State of Illinois
90th General Assembly

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[ Introduced ][ House Amendment 001 ]


      30 ILCS 505/6             from Ch. 127, par. 132.6
          Amends the Illinois Purchasing Act.  Increases  from  one
      year  to 10 years the maximum period that a contractor may be
      suspended for violating competitive procurement procedures or
      failing to conform to  contract  specifications  or  delivery
      terms.  Effective immediately.
HB0291 Engrossed                               LRB9001427MWpc
 1        AN  ACT  to amend the Illinois Purchasing Act by changing
 2    Section 6.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Illinois  Purchasing Act is amended by
 6    changing Section 6 as follows:
 7        (30 ILCS 505/6) (from Ch. 127, par. 132.6)
 8        Sec.  6.  State  agency  purchasing  procedures.    State
 9    agencies   may   provide   that  prospective  contractors  be
10    prequalified to determine their responsibility,  as  required
11    by  this  Act. State agencies shall also provide, among other
12    matters which are not  in  conflict  with  the  policies  and
13    principles herein set forth:
14        a.  That  all  purchases,  contracts  and  expenditure of
15    funds shall be awarded pursuant to  a  competitive  selection
16    procedure  which may provide that contracts be awarded to the
17    lowest  responsible  bidder   considering   conformity   with
18    specifications,    terms    of    delivery,    quality    and
19    serviceability,  except as provided in paragraphs e, f, g and
20    h of this Section.
21        However, a competitive selection procedure  need  not  be
22    followed in the following cases:
23             (1)  Where  the goods or services to be procured are
24        economically procurable from only  one  source,  such  as
25        contracts   for   local   exchange   telephone   service,
26        electrical  energy,  and  other  public utility services,
27        books, pamphlets and periodicals, and specially  designed
28        business and research equipment and related supplies.
29             (2)  Where    the    services   required   are   for
30        professional or artistic skills  pursuant  to  a  written
31        contract.
HB0291 Engrossed            -2-                LRB9001427MWpc
 1             (3)  In  emergencies involving public health, public
 2        safety, or where immediate expenditure is  necessary  for
 3        repairs  to  State  property  in order to protect against
 4        further loss of or damage to State property,  to  prevent
 5        or  minimize  serious  disruption in State services or to
 6        insure the integrity of State records.
 7             If funds are expended in  an  emergency  under  this
 8        subdivision  a(3),  by  purchase, contract, or otherwise,
 9        the person authorizing  the  expenditure  shall  file  an
10        affidavit  with  the Auditor General within 10 days after
11        the  purchase  or  contract,  setting  forth  the  amount
12        expended, the name of the vendor or contractor,  and  the
13        circumstances  requiring the emergency purchase.  If only
14        an estimate of the cost  is  available  at  the  time  of
15        filing,  the  person  authorizing  the  expenditure  must
16        report  the actual cost to the Auditor General as soon as
17        that cost is determined.
18             The Auditor General shall file with the  Legislative
19        Audit  Commission  and  the  Governor, at the end of each
20        fiscal quarter,  a  complete  listing  of  all  emergency
21        purchases  and  contracts  reported  during  that  fiscal
22        quarter.    The Legislative Audit Commission shall make a
23        thorough review of all emergency purchases  so  reported,
24        and  in  its  annual  report  to the General Assembly the
25        Commission shall identify  any  emergency  purchase  that
26        appears  to  constitute an abuse of the authority granted
27        under this subdivision a(3).
28             (4)  In case of expenditures for  personal  services
29        paid to employees or officers of a State agency.  As used
30        in  this  paragraph,  "personal services" has the meaning
31        ascribed to that term in Section 14 of the State  Finance
32        Act.
33             (5)  Contracts for repairs, maintenance, remodeling,
34        renovation, or construction of a single project involving
HB0291 Engrossed            -3-                LRB9001427MWpc
 1        an  expenditure not to exceed $10,000 and not involving a
 2        change or increase in the size,  type  or  extent  of  an
 3        existing facility.
 4             (6)  Contracts  for  repairs,  maintenance,  or  any
 5        other services not specifically exempt from a competitive
 6        selection  procedure  under  this  Act  where  individual
 7        orders for such services do not exceed $25,000.
 8             (7)  Purchases  of  commodities  and equipment where
 9        individual orders are less than $25,000.
10             (8)  Contracts for the maintenance or servicing  of,
11        or provision of repair parts for equipment which are made
12        with  the  manufacturers  or  authorized service agent of
13        that equipment where the provision of parts,  maintenance
14        or servicing can best be performed by the manufacturer or
15        authorized   service  agent  or  such  a  contract  would
16        otherwise be advantageous to the State, but the exception
17        provided in this sub-paragraph (8) does not apply to  the
18        subdivisions  of  work  listed in paragraph a-1-a of this
19        Section.
20             (9)  Where the goods or services are  procured  from
21        another governmental agency.
