at a bidders' conference to be prepared and made a part of the procurement file.

 

e)         Amendments to Requests for Proposals

 

1)         Form.  Amendments to Requests for Proposals must be published as provided in Section 1400.1505 and must be made part of the procurement file.

 

2)         Distribution.  Amendments must be sent to all prospective proposers known to have received a Request for Proposal.

 

3)         Timeliness.  Amendments must be published within a reasonable time to allow prospective bidders to consider them in preparing their bids.  If necessary, the Chief Procurement Officer may extend the response time by amending the RFP as provided for in this subsection (e)(3).

 

f)         Receipt and Handling of Proposals

Proposals and modifications must be sent to the Chief Procurement Officer where they must be recorded upon receipt, but not opened, and held in a secure place until the established due date and time, at which time they will be opened by the Chief Procurement Officer.  Proposals must not be opened publicly nor disclosed to unauthorized persons and must be opened in the presence of at least one witness.  A record of proposals that includes the following must be established for all proposals: the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the services offered.  The record of proposals must be open to public inspection only after award of the contract and must be made part of the procurement file at that time.

 

g)         Discussions

 

1)         Discussions Permissible.  The Chief Procurement Officer shall evaluate all proposals submitted and may conduct discussions with any proposer.  The purposes of the discussions are to:

 

A)        determine in greater detail the proposer's qualifications; and

 

B)        explore with the offeror the scope and nature of the required services, the offeror's proposed method of performance, and the relative utility of alternative methods of approach.

 

2)         No Disclosure of Information.  No information derived from proposals submitted by an offeror may be disclosed to any other proposer.

 

3)         Best and Final Offers.  The Chief Procurement Officer may request best and final offers with a common date and time for submission of the proposals.  The Chief Procurement Officer may conduct additional discussions or change the specifications or other contract requirements and require another submission of best and final proposals.  If a proposer does not submit either a notice of withdrawal or another best and final offer, the proposer's immediate previous proposal will be construed as its best and final proposal.

 

h)         Negotiation and Award of Contract

 

1)         General.  The Chief Procurement Officer, in conjunction with the Chief Legal Counsel or designee, shall negotiate a contract with the best qualified proposer, based on the evaluation factors in the request for proposals, for the required services at compensation determined in writing to be fair and reasonable.

 

2)         Successful Negotiation of Contract with Best-Qualified Proposer. If compensation, contract requirements, and contract documents can be agreed upon with the best-qualified proposer, the contract must be awarded to that proposer, unless the procurement is cancelled.

 

3)         Failure to Negotiate Contract with Best-Qualified Offeror

 

A)        If compensation, contract requirements, or contract documents cannot be agreed upon with the best qualified proposer, a written record stating the reasons must be made part of the procurement file and the Chief Procurement Officer shall advise that proposer of the termination of negotiations.

 

B)        Upon failure to negotiate a contract with the best-qualified offeror, the Chief Procurement Officer may enter into negotiations with the next most qualified offeror.

 

4)         Evaluation of Pricing Data

Pricing submitted for all acceptable proposals timely submitted shall be opened and ranked.

 

A)        If the low price is submitted by the most qualified vendor, the CPO may award to that vendor.

 

B)        If the price of the most qualified vendor is not low and if it does not exceed $100,000, the CPO may award to that vendor.

 

C)        If the price of the best qualified vendor exceeds $100,000, the CPO must state why a vendor other than the low priced vendor was selected and that determination shall be published as provided in Section 1400.1505 and must be made part of the procurement file.

 

5)         Notice of Award.  Written notice of award must be promptly provided to the successful offeror, published as provided in Section 1400.1505 and made a part of the procurement file.  The notice must provide, at a minimum, the following:

 

A)        the name of the Chief Procurement Officer;

 

B)        the successful vendor;

 

C)        the type of services to be provided; and

 

D)        the amount of the contract, which may be an amount not-to-exceed, along with any applicable rates.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.2040  Procurement of Real Property Leases

 

a)         Applicability

This Section applies to all leases for real property, including office and storage space, buildings and other facilities for the Treasurer's office, with the exception of the following:

 

1)         property of less than 10,000 square feet;

 

2)         rent of less than $100,000 per year;

 

3)         nonrenewable leases with a duration of less than one year;

 

4)         specialized space available at only one location;

 

5)         renewal or extension of any existing lease so long as the term of the lease, including the renewal or extension, does not exceed 10 years; or

 

6)         leases with other governmental units when deemed by the Chief Procurement Officer to be in the best interest of the Treasurer's office.

 

b)         Request for Information – Real Property Leases

Except as otherwise provided in this Section, all contracts for leases of real property must be awarded by the following Request for Information-Real Property Leases process. The RFI-Real Property Leases must include the following:

 

1)         the type of property to be leased;

 

2)         the proposed uses of the property;

 

3)         the duration of the lease;

 

4)         the preferred location of the property; and

 

5)         a general description of the configuration desired.

 

c)         Publication of Notice

Notice of the Request for Information must be published as provided in Section 1400.1505 and must also be published in a newspaper of general circulation in the community or communities where the Treasurer's office is seeking space.

 

d)         Evaluation of Responses

The evaluation must be based on price and the ability of the respondent to meet the criteria in the Request for Information.

 

e)         Negotiations with Individual Offerors

 

1)         For the purpose of conducting negotiations, proposals must be initially classified as:

 

A)        acceptable;

 

B)        potentially acceptable; or

 

C)        unacceptable, in which case the Chief Procurement Officer shall record in writing the basis for finding an offer unacceptable and make it part of the procurement file.

 

2)         Negotiations will be entered into with respondents who are classified as acceptable or potentially acceptable for the purpose of securing a lease that is in the best interest of the State.

 

3)         A written determination of the acceptability of each respondent and a report of the negotiations will be retained in the procurement file and will include the reasons for the final selection.

 

f)         Award

The lease will be awarded to the respondent that the Chief Procurement Officer deems to be most capable of meeting the needs of the Treasurer's office.  The notice of award must be promptly provided to the successful respondent and must be published as provided in Section 1400.1505. When the lowest proposer by price is not selected, the Chief Procurement Officer shall issue a written explanation for the selection of another proposer.  The written explanation must also be published as provided in Section 1400.1505.

 

g)         Lease Agreements

 

1)         All leases must be in writing and approved by the Chief Legal Counsel.

 

2)         Length of Leases

 

A)        Term.  All leases must be for a term that does not exceed 10 years and must include a termination option in favor of the Treasurer's office after five years.

 

B)        Renewal.  Leases may include a renewal option if the leases and any renewals do not exceed a 10-year term.

 

h)         Purchase Option

Initial leases of all space in entire, free-standing buildings must include an option to purchase exercisable by the State, unless the Chief Procurement Officer determines that inclusion of a purchase option is not in the State's best interest.

 

i)          Rent Without Occupancy

Except when deemed by the Procurement Review Board to be in the best interest of the State, the Treasurer's office may not incur rental obligations before occupying the space rented.

 

j)          Local Site Preference

The Chief Procurement Officer may, in his or her discretion, give leasing preferences to sites located in enterprise zones, tax increment financing districts or redevelopment districts.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.2045  Other Methods of Source Selection

 

a)         State and Federal Warehouses

Prior to any equipment procurement, the Treasurer's office should consider property available from the State and Federal Surplus Warehouses that are under the jurisdiction of CMS.

 

b)         State Agencies and Other Governmental Units

Various goods and services are available from State agencies and other governmental units.  These may be procured without notice and competition.

 

c)         Auction

Purchases may be made at an auction in accordance with the procedural requirements applicable to the particular auction.  Notice and competition is not required and the amount payable will be the amount bid and accepted plus any required buyer's premium.

 

d)         Donations

With approval of the Chief Procurement Officer, if the Treasurer's office receives a donation that provides the majority of the funding for a particular project, it may follow any procurement or contracting requirements established as a condition of the donation, but must follow this Part whenever practicable.

 

e)         Broker Method for Obtaining Certain Insurance Coverages

 

1)         Notwithstanding anything to the contrary in this Part, the Chief Procurement Officer, may, on a case-by-case basis, use this broker method to obtain insurance coverages when use of the methods of source selection set forth in Article 20 of the Code is not practicable or advantageous because, for example:

 

A)        Due to the structure of the insurance industry, the types of insurance coverages needed cannot reasonably be obtained from "direct writers" who would provide quotes directly to the Treasurer's office in a bid or RFP process; or

 

B)        The process of obtaining quotes for needed insurance coverages cannot be accomplished within the normal procurement timeframes.

 

2)         If the Chief Procurement Officer determines that this broker method is preferable for designated coverages, a two-part procurement process will be used to obtain the coverages.

 

A)        A broker will be selected in accordance with the RFP process authorized by Section 20-15 of the Code, and the resulting contract will be subject to all requirements of the Code.  The broker contract will be issued for a term of years, and during the term of the contract the broker will assist the State agency in obtaining coverages as set forth in subsection (e)(2)(B) as well as providing customary services such as issuing certificates of insurance and servicing policies.

 

B)        The broker will assist the Treasurer's office by serving as broker of record in obtaining insurance coverages through the industry process of going to market to obtain quotes.  The Treasurer's office will use an evaluation team to test the market for competitiveness, review the quotes, and select the insurers and products best fitting its needs.  The solicitation, evaluation and selection process will be documented in writing and become a part of the public procurement file.  The insurance coverages obtained, the term of coverage, and the premiums charged will be posted as attachments to the broker award notice.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

SUBPART E: GENERAL PROCUREMENT GUIDELINES

 

Section 1400.2505  General Provisions

 

a)         Late Bids, Proposals, Responses, Withdrawals and Modifications

 

1)         Definition.  Any bid, proposal or response received after the time, date and place set for receipt is late.  Any withdrawal or modification of a bid, proposal or response received after the time and date set for opening of bids, proposals or responses at the place designated for opening is late.

 

2)         Treatment.  No late bid, proposal or response, modification or withdrawal will be considered unless it is received before contract award, and the bid, proposal, response, modification or withdrawal would have been timely but for the action or inaction of Treasurer's office personnel.

 

3)         Records.  Records must be made and kept for each late bid proposal, response, modification, or withdrawal.

 

4)         Any other submission that has a time or date deadline must be treated in the same manner as a late bid, proposal or response.

 

b)         Extension of Time

 

1)         The Chief Procurement Officer may extend the date or time for submitting a bid, proposal, response, modification or withdrawal prior to the opening of bids, proposals, responses, modifications or withdrawals for the convenience of the Treasurer's office.

 

2)         After opening bids, proposals, or responses the Chief Procurement Officer may request that the offerors extend the time during which the State may accept their bids, proposals or responses if, with regard to bids, no other change is permitted.  The reasons for requesting the extension must be documented.

 

c)         Electronic Submissions

 

1)         The Invitation for Bids, Request for Proposals, or Request for Information may state that electronic submissions will be considered if they are received at the designated office by the time and date set for receipt. Any required attachments will be submitted as stated in the Invitation for Bids, Request for Proposals or Request for Information.

 

2)         Electronic submissions will be opened in accordance with electronic security measures in effect at the time of opening.  Unless the electronic submission procedures provide for a secure receipt, the vendors assume the risk of premature disclosure due to submission in unsealed form.

 

d)         Intent to Submit

The Invitation for Bids, Request for Proposals or Request for Information may require that vendors submit, by a certain time and date, a notice of their intent to submit a bid, proposal or response.  Bids, proposals and responses submitted without complying with the notice of intent requirement will be rejected.

