ADMINISTRATIVE CODE

SUBPART A: BIDDER RESPONSIBILITY

Section 950.110 Purpose

Section 950.120 Policy

Section 950.130 Definitions

Section 950.140 Special Projects

Section 950.150 Confidentiality

Section 950.160 Sources for Determining Responsibility

Section 950.170 Processing of Contractor Prequalification and Bidder Responsibility and Renewal Applications

Section 950.180 Ineligibility

SUBPART B: SUSPENSION, DEBARMENT, MODIFICATION OF ABILITY TO BID, AND CONDITIONAL PREQUALIFICATION

Section 950.200 Actions Affecting Prequalification

Section 950.210 Causes for Suspension, Debarment, Modification of Ability to Bid, or Conditional Prequalification

Section 950.220 Failure to Satisfactorily Perform Work on or Breach of the Terms of CDB Contracts, Private Contracts, or Other Governmental Contracts

Section 950.230 Interim or Emergency Suspension or Modification Pursuant to Section 16 of the Capital Development Board Act

Section 950.240 Denial of Prequalification

Section 950.250 Increase or Decrease of Financial Prequalification Rating (Repealed)

Section 950.260 Aggregate Dollar Amount of Contracts (Repealed)

Section 950.270 Contracts More than Seventy Percent (70%) Completed (Repealed)

Section 950.280 Joint Ventures (Repealed)

Section 950.290 Appeal of Prequalification Rating (Repealed)

SUBPART C: APPLICATION OF CDB ACTION

Section 950.300 General

Section 950.310 Violation of CDB Order

Section 950.320 Nullification of Prequalification

Section 950.330 Denial of Award of Contract

Section 950.340 Debarment

Section 950.350 Reapplication for Prequalification

Section 950.360 Extension of CDB Action

Section 950.370 Effect on Current Contracts

Section 950.380 Basis of Decisions

Section 950.390 Settlement

SUBPART D: PROCEDURES

Section 950.400 Review

Section 950.410 Conference

Section 950.420 Executive Director

Section 950.430 Request for Reconsideration

Section 950.440 Hearings

Section 950.450 Burden of Proof

SUBPART A: BIDDER RESPONSIBILITY

Section 950.110 Purpose

The Capital Development Board (CDB) contracts shall be awarded only to responsible contractors. A prospective contractor must affirmatively demonstrate its responsibility, including, when necessary, the responsibility of its proposed subcontractors and suppliers. In the absence of information clearly indicating that the prospective contractor is responsible, CDB shall make a determination of non-responsibility. Only responsible contractors shall be prequalified, and only prequalified contractors shall be permitted to bid on CDB projects. A determination of nonresponsibility may be made at any time prior to or after award of a contract.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.120 Policy

As a general proposition, except in instances of statutory exceptions, CDB shall award contracts to the lowest responsible and responsive bidder. However, award of a contract based on the lowest price alone can be false economy if there is subsequent default, late deliveries, or other unsatisfactory performance resulting in additional contractual or administrative costs. While it is important that Government purchases be made at the lowest price, this does not require an award to a contractor solely because that contractor submits the lowest offer.

Section 950.130 Definitions

The following definitions shall apply to this Part:

"A/E" means an individual or firm in the business of providing architectural, engineering or land surveying services as authorized by the State of Illinois Department of Professional Regulation (DPR). Licensed individuals shall be registered with DPR as sole proprietorships. Firms and corporations shall be registered with DPR.

"CDB" means the Capital Development Board.

"Contract Requirements" consist of any and all provisions of the CDB contract, which include, but are not limited to the following:

The timely submittal of all post-award requirements.

Material compliance with all applicable statutory requirements, local, State and federal laws, environmental and regulatory requirements and CDB Rules and Resolutions.

Payment of prevailing wage rate as determined by the Illinois Department of Labor.

Adherence to alternative dispute resolution provisions.

Material compliance with all Minority and Female Business Enterprise Act requirements and workforce hiring goals.

Timely payment to subcontractors and suppliers, unless rightfully withheld and the contractor does not request payment from CDB.

Material compliance with project schedules.

Maintaining applicable licensing requirements.

"Contractor" or "Bidder" means a firm that is in the business of constructing some or all aspects of building projects.

"Executive Director" means the Director of the Capital Development Board.