22             (10)  Purchases and contracts for the use, purchase,
23        delivery,  movement  or  installation  of data processing
24        equipment, software or  services  and  telecommunications
25        and inter-connect equipment, software and services.
26             (11)  Personal  service  contracts  made by members,
27        officers,  committees,  or  commissions  of  the  General
28        Assembly.
29             (12)  Any  contract  for  duplicating  machines  and
30        supplies.
31             (13)  Any contract for the purchase of  natural  gas
32        when  the  cost  is  less  than  that offered by a public
33        utility.
34             (14)  Any contract  for  State  Lottery  tickets  or
HB0291 Engrossed            -4-                LRB9001427MWpc
 1        shares or for other State Lottery game related services.
 2             (15)  Purchases   of   and   contracts   for  office
 3        equipment and associated  supplies  when  such  contracts
 4        provide  for  prices  that  are  equal  to  or lower than
 5        Federal General  Services  Administration  contracts  and
 6        when  such  contracts  or  pricing  result  in economical
 7        advantage to the State.
 8             (16)  Purchases and contracts by the  Department  of
 9        State  Police  for  the  use, purchase or installation of
10        forensic  science  laboratory  analytical  equipment  and
11        analytical data processing equipment  used  for  forensic
12        science  laboratory  purposes  only,  including equipment
13        which is microprocessor controlled or  controllable,  and
14        its  software.  Prior  to the purchase of or contract for
15        such equipment, the Director of the Department  of  State
16        Police  shall  certify to the Comptroller and the Auditor
17        General that such equipment is necessary and an  integral
18        component  of  the Department of State Police's statutory
19        investigatory duties and that  competitive  bidding  will
20        hamper  such  statutory duties.  Such certification shall
21        include the prices of and specifications of the equipment
22        to  be  purchased  or  contracted  for  and  the  prices,
23        specifications and reasons for rejection  of  comparative
24        equipment   by  the  Department  of  State  Police.   The
25        Comptroller  shall  file  such  certification  with   any
26        purchase  vouchers  or files maintained for the purchase.
27        The Auditor General shall require such  certification  to
28        be noted in audits performed at his direction.
29             (17)  Purchases  and  contracts by the Department of
30        Nuclear Safety for the use, purchase or  installation  of
31        radiochemistry   laboratory  equipment,  instruments  and
32        equipment used to detect radiation or radioactivity,  and
33        data  processing equipment used for purposes of detecting
34        radiation or radioactivity.  Prior to the purchase of  or
HB0291 Engrossed            -5-                LRB9001427MWpc
 1        contract   for   such  equipment,  the  Director  of  the
 2        Department  of  Nuclear  Safety  shall  certify  to   the
 3        Comptroller  that  such  equipment  is  necessary  and an
 4        integral component of the Department of Nuclear  Safety's
 5        emergency  response  or radiation monitoring programs and
 6        that competitive bidding will hamper such programs.  Such
 7        certification   shall   include   the   prices   of   and
 8        specifications  of  the  equipment  to  be  purchased  or
 9        contracted for and the prices, specifications and reasons
10        for rejection of comparable equipment by  the  Department
11        of  Nuclear  Safety.   The  Comptroller  shall  file such
12        certification  with  any  purchase  vouchers   or   files
13        maintained for the purchase.
14        a-1.  In  case  of  contracts  for  the  construction  of
15    buildings,  or  for  other  construction  work  in  or  about
16    buildings  and  grounds,  where  the entire estimated cost of
17    such work exceeds $25,000, State agencies  may  provide  that
18    prospective  contractors, as well as architects and engineers
19    employed in connection with such projects, be prequalified to
20    determine their  responsibility.  Such  prequalification  may
21    require,   without   limitation,   that   the  applicant  for
22    prequalification list  all  public  works  contracts  he  has
23    performed within 2 years of the date of application, or the 4
24    most   recent   public  works  contracts  he  has  performed,
25    whichever is fewer, and state whether he  complied  with  the
26    Illinois  Wage  Assignment  Act in performing such contracts.
27    Such statement shall be made under oath or affirmation and if
28    made falsely is punishable as perjury under Section  32-2  of
29    the Criminal Code of 1961.
30        a-1-a.  Separate  specifications  shall be prepared, with
31    the exception of the Cardinal Creek  Housing  project  and  2
32    grade  schools associated with the Scott Joint-Use Airport in
33    St. Clair County which shall  be  permitted,  as  a  one-time
34    exclusion,  to  allow  turn-key  development  of the required
HB0291 Engrossed            -6-                LRB9001427MWpc
 1    facilities on the basis of competitive quality,  performance,
 2    and   price,  for  all  equipment,  labor  and  materials  in
 3    connection with the following 5 subdivisions of the  work  to
 4    be performed:
 5             1.  Plumbing.