 

e)         Only One Bid, Proposal or Response Received

If only one responsive bid, proposal or response is received, an award may be made to the single offeror if the Chief Procurement Officer finds that the proposal and price submitted is fair and reasonable, and that either other prospective offerors had a reasonable opportunity to respond or there is not adequate time for resolicitation.  Otherwise:

 

1)         new bids, proposals or responses may be solicited;

 

2)         the procurement may be cancelled; or

 

3)         if the Chief Procurement Officer determines in writing that the need for the supply or service continues, but that, after attempting to negotiate a better price, the one offer is not fair and reasonable and there is no time for resolicitation, the vendor is not responsible, or resolicitation would likely be futile, the procurement may be conducted with any vendor as a sole source procurement under Section 1400.2025 or as an emergency procurement under Section 1400.2030, as appropriate.

 

f)         Unsolicited Offers

 

1)         Defined.  An unsolicited offer is any offer other than one submitted in response to a solicitation.

 

2)         Conditions for Consideration.  An unsolicited offer must be in writing and must be sufficiently detailed to allow a judgment to be made concerning the potential utility of the offer to the State.

 

3)         Evaluation.  The unsolicited offer will be evaluated to determine its utility to the State and whether it would be to the State's advantage to enter into a contract based on the offer.  An unsolicited offer that meets the requirements of subsection (f)(2) may be considered for award if the procurement also meets the requirements of Section 1400.2020 for small purchases or Section 1400.2025 for sole source procurements, in which case those procedures must be followed as applicable.

 

4)         Confidentiality.  Any request for confidentiality of data contained in an unsolicited offer must be made in writing.  If an award is made, confidentiality of data must be agreed upon by the parties and governed by the provisions of the contract.  If agreement cannot be reached on confidentiality, the Chief Procurement Officer shall reject the unsolicited offer.

 

g)         Clarification of Bids, Proposals and Responses

The Chief Procurement Officer may request that a vendor clarify its bid, proposal or response as a part of the evaluation process.  A vendor is not allowed to change its bid, proposal or response in response to a request for clarification without the written approval of the Chief Procurement Officer.

 

h)         Extension of Time on Indefinite Quantity Contracts

The time of performance of an indefinite quantity contract may be extended upon agreement of the parties, provided the extension is for 90 days or less and the Chief Procurement Officer determines in writing that it is not practicable to award another contract at the time of the extension.

 

i)          Increase in Quantity on Definite Quantity Contracts

The quantity that may be ordered from a definite quantity contract may be increased by up to 20% provided the Chief Procurement Officer determines that separate procurement of the additional quantity is not likely to achieve lower pricing.  The quantity may be increased by any percentage provided the dollar value of the increase does not exceed the small purchase threshold applicable to the type of good or service.

 

j)          Novation or Change of Name

 

1)         Assignment.  No State contract is transferable, or otherwise assignable, without the written consent of the Chief Procurement Officer, but a vendor may assign monies receivable under a contract after due notice to the State.  Assignment may require the execution of a contract with the assignee that meets all requirements for contracting with the State.

 

2)         Recognition of a Successor in Interest; Novation.  When in the best interest of the State, a successor in interest may be recognized in a novation agreement in which the transferor and the transferee must agree that:

 

A)        the transferee assumes all of the transferor's obligations;

 

B)        the transferee meets all requirements for contracting with the State;

 

C)        the transferor waives all rights under the contract as against the State; and

 

D)        unless the transferor guarantees performance of the contract by the transferee, the transferee shall, if required by the State, furnish a satisfactory performance bond.

 

3)         Change of Name.  When a vendor requests to change the name in which it holds a contract with the State, the Chief Procurement Officer shall, upon receipt of a document indicating the change of name, enter into an agreement with the requesting vendor to effect the change of name.  The agreement changing the name must specifically indicate that no other terms and conditions of the contract are changed.

 

k)         Contracting for Installment Purchase Payments, Including Interest

Contracts may provide for installment purchase payments, including interest charges, over a period of time.  The interest rate shall not exceed that established by law.

 

l)          Information Exempt from Disclosure under FOIA

 

1)         Vendors must clearly identify in writing any information submitted to the Treasurer's office claimed to be exempt from the disclosure requirement of the Illinois Freedom of Information Act (FOIA) [5 ILCS 140] and must identify the basis of the claimed exemption and show how that basis applies to the request for exemption.  Information submitted without a claim of exemption may be disclosed to the public without notice or permission.  Information submitted with a claimed exemption may still be disclosed to the public if determined by the Treasurer's office, or other appropriate party, that the claimed exemption does not meet the requirements for withholding the information under FOIA.  The Treasurer's office may, in its discretion, attempt to provide to the vendor reasonable notice and opportunity to object prior to disclosure of any material claimed by the vendor to be exempt from FOIA.

 

2)         The CPO may request that bidders, offerors and other respondents provide an additional copy of their bid, offer or response that omits or redacts information claimed to be exempt under FOIA.  This copy may be used to respond to FOIA requests for a copy of the respective bid, offer or response.

 

3)         To the extent that these public records are exempt under Section 7 of FOIA, and only until an award or final selection is made, proposals and bids for any contract, grant, or agreement, including information which if it were disclosed would frustrate procurement or give an advantage to any person proposing to enter into a contractor agreement with the Treasurer along with information prepared by or for the Treasurer in preparation of a bid solicitation shall be available only to persons necessary to the procurement process. [5 ILCS 140/7(h)]  Subsequent to an award or final selection such public records shall be made available for inspection or copying upon request to the extent required by FOIA.

 

m)        Bidder or Offeror Authorized to Transact Business or Conduct Affairs or Do Business in Illinois

In addition to meeting any other requirement of law or rule, a person (other than an individual acting as a sole proprietor) may qualify as a bidder or offeror under this Part only if the person is a legal entity prior to submitting the bid, offer, or proposal. The legal entity must be authorized to transact business or conduct affairs in Illinois prior to execution of the contract.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.2510  Tie Bids and Proposals

 

a)         Tie bids and proposals are those from responsive and responsible vendors that are identical in price or terms of the proposal.

 

b)         Tie bids and proposals are treated as follows:

 

1)         If the tied vendors include an Illinois resident vendor and a nonresident vendor, the Illinois resident vendor will be given the award if all the conditions for a resident vendor preference in Section 1400.4510 are met.  "Illinois resident vendor" has the meaning given in Section 1400.4510.  In all other situations, the decision is made in accordance with subsections (b)(2) through (b)(5).

 

2)         If there is a significant difference in responsibility (including ability to provide the service or deliver in the quantity and at the time required), the award is made to the vendor who is deemed to be the most responsible.  A vendor who has had experience in contracting with the State may be given additional consideration in determining responsibility if the Chief Procurement Officer determines that dealing with a vendor that has knowledge of State requirements, contracts, job sites, payment practices and other similar factors, and with which there has been favorable past experience, increases the likelihood of successful performance.

 

3)         If there is no significant difference in responsibility, but there is a difference in the quality of the goods or services offered, the vendor offering the best quality is accepted.

 

4)         If there is no significant difference in responsibility and no difference in quality of the goods or services offered, the vendor offering the earliest delivery time is accepted in any case in which the solicitation specified that the needs of the Treasurer's office require as early delivery as possible.

 

5)         If the bids or proposals are equal in every respect, the award is made by lot unless the Chief Procurement Officer determines that splitting the award among two or more of the tied bidders or proposers is in the best interest of the State.  Awards may be split if all affected bidders or proposers agree, if splitting is feasible given the type of good or service requested, if overall pricing would not increase, if delivery would be better ensured, or if necessary or desirable to promote future competition.

 

c)         Record

 

1)         Records must be made of all procurements on which tie bids or proposals are received and must be published as provided in Section 1400.1505, showing at least the following information:

 

A)        the identification number of the solicitation;

 

B)        the good or service; and

 

C)        a listing of all the bidders or proposers and the prices submitted.

 

2)         The records must be made part of the procurement file.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.2515  Correction or Withdrawal of Proposals

 

a)         General

Corrections to bids, proposals or responses are allowed, but only to the extent correction is not prejudicial to the interest of the State or fair competition as determined by the Chief Procurement Officer. Withdrawals of proposals are allowed as provided in this Section.

 

b)         Mistakes Discovered Before Opening

A vendor may correct mistakes discovered before the time and date set for opening by withdrawing or correcting as provided in this Section.

 

c)         Confirmation of Mistake

When the Chief Procurement Officer knows or has reason to conclude that a mistake has been made, the officer should request the vendor to confirm the information.  Situations in which confirmation should be requested include obvious or apparent errors on the face of the document or a price unreasonably lower than the others submitted.  If the vendor alleges a mistake in the bid, proposal or response, it may be corrected or withdrawn if the conditions in this Section, as applicable, are met.

 

d)         Mistakes Discovered After Opening but Before Award

 

1)         Minor Mistakes.  A minor mistake is one that is a matter of form or pertains to some immaterial or inconsequential defect or variation of a bid, proposal or response from the exact requirement of the solicitation, the correction or waiver of which would not be prejudicial to the State. The Chief Procurement Officer shall waive minor mistakes or allow the offeror to correct them depending on which is in the best interest of the State.  Minor mistakes include insignificant mistakes where the effect on price, quantity, quality, delivery or contractual conditions is negligible. Examples of minor mistakes as to form include the failure of an offeror to:

 

A)        return the number of signed bids, proposals or responses required by the solicitation;

 

B)        sign the bid, proposal or response, but only if the unsigned bid, proposal or response is accompanied by other material indicating the offeror's intent to be bound, including but not limited to signature on an auxiliary form, submission of a guarantee or submission of a signed transmittal letter; or

 

C)        acknowledge receipt of an amendment to the solicitation, but only if:

 

i)          it is clear from the bid, proposal or response that the offeror received the amendment and intended to be bound by its terms; or

 

ii)         the amendment involved had a negligible effect on price, quantity, quality or delivery.

 

2)         Corrections of Mistakes.  If discussions are not held or if the best and final offers upon which award will be made have been received, mistakes may be corrected and the intended correct offer considered only if:

 

A)        the mistake and the intended correct offer are clearly evident on the face of the bid, proposal or response, in which event the offer may not be withdrawn; or

 

B)        the mistake is not clearly evident on the face of the bid, proposal or response, but the offeror submits adequate proof that clearly and convincingly demonstrates both the existence of a mistake and the intended correct offer, and that correcting the mistake would not be contrary to the fair and equal treatment of other offerors.

 

3)         Withdrawal of Bids, Proposals or Responses.  If discussions are not held, or if the best and final offers upon which award will be made have been received, the offeror may be permitted to withdraw the bid, proposal or response if:

 

A)        the mistake is clearly evident on the face of the proposal and the intended correct offer is not;

 

B)        the offeror submits proof of evidentiary value that clearly and convincingly demonstrates that a mistake was made but does not demonstrate the intended correct offer; or

 

C)        the offeror submits adequate proof that clearly and convincingly demonstrates the intended offer, but to allow corrections would be contrary to the fair and equal treatment of other offerors.

 

e)         Determinations Required

When a proposal is corrected or withdrawn, or correction or withdrawal is denied, the Chief Procurement Officer shall prepare a written determination documenting that relief was granted or denied in accordance with this Part. The requirement of this subsection to prepare a written determination shall not apply to "minor mistakes" as defined in subsection (d)(1).