"Key Person" means any individual who holds 5% or more ownership interest in the firm. In the event the firm is owned by another corporation, partnership, trust or business association, any individual within that firm or who is a trust beneficiary who holds a 5% or more ownership or beneficial interest is considered a "key person". Regardless of ownership interest, any officer, partner or director is considered a "key person". This definition also includes any individual who assumes the responsibility of an officer, owner, partner, director, etc., regardless of ownership interest.

"New Bidder" is one that has no history of performance with CDB or who has been inactive for more than 3 years. Work history is determined in accordance with Section 950.170. Bidders who are newly formed business concerns having substantially the same owners, officers, directors, or beneficiaries as a previously existing non-responsible bidder will be declared non-responsible unless the new organization can demonstrate it was not set up for the purpose of avoiding an earlier declaration of non-responsibility.

"Performance Record" consists of but is not limited to the following:

Evidence of material compliance with all CDB contract requirements as referenced.

Data indicating the contractor has maintained quality workmanship and has met all contract requirements on previous contracts, private and public.

"Responsibility" is a determination made by CDB that the contractor is a responsible contractor. The determination may be made at any time prior to or following award of a contract. Because responsibility is affected by such things as financial resources, performance records, and organizational and operational factors, all of which are subject to change, the initial determination of responsibility, made through evaluation of a new or renewal application to CDB, may be changed upon receipt of additional or different information. The contractor is required to inform CDB of any significant change to the information submitted in its application. Each prospective bidder must provide the CDB with adequate documentation of responsibility. The CDB will ordinarily provide forms for this information. The CDB may supplement this information from other sources and may require additional documentation at any time. For ease of administration, the basic information generally will be garnered through the contractor/bidder responsibility application in the case of new bidders. The responsibility determination will be reviewed periodically through a renewal application. CDB reserves the right to demand completion of a contractor/bidder responsibility application and supporting documents at any time. A responsibility determination will also be reviewed on an ongoing basis through other information, including but not limited to performance evaluations and reference contacts.

"Responsible Contractor" is a firm that:

Has adequate financial resources to perform the contract, or the ability to obtain them. This includes, but is not limited to, the ability to obtain required bonds and insurance from sureties and insurance companies acceptable to CDB.

Is able to comply with the contract requirements, considering the firm's other business obligations.

Has a satisfactory performance record.

Has a satisfactory record of integrity and business ethics.

Has the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them. This includes, but is not limited to, qualified supervisory personnel and a work force qualified to meet CDB contract work force requirements.

Has the necessary production, construction, and technical equipment and facilities, or the ability to obtain them.

Has a current DHR number or application pending.

Has provided all information required by the Financial Interests and Potential Conflicts of Interest Disclosure forms required by Section 50-35 of the Illinois Procurement Code [30 ILCS 500/50-35].

Is otherwise qualified and eligible to receive a contract award under applicable laws and regulations.

"Responsive Bidder" means a person or firm who has submitted a bid that conforms in all material respects to the invitation for bids. Those who submit bids which are not in conformance with the requirements of the invitation for bids will be determined to be non-responsive, which factors include, but are not limited to:

Failure to be prequalified with CDB in advance of the bid opening date.

Submission of a bid late, in pencil, or in a manner that reveals the bid price prior to the bid opening (e.g., by facsimile).

Submission of a bid that is not in substantial conformance with the bidding documents.

Submission of bid security that is not in substantial compliance with the requirements of the bidding documents.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.140 Special Projects

When CDB determines a construction project is so large or specialized that a special bidder prequalification and responsibility determination is appropriate, CDB may set appropriate standards of acceptability different from those set out herein. Other provisions of this Part shall remain applicable.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

Section 950.150 Confidentiality

Documents relating to responsibility determinations of a contractor shall be maintained by CDB in a separate file and shall remain confidential as records pertaining to occupational registration, except that they shall be subject to complete disclosure to the contractor to which they relate and to units of federal, State, or local government, including but not limited to law enforcement agencies. Nothing herein shall be construed to mean that CDB is required to disclose to the contractor the name of any person or organization filing a complaint or providing information to CDB when the complaint or information is used by CDB as the basis for further inquiry into the facts alleged. CDB may release to anyone the contractor's prequalification status with CDB. Notwithstanding the foregoing, neither the Contractor Performance Evaluations (CPE) nor the contractor's written responses to them shall be made available to any other person or firm.

