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HOUSE RESOLUTION


 
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    WHEREAS, The Governmental Joint Purchasing Act authorizes 
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governmental units to purchase personal property, supplies, 
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and services jointly with one or more other governmental units 
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through a competitive bid process; and

 
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    WHEREAS, The Governmental Joint Purchasing Act provides 
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that when the State of Illinois is a party to the joint 
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purchase agreement, the Illinois Department of Central 
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Management Services ("CMS") shall conduct the letting of bids; 
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and

 
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    WHEREAS, On June 20, 2008, CMS issued Solicitation No. 
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222600 (the "Original Solicitation") requesting bids for bulk 
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rock salt to be used for ice control by the Department of 
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Transportation, the Illinois State Toll Highway Authority, 
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other State agencies, and over 700  units of local government in 
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98 counties statewide (the "pool participants"); and

 
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    WHEREAS, Responses to the Original Solicitation were due on 
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July 16, 2008; responses were submitted by four vendors, but 
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none of the responses received by CMS for the Original 
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Solicitation contained bids for the salt requirements for the 
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majority of the pool participants located in Cook County, or 
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for any of the pool participants located in Lake or McHenry 
 


 






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County; and

 
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    WHEREAS, On July 25, 2008, CMS issued Solicitation No. 
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223231, a Supplemental Re-bid seeking bids for the salt 
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requirements of the pool participants in Cook, Lake, and 
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McHenry County (the "Re-bid"); and

 
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    WHEREAS, Responses to the Re-bid were due on August 12, 
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2008;  responses to the Re-bid were submitted by three vendors, 
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but all of the vendors responded to the Original Solicitation 
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and  limited their bids to the pool participants in Cook County; 
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and
 
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    WHEREAS, On August 19, 2008, CMS advised the pool 
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participants in Lake and McHenry County that, if they wished 
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CMS to continue efforts to procure salt for them, they would 
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have to commit to a price per ton in the range of $145 to $165; 
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and
 
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    WHEREAS, On August 21, 2008, CMS awarded contracts in a 
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total amount of $182,293,805.48 to the four vendors that 
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responded to the Original Solicitation, notwithstanding the 
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vendors' failure to submit bids for the salt requirements of 
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the pool participants in Cook, Lake, and McHenry County; and
 
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    WHEREAS, On August 28, 2008, certain pool participants in 
 


 






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Lake and McHenry County submitted a bid protest, claiming, 
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pursuant to the Governmental Joint Purchasing Act and the 
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Illinois Procurement Code, and the rules promulgated 
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thereunder that: (1) the proposals submitted in response to the 
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Original Solicitation were materially incomplete due to their 
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failure to provide bids for the salt requirements of all 
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governmental units participating in the joint procurement; (2) 
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CMS should have rejected the bids as non-responsive; and (3) 
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CMS should conduct an investigation into the bidding activities 
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of the responding vendors to ensure that the vendors complied 
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with all applicable State laws; and
 
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    WHEREAS, On August 29, 2008, CMS awarded $19,564,788.68 in 
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contracts to two of the three vendors responding to the Re-bid, 
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notwithstanding their failure to submit a bid for the salt 
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requirements of the pool participants in Lake and McHenry 
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County in either the Original Solicitation or the Re-Bid; and
 
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    WHEREAS, On September 4, 2008, CMS issued a no-bid, 
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emergency purchase award in the amount of $8,597,382.32 to one 
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of the vendors that had received an award under  the Original 
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Solicitation and submitted a response to the Re-bid, but had 
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not submitted a price for pool participants in Lake or McHenry 
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County in either solicitation; and
 
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    WHEREAS, Information in the press indicates that certain 
 


 






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local governments not participating in the joint procurement, 
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but located in geographic proximately to certain pool 
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participants, were able to obtain bulk rock salt at more 
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competitive prices than the pool participants; and
 
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    WHEREAS, Because a sealed bid process was used by CMS, bid 
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documents are not accessible, and CMS has not provided 
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information that would explain the price fluctuations for rock 
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salt within and outside of the joint purchasing pool; 
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therefore, be it

 
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    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 
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NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that 
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the Auditor General is directed pursuant to Section 3-2 of the 
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Illinois State Auditing Act to conduct an audit of CMS' 
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decisions relating to the joint purchasing procurements of bulk 
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rock salt to determine whether good procurement practices were 
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exercised in accordance with applicable State laws and rules; 
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and be it further

 
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    RESOLVED, That the Auditor General is authorized pursuant 
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to Section 3-2 of the Illinois State Auditing Act to review, 
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determine, and publicly report on whether CMS' activities and 
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decisions in connection with the joint procurement of rock salt 
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were in the best interests of the State and participating units 
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of local government; and be it further
 
 


 






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    RESOLVED, That the Auditor General commence this audit as 
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soon as possible and report his findings and recommendations 
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upon completion in accordance with the Illinois State Auditing 
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Act; and be it further
 
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    RESOLVED, That a copy of this resolution be delivered to 
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the Auditor General, the Governor, and the Director of Central 
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Management Services.