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.2520  Cancellation of Solicitations and Rejection of Offers

 

a)         Policy

Any solicitation may be cancelled without penalty, and any or all bids, proposals or responses may be rejected in whole or in part, when the Chief Procurement Officer determines in writing that cancellation is in the State's best interest.

 

b)         Notice, Publication and Documentation

When a solicitation is cancelled or the offers are rejected, notice of the cancellation or rejection will be promptly provided to all affected vendors, published as provided in Section 1400.1505, and made part of the procurement file.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.2525  Multiple Awards

 

a)         Policy

When determined by the Chief Procurement Officer to be in the best interest of the State, the Treasurer's office may make multiple awards under any solicitation. 

 

b)         Specific Goods and Services Following Multiple Awards

Subject to this subsection, specific goods and services may be purchased following multiple awards:

 

1)         When the solicitation identified the specific good or service sought but led to multiple awardees, the specific good or service may be procured from the lowest bidder or best qualified proposer with whom relevant terms can be successfully negotiated.

 

2)         When the solicitation did not list the specific good or service sought but led to multiple awards to vendors similarly qualified to provide the good or service, the specific good or service may be purchased from one of the multiple awardees; provided, however, that for the purchase of that good or service:

 

A)        the Chief Procurement Officer shall maximize competition among the multiple awardees; 

 

B)        the determination shall allow for additional competition when the original solicitation produced insufficient information on the awardees' pricing for, or abilities to provide, the specific good or service sought; and

 

C)        following any such competition, the Chief Procurement Officer shall award to the lowest bidder or best qualified proposer with whom relevant terms can be successfully negotiated.

 

(Source:  Added at 43 Ill. Reg. 2275, effective January 31, 2019)

SUBPART F: SPECIFICATIONS AND SECURITY REQUIREMENTS

 

Section 1400.3005  Specifications

 

a)         The Chief Procurement Officer shall write or authorize the writing of all specifications.  

 

b)         Specifications Prepared by Other Than State Personnel

 

1)         Specifications may be prepared by other than Treasurer's office personnel, including, but not limited to, consultants, architects, engineers, designers and other drafters of specifications for public contracts.  Contracts for the preparation of specifications by other than State personnel must require the specification writer to adhere to State requirements.

 

2)         The person who prepared the specifications may not submit a bid or proposal to meet the procurement need unless the Chief Procurement Officer determines in writing that it would be in the best interest to accept a bid or proposal from that person and a notice to that effect is published as provided in Section 1400.1505.

 

3)         Non-Prohibited Acts

This Section does not prohibit a person or business from submitting a bid or proposal or entering into a contract if the person or business:

 

A)        Initiated a communication with an employee of the State to provide general information about industry trends and innovations, products, services or industry best practices.

 

B)        Responded to a communication initiated by an employee of the State for the purposes of providing information to evaluate new products, services or technologies.

 

C)        Received or possessed written material obtained from a State employee from public sources, such as through an internet search, or literature packets obtained in conjunction with an event such as a trade show.

 

D)        Provided, at the request of the State, general marketing material or makes a general sales presentation to show the person's qualifications or product capabilities.  Material may be personalized for the procuring agency provided any personalization is obtained from publicly available sources.

 

E)        Provided technology supplies or services demonstrated to the State that represent industry trends and innovation and is not specifically tailored to meet the State's needs.

 

4)         Prohibited Acts

 

A)        Specifications.  A person or business may not submit specifications to the Treasurer's office unless requested to by a State employee. With the exception of standard specifications that a vendor makes available to any potential purchaser, the Chief Procurement Officer or his or her designee must approve a Treasurer's office employee's request for specifications for a particular transaction.

 

B)        Assistance to State Employees.  A person or business is prohibited from bidding on a solicitation and from having a contract or subcontract if the person or business assisted a Treasurer's office employee who, by the nature of his or her duties, has the authority to participate personally and substantially in the decision to award a State contract.  Assistance to a Treasurer's office employee may include any of the following:

 

i)          Draft (writes or assists the State with writing all or part of the procurement document);

 

ii)         Review (reads the document or comments on the procurement document or signified approval or disapproval);

 

iii)        Direct (any activity relating to giving instructions or commands or in supervising or overseeing the preparation of the procurement document);

 

iv)        Prepare (any activity relating to organizing or distributing the documents, including through the Treasurer's website); or

 

v)         Provides similar assistance, e.g., conducting research or providing any advice used in drafting, reviewing, directing or preparing procurement documents.

 

C)        A person (and its affiliated or related entities) that contracts with the Treasurer's office to write specifications for a particular procurement may not submit a bid or proposal or receive a contract or subcontract for that procurement.

 

5)         Exceptions.  Any person or business who responds to an advertised request for information or other publicly available opportunity to provide information related to the procurement need or to review drafts of all or part of proposed procurement documents shall not be disqualified by virtue of responding to the State's publicly advertised request.

 

c)         Procedures for the Development of Specifications

 

1)         All procurements must be based on specifications that accurately reflect the State's needs.  Specifications must clearly and precisely describe the salient technical or performance requirements.

 

2)         Specifications must not include restrictions that do not significantly affect the technical requirements or performance requirements, or other legitimate State needs.  All specifications must be written in a manner that describes the requirements to be met, without having the effect of exclusively requiring a proprietary supply or service, or procurement from a sole source, unless no other manner of description will suffice.

 

3)         Any specifications or standards adopted by business, industry, a not-for-profit organization or governmental unit may be adopted by reference.

 

4)         A specification may provide alternate descriptions when two or more design, functional or performance criteria will satisfactorily meet the State's requirements.

 

d)         Brand Name or Equal Specification

 

1)         Brand name or equal specifications may be used when the Chief Procurement Officer determines in writing that:

 

A)        time does not permit the preparation of another form of specification, not including a brand name specification;

 

B)        the nature of the product or the nature of the requirement makes use of a brand name or equal specification suitable for the procurement; or

 

C)        use of a brand name or equal specification is in the State's best interest.

 

2)         Brand name or equal specifications must seek to designate more than one brand as "or equal", and must further state that substantially equivalent products to those designated will be considered for award.

 

3)         Required Characteristics.  Unless the Chief Procurement Officer determines that the essential characteristics of the brand names included in the specifications are commonly known in the industry or trade, brand name or equal specifications must include a description of the particular design, functional or performance characteristics that are required.

 

4)         Nonrestrictive Use of Brand Name or Equal Specifications.  When a brand name or equal specification is used in a solicitation, the solicitation must contain explanatory language that the use of a brand name is for the purpose of describing the standard of quality, performance and characteristics desired and is not intended to limit or restrict competition.  "Or equal" submissions will not be rejected because of minor differences in design, construction or features that do not affect the suitability of the product for its intended use.  The burden of proof that a product is equal is on the offeror.

 

e)         Brand Name Only Specification

 

1)         Use.  A brand name only specification may be used only when the Chief Procurement Officer makes a written determination that is made part of the procurement file that only the identified brand name item or items will satisfy the State's needs.  Brand name alone may be specified in order to ensure compatibility in existing systems, to preserve warranty, to ensure maintenance, or as authorized in writing by the Chief Procurement Officer.  The Chief Procurement Officer may, pursuant to an authorized competitive procedure, select a particular vendor to provide supplies or services for a specified period of time.  For that period, the supplier of additional, related and updated supplies and services may be limited to the selected vendor or the brand initially selected.

 

2)         Competition.  The Chief Procurement Officer shall seek to identify sources from which the designated brand name item or items can be obtained and shall solicit those sources to achieve whatever degree of competition is practicable.  If only one source can supply the requirement, the procurement must be made as a sole source procurement.

 

3)         Small and Emergency Procurements.  Brand name only specifications may be used when procuring items under Sections 1400.2020 (small purchases) and 1400.2030 (emergency procurements).

 

f)         Pre-Solicitation Request for Information

When the Chief Procurement Officer does not have sufficient information about available supplies or services to issue a solicitation, the officer may issue a pre-solicitation request for information inviting vendors to submit non-price information about the availability of specified types of supplies and services.  Vendors may be provided an opportunity to comment on the RFI itself and make suggestions as to the scope and information being requested that would facilitate the best possible responses from the vendor community.  Public notice of the pre-solicitation request for information shall be published at least 14 days before the date set for the receipt of information. The submission of information by a vendor in response to a pre-solicitation request for information is not a prerequisite for that vendor to respond to a subsequent solicitation for the types of supplies and services for which information was solicited, and the issuance of a pre-solicitation request for information does not commit the Treasurer's office to make any procurement of supplies or services of any kind.  The Treasurer's office may, consistent with Section 1400.2505(l), require that vendors responding to the RFI clearly identify any confidential information and may require vendors submit an additional copy of their bid, offer or response that omits or redacts information claimed to be exempt under FOIA.  All other information received through a pre-solicitation request for information will be available for public review.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.3010  Security Requirements

 

a)         The Chief Procurement Officer may require that a vendor furnish bid, proposal, or performance security on any contract.

 

b)         Security, unless otherwise specified, may be in the form of cashier's check, certified check, money order, irrevocable letter of credit, or bond. Any bond must be issued by a surety company authorized to do business in the State of Illinois.

 

c)         Unless the amount is set by law, the Chief Procurement Officer shall determine the amount, in dollars or percentage of contract price, that adequately protects the State's interests.

 

d)         A vendor may be required to furnish up to 100% performance security at any time during contract performance and at its cost, if it appears that delivery or production schedules cannot be met, quality is poor, responsibility is questioned and for other similar reasons.

 

e)         The Treasurer's office may require a bid or proposal security or a performance security on any contract.

 

f)         A vendor may submit a single or continuous security each year that will be applicable on all contracts of the Treasurer's office.  When a security is obligated in an amount equal to the sum of accumulated security requirements, additional security must be submitted for any new contract awarded.

 

g)         Bid or proposal security will be returned to unsuccessful vendors as soon after award as possible.  The bid or proposal security of the successful vendor will be returned after contracts have been signed and performance security, if any, submitted.  Performance security will be returned upon full performance.

SUBPART G: CONTRACTS

 

Section 1400.3505  Types of Contracts

 

a)         General

The Chief Legal Counsel shall determine the general form of all contracts. Subject to the limitations of this Section, the Chief Legal Counsel may use any type of contract that promotes the best interest of the State.

 

b)         Prohibitions and Limitation

Cost-plus-a-percentage-of-cost contracts are prohibited.  Cost-reimbursement contracts may only be used when the Chief Procurement Officer makes a written determination that a cost-reimbursement contract is likely to be less costly to the State than any other type or that it is impracticable to obtain the item except under that type of contract.

 

Section 1400.3510  Duration of Contracts

 

a)         General

 

1)         A multi-year contract for a term up to 10 years is authorized when it is in the best interest of the State.

 

2)         A license agreement or other agreement may have a term longer than 10 years, including a perpetual term, provided the payment term is limited to no more than 10 years.

 

b)         Each contract is contingent upon and subject to the availability of funds. The Treasurer, at his or her sole option, may terminate or suspend a contract, in whole or in part, without penalty or further payment being required, if the Illinois General Assembly or the federal funding source fails to make an appropriation sufficient to pay that obligation or if funds needed are insufficient for any reason. Each contract payable in whole or in part by any funds appropriated by the Illinois General Assembly shall recite that the contract is subject to termination and cancellation for lack of, or insufficiency in, funding. A vendor will be notified in writing by the Chief Procurement Officer of a failure to receive or a reduction or decrease in any appropriation affecting the contract.  This provision applies to only those contracts that are funded in whole or in part by funds appropriated by the Illinois General Assembly or other governmental entity.