(Source: Amended at 28 Ill. Reg. 4857, effective March 4, 2004)

TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT
CHAPTER XII: CAPITAL DEVELOPMENT BOARD
PART 950 PREQUALIFICATION AND BIDDER RESPONSIBILITY
SECTION 950.160 SOURCES FOR DETERMINING RESPONSIBILITY

Section 950.160 Sources for Determining Responsibility

To determine a contractor's responsibility, CDB may utilize information obtained from one or more of the following sources. In evaluating the information, greater consideration shall be given to the contractor's most recent projects and projects with CDB.

a) Contractor bidder responsibility and renewal application forms

1) New bidders applications shall at a minimum require of the contractor:

A) Completed application form.

B) Evidence of bonding capacity meeting CDB criteria.

C) Adherence to statutory requirements.

D) Satisfactory work history - reference checks. References obtained may be verified and documented by the following methods:

i) Telephone reference checks.

ii) Reference questionnaire.

2) Renewal applications shall at a minimum require of the contractor:

A) The information set out in subsection (a)(1) above.

B) Adherence to CDB rules and resolutions.

C) Satisfactory CDB work and performance history, which may be documented through evaluations prepared on both current and past CDB projects by the following:

i) CDB staff.

ii) Architects/engineers and consultants.

iii) Using agencies.

iv) Other contractors, subcontractors and suppliers.

3) Application updates

The contractor shall have an affirmative duty to update significant information as it occurs, including but not limited to changes in ownership, change of name, change of address, change in minority/female owned firm status, loss of SOS "good standing" status, suspension or debarment by another governmental agency, decrease by more than 25% in bonding capacity, filing of bankruptcy, contract terminations, and filing of formal criminal charges against the firm or its officers, owners, or employees. Failure to disclose as required may lead to action on prequalification. (See Section 950.210(c).)

b) Other government entities

CDB may conduct history reference checks by contacting federal, State or local governmental entities.

c) Other sources

CDB may conduct reference checks or gather relevant information from any other source in order to determine responsibility. Acceptable sources may include, but are not limited to:

1) Surety/bonding companies

2) Financial institutions

3) Periodicals

4) Newspapers

5) Court records

6) Dun and Bradstreet reports

7) Audited financial statements

8) Any type of public record

d) Previous employment history

For any newly organized firm or a firm with a limited work history, CDB may conduct individual performance reference checks on any or all personnel.

e) Additional information

CDB may request additional information from the contractor at any time.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.170 Processing of Contractor Prequalification and Bidder Responsibility and Renewal Applications

a) New bidders and bidders nearing the prequalification expiration date must complete a contractor prequalification and bidder responsibility application, including the Financial Interests and Potential Conflicts of Interest forms required under Section 50-35 of the Illinois Procurement Code [30 ILCS 500/50-35].

b) Processing of contractor prequalification and bidder responsibility applications by CDB may require up to 45 days when the application information is complete and satisfactory and references are responsive.

c) Applications for renewal will be sent to contractors approximately 60 days before the expiration of current prequalification and are available electronically on CDB's internet site at www.cdb.state.il.us. Contractors who do not receive an application are responsible for obtaining one at least 45 days prior to expiration. When all information received is complete and satisfactory, processing may take up to 45 days. When any information is incomplete or unsatisfactory, a longer processing time will be required. Contractors will be notified when information is incomplete or unsatisfactory. Unless otherwise specified in writing by CDB, the term of prequalification shall be one year. When prequalification is granted, the contractor will be notified in writing of the expiration date, which will also be entered on CDB's electronic program. CDB may grant a shorter term of prequalification by agreement with the contractor, when a determination is made that a shorter period is justified. CDB may, in its discretion, grant a longer period of prequalification when deemed appropriate in light of recent and relevant satisfactory project performance. Updated or new contractor information including the term of prequalification will be entered on CDB's electronic program weekly. The electronic program will be capable of, among other things, sorting contractors by trade to produce lists of contractors in various trades. At the beginning of each month, a list of contractors whose prequalification expires in approximately 60 days will be generated.

d) Applications may be sent to CDB by facsimile.

e) CDB shall review and evaluate each application received, which may include one or more of the following actions:

1) Reviewing to determine whether the application is filled out in accordance with the instructions provided.

2) Contacting work references or any other possible sources of pertinent information.

3) Requesting additional information from the applicant.

4) Reviewing CDB contractor performance evaluations.