 6             2.  Heating,  piping,  refrigeration  and  automatic
 7        temperature  control  systems,  including the testing and
 8        balancing of such systems.
 9             3.  Ventilating   and   distribution   systems   for
10        conditioned air, including the testing and  balancing  of
11        such systems.
12             4.  Electric wiring.
13             5.  General contract work.
14        Such  specifications  shall  be  so  drawn  as  to permit
15    separate and independent competitive bidding upon each of the
16    above 5 subdivisions of work; provided, however, if the total
17    estimated cost of  all  such  work  is  less  than  $250,000,
18    separate  and  independent  specifications  are not required.
19    All contracts awarded for any part thereof shall award the  5
20    subdivisions  of  such  work  separately  to  responsible and
21    reliable persons, firms  or  corporations  engaged  in  these
22    classes  of  work.   Such contracts, at the discretion of the
23    awarding authority, may be assigned to the successful  bidder
24    on  the general contract work, or to the successful bidder on
25    the subdivision of work designated by the awarding  authority
26    prior  to  competitive  bidding  as  the prime subdivision of
27    work; provided that all payments will be made directly to the
28    contractors  for  the  5  subdivisions  of  such  work   upon
29    compliance  with  the conditions of the contract.  A contract
30    may be let for one or more buildings in any  project  to  the
31    same  contractor.  The specifications shall require, however,
32    that unless the buildings are  identical,  a  separate  price
33    shall  be  submitted  for each building.  The contract may be
34    awarded to the lowest responsible bidder for each or  all  of
HB0291 Engrossed            -7-                LRB9001427MWpc
 1    the buildings included in the specifications.
 2        As  used in this subdivision a-1-a, "competitive bidding"
 3    means bidding in which (i) bids are  publicly  solicited  and
 4    opened, (ii) the terms and conditions of the solicitation and
 5    the  bidding process apply equally to all bidders, (iii) bids
 6    are awarded to the lowest responsive responsible bidder,  and
 7    (iv) the procedures used and imposed by the agency conform to
 8    any applicable agency rules.  A solicitation for bids may not
 9    impose  restrictions  on  source,  supplier, or manufacturer,
10    except as otherwise provided in  this  Section.   Competitive
11    bidding constitutes a competitive selection procedure for the
12    purposes of this Act.
13        Whenever  any contract entered into by a State agency for
14    the repair,  remodeling,  renovation  or  construction  of  a
15    building  or structure or for the construction or maintenance
16    of a highway, as those terms are defined in Article 2 of  the
17    Illinois  Highway  Code,  or for the reclamation of abandoned
18    lands as  those  terms  are  defined  in  Article  I  of  the
19    Abandoned Mined Lands and Water Reclamation Act, provides for
20    retention  of  a percentage of the contract price until final
21    completion and acceptance of the work, upon  the  request  of
22    the  contractor and with the approval of the State agency the
23    amount so retained may be deposited under a  trust  agreement
24    with  an Illinois bank of the contractor's choice and subject
25    to the approval of the State agency.   The  contractor  shall
26    receive   any  interest  thereon.  Upon  application  by  the
27    contractor, the trust agreement must contain, as  a  minimum,
28    the following provisions:
29             A.  the amount to be deposited subject to the trust;
30             B.  the  terms  and conditions of payment in case of
31        default of the contractor;
32             C.  the termination  of  the  trust  agreement  upon
33        completion of the contract; and
34             D.  the   contractor   shall   be   responsible  for
HB0291 Engrossed            -8-                LRB9001427MWpc
 1        obtaining the written consent of the  bank  trustee,  and
 2        any   costs  or  service  fees  shall  be  borne  by  the
 3        contractor.
 4        The trust agreement may, at the discretion of  the  State
 5    agency  and  upon request of the contractor, become operative
 6    at the time of the first partial payment in  accordance  with
 7    existing statutes and the State agency procedures.
 8        a-2.  In  case of contracts for the purchase of supplies,
 9    materials,  commodities  and  equipment,  wherever   feasible
10    proposals shall be required to be itemized as to kind and the
11    solicitation  for  proposals shall state, with such degree of
12    particularity as the nature of the case permits, the quantity
13    of each item required.
14        a-3.  That all contracts  for  the  rental  or  lease  of
15    electronic  data  processing equipment shall include a clause
16    that if more favorable  terms  are  granted  by  the  lessor,
17    supplier,  dealer,  or  manufacturer  to any similar state or
18    local governmental agency in  any  state  in  contemporaneous
19    leases   or   rental   agreements  covering  data  processing
20    equipment let under the same or similar financial  terms  and
21    circumstances,  the  more favorable terms shall be applicable
22    to all agreements or contracts made by any  similar  Illinois
23    state  agency  for  the  rental  or  lease of comparable data
24    processing equipment from the lessor,  supplier,  dealer,  or
25    manufacturer.