 

c)         Conditions for Use of Multi-year Contracts

A multi-year contract may be used when:

 

1)         special production of definite quantities or the furnishing of long-term services are required to meet State needs; or

 

2)         it is determined by the Chief Procurement Officer that a multi-year contract will serve the best interest of the State by encouraging effective competition or otherwise promoting economies in State procurement.  The following factors must be considered by the Chief Procurement Officer before making the determination:

 

A)        firms that are not willing or able to compete because of high start-up costs or capital investment in facility expansion and will be encouraged to participate in the competition when they are assured of recouping the costs during the period of contract performance;

 

B)        lower production costs because of larger quantity of service requirements, and substantial continuity of production or performance over a longer period of time, can be expected to result in lower unit prices;

 

C)        stabilization of the contractor's work force over a longer period of time may promote economy and consistent quality; or

 

D)        the cost and burden of contract solicitation, award, and administration of the procurement may be reduced.

 

d)         Multi-year Contract Procedure

The solicitation must state:

 

1)         the proposed term;

 

2)         the amount of supplies or services required for the proposed contract period;

 

3)         whether offerors may submit prices for:

 

A)        the first fiscal period only;

 

B)        the entire time of performance only; or

 

C)        both the first fiscal period and the entire time of performance.

 

4)         that a multi-year contract may be awarded and how award will be determined.

 

e)         Renewals

 

1)         When the original procurement specifically called for an initial term plus renewals, the renewals may be exercised without further procurement activity, provided that both:  the initial term and the exercised renewals may not exceed 10 years and is by mutual agreement or the option is reserved solely to the State.

 

2)         When the original procurement was silent as to renewals, a renewal without a new procurement must meet the requirements of Section 1400.2020 (small), 1400.2025 (sole source) or 1400.2030 (emergency) procurements.

 

3)         When a renewal will result in the total term, counting the initial term and any previous renewals, to exceed 10 years, the renewal must be procured using one of the methods of source selection authorized by this Part.  This renewal will start a new term that shall not exceed 10 years.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.3515  Contract Pricing

 

Unless otherwise allowed by the solicitation, prices quoted will be all-inclusive covering transportation, transit insurance, delivery, installation, taxes, and any other costs.

 

Section 1400.3520  Contract Provisions

 

a)         Mandatory Provisions

The following provisions are required for all contracts entered into by the Treasurer's office, in addition to the requirements of State and federal law and the regulations of the Office of the Comptroller:

 

1)         Subcontractors.  Any contract granted hereunder must state whether the services of a subcontractor will be used.  The contract must require the disclosure in writing of the names and address of each subcontractor having a subcontract with an annual value of more than $50,000, the general type of work to be performed by each subcontractor, and the expected amount of money each will receive under the contract.  The contractor will be required to get approval from the Chief Procurement Officer prior to adding or changing subcontractors.  A subcontractor, or contractor on behalf of a subcontractor, may identify information that is deemed proprietary or confidential. If the Chief Procurement Officer determines the information is not relevant to the primary contract, the Chief Procurement Officer may excuse the inclusion of the information. If the Chief Procurement Officer determines the information is proprietary or could harm the business interest of the subcontractor, the Chief Procurement Officer may, in his or her discretion, redact the information. Redacted information shall not become part of the public record. [30 ILCS 500/20-120(a)]

 

2)         Subject to Appropriation.  All leases must recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.

 

3)         Right to Audit Books and Records

 

A)        Maintenance of books and records.  Every contract and subcontract shall require the contractor or subcontractor, as applicable, to maintain books and records relating to the performance of the contract or subcontract and necessary to support amounts charged to the State under the contract or subcontract.  The books and records shall be maintained by the contractor or subcontractor for a period of at least 3 years from the later of the date of final payment under the contract or completion of the contract or subcontract and thatperiod shall be extended for the duration of any audit in progress at the time of that period's expiration. [30 ILCS 500/20-65(a)]

 

B)        Audit.  Every contract and subcontract shall provide that all books and records required to be maintained under subsection (a) shall be available for review and audit by the Auditor General and the Treasurer's office.  Every contract and subcontract shall require the contractor and subcontractor, as applicable, to cooperate fully with any audit. [30 ILCS 500/20-65(b)]

 

b)         Optional Provision

Any contract entered into by the Treasurer's office under this Part may contain a clause requiring that if more favorable terms are granted by the contractor to any similar governmental agency in any state in a contemporaneous agreement let under the same or similar financial terms and circumstances for comparable supplies or services, the more favorable terms shall be applicable under the contract. [30 ILCS 500/25-30]

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.3525  Prevailing Wage Requirements

 

a)         Applicability

All services, as defined in subsection (b), furnished under service contracts of $2,000 or more or $200 or more per month and under printing contracts are subject to the following prevailing wage requirements:

 

1)         Not less than the general prevailing wage rate of hourly wages for work of a similar character in the locality in which the work is produced shall be paid by the successful vendor to its employees who perform the work on the State contracts. 

 

2)         The offeror, in order to be considered to be a responsible offeror for the purposes of this Part, shall certify to the Treasurer's office that wages to be paid to its employees are no less, and fringe benefits and working conditions of employees are not less favorable, than those prevailing in the locality where the contract is to be performed. 

 

3)         Prevailing wages and working conditions shall be determined by the Director of the Illinois Department of Labor. [30 ILCS 500/25-60]

 

b)         As used in this Section, "services" means janitorial cleaning services, window cleaning services, building and grounds services, site technician services, natural resources services, food services, and security services.  "Printing" means and includes all processes and operations involved in printing, including but not limited to letterpress, offset, and gravure processes, the multilith method, photographic or other duplicating process, the operations of composition, platemaking, presswork, and binding, and the end products of those processes, methods, and operations.  As used in this Part "printing" does not include photocopiers used in the course of normal business activities, photographic equipment used for geographic mapping, or printed matter that is commonly available to the general public from contractor inventory. [30 ILCS 500/25-60(b)]

 

c)         For printing contracts, "locality" means one of the following areas:

 

1)         Cook County.

 

2)         Boone, Bureau, Carroll, Champaign, DeKalb, DeWitt, DuPage, Ford, Fulton, Grundy, Hancock, Henderson, Henry, Iroquois, Jo Daviess, Kane, Kankakee, Kendall, Knox, Lake, LaSalle, Lee, Livingston, Logan, Marshall, Mason, McDonough, McHenry, McLean, Mercer, Ogle, Peoria, Piatt, Putnam, Rock Island, Schuyler, Stark, Stephenson, Tazewell, Vermilion, Warren, Whiteside, Will, Winnebago, Woodford.

 

3)         Adams, Alexander, Bond, Brown, Calhoun, Cass, Christian, Clark, Clay, Clinton, Coles, Crawford, Cumberland, Douglas, Edgar, Edwards, Effingham, Fayette, Franklin, Gallatin, Greene, Hamilton, Hardin, Jackson, Jasper, Jefferson, Jersey, Johnson, Lawrence, Macon, Macoupin, Madison, Marion, Massac, Menard, Monroe, Montgomery, Morgan, Moultrie, Perry, Pike, Pope, Pulaski, Randolph, Richland, Saline, Sangamon, Scott, Shelby, St. Clair, Union, Wabash, Washington, Wayne, White, Williamson.

 

4)         When the printing is performed in a plant outside the jurisdiction of this State, it is deemed produced in the Illinois locality in which delivery of the printing ordered is required to be made.  When the printing is required to be delivered to more than one Illinois locality, it is deemed produced in the Illinois locality to which the largest dollar volume of printing under the contract is to be delivered.

 

d)         For janitorial services, window washing, building and grounds services, site technician services, natural resources services, and security guard services, location means the county in which the work is to be performed.

 

e)         This Section does not apply to services furnished under contracts for professional or artistic services. [30 ILCS 500/25-60(e)]

 

f)         This Section does not apply to vocational programs of training for physically or mentally handicapped persons or to sheltered workshops for the severely disabled. [30 ILCS 500/25-60(f)]

 

g)         The Prevailing Wage Act [820 ILCS 130] shall apply to any construction contract procured under this Part.  It is the policy of the Treasurer's office that a wage of no less than the general prevailing hourly rate as paid for work of a similar character in the locality in which the work is performed, shall be paid to all laborers, workers and mechanics employed by or on behalf of the Treasurer's office. [820 ILCS 130/1]  Construction contracts shall include a provision notifying the vendor that the contract is subject to the Prevailing Wage Act unless the provisions of that Act exempt its application.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

SUBPART H: DISPUTES, PROTESTS AND CONTROVERSIES

 

Section 1400.4005  Disputes and Protests Regarding Solicitations and Awards

 

a)         Procedures

Any person may submit a written protest related to the notice of the procurement, the solicitation document, any pre-bid/proposal meeting and any decision to reject a late bid or proposal.  Any person who has submitted a bid or proposal may submit a written protest to a decision to reject the person's bid or proposal or to award to another person.  In regard to the solicitation notice or solicitation document, including specifications, a protest must be received within 14 calendar days after the date the solicitation was posted to the Treasurer's Web Site and must be received by the Chief Procurement Officer before the date for opening bids or proposals.  In regard to rejection of individual bids or proposals or awards, the protest must be received by close of business no later than 14 calendar days after the protesting party knows, or should have known, of the facts giving rise to the protest to ensure consideration and, in any event, must be received before execution of the applicable contract.  Any notice posted to the Treasurer's Web Site establishes the "known or should have known" date for the subject matter of the notice. The protesting party may be required to provide additional information to the Treasurer's office in order to process the dispute or protest.  If the Chief Procurement Officer is unable to resolve the issue in a timely manner, then it will be referred to the Procurement Review Board for a final determination that will be communicated to the protesting party involved in the dispute or protest and made part of the procurement file within 7 days after the referral by the Chief Procurement Officer.

 

b)         Procurement Delays

The investigation of a dispute or protest may cause a delay in the procurement process if deemed necessary by the Chief Procurement Officer.  If an action concerning the protest has commenced in court, the Chief Procurement Officer will not act on the protest but will refer the protest to the Attorney General, unless the court requests, expects, or otherwise expresses interest in the decision of the Chief Procurement Officer.

 

c)         Stay or Withdrawal of Award

An award may be stayed or withdrawn by the Chief Procurement Officer if the Procurement Review Board reaches a determination that to do so is necessary in fairness to the other offerors and to protect the interests of the State.

 

d)         Finality of Determinations

Except as otherwise provided in this Part, determinations made by the Chief Procurement Officer under this Part are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law. [30 ILCS 500/20-70]

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.4010  Contract Controversies

 

Contract controversies must be promptly referred to the Chief Procurement Officer for resolution.  If the Chief Procurement Officer is unable to resolve the controversy, the controversy will be referred to the Chief Legal Counsel who will attempt to resolve the matter.  If the Chief Legal Counsel is unable to resolve the matter satisfactorily, and believes that litigation is probable or desirable, he or she may request the Attorney General's assistance in resolving the dispute.  

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.4015  Remedies

 

a)         In all of the following cases the Chief Procurement Officer may, with the approval of the Treasurer and subject to the determination of the Chief Legal Counsel under subsection (b), terminate or rescind any contract entered into under this Part in the event:

 

1)         The successful bidder or proposer fails to furnish a satisfactory performance or performance bond within the time specified.

 

2)         The vendor fails to make delivery at the place or within the time specified in the contract or as ordered.

 

3)         Any goods or services provided under the contract are:

 

A)        rejected (for not meeting the specification, not conforming to sample, or not being in good condition when delivered) and are not promptly replaced or corrected by the vendor; or

 

B)        repeatedly rejected, even though the vendor offers to replace or correct the goods or services promptly.

 

4)         There is sufficient evidence to show that the contract was obtained by fraud, collusion, conspiracy or other unlawful means.

 

5)         The vendor is guilty of misrepresentation in connection with another contract for the sale of goods or services to the State.

 

6)         The vendor is insolvent, is the subject of a bankruptcy filing, is adjudged bankrupt, or enters into a general assignment for the benefit of his or her creditors or receivership due to insolvency.

 

7)         The vendor disregards laws and ordinances, rules or instructions of a contracting officer or acts in violation of any provision of the contract or this Part, or the contract conflicts with any statutory or constitutional provision of the State of Illinois or of the United States.

 

8)         Any other material breach of contract or other unlawful act by the vendor occurs.

 

b)         Determination of Right to Terminate or Rescind Contract

The Chief Legal Counsel shall determine in writing that a violation listed in subsection (a) has occurred prior to the termination or rescission of a contract under this Section.

 

c)         Contracts that are terminated under this Section will be terminated at no cost to the State.

 

d)         Withholding Money to Compensate State for Damages

If a contract is terminated or rescinded under this Section, the State may deduct from whatever is owed the vendor on that or any other contract an amount sufficient to compensate the State of Illinois for any damages suffered by it because of the vendor's breach of contract or other unlawful act on his or her part on which the cancellation is based.

 

e)         Damages

The damages for which the State shall, if requested by the State, be compensated as provided in this Section or by a suit on the vendor's performance bond or by other legal remedy include, but are not limited to, the following:

 

1)         the additional cost of goods or services bought elsewhere;

 

2)         cost of repeating the procurement procedure;

 

3)         any expenses incurred because of delay in receipt of goods or services; and

 

4)         any other damages caused by the vendor's breach of contract or unlawful act.

 

f)         Effect of Declaring a Contract Null and Void

In all cases where a contract is voided, the Treasurer's office will endeavor to return those supplies delivered under the contract that have not been used or distributed.  No further payments will be made under the contract.

 

g)         In lieu of terminating or rescinding the contract, when appropriate the Chief Procurement Officer may seek to negotiate an alternative resolution that is at least as beneficial to the State as termination or rescission, but the Chief Procurement Officer must not waive the right to terminate or rescind the contract if the situation does not improve.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4020  Suspension

 

a)         This Section applies to all suspensions of vendors from consideration for award of contracts.

 

b)         The Chief Procurement Officer may suspend a vendor from doing business with the Treasurer's office for all or specific types of supplies or services. A suspension may be issued upon a determination by the Chief Procurement Officer that the vendor violated this Part or failed to conform to specifications or terms of delivery.

 

c)         When the Chief Procurement Officer determines that cause exists for suspension, a notice of suspension, including a copy of the determination, must be sent to the suspended vendor.  Bids, proposals and responses will not be solicited from the suspended vendor, and, if they are received, they will not be considered during the period of suspension.

 

d)         A contractor may be suspended for any period of time commensurate with the seriousness of the offense.  A suspension may be for an indefinite period of time subject to demonstration by the contractor that the suspension in no longer necessary.

 

e)         The suspension will be effective within seven calendar days after receipt of notice unless an objection is filed.  If an objection were filed, the suspension would not become effective until the evaluation of the objection by the Chief Procurement Officer is completed.

 

f)         The Treasurer's office may consider suspensions and debarments by other State agencies and may choose to not solicit or accept bids, proposals and responses from vendors on another agency's list of suspensions and debarments during the period of suspension or debarment.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

SUBPART I: PREFERENCES

 

Section 1400.4505  Procurement Preferences

 

The procurement preferences identified in this Subpart must be considered in developing procurement documents, conducting evaluations and drafting contracts Any preferences applicable to an individual procurement will be stated in the solicitation for that procurement.

 

(Source: Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4510  Resident Vendor Preference

 

a)         "Illinois resident vendor", as used in this Section, means a person authorized to transact business in this State and having a bona fide establishment for transacting business within this State where it was actually transacting business on the date when any competitive solicitation for a public contract is first advertised or announced, including a foreign corporation duly authorized to transact business in this State that has a bona fide establishment for transacting business within this State where it was actually transacting business on the date when any competitive solicitation for a public contract is first advertised or announced. [30 ILCS 500/45-10(b)]

 

b)         In breaking a tie bid or proposal, as described in Section 1400.2510, an Illinois resident vendor shall be given the award.

 

c)         An Illinois resident vendor shall be allowed a preference over a non-resident vendor equal to any in-state vendor given or required by the state of the non-resident vendor.

 

d)         If only non-resident bidders are bidding, the purchasing agency has the right to specify that Illinois labor and manufacturing locations be used as part of the manufacturing process.  This specification may be negotiated as part of the solicitation process.

 

e)         This Section does not apply to any contract for any project as to which federal funds are available for expenditure when its provisions may be in conflict with federal law or federal regulation. [30 ILCS 500/45-10(c)]

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4515  Soybean Oil-based Ink

 

Contracts requiring the procurement of offset printing services shall specify the use of soybean oil-based ink or vegetable oil-based ink unless the Chief Procurement Officer or a designee determines that another type of ink is required to assure high quality and reasonable pricing of the printed product. [30 ILCS 500/45-15]

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4520  Recycled Supplies

 

When a contract is to be awarded to the lowest responsible bidder or offeror, an otherwise qualified bidder or offeror who will fulfill the contract through the use of products made of recycled supplies shall be given preference over other bidders or offerors unable to do so, provided that the cost included in the bid of supplies is equal to or less than other bids or offers, unless the use of the product constitutes an undue practical hardship.  Nothing in this Section shall be construed to apply to the Treasurer's office for the purposes of procuring construction and construction-related services. [30 ILCS 500/45-20].

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4525  Recycled Paper

 

All paper purchased for use by the Treasurer's office must be recyclable paper unless recyclable paper cannot be used to meet the requirements of the Treasurer's office.  [30 ILCS 500/45-25]. The Treasurer's office will determine its paper requirements to allow the use of recyclable paper whenever practicable.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4526  Environmentally Preferable Procurement

 

Notwithstanding any rule, regulation, statute, order, or policy of any kind, the Treasurer's office shall contract for supplies and services that are environmentally preferable.  If, however, contracting for an environmentally preferable supply or service would impose an undue economic or practical hardship on the Treasurer's office, or if an environmentally preferable supply or service cannot be used to meet the requirements of the Treasurer's office, then the Treasurer's office need not contract for an environmentally preferable supply or service. Specifications for contracts, at the discretion of the Treasurer's office, may include a price preference of up to 10% for environmentally preferable supplies or services. [30 ILCS 500/45-26]

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4530  Special Sources

 

The Treasurer's office may contract with any qualified source of supply, including the following special sources, from which procurements may be made without notice and competition:

 

a)         Illinois Correctional Industries (see 30 ILCS 500/45-30);

 

b)         State and Federal Surplus Warehouses under the jurisdiction of CMS. The State Property Control Act [30 ILCS 605/7a] requires that surplus furniture be considered before any purchase of new furniture valued at $500 or more per piece;

 

c)         Qualified not-for-profit agencies for persons with severe disabilities (see 30 ILCS 500/45-35);

 

d)         State agencies and other governmental units.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.4535  Qualified Not-for-Profit Agencies for Persons with Significant Disabilities

 

a)         Purpose

Contracts with qualified not-for-profit agencies for persons with significant disabilities (work centers; see Section 45-35 of the Code) under this Section should promote employment opportunities for persons with significant disabilities while meeting the needs of the Treasurer's office.  In making a determination to purchase from a qualified work center, the Treasurer's office may review the number of jobs performed by persons with significant disabilities and the total amount of the contract.  A reasonable amount of subcontracting is allowed under this Part to the extent it does not deter from promoting employment for persons with significant disabilities.

 

b)         Usage

Purchases may be made from work centers without prior notice or competition.

 

c)         Preference

Prior to conducting a competitive procurement or otherwise contracting for supplies or services on the preference list, the Treasurer's office may contact one or more of the qualified work centers that provide the needed supply or service and attempt to negotiate a fair and reasonable contract at a price not substantially more than had it been competitively bid.  If negotiations fail or if circumstances suggest using a qualified work center is not reasonable, the Chief Procurement Officer may authorize use of an alternative procurement method.

 

d)         Compliance with this Part

Qualified work centers that contract with the Treasurer's office must comply with all applicable provisions of this Part.

 

(Source:  Former Section repealed at 40 Ill. Reg. 13847, effective September 23, 2016; new Section added at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4540  Vehicles

 

a)         Specification

Contracts for the purchase or lease of new passenger automobiles, other than station wagons, vans and four-wheel drive vehicles, shall specify the procurement of a model that, according to the most current mileage study published by the U.S. Environmental Protection Agency, can achieve at least the minimum average fuel economy in miles per gallon imposed upon manufacturers of vehicles under Title V of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 2001 46).  [35 ILCS 500/45-40(a)]  Further, all gasoline-powered vehicles purchased from State funds must be flexible fuel vehicles or fuel efficient hybrid vehicles.  Any vehicle purchased from State funds that is fueled by diesel fuel shall be certified by the manufacturer to run on 5% biodiesel (B5) fuel. [30 ILCS 500/25-75]

 

1)         Flexible fuel vehicles are automobiles or light trucks that operate on either gasoline or E-85 (85% ethanol, 15% gasoline) fuel.

 

2)         Fuel efficient hybrid vehicles are automobiles or light trucks that use a gasoline or diesel engine and an electric motor to power and gain a minimum of 20% increase in combined USEPA city/highway fuel economy over an equivalent or most-similar conventionally-powered model.

 

b)         North American-made Vehicles. All vehicles purchased by the Treasurer's office shall have a Vehicle Identification Number that begins with the number one, the number 2, the number 4, or the number 5.

 

c)         In awarding contracts requiring the procurement of vehicles, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel fuels produced from Illinois soybeans. [30 ILCS 500/45-60]

 

d)         Exemptions

The Chief Procurement Officer may determine that certain vehicle procurements are exempt from this Section based on intended use or other reasonable considerations such as health and safety of Illinois citizens.  [30 ILCS 500/25-75(c)]  Nothing in this Section shall require the Treasurer's office to stop using any vehicle that exists in the State fleet of motor vehicles.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4545  Illinois Agricultural Products

 

In awarding contracts requiring the procurement of agricultural products, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of agricultural products grown in Illinois. [30 ILCS 500/45-50]

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.4550  Corn-based Plastics

 

In awarding contracts requiring the procurement of plastic products, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of plastic products made from Illinois corn by-products. [30 ILCS 500/45-55]

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.4555  Vehicles Powered by Agricultural Commodity-based Fuel

 

In awarding contracts requiring the procurement of vehicles, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel fuels produced from Illinois soybeans. [30 ILCS 500/45-60]

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.4560  Small Businesses

 

a)         Set-Aside

The Chief Procurement Officer may designate as small business set-asides a fair proportion of contracts for the provision of goods and services for award to small businesses in Illinois.  A set-aside designation may last indefinitely or for a stated period of time.

 

b)         Required Use

If the Treasurer's office wishes to make a procurement covered by a set-aside designation, the solicitation must note that responses are limited to those from responsible small businesses.  Bids, proposals or responses received from large businesses will be rejected as nonresponsive.

