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