5) Meeting with the applicant at the request of CDB or the applicant.

f) CDB shall deny prequalification to any firm that has not affirmatively demonstrated its responsibility. CDB's determination of responsibility shall be final.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.180 Ineligibility

A contractor, whether or not previously or currently prequalified and determined to be responsible by CDB, may be ineligible to bid under the following circumstances:

a) The contractor fails to meet statutory or regulatory requirements other than those set out in this Part.

b) The contractor has inadequate relevant experience in construction contracting to undertake CDB projects or a particular CDB project. In determining whether a contractor has adequate relevant experience, CDB will consider the size, type, number, and recency of past private and public contracts of the firm, its predecessors, or key persons with the firm.

c) The contractor has inadequate resources to meet the CDB contractual work force requirements. CDB shall not make a determination of responsibility for any contractor who has the appearance of being a broker, rather than a conventional construction business. In determining whether a contractor is a broker or a firm with inadequate resources, CDB may consider one or more of the following:

1) Whether the contractor maintains and works from a separate conventional office which is not a residence or offices for other businesses.

2) Whether the contractor maintains a full-time office and construction staff consisting of clerical, managerial, and supervisory personnel.

3) Whether key persons with the firm have an educational and work experience background that makes the key persons sufficiently expert and knowledgeable to carry out CDB construction projects.

4) Whether the contractor owns equipment, tools, machinery, materials or supplies used on construction projects.

5) Whether the contractor has financial resources related to or generated by the construction business.

6) Whether the contractor has historically subcontracted for a percentage of the work in construction contracts exceeding the requirements of CDB contracts.

7) Whether key persons with the firm are engaged in non-construction businesses.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

SUBPART B: SUSPENSION, DEBARMENT, MODIFICATION OF ABILITY TO BID, AND CONDITIONAL PREQUALIFICATION

Section 950.200 Actions Affecting Prequalification

At any time, CDB may consider whether action should be taken concerning prequalification. Actions that may be taken include one or more of the following:

a) Interim or Emergency Suspension or Modification

CDB may summarily suspend or modify a contractor's prequalification in accordance with Section 16 of the Capital Development Board Act [20 ILCS 3105/16].

b) Debarment

CDB may debar a contractor to exclude it from bidding for CDB contracts as authorized herein or by statute. The period of debarment shall be not less than five years and may be permanent when warranted or as authorized by law.

c) Modification of Ability to Bid

CDB may modify or limit a contractor's prequalification as appropriate, including, but not limited to one or more of the following:

1) Limiting the dollar amount a contractor may bid for a specified period of time, or until a current contract is substantially or fully complete.

2) Limiting the number of CDB contracts a contractor may enter into for a specified period of time, or until a current contract is substantially or fully complete.

3) Limiting the aggregate dollar amount of contracts the contractor may enter into, considering both public and private contracts.

4) Imposing limits as set forth above pending performance on the contractor's next CDB contract(s), in instances where the contractor has no current CDB contracts.

d) Conditional Prequalification

CDB may condition prequalification (which may be otherwise limited) on the contractor's successful utilization of a management plan, evaluations, conferences, or other methods designed to achieve satisfactory performance or compliance with contract requirements.

e) Suspension

CDB may suspend a contract or disqualify a contractor temporarily from contracting with CDB, for a period of time up to five years. The contractor's failure to timely pursue administrative action as provided by Subpart D of this Part shall constitute consent of the contractor to CDB's action.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.210 Causes for Suspension, Debarment, Modification of Ability to Bid, or Conditional Prequalification

CDB may determine a contractor is not responsible and suspend, debar or otherwise modify or issue a conditional prequalification based upon one or more of the following:

a) Failure to satisfactorily perform work on CDB contract(s), private contract(s), or other governmental contracts. (See also Section 950.220.)

b) Breach of the terms of a CDB contract(s), private contract(s), or other governmental contract(s). (See also Section 950.220.)

c) Making false or misleading statements, or failing to disclose or update significant information in connection with CDB procedures or documents, including but not limited to the contractor bidder responsibility application.

d) Violation of civil or criminal federal or State statutes or administrative rules and regulations. In the case of criminal violations, indictment or filing of formal charges by information (complaint) shall constitute adequate evidence for a determination of non-responsibility.

e) Financial instability which may be evidenced by bankruptcy, failure to timely pay subcontractors, difficulty in obtaining acceptable bonding, attempts to assign contract proceeds, or other indications of serious business management deficiencies.

f) Failure to understand, accept or utilize CDB procedures and standards, or abuse of CDB procedures and standards, which results in the extraordinary expenditure of CDB resources.

g) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, or conduct indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a contractor.

h) Suspension, debarment, or limits on bidding contracts by any other governmental body.

i) Excessive bid withdrawals on CDB projects.

j) Any other cause of so serious or compelling a nature that it affects the responsibility of a contractor.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.220 Failure to Satisfactorily Perform Work on or Breach of the Terms of CDB Contracts, Private Contracts, or Other Governmental Contracts

CDB may take action upon prequalification for the contractor's failure to satisfactorily perform work on or breach of the terms of CDB contracts, private contracts, or other governmental contracts, such as, but not limited to, one or more of the following:

a) Failure to timely submit proper post-award documents, such as, but not limited to, bonds, certificates of insurance, and MBE/FBE subcontractor/supplier certifications.

b) Failure to attend or to be properly prepared for pre-construction meetings, pay/progress meetings, or other required meetings set by the project A/E, CDB, or the coordinating contractor.

c) Failure to timely provide schedule submittals or shop drawings.

d) Failure to meet the project schedule for any reason reasonably within the control of the contractor.

e) Failure to provide an acceptable quality of supervision.

f) Failure to provide a supervisor authorized to make timely field decisions on behalf of the firm.

g) Failure to provide sufficient manpower.

h) Failure to timely provide acceptable quality equipment, labor, materials, installation, subcontractors or suppliers, including the failure to provide licensed personnel when necessary.

i) Failure to keep updated as-builts in the field.

j) Failure to follow directives provided by the project A/E or CDB within the scope of the contract documents.

k) Failure to cooperate with other parties to the project to timely resolve project problems that arise.

l) Failure to understand, accept or utilize CDB procedures and standards, or abuse of CDB procedures and standards that results in paper delays, project delays, or the extraordinary expenditure of CDB resources.

m) Failure to provide timely and appropriate pay request documents, including, but not limited to, the Contractor's Schedule of Values form (Development), Contractor's Affidavit and Sworn Statement form (CASS), and lien waivers.

n) Failure to timely submit Requests for Proposals and Change Order documents (RFP/CO), including, but not limited to, adequate documentation of actual direct costs and pricing within conventional industry parameters for public contracts.

o) Failure to timely complete punch list items and contract close-out documents.

p) Failure to demonstrate good faith efforts to meet Fair Employment Practices (FEP) requirements and MBE/FBE goals.

(Source: Added at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.230 Interim or Emergency Suspension or Modification Pursuant to Section 16 of the Capital Development Board Act

a) CDB may suspend or modify a contractor's prequalification without a prior hearing, or administrative procedure provided in Subpart D, for one or more of the following causes:

1) The public interest, safety or welfare requires such suspension or modification.

2) An event or series of events, including, but not limited to:

A) The filing of an indictment or of formal charges by information (complaint) charging the firm or a key person with the firm with a crime.

B) Suspension or modification of a license or prequalification by another State agency, federal agency or other branch of government after hearing or by agreement.

C) Failure to comply with applicable laws, including, but not limited to, the Minority and Female Business Enterprise Act [30 ILCS 575], the Prevailing Wage Act [820 ILCS 130], the Steel Products Procurement Act [530 ILCS 565], and requirements relating to occupational licensing.

D) Material breach of a contract, including, but not limited to, one or more of the causes set forth in Section 950.220.

E) Failure to satisfactorily perform work on or breach of a CDB contract, including, but not limited to, one or more of the causes set forth in Section 950.220, when:

i) The issue has been brought to the attention of firm management in writing;

ii) All levels of CDB construction administration have met with firm representatives and discussed the issue;

iii) CDB conveys to the contractor what action or nonaction is necessary and in accordance with the contract documents;

iv) CDB has initiated contractual remedies as may be appropriate, such as, but not limited to, stopping the work, rejecting the work, carrying out the work, or ordering acceleration of the work; and

v) The contractor willfully and unreasonably refuses to comply or to obtain subcontractors, personnel, or other resources that would enable it to comply.

b) When prequalification is suspended or modified pursuant to this Section, the contractor will be notified in writing and, within 30 days after the notice, CDB will commence administrative procedures under Subpart D.

c) When prequalification is suspended or modified pursuant to subsection (a)(2)(E), if the contractor cures the situation within 30 days after the notice, the suspension or modification will be rescinded by written notice. If CDB determines the contractor is making substantial progress toward a cure within 30 days after the notice, CDB may extend in writing the 30-day period by an amount up to an additional 60 days. If the contractor cures the situation within the extended time period, the suspension or modification will be rescinded by written notice. In any case, when the suspension or modification is rescinded, it will be removed from the contractor's prequalification record. If the contractor fails to cure the situation within 30 days or within the time extension, whichever is applicable, CDB will immediately commence administrative procedures under Subpart D.