 

c)         Withdrawal of Set-Aside

If the Chief Procurement Officer determines that acceptance of the best bid, proposal or response will result in the payment of an unreasonable price, the Chief Procurement Officer will reject all bids, proposals or responses and withdraw the designation of small business set-aside for the procurement in question.  When a small business set-aside is withdrawn, notification must be published as provided in Section 1400.1505 with an explanation.  After withdrawal of the small business set-aside, the procurement will be conducted in accordance with the requirements of this Part.

 

d)         Criteria for Small Business

Unless the Chief Procurement Officer provides a definition for a particular procurement that reflects industrial characteristics, a small business is one:

 

1)         Independently owned and operated.

 

2)         Not dominant in its field of operations.  This means the business does not exercise a controlling or major influence in a kind of business activity in which a number of business concerns are primarily engaged.  In determining dominance, consideration must be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity.

 

3)         With annual sales for the most recently ended fiscal year no greater than:

 

A)        $13,000,000 for wholesale business;

 

B)        $8,000,000 for retail business or businesses selling services; or

 

C)        $14,000,000 for construction business.

 

4)         With no more than 250 employees if a manufacturing business.

 

A)        A manufacturing business must calculate how many people it employs by determining its average full-time equivalent employment, based on the number of persons employed on a full-time, part-time, temporary or other basis for its most recently ended fiscal year.

 

B)        If a manufacturing business has been in existence for less than a full fiscal year, its average employment should be calculated for the period that it has been in existence.

 

5)         If both a wholesaler and a retailer, the combined wholesale and retail annual sales for its most recently completed fiscal year may not exceed $16,000,000.  The retail component may not exceed $6,000,000 and the wholesale component may not exceed $10,000,000.

 

6)         When computing the size status of a vendor, the number of employees and annual sales and receipts, as applicable, of the vendor and all affiliates must be included.  Concerns are affiliates when either one directly or indirectly control or have the power to control the other, or when a third party or parties control or have the power to control both.  In determining whether concerns are independently owned and operated and whether or not affiliation exists, consideration must be given to all appropriate factors, including use of common facilities, common ownership and management and contractual arrangements.  However, a franchise relationship does not affect small business status if the franchise has the right to profit commensurate with ownership and bears the risk of loss or failure.

 

e)         Reliance on the Determination of CMS

The Treasurer's office may defer to the determination by CMS or the Chief Procurement Officer for General Services that a business is a small business.

 

f)         Small Business Specialist

The Small Business Specialist for the Treasurer's office shall assist small businesses seeking to provide goods or services to the Treasurer's office and is specifically responsible for the following:

 

1)         Compiling and maintaining a comprehensive bidders list of small businesses and cooperating with the Federal Small Business Administration in locating potential sources for various products or services.  The Small Business Specialist may rely on the bidders list developed by CMS to satisfy this responsibility.

 

2)         Assisting small businesses in complying with the procedures for bidding, proposing or responding to solicitations of the Treasurer's office.

 

3)         Assisting in the development of small business set-asides if determined by the Chief Procurement Officer to be in the State's best interest.

 

4)         Making recommendations to the Chief Procurement Officer for the simplification of specifications and terms in order to increase the opportunities for small business participation.

 

5)         Assisting in investigations by the Treasurer's office to determine the responsibility of any offeror on any small business set-asides.

 

g)         Small business annual report

The Chief Procurement Officer shall annually before December 1 report in writing to the General Assembly concerning the awarding of contracts to small businesses.  The report will include the total value of awards made in the preceding fiscal year under the designation of small business set-aside.  The requirement for reporting to the General Assembly will be satisfied by filing copies of the report as required by Section 3.1 of the General Assembly Organization Act [25 ILCS 5/3.1].

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.4565  Preferences for Veterans, Minorities, Women, and Persons with Disabilities

 

This Part is subject to the applicable provisions of the Veterans Preference Act [330 ILCS 55], the Business Enterprise for Minorities, Women, and Persons with Disabilities Act [30 ILCS 575], and the State Treasurer Act [15 ILCS 505].  The Chief Procurement Officer shall do whatever is reasonably necessary to enable veterans, minorities, women and persons with disabilities to participate in the procurement process.  The Chief Procurement Officer may rely on the determination of CMS and/or the Department of Veterans' Affairs that a person or business qualifies for a preference under these Acts.  It is hereby declared to be the policy of the State Treasurer to promote and encourage the use of businesses owned by or under the control of qualified veterans of the armed forces of the United States, qualified service-disabled veterans, minority persons, women, or persons with a disability in the area of goods and services.  Furthermore, the State Treasurer shall utilize such businesses to the greatest extent feasible within the bounds of financial and fiduciary prudence, and take affirmative steps to remove any barriers to the full participation of such firms in the procurement and contracting opportunities afforded. [15 ILCS 505/30(b)]

 

a)         Definitions

For the purposes of this Section:

 

1)         any terms "minority person", "woman", "person with a disability", "minority-owned business", "women-owned business", "business owned by a person with a disability", and "control" have the meanings provided in Section 1 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act; and

 

2)         the terms "veteran", "qualified veteran-owned small business", "qualified service-disabled veteran-owned small business", "qualified service-disabled veteran", and "armed forces of the United States" have the meanings provided in Section 45-57 of the Illinois Procurement Code. [15 ILCS 505/30(a)]

 

b)         Procurement of Goods and Services

When the State Treasurer procures goods and services, whether through a request for proposal or otherwise, the Chief Procurement Officer is authorized to incorporate preferences in the scoring process for:

 

1)         any of the following:

 

A)        a minority-owned business;

 

B)        a women-owned business;

 

C)        a business owned by a person with a disability;

 

D)        a qualified veteran-owned small business; or

 

E)        a qualified service-disabled veteran-owned small business; and

 

2)         businesses having a record of support for increasing diversity and inclusion in board membership, management, employment, philanthropy, and supplier diversity, including investment professionals and investment sourcing.  [15 ILCS 505/30(d)]

 

c)         Utilization of Financial Institutions

When the State Treasurer utilizes a financial institution or determines the eligibility of a financial institution to participate in a banking contract, investment contract, investment activity, or other financial program of the State Treasurer, he or she shall review the financial institution's Community Reinvestment Act (29 USC 2901) rating, record, and current level of financial commitment to the community prior to making a decision to utilize or determine the eligibility of such financial institution.  [15 ILCS 505/30(d)]

 

d)         Reporting

Beginning with fiscal year 2019, and at least annually thereafter, the State Treasurer shall report on his or her utilization of minority-owned businesses, women-owned businesses, businesses owned by a person with a disability, qualified veteran-owned small businesses, or qualified service-disabled veteran-owned small businesses.  The report shall be published on the State Treasurer's official website. [15 ILCS 505/30(e)]

 

(Source:  Amended at 43 Ill. Reg. 2275, effective January 31, 2019)

 

Section 1400.4595  HUBZone Business Contracts

 

a)         For the purposes of this Section, "HUBZone business" means a business that operates and employs people in Historically Underutilized Business Zones (HUBZone) as designated by the federal HUBZone Empowerment Act. [30 ILCS 500/45-95(a)]

 

b)         The Treasurer's office may provide a 2% price preference for a HUBZone business that is responding to an Invitation for Bid or Request for Proposal.

 

c)         The Treasurer's office may provide up to a 10% price preference for a HUBZone business that is responding to an IFB or RFP. The Treasurer's office shall specify the price preference in the solicitation document.

 

d)         A HUBZone business must include evidence of its HUBZone qualification with its bid or offer if it is claiming a HUBZone price preference under this Section.

 

e)         The Chief Procurement Officer shall publish, in the notice of award, the percentage of the HUBZone price preference for each contract awarded through this Section.

 

f)         Should a contractor no longer qualify as a HUBZone business during the term of a contract that was awarded using the HUBZone price preference, the Chief Procurement Officer may void the contract.

 

g)         A contract may not be renewed if the contractor no longer qualifies as a HUBZone business and the contract was awarded using the HUBZone price preference.

 

(Source:  Added at 48 Ill. Reg. 2924, effective February 7, 2024)

SUBPART J: ETHICS

 

Section 1400.5002  Continuing Disclosure; False Certification

 

a)         Every person that has entered into a multi-year contract and every subcontractor with a multi-year subcontract subject to the Code, shall certify, by January 1 of each fiscal year covered by the contract after the initial fiscal year, to the Treasurer's office any changes that affect its ability to satisfy the requirements of Article 50 of the Code.  [30 ILCS 500/50-2]

 

b)        If a contractor or subcontractor continues to meet all requirements of Article 50 of the Code, or if the contract has been substantially completed but has not yet expired, the certification under subsection (a) is not required.

 

(Source:  Added at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.5005  Purpose

 

It is the express duty of Chief Procurement Officer and designees to maximize the value of the expenditure of public moneys in procuring goods, services, and contracts for the Treasurer's office and to act in a manner that maintains the integrity and public trust of State government. In discharging this duty, they are charged to use all available information, reasonable efforts, and reasonable actions to protect, safeguard and maintain the procurement process of the Treasurer's office.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5010  Bribery

 

a)         Prohibition

No person or business will be awarded a contract or subcontract under this Part who:

 

1)         has been convicted under the laws of Illinois or any other state of bribery or attempting to bribe an officer or employee of the State of Illinois or any other state in the officer's or employee's official capacity; or

 

2)         has made an admission of guilt of that conduct that is a matter of record but has not been prosecuted for that conduct.

 

b)         Businesses

No business will be barred from contracting with any unit of State or local government as a result of a conviction under this Section of any employee or agent of the business if the employee or agent is no longer employed by the business and:

 

1)         the business has been finally adjudicated not guilty; or

 

2)         the business demonstrates to the governmental entity with which it seeks to contract, and that entity finds, that the commission of the offense was not authorized, requested, commanded, or performed by a director, officer, or high managerial agent on behalf of the business as provided in Section 5-4(a)(2) of the Criminal Code of 1961 [720 ILCS 5/5-4(a)(2)].

 

c)         Conduct on Behalf of Business

For purposes of this Section, when an official, agent, or employee of a business committed the bribery or attempted bribery on behalf of the business and in accordance with the direction or authorization of a responsible official of the business, the business will be chargeable with the conduct.

 

d)         Certification

Every bid, offer, response, submission, quotation or quote submitted to every contract executed by the State, every subcontract subject to Section 20-120 of the Code, and every vendor's submission to a vendor portal shall contain a certification by the bidder, offeror, respondent, submitter, person who submits a quotation or quote, potential contractor, contractor or subcontractor, respectively, that the bidder, offeror, respondent, submitter, person who submits a quotation or quote, potential contractor, contractor or subcontractor is not barred from being awarded a contract or subcontract under Section 50-5 of the Code, and acknowledges that the Chief Procurement Officer may declare the related contract void if any certifications required by that Section are false.  If the false certification is made by a subcontractor, then the contractor's submitted bid, offer, response, submission, quotation or quote and the executed contract may not be declared void, unless the contractor refuses to terminate the subcontract upon the State's request after a finding that the subcontractor's certification was false.  A contractor or subcontractor who makes a false statement, material to the certification, commits a Class 3 felony. [30 ILCS 500/50-5(d)]

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.5015  Felons

 

Unless otherwise provided, no person or business convicted of a felony may do business with the Treasurer's office from the date of conviction until 5 years after the date of completion of the sentence for that felony, unless no person held responsible by a prosecutorial office for the facts upon which the conviction was based continues to have any involvement with the business.

 

Section 1400.5020  Conflicts of Interest

 

a)         Prohibitions

 

1)         The Treasurer and all employees of the Treasurer's office who receive compensation for the employment in excess of 60% of the salary of the Governor of the State of Illinois and the spouses and minor children of those persons may not have or acquire any contract, or any direct pecuniary interest in any contract, that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois.

 

2)         No firm, partnership, association, or corporation in which any person described in subsection (a)(1) is entitled to receive:

 

A)        more than 7 1/2% of the total distributable income; or

 

B)        an amount in excess of the salary of the Governor,

 

may have or acquire any contract or direct pecuniary interest in any contract that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois.

 

3)         No firm, partnership, association, or corporation in which any person described in subsection (a)(1) together with his or her spouse or minor children is entitled to receive:

 

A)        more than 15%, in the aggregate, of the total distributable income; or

 

B)        an amount in excess of two times the salary of the Governor,

 

may have or acquire any contract or direct pecuniary interest in any contract that will be wholly or partially satisfied by the payment of funds appropriated by the General Assembly of the State of Illinois.

 

b)         An individual has a direct pecuniary interest in a contract when the individual is owed any payment in conjunction with performance of a contract, including finders' fees and commission payments.

 

c)         Distributable income means the income to a company after payment of all expenses, including employee salary and bonus, and retained earnings, and which remaining amount is actually distributed to those entitled to receive a share of the income.

 

d)         Applicability

This Section does not apply to or affect the validity of:

 

1)         any bond or other security previously offered for sale, to be offered for sale or sold by or for the State of Illinois;

 

2)         any contract made between the State and a person described in subsection (a)(1) that was in existence before the election or employment of the person if the contract can be completed within 365 days after the person takes office; otherwise, it is voidable by the State;

 

3)         payments made for a public aid recipient;

 

4)         any contract for personal services as a teacher or school administrator between the Treasurer, or an employee of the Treasurer's office, and a school district, public community college district, or the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governor's State University, or Northeastern Illinois University;

 

5)         any contract for personal services of a wholly ministerial character, including, but not limited to, services as a laborer, clerk, typist, stenographer, page, bookkeeper, receptionist, or telephone switchboard operator, made by a spouse or minor child of the Treasurer or an employee of the Treasurer's office;

 

6)         payments made to the Treasurer or an employee of the Treasurer's office for or on behalf of a child or family served by the Department of Children and Family Services;

 

7)         contracts that are competitively procured as provided in this Part between the Treasurer's office and licensed professionals.

 

e)         Exemptions

The Treasurer, with the approval of the Chief Procurement Officer, may exempt named individuals from the prohibitions in this Section when, in his or her judgement, the public interest in having the individual in the service of the State outweighs the public policy evidenced in this Section.  An exemption is effective only when it is filed with the Secretary of State and the Comptroller and includes a statement that includes the name of the individual, all pertinent facts that would make this Section applicable, the reason for the exemption and a declaration that the individual is exempted from this Section. Notice of each exemption must be published as provided in Section 1400.1505 and made part of the procurement file.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.5025  Negotiations for Future Employment

 

a)         No person employed in or on a continual contractual relationship with the Treasurer's office may participate in contract negotiations on behalf of the Treasurer's office with any firm, partnership, association, or corporation with whom that person has a contract for future employment or is negotiating concerning possible future employment.

 

b)         An individual who performs services under a contract and who meets the requirements of an "employee" or "contractual employee" as opposed to an "independent contractor" is in a "continual contractual relationship" from the effective date of the contract until the time  the contract is terminated.

 

c)         "Independent contractors", as opposed to  "employees" or "contractual employees", are in a "continual contractual relationship" if the contract term is indefinite, is automatically renewed, is renewable at the individual's option, is renewable unless the Treasurer's office must act to terminate, or has a definite term of at least three months.

 

Section 1400.5030  Revolving Door

 

The Chief Procurement Officer may not engage in any procurement activity relating to the Treasurer's office for two years after terminating his or her position as Chief Procurement Officer.  This prohibition includes, but is not limited to, lobbying the procurement process or specifying, bidding or proposing bids, proposals or contract documents, on their own behalf or on behalf of any firm, partnership, association or corporation.  This prohibition is in addition to the revolving door prohibitions of Section 5-45 of the State Officials and Employees Ethics Act [5 ILCS 430].

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5035  Disclosure of Financial Interests and Potential Conflicts of Interest

 

a)         All offers from responsive offerors with an annual value of more than the small purchase threshold then in effect pursuant to Section 1400.2020(a) must be accompanied by disclosure of the financial interests of the offeror. The financial disclosure of each successful offeror must be made part of the procurement. Disclosures are not required for sole source and emergency contracts, but shall be obtained in whole or in part when practical and when the annual value exceeds the small purchase threshold then in effect pursuant to Section 1400.2020(a).

 

b)         Disclosure by the offerors must include any ownership or distributive income share that is in excess of 5%, or an amount greater than 60% of the annual salary of the Governor, of the offering entity or its parent entity ("parent entity" meaning an entity that owns 100% of the bidding entity), whichever is less, unless the offeror:

 

1)         is a publicly traded entity subject to Federal 10K reporting, in which case it may submit its 10K disclosure in place of the prescribed disclosure, or:  

 

2)         is a privately held entity that is exempt from Federal 10k reporting but has more than 100 shareholders, in which case it may submit the information that Federal 10k reporting companies are required to report under 17 CFR 229.401 and list the names of any person or entity holding any ownership share that is in excess of 5% in place of the prescribed disclosure.

 

3)         The Chief Procurement Officer will prescribe the form, which must include at least the names, addresses, and dollar or proportionate share of ownership of each person identified in this Section, their instrument of ownership or beneficial relationship, and notice of any potential conflict of interest resulting from the current ownership or beneficial relationship of each person identified in this Section having, in addition, any of the following relationships:

 

A)        State employment, currently or in the previous 3 years, including contractual employment services.

 

B)        State employment of spouse, father, mother, son, or daughter, including contractual employment for services in the previous 2 years.

 

C)        Elective status:  the holding of elective office of the State of Illinois, the government of the United States, any unit of local government authorized by the Constitution of the State of Illinois or the statutes of the State of Illinois currently or in the previous 3 years.

 

D)        Relationship to anyone holding elective offices currently or in the previous 2 years:  spouse, father, mother, son, or daughter.

 

E)        Appointive office:  the holding of any appointive government office of the State of Illinois, the United States of America, or any unit of local government authorized by the Constitution of the State of Illinois or the statutes of the State of Illinois, which office entitles the holder to compensation in excess of expenses incurred in the discharge of that office currently or in the previous 3 years.

 

F)         Relationship to anyone holding appointive office currently or in the previous 2 years:  spouse, father, mother, son, or daughter.

 

G)        Employment, currently or in the previous 3 years, as or by any registered lobbyist of the State government.

 

H)        Relationship to anyone who is or was a registered lobbyist in the previous 2 years; spouse, father, mother, son, or daughter.

 

I)         Compensated employment, currently or in the previous 3 years, by any registered election or re-election committee registered with the Secretary of State or any county clerk in the State of Illinois, or any political action committee registered with either the Secretary of State or the Federal Board of Elections.

 

J)         Relationship to anyone (spouse, father, mother, son, or daughter) who is or was a compensated employee in the last 2 years of any registered election or re-election committee registered with the Secretary of State or any county clerk in the State of Illinois, or any political action committee registered with either the Secretary of State or the Federal Board of Elections.

 

c)         The disclosure in subsection (b) is not intended to prohibit or prevent any contract.  The disclosure is meant to fully and publicly disclose any potential conflict fully and publicly to the Chief Procurement Officer, Purchasing Officers, their designees, and executive officers so they may adequately discharge their duty to protect the State.

 

d)         When a potential for a conflict of interest is identified, discovered, or reasonably suspected, the Chief of Staff shall review and comment on it in writing.  The Chief of Staff shall provide his comment to the Chief Procurement Officer who must determine in writing whether to void or allow the contract, bid, proposal or response weighing the best interest of the State of Illinois.  The comment and determination must be part of the procurement file.

 

e)         These thresholds and disclosure do not relieve the Chief Procurement Officer, Purchasing Officers, or their designees from reasonable care and diligence for any contract, bid, proposal or response.  The Chief Procurement Officer, Purchasing Officers, or their designees shall use any reasonably known and publicly available information to discover any undisclosed potential conflict of interest and act to protect the best interest of the State of Illinois.

 

f)         Inadvertent or accidental failure to make any disclosure required by this Section will render the contract, bid, proposal, response or relationship voidable by the Chief Procurement Officer if he or she deems it in the best interest of the State of Illinois and, at his or her discretion, may be cause for barring from future contracts, bids, proposals, responses or relationships with the State for a period of up to 2 years.

 

g)         Intentional, willful or material failure to make any disclosure required by this Section will render the contract, bid, proposal, response or relationship voidable by the Chief Procurement Officer if he or she deems it to be in the best interest of the State of Illinois and will result in suspension from future contracts, bids, proposals, responses or relationships for a period of not less than 2 years and not more than 10 years.  Reinstatement after 2 years and before 10 years must be reviewed and commented on in writing by the Chief of Staff.  The Chief of Staff must provide the review to the Chief Procurement Officer who must rule in writing whether and when to reinstate. The comment and determination must be part of the procurement file.

 

h)         In addition, all disclosures must note any other current or pending contracts, leases, bids, proposals, responses or other ongoing procurement relationships the bidding, proposing, or responding entity has with any other unit of State government and must clearly identify the unit and the contract, lease, bid, proposal, response or other relationship.

 

i)          The contractor or bidder has a continuing obligation to supplement the disclosure required by this Section throughout the bidding process or during the term of any contract.  [30 ILCS 500/50-35(i)]

 

j)             If a bid or offer is received from a responsive bidder, offeror, vendor, contractor, or subcontractor with an annual value of more than $100,000 and the bidder, offeror, vendor, contractor, or subcontractor has an active contract with that same entity and already has submitted their financial disclosures and potential conflicts of interest within the last 12 months, the bidder, offeror, vendor, contractor, or subcontractor may submit a signed affidavit attesting that the original submission of its financial disclosures and potential conflicts of interests has not been altered or changed. The form and content of the affidavit shall be prescribed by the applicable chief procurement officer.  [30 ILCS 500/50-35(j)]

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.5037  Vendor Registration and Certification and Prohibition on Political Contributions

 

a)         Introduction

Illinois law (Section 9-35 of the Election Code [10 ILCS 5] and Sections 20-160 and 50-37 of the Code) (the statutes) restricts political contributions by vendors and affiliated entities; requires registration with the Illinois State Board of Elections (ISBE); and requires solicitation and contract certifications relative to the requirements of the law.  This Section supplements requirements found in the statutes and does not excuse compliance with any of those requirements.

 

b)         General Registration Requirements

 

1)         These requirements apply to contracts, bids and proposals that are subject to this Part.

 

A)        Bids/proposals referenced in this Section are those submitted in response to a competitive solicitation that is posted on or after January 1, 2009, regardless of the value assigned to the procurement.

 

B)        Bids and proposals include pending bids and proposals.

 

C)        These requirements generally apply to a vendor whose existing State contracts have an aggregate value in excess of $50,000, whose aggregate value of bids/proposals for State contracts exceeds $50,000, or whose aggregate value of State contracts and bids/proposals exceeds $50,000.

