AUTHORITY: Implementing and authorized by the Illinois Procurement Code [30 ILCS 500].

SOURCE: Emergency rule adopted at 22 Ill. Reg. 12208, effective July 1, 1998, for a maximum of 150 days; adopted at 22 Ill. Reg. 20306, effective November 9, 1998; emergency amendment at 23 Ill. Reg. 5911, effective April 30, 1999, for a maximum of 150 days; emergency expired September 26, 1999; amended at 23 Ill. Reg. 13953, effective November 8, 1999; amended at 35 Ill. Reg. 4629, effective March 3, 2011; recodified Title header at 39 Ill. Reg. 5903; amended at 39 Ill. Reg. 11100, effective July 24, 2015; amended at 40 Ill. Reg. 13954, effective September 23, 2016; amended at 43 Ill. Reg. 6185, effective May 9, 2019; amended at 43 Ill. Reg. 8944, effective August 2, 2019; amended at 43 Ill. Reg. 11680, effective September 24, 2019; amended at 45 Ill. Reg. 14500, effective November 4, 2021; amended at 47 Ill. Reg. 10622, effective July 3, 2023.

SUBPART A: GENERAL

 

Section 2000.01  Title

 

This Part may be cited as the Secretary of State's  Procurement Rules.

 

Section 2000.05  Policy

 

All procurements for the Office of the Secretary of State (SOS) shall  be accomplished in the most economical, expeditious and commercially reasonable manner that is in accordance with statute, this Part and other applicable rules.

 

Section 2000.08  Illinois Procurement Code

 

Articles 1, 15, 20, 25, 30, 33, 35, 40, 43, 45, 50 and 53 of the Illinois Procurement Code [30 ILCS 500/Arts. 1, 15, 20, 25, 30, 33, 35, 40, 43, 45, 50 and 53] (the Code) will be referenced in this Part.  The Secretary of State shall procure its needs in a manner substantially in accordance with the requirements of the Code and shall promulgate rules no less restrictive than the requirements of the Code.  [30 ILCS 500/1-30(a)]  For purposes of this Part, any reference in the Code or this Part to the Chief Procurement Officer (CPO) means the employee designated by the Secretary of State to serve in that capacity.  The Secretary of State may appoint one or more State Purchasing Officers (SPOs).

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

 

Section 2000.10  Application

 

a)         The Code and this Part apply to those procurements for which the vendors were first solicited on or after July 1, 1998.

 

b)         Procurements  for which vendors were first solicited on or before June 30, 1998, shall be conducted pursuant to legal requirements in effect at the time of the solicitation.  The terms and conