State of Illinois
92nd General Assembly

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[ House Amendment 001 ]



 1        AN ACT concerning procurement.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Legislative  Audit  Commission  Act is
 5    amended by changing Section 3 as follows:

 6        (25 ILCS 150/3) (from Ch. 63, par. 106)
 7        Sec. 3.  The Commission shall receive the reports of  the
 8    Auditor  General  and  other  financial  statements and shall
 9    determine what remedial measures, if  any,  are  needed,  and
10    whether  special studies and investigations are necessary. If
11    the Commission shall deem such studies and investigations  to
12    be  necessary,  the Commission may direct the Auditor General
13    to undertake such studies or investigations.
14        The Commission may review procurements made by any  State
15    agency.  The Commission or a member of the Commission may, if
16    necessary,   direct  the  Auditor  General  to  undertake  an
17    investigation of the procurement practices of a State agency.
18        When a disagreement between the Audit Commission  and  an
19    agency  under  the  Governor's  jurisdiction  arises  in  the
20    process  of  the  Audit  Commission's review of audit reports
21    relating to such agency, the Audit Commission shall  promptly
22    advise  the  Governor  of  such  areas  of  disagreement. The
23    Governor shall respond  to  the  Audit  Commission  within  a
24    reasonable  period  of  time,  and  in no event later than 60
25    days,  expressing  his  views  concerning   such   areas   of
26    disagreement  and  indicating  the corrective action taken by
27    his office with reference thereto or, if no action is  taken,
28    indicating the reasons therefor.
29        The Audit Commission also promptly shall advise all other
30    responsible   officials   of   the  Executive,  Judicial  and
31    Legislative branches of the  State  government  of  areas  of
                            -2-               LRB9206785SMpkA
 1    disagreement  arising  in  the  process  of  the Commission's
 2    review of their respective audit reports. With  reference  to
 3    his  particular  office, each such responsible official shall
 4    respond to the Audit Commission within a reasonable period of
 5    time, and in no event later than 60 days, expressing his view
 6    concerning such areas  of  disagreement  and  indicating  the
 7    corrective action taken with reference thereto or stating the
 8    reasons that no action has been taken.
 9        The Commission shall report its activities to the General
10    Assembly  including  such remedial measures as it deems to be
11    necessary. The report of the Commission shall be made to  the
12    General  Assembly  not less often than annually and not later
13    than March 1 in each year.
14        The requirement for reporting  to  the  General  Assembly
15    shall  be  satisfied  by filing copies of the report with the
16    Speaker, the Minority Leader and the Clerk of  the  House  of
17    Representatives  and  the  President, the Minority Leader and
18    the Secretary of the  Senate  and  the  Legislative  Research
19    Unit, as required by Section 3.1 of "An Act to revise the law
20    in  relation  to the General Assembly", approved February 25,
21    1874, as amended, and filing such additional copies with  the
22    State  Government  Report Distribution Center for the General
23    Assembly as is required under paragraph (t) of Section  7  of
24    the State Library Act.
25        In  addition,  the  Commission  has the powers and duties
26    provided for in the "Illinois State Auditing Act", enacted by
27    the 78th General Assembly, and, if the provisions of that Act
28    are conflict with those of this Act, that Act prevails.
29    (Source: P.A. 84-1438.)

30        Section 10.  The Illinois Procurement Code is amended  by
31    changing Sections 20-10 and 30-15 and by adding Section 30-16
32    as follows:
                            -3-               LRB9206785SMpkA
 1        (30 ILCS 500/20-10)
 2        Sec. 20-10.  Competitive sealed bidding.
 3        (a)  Conditions  for use.  All contracts shall be awarded
 4    by competitive sealed bidding except as otherwise provided in
 5    Section 20-5.
 6        (b)  Invitation for bids.  An invitation for  bids  shall
 7    be  issued  and  shall include a purchase description and the
 8    material contractual terms and conditions applicable  to  the
 9    procurement.  Each  invitation  for  sealed  bids  shall at a
10    minimum include:
11             (1)  a statement of:
12                  (A)  all significant  factors  and  significant
13             subfactors  that  the  purchasing  agency reasonably
14             expects  to  consider  in  evaluating  sealed   bids
15             (including    cost   or   price,   cost-related   or
16             price-related   factors    and    subfactors,    and
17             noncost-related   or  nonprice-related  factors  and
18             subfactors); and
19                  (B)  the relative importance assigned  to  each
20             of those factors and subfactors.
21        (c)  Public  notice.  Public notice of the invitation for
22    bids shall be published in the Illinois Procurement  Bulletin
23    at  least  14  days before the date set in the invitation for
24    the opening of bids.
25        (d)  Bid opening.  Bids shall be opened publicly  in  the
26    presence  of  one  or  more  witnesses  at the time and place
27    designated in the invitation for  bids.   The  name  of  each
28    bidder,   the   amount   of  each  bid,  and  other  relevant
29    information as may be specified by rule  shall  be  recorded.
30    After  the  award  of  the  contract, the winning bid and the
31    record of each unsuccessful  bid  shall  be  open  to  public
32    inspection.
33        (e)  Bid  acceptance  and  bid evaluation.  Bids shall be
34    unconditionally accepted without  alteration  or  correction,
                            -4-               LRB9206785SMpkA
 1    except  as  authorized in this Code.  Bids shall be evaluated
 2    based on the requirements set forth  in  the  invitation  for
 3    bids,  which  may include criteria to determine acceptability
 4    such as inspection, testing, quality, workmanship,  delivery,
 5    and  suitability  for  a  particular purpose.  Those criteria
 6    that  will  affect  the  bid  price  and  be  considered   in
 7    evaluation  for  award,  such  as  discounts,  transportation
 8    costs,  and  total  or life cycle costs, shall be objectively
 9    measurable. The invitation  for  bids  shall  set  forth  the
10    evaluation criteria to be used. In prescribing the evaluation
11    factors  to be included in each invitation for sealed bids, a
12    purchasing agency shall include cost or price to the State as
13    an  evaluation  factor  that  must  be  considered   in   the
14    evaluation of proposals.
15        (f)  Correction  or  withdrawal  of  bids.  Correction or
16    withdrawal of inadvertently erroneous bids  before  or  after
17    award,  or  cancellation  of awards of contracts based on bid
18    mistakes, shall be permitted in accordance with rules.  After
19    bid opening, no changes in bid prices or other provisions  of
20    bids  prejudicial  to  the  interest  of  the  State  or fair
21    competition shall be permitted.  All decisions to permit  the
22    correction  or withdrawal of bids based on bid mistakes shall
23    be  supported  by  written  determination  made  by  a  State
24    purchasing officer.
25        (g)  Award.   The  contract   shall   be   awarded   with
26    reasonable   promptness  by  written  notice  to  the  lowest
27    responsible  and  responsive  bidder  whose  bid  meets   the
28    requirements  and  criteria  set  forth in the invitation for
29    bids, except when a State purchasing officer determines it is
30    not in  the  best  interest  of  the  State  and  by  written
31    explanation  determines  another  bidder  shall  receive  the
32    award.   The  explanation  shall  appear  in  the appropriate
33    volume of the Illinois Procurement Bulletin.
34        (h)  Multi-step sealed bidding.  When  it  is  considered
                            -5-               LRB9206785SMpkA
 1    impracticable  to initially prepare a purchase description to
 2    support an award based on price, an invitation for  bids  may
 3    be  issued requesting the submission of unpriced offers to be
 4    followed by an invitation for bids limited to  those  bidders
 5    whose offers have been qualified under the criteria set forth
 6    in the first solicitation.
 7    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

 8        (30 ILCS 500/30-15)
 9        Sec. 30-15.  Method of source selection.
10        (a)  Competitive  sealed  bidding.  Except as provided in
11    subsections (b), (c), and (d) and Sections 20-20, 20-25,  and
12    20-30,  and  30-16, all State construction contracts shall be
13    procured by competitive sealed  bidding  in  accordance  with
14    Section 20-10.
15        (b)  Other methods.
16             (1)  Construction  Manager Services.  Procurement of
17        a construction manager for project  services,  which  may
18        include,  but  are not limited to, scheduling, contractor
19        coordination, and administration of pay requests, but not
20        including design services, shall be  made  in  accordance
21        with  Section  20-15  providing  for  competitive  sealed
22        proposals  and  Central  Management  Services procurement
23        rules that establish procedures  for  competitive  sealed
24        proposals.
25             (2)  Illinois  Correctional Industries.  Procurement
26        from   Illinois   Correctional   Industries   constitutes
27        contracting between  State  governmental  bodies,  exempt
28        from  Procurement Code requirements, and shall be done in
29        accordance  with  Section   45-30,   Central   Management
30        Services  rules, and the procurement practices provisions
31        of the Capital Development Board as established by  rule.
32        Such  procurements  may utilize an annual master contract
33        with agreed-upon unit prices for  construction  services,
                            -6-               LRB9206785SMpkA
 1        against  which  sub-orders  may  be  placed  for specific
 2        Capital Development Board projects.
 3             (3)  Art-in-Architecture Program Procurement.  Works
 4        of   art   procured   for   Capital   Development   Board
 5        construction projects  pursuant  to  Section  14  of  the
 6        Capital Development Board Act shall be in accordance with
 7        selection  procedures  developed  by the Fine Arts Review
 8        Committee and Capital Development Board, in  consultation
 9        with  the  Public  Arts  Advisory  Committee. The Capital
10        Development Board shall establish  by  rule  construction
11        purchases  that  may  be  made without competitive sealed
12        bidding and the  most  competitive  alternate  method  of
13        source selection that shall be used.
14        (c)  Construction-related   professional  services.   All
15    construction-related professional services contracts shall be
16    awarded  in   accordance   with   the   provisions   of   the
17    Architectural, Engineering, and Land Surveying Qualifications
18    Based  Selection  Act.    "Professional services" means those
19    services within the scope of the  practice  of  architecture,
20    professional    engineering,   structural   engineering,   or
21    registered land surveying, as defined by  the  laws  of  this
22    State.
23        (d)  Correctional     facilities.      Remodeling     and
24    rehabilitation  projects  at  correctional  facilities  under
25    $25,000  funded from the General Revenue Fund are exempt from
26    the  provisions  of  this   Article.    The   Department   of
27    Corrections  may  use  inmate  labor  for  the  remodeling or
28    rehabilitation of correctional facilities on  those  projects
29    under $25,000 funded from the General Revenue Fund.
30    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

31        (30 ILCS 500/30-16 new)
32        Sec.  30-16.   Justification  for  use  of noncompetitive
33    procedures.
                            -7-               LRB9206785SMpkA
 1        (a)  A purchasing agency may not award a  contract  using
 2    procedures other than competitive procedures unless:
 3             (1)  the purchasing agency for the contract:
 4                  (A)  justifies  the  use  of such procedures in
 5             writing and certifies the accuracy and  completeness
 6             of the justification; and
 7                  (B)  publishes any required notice with respect
 8             to  such contract as provided for competitive sealed
 9             bids in Section 20-10  and  all  bids  or  proposals
10             received  in  response  to  such  notice  have  been
11             considered by the purchasing agency; or
12             (2)  otherwise provided in Section 30-15.
13        (b)  In  the  case  of a procurement permitted by Section
14    20-30, the justification and approval required by  subsection
15    (a)   may  be  made  after  the  contract  is  awarded.   The
16    justification and approval required by subsection (a) is  not
17    required:
18             (1)  when  a  statute  expressly  requires  that the
19        procurement be made from a specified source;
20             (2)  when the agency's  need  is  for  a  brand-name
21        commercial item for authorized resale; or
22             (3)  in  the case of a procurement in which the head
23        of the purchasing agency determines that it is  necessary
24        in  the  public  interest  to  use  procedures other than
25        competitive  procedures  in  the  particular  procurement
26        concerned, and notifies the Legislative Audit  Commission
27        in  writing  of  such determination not less than 30 days
28        before the award of the contract.
29        (c)  The justification  required  by  subdivision  (a)(1)
30    shall include:
31             (1)  a description of the agency's needs;
32             (2)  an  identification  of  the statutory exception
33        from the requirement to use competitive procedures and  a
34        demonstration,   based   on   the  proposed  contractor's
                            -8-               LRB9206785SMpkA
 1        qualifications or the nature of the procurement,  of  the
 2        reasons for using that exception;
 3             (3)  a  determination that the anticipated cost will
 4        be fair and reasonable;
 5             (4)  a description of the market survey conducted or
 6        a statement of  the  reasons  a  market  survey  was  not
 7        conducted;
 8             (5)  a   listing   of  the  sources,  if  any,  that
 9        expressed in writing an interest in the procurement; and
10             (6)  a statement of the actions, if any, the  agency
11        may  take  to remove or overcome a barrier to competition
12        before a subsequent procurement for such needs.
13        (d)  The justification required by subdivision (a)(1) and
14    any related information shall be filed with  the  Legislative
15    Audit  Commission  and  made  available for inspection by the
16    public.  Any bidder or potential bidder on the  contract  may
17    appeal  the  decision  by the agency to offer the contract in
18    other than a competitive process.  The appeal shall be  taken
19    first   to   the   agency   offering   the  contract.   Final
20    administrative decisions of the agency are subject to  review
21    under the provisions of the Administrative Review Law.
22        (e)  In no case may a purchasing agency:
23             (1)  enter  into a contract for property or services
24        using procedures other than competitive procedures on the
25        basis of the lack of advance planning or concerns related
26        to the amount  of  funds  available  to  the  agency  for
27        procurement functions; or
28             (2)  procure property or services from another State
29        agency unless such other State agency complies fully with
30        the  requirements of this Code in its procurement of such
31        property or services. The restriction  set  out  in  this
32        subdivision (e)(2) is in addition to, and not in lieu of,
33        any other restriction provided by law.
                            -9-               LRB9206785SMpkA
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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