 

D)        This value is calculated on a calendar-year basis.

 

2)         On a calendar-year basis, each vendor or potential vendor must keep track of the value of contracts and bids/proposals.  Vendors must register with SBEL when the vendor determines that the value of the contracts and bids/proposals meets the threshold for registration.

 

3)         An "executive employee" means:

 

A)        the President, Chairman of the Board or Chief Executive Officer of a business entity and any other individual who fulfills equivalent duties as the President, Chairman of the Board or Chief Executive Officer of a business entity.

 

B)        any employee of a business entity whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a State agency to the entity employing the employee, irrespective of the employee's title or status in the business entity.  For the purposes of this subsection (b)(3)(B), compensation determined directly by award or payment of contracts means a payment over and above regular salary that would not be made if it were not for the award of the contract.

 

c)         Bids and Proposals

 

1)         The CPO, or his or her designee, shall determine whether a business entity is required to register with SBEL and, if so, whether the business entity is in compliance with the registration requirements on the date the bid or proposal is due.

 

2)         If the CPO determines that a business entity is required to register with SBEL and the business entity is not in compliance with the registration requirements, then the CPO shall not accept the business entity's bid or proposal.

 

d)         Contracts

A copy of the Registration Certificate must be in the procurement file as set forth in this subsection (d), unless the vendor certifies it is not required to register.

 

1)         For contract renewals and extensions, if the value of the renewal or extension by itself, or in combination with the contract being renewed/extended and other contracts and bids/proposals exceeds $50,000, the vendor must provide documentation of vendor compliance upon request and make the appropriate contract certification, if it has not already done so. The Registration Certificate or other evidence of vendor compliance may be provided by reference to and incorporation of the vendor's prequalification by the CPO.

 

2)         For indefinite quantity/estimated value contracts, a vendor who is otherwise not required to register shall register with SBEL when the value of orders placed pursuant to an indefinite/estimated value contract plus all other contracts and bids/proposals exceeds $50,000.

 

3)         For contract amendments, if the value of the amendment, by itself or in combination with the contract being renewed plus other contracts and bids/proposals, exceeds $50,000, the vendor must provide the Registration Certificate and make the appropriate contract certification, if it has not already done so.

 

4)         Any contracts mistakenly executed in violation of this Section must be amended to include the contract certifications.  If any violation by the vendor is not cured within 7 days after receipt of notification of the violation, the contract is voidable by the State without penalty.

 

5)         Contract certification required by the statutes shall be included in or added to each contract that must be filed with the State Comptroller pursuant to Section 20-80 of the Code and those written, two-party contracts that need not be filed with the Comptroller.  The Treasurer may require written confirmation of the rule-imposed certification at any time.

 

e)         Voidable Contracts

Every solicitation issued and contract executed on or after January 1, 2009 shall contain a statement that the contract is voidable if the bidder, offeror or contractor fails to comply with Section 20-160 of the Code.

 

f)         Prohibited Political Contributions

 

1)         Upon discovery of a political contribution that is potentially prohibited by Section 50-37 of the Code, the CPO, within 5 business days, shall send a letter requesting response from the business entity that made the potentially prohibited contribution, acknowledging or denying that the contribution was prohibited.

 

2)         If the CPO determines that a political contribution was prohibited, all contracts held by the contributing business entity are voidable, and the CPO shall determine if the circumstances surrounding the prohibited political contribution warrant the voiding of any of these contracts. 

 

3)         If a business entity violates Section 50-37(b) of the Code three or more times within a 36 month period, the CPO shall void all contracts with the business entity and the business entity shall be prohibited from responding to any solicitation issued by the Treasurer or entering into a contract with the Treasurer for 3 years from the date of the last violation.

 

4)         If the CPO determines that a prohibited political contribution is grounds to suspend a business entity pursuant to this Section, the controversy will be referred to the Chief Legal Counsel pursuant to Section 1400.4010.

 

g)         Notice

 

1)         Notice of each violation of Section 50-37 of the Code and any penalty imposed by the CPO or SBEL for each violation shall be published on the Treasurer's Web Site.

 

2)         The CPO shall directly notify a political committee in receipt of a prohibited political contribution that payment equal to the amount of the contribution is due the State of Illinois within 30 days after publication of the violation on the Treasurer's Web Site.

 

3)         If an amount owed by a political committee as a result of a prohibited political contribution is not paid and is deemed uncollectible for any reason, notice of the political committee's nonpayment shall be published on the Treasurer's Web Site.

 

(Source:  Added at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5040  Reporting Anticompetitive Practices

 

When, for any reason, any vendor, bidder, proposer, respondent or employee of the Treasurer's office, including the Chief Procurement Officer, suspects collusion or other anticompetitive practice among any bidders, proposers, respondents or employees of the Treasurer's office, a notice of the relevant facts must be transmitted to the Attorney General, the Inspector General, and the Chief Procurement Officer.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5045  Confidentiality

 

The Chief Procurement Officer and designees are subject to immediate dismissal and may be subject to criminal prosecution for willfully using or allowing the use of specifications, procurement documents or proprietary information to compromise the fairness or integrity of the procurement or contract process.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5050  Insider Information

 

It is unlawful for the Treasurer or any employee of the Treasurer's office to knowingly use confidential information available only by virtue of that office or employment for actual or anticipated gain for themselves or another person.

 

Section 1400.5055  Additional Provisions

 

This Part is subject to applicable provisions of the following Acts:

 

a)         Article 33E of the Criminal Code of 1961 [720 ILCS 5/Art. 33E];

 

b)         the Illinois Human Rights Act [775 ILCS 5];

 

c)         the Discriminatory Club Act [775 ILCS 25];

 

d)         the Illinois Governmental Ethics Act [5 ILCS 420];

 

e)         the State Prompt Payment Act [30 ILCS 540];

 

f)         the Public Officer Prohibited Activities Act [50 ILCS 105];

 

g)         the Drug Free Workplace Act [30 ILCS 580];

 

h)         the Procurement of Domestic Products Act [30 ILCS 517];

 

i)          the International Anti-Boycott Certification Act [30 ILCS 582];

 

j)          the State Prohibition of Goods from Forced Labor Act [30 ILCS 583];

 

k)         the State Prohibition of Goods from Child Labor Act [30 ILCS 584]; and

 

l)          the Information Technology Accessibility Act [30 ILCS 587].

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5060  Other Violations

 

Any employee of the Treasurer's office, including the Chief Procurement Officer, who willfully violates or allows the violation of this Part is subject to immediate dismissal.

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.5065  Supply Inventory

 

The Treasurer's office should inventory or stock no more equipment, supplies, commodities, articles, and other items than are reasonably necessary for the efficient functioning of the Treasurer's office.  The Treasurer's office must seek to have no more than a 12-month supply of any equipment, supplies, commodities, or other items, unless there is a justifiable reason for doing so.

 

Section 1400.5090  Annual Value, Certification

 

All contracts under this Part with an annual value that exceeds $50,000 shall be accompanied by Standard Illinois Certifications in a form prescribed by the Chief Procurement Officer.  The Chief Procurement Officer may utilize a form prescribed by the Chief Procurement Officer for General Services for this purpose.

 

(Source:  Added at 48 Ill. Reg. 2924, effective February 7, 2024)

SUBPART K: CONCESSIONS

 

Section 1400.5505  Concessions

 

a)         All Concessions, including the assignment, license, sale, or transfer of interests in or rights to discoveries, inventions, patents, or copyrightable works, may be entered into by the Treasurer's office, if the concession is reduced to writing and awarded by one of the procurement methods described in this Part, except that the contract will be awarded to the highest and best offeror.  The duration and terms of concessions and leases of State property must be in accordance with this Part.

 

b)         Proposed concessions or leases of State property under this Part must be coordinated with CMS to ensure compliance with the State Property Control Act and rules implementing that Act (44 Ill Adm Code 5000).

SUBPART L: MISCELLANEOUS PROVISIONS OF GENERAL APPLICABILITY

 

Section 1400.6005  Severability

 

If any provision of this Part or any application thereof is held invalid, the invalidity will not affect other provisions or applications of this Part that can be given effect without the invalid provision or application.

 

Section 1400.6010  Government Furnished Property (Repealed)

 

(Source:  Repealed at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.6015  Inspections

 

a)         Inspection of Plant or Site

The State may enter a contractor's or subcontractor's plant or place of business to:

 

1)         inspect supplies or services for acceptance by the State under the terms of a contract;

 

2)         audit the books and records of any contractor or subcontractor under Section 1400.4020(d);

 

3)         investigate an action to suspend a person from consideration for award of contracts in accordance with Section 1400.4020;

 

4)         determine whether the standards of responsibility have been met or are capable of being met; and

 

5)         determine if the contract is being performed in accordance with its terms.

 

b)         Inspection and Testing of Supplies and Services

 

1)         Solicitation and Contractual Provisions.  Treasurer's office contracts may provide that the Treasurer's office may inspect supplies and services at the contractor's or subcontractor's facility and perform tests to determine whether they conform to solicitation requirements, or, after award, to contract requirements, and are therefore acceptable.  The inspections and tests are conducted in accordance with the terms of the solicitation and contract.

 

2)         Procedures for Trial Use and Testing.  The Chief Procurement Officer may establish operational procedures governing the testing and trial use of equipment, material, and other supplies by the Treasurer's office, and the application of resulting information and data to specifications or procurements.

 

c)         Conduct of Inspections

 

1)         Inspectors.  Inspections or tests are performed so as not to unduly delay the work of the contractor or subcontractor.  No inspector other than the Chief Procurement Officer may change any provision of the specifications or the contract without written authorization of the Chief Procurement Officer.  The presence or absence of an inspector does not relieve the contractor or subcontractor from any requirements of the contract.

 

2)         Location.  When an inspection is made in the plant or place of business of a contractor or subcontractor, the contractor or subcontractor shall provide without charge all reasonable facilities and assistance for the safety and convenience of the person performing the inspection or testing.

 

3)         Time.  Inspection or testing of supplies and services performed at the plant or place of business of any contractor or subcontractor must be performed at reasonable times.

 

Section 1400.6020  Contracts for Food Donation; Food Donation Policy

 

a)         The Treasurer's office shall not enter into a contract to purchase food with a bidder or offeror if the bidder's or offeror's contract terms prohibit the public entity from donating food to food banks, including, but not limited to, homeless shelters, food pantries, and soup kitchens.

 

b)         The Treasurer's office shall permit the donation of leftover food purchased with State funds.

 

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)

 

Section 1400.6025  Postage Stamps

 

All postage stamps purchased from State funds must be perforated for identification purposes.

 

Section 1400.6030  Printing

 

All books, pamphlets, documents, and reports published through or by the Treasurer's office must have printed thereon "Printed by the authority of the State of Illinois", the date of each publication, the number of copies printed, and the printing order number.  No publication may have written, stamped, printed, or attached to it "Compliments of . . . (naming a person)" or any words of similar import.

 

Section 1400.6035  Annual Reports

 

Every printed annual report produced by the Treasurer's office must bear a statement indicating whether it was printed by the State of Illinois or by contract and indicating the printing costs per copy and the number of copies printed.  

 

(Source:  Amended at 40 Ill. Reg. 13847, effective September 23, 2016)

 

Section 1400.6040  No Waiver of Sovereign Immunity

 

Nothing in this Part will be deemed to be a waiver of sovereign immunity.

 

(Source:  Added at 48 Ill. Reg. 2924, effective February 7, 2024)