26        b.  That  competitive  procurement procedures shall be in
27    conformance with accepted business practices.
28        c.  That proposals shall be publicly opened  at  the  day
29    and hour and at the place specified in the solicitations.
30        d.  That  any  contractor,  person,  or  business  may be
31    suspended for up to 5  years  not  more  than  one  year  for
32    violation  of  the competitive procurement procedure or rules
33    of  any  State  agency,  or  for  failure   to   conform   to
34    specifications or terms of delivery, or for any act involving
HB0291 Engrossed            -9-                LRB9001427MWpc
 1    the procurement or performance of any public contract that is
 2    indicative  of  a lack of business integrity and honesty.  No
 3    State agency shall enter into or approve a  contract  with  a
 4    suspended  contractor,  person, or business; or shall approve
 5    any subcontract, material supply agreement, equipment  lease,
 6    or  other  business  involvement  with  or  by  any suspended
 7    contractor, person, or business in connection with a contract
 8    entered into or approved by the Agency during the  period  of
 9    suspension.
10        e.  When  a  public  contract  is  to  be  awarded  under
11    competitive  selection procedures, a resident contractor must
12    be allowed a preference as against a non-resident bidder from
13    any state which gives or requires a preference to contractors
14    from that state.  The  preference  is  to  be  equal  to  the
15    preference given or required by the state of the non-resident
16    contractor.    Further,  if only non-resident contractors are
17    under consideration, the  purchasing  agency  is  within  its
18    right  to  specify  that  Illinois  labor  and  manufacturing
19    locations  be used as a part of the manufacturing process, if
20    applicable.  This specification may be negotiated, as part of
21    the solicitation process.
22        f.  "Resident contractor" as used in this Section means a
23    person authorized to transact  business  in  this  State  and
24    having  a  bona  fide  establishment for transacting business
25    within this  State  at  which  it  was  actually  transacting
26    business  on the date when any competitive solicitation for a
27    public contract is first advertised or announced, including a
28    foreign corporation duly authorized to transact  business  in
29    this   State   which   has  a  bona  fide  establishment  for
30    transacting business  within  this  State  at  which  it  was
31    actually   transacting   business   on   the  date  when  any
32    competitive solicitation  for  a  public  contract  is  first
33    advertised or announced.
34        g.  Paragraphs  e  and  f of this Section do not apply to
HB0291 Engrossed            -10-               LRB9001427MWpc
 1    any contract for any project as to which  federal  funds  are
 2    available  for  expenditure  when  such  paragraphs may be in
 3    conflict with federal law or federal regulation.
 4        h.  When  a  public  contract  is  to  be  awarded  under
 5    competitive procurement procedures,  an  otherwise  qualified
 6    bidder  who  will  fulfill  the  contract  through the use of
 7    products made of recycled materials may, on a pilot basis  or
 8    pursuant  to  a  pilot  study, be given preference over other
 9    contractors unable to do so, provided that the cost  included
10    in the proposal of products made of recycled materials is not
11    more than 10% greater than the cost of such products not made
12    of recycled materials.
13        i.  That  every  contract  for  the provision of goods or
14    services shall provide that the vendor  or  contractor  shall
15    maintain,  for  a  minimum of 5 years after the completion of
16    the  contract,  adequate  books,  records,   and   supporting
17    documents  to verify the amounts, recipients, and uses of all
18    disbursements  of  funds  passing  in  conjunction  with  the
19    contract; that the  contract  and  all  books,  records,  and
20    supporting   documents  related  to  the  contract  shall  be
21    available for review and audit by the  Auditor  General;  and
22    that  the contractor agrees to cooperate fully with any audit
23    conducted by the Auditor General and to provide  full  access
24    to  all  relevant  materials.  Failure to maintain the books,
25    records, and supporting documents required  by  this  Section
26    shall  establish  a presumption in favor of the State for the
27    recovery of any funds paid by the State  under  the  contract
28    for   which   adequate   books,   records,   and   supporting
29    documentation  are  not  available to support their purported
30    disbursement.
31        j.  A contract or expenditure that was  made  after  June
32    30, 1992 and before the effective date of this amendatory Act
33    of  1995 shall not become invalid or be otherwise affected by
34    the changes to subdivision a-1-a of this Section made by this
HB0291 Engrossed            -11-               LRB9001427MWpc
 1    amendatory Act of 1995.
 2    (Source: P.A. 88-45; 89-254, eff. 8-8-95.)
 3        Section 99.  Effective date.  This Act takes effect  upon
 4    becoming law.

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