(Source: Added at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.240 Denial of Prequalification

a) This Section is applicable to contractors who are one of the following:

1) First-time applicants for CDB prequalification.

2) Firms who sent a renewal application that arrived at CDB after the prequalification expiration date or could not reasonably be processed before the expiration date.

3) Firms who sent a renewal application that was incomplete or insufficient, so that CDB could not reasonably process the application before the expiration date.

b) Contractors categorized above will be considered to be new applicants to CDB. In the event that CDB denies prequalification or grants a conditional or modified prequalification, the contractor may request administrative procedures under Subpart D, but shall not be entitled to an administrative hearing.

(Source: Added at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.250 Increase or Decrease of Financial Prequalification Rating (Repealed)

(Source: Repealed at 16 Ill. Reg. 12424, effective July 28, 1992)

Section 950.260 Aggregate Dollar Amount of Contracts (Repealed)

(Source: Repealed at 16 Ill. Reg. 12424, effective July 28, 1992)

Section 950.270 Contracts More than Seventy Percent (70%) Completed (Repealed)

(Source: Repealed at 16 Ill. Reg. 12424, effective July 28, 1992)

Section 950.280 Joint Ventures (Repealed)

(Source: Repealed at 16 Ill. Reg. 12424, effective July 28, 1992)

Section 950.290 Appeal of Prequalification Rating (Repealed)

(Source: Repealed at 16 Ill. Reg. 12424, effective July 28, 1992)

SUBPART C: APPLICATION OF CDB ACTION

Section 950.300 General

Suspension, debarment, nullification of prequalification, modification of prequalification, or issuance of conditional prequalification by CDB is applicable to a contractor's direct contracts with CDB and to subcontracts on CDB projects, unless otherwise determined under Section 950.360.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

Section 950.310 Violation of CDB Order

When a contractor works as a subcontractor on a CDB project in violation of Section 950.300, continues to submit bids on CDB projects when prohibited, or otherwise violates terms or conditions imposed by CDB, CDB may extend the term of suspension, debarment, nullification, modification, or conditional prequalification, or otherwise suspend, limit or condition the ability to bid on contracts with CDB.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.320 Nullification of Prequalification

When CDB determines that a contractor has knowingly made a material misrepresentation in its application for prequalification, the contractor may not re-apply to CDB for a period of three years.

a) When the contractor has not previously applied to CDB, or it failed to reapply, the three year period shall begin on the date of the submittal of the application.

b) When the contractor has been determined to be responsible in error, the three year period shall begin on the date the current responsibility determination was made.

c) CDB will notify the contractor of the nullity. The contractor may, within 30 days after notification, submit a written explanation with supporting documentation for CDB's review.

d) CDB may cancel awards or terminate any contracts awarded that were based upon the application with misrepresentations.

e) A material misrepresentation is made by knowingly submitting any untrue, misleading or deceptive information or document containing such information, or by the concealment, suppression or omission of any information, in or from an application, which causes CDB to act differently than it would have if it had known the undisclosed or true information.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

Section 950.330 Denial of Award of Contract

Notwithstanding any other provisions in this Part, if CDB finds a contractor non-responsible due to one or more causes set out in Section 950.210 of this Part, CDB may deny the contractor the award of a contract.

Section 950.340 Debarment

CDB may debar a contractor to exclude it from bidding on CDB projects as provided herein or otherwise provided by statute. CDB will consider debarment in cases so serious and egregious in nature that a loss in excess of five years up to a permanent loss of bidding privileges may be warranted. In addition to the causes listed in Section 950.210, causes for debarment may include but not be limited to multiple or repetitive criminal convictions or multiple non-responsibility determinations. Actions to debar a contractor shall not prevent CDB from taking any other action under this Part. Following a period of debarment, when a contractor submits a prequalification application to CDB, the application shall be deemed to be a first-time application rather than one for renewal.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

Section 950.350 Reapplication for Prequalification

When a contractor submits a prequalification application to CDB following a denial, or during or following a period of debarment, suspension, nullification, modification of ability to bid, or conditional prequalification, the contractor must affirmatively demonstrate its responsibility, including demonstrating that the reason for the denial, or imposition of suspension, debarment, nullification, modification, or condition, has been remedied.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.360 Extension of CDB Action

The effect of action imposed by CDB will extend to all affiliates, branches, subsidiaries, divisions, or parent firms of the contractor, and to any firm in which the contractor or its key persons have a legal or beneficial interest, unless CDB determines otherwise in writing.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.370 Effect on Current Contracts

Current CDB contracts may be terminated when a contractor is determined to be non-responsible and it is in the public interest to do so, whether or not the non-responsibility has a direct connection with the current contract. Contracts may be terminated with or without further action on the contractor's prequalification.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

Section 950.380 Basis of Decisions

CDB shall make determinations as appropriate concerning the substance of a contractor's business as opposed to its form, and base its decisions on the substance. When a contractor attempts to evade the effects of a possible or actual finding of non-responsibility by changes of address, multiple addresses, changes in personnel or their titles, formation of new companies, or by other devices, CDB may take action pursuant to Section 950.200 and Subpart C of this Part.

Section 950.390 Settlement

Notwithstanding any provision of this Part, the parties to any contested matter concerning contractor prequalification may at any time enter into an agreement to resolve prequalification issues by settlement.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

SUBPART D: PROCEDURES

Section 950.400 Review

When information which places a contractor's responsibility and prequalification in question comes to CDB's attention, CDB shall review the facts and documentation. If further inquiry is desirable, it may do such further inquiry, which may result in an informal conference with the contractor and its appropriate staff members with CDB. If such conference is intended by CDB to be the first step in the administrative process, written notice will be sent pursuant to Section 950.410. The contractor's failure to appear at the conference shall be construed to indicate the contractor does not wish to contest the matter and rights to further administrative procedures shall be forfeited.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.410 Conference

a) Unless proceedings under Section 16 of the CDB Act [20 ILCS 3105/16] are justified, prior to suspending, conditioning, modifying or nullifying a contractor's prequalification or debarring a contractor, CDB will notify the contractor in writing of its intention to take such action and the basis of the action, and will request that the contractor attend an informal conference with CDB personnel.

b) When requesting a conference with a contractor, CDB's letter shall request that the contractor bring to the conference any documents, personnel, or other information pertinent to responsibility that it wishes for CDB to consider. The contractor may bring its attorney to the conference, if desired. Within a reasonable time in advance of the conference, CDB shall furnish the contractor with all information in its possession that it deems pertinent to the responsibility and prequalification issue, and shall further advise the contractor in writing that it has the right to inspect its prequalification file.

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.420 Executive Director

Following CDB's conference with the contractor, the committee shall forward a recommendation as to a determination of responsibility and prequalification to the Executive Director for consideration. The contractor will be notified in writing of the Executive Director's decision.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)

Section 950.430 Request for Reconsideration

Within 15 days after receipt of the Executive Director's decision, the contractor shall make any further appeal to the Executive Director in writing. The appeal shall request reconsideration of the decision and shall include as attachments any and all supporting evidence not previously submitted. CDB shall respond to the request for reconsideration within 15 days after CDB's receipt.

Section 950.440 Hearings

Within 30 days after the contractor's receipt of the Executive Director's decision on the request for reconsideration, the contractor may request a hearing in writing. All administrative procedures in this Subpart D must be exhausted before CDB will consider the request for a hearing. Hearings shall be conducted in accordance with Hearing Procedures (71 Ill. Adm. Code 100).

(Source: Amended at 25 Ill. Reg. 10741, effective August 10, 2001)

Section 950.450 Burden of Proof

Any determination pursuant to this Part may be made when CDB possesses documentation of one or more of the factors described in Section 950.180, 950.210, or 950.320. Such documentation constitutes a presumptive determination of non-responsibility. The contractor is entitled to rebut the presumption, through procedures described in this Subpart, but the presumption will not be overturned unless the contractor shows, by a preponderance of evidence, that each factor cited by CDB in support of its determination of non-responsibility is not present. CDB's determinations are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law.

(Source: Amended at 22 Ill. Reg. 20007, effective November 9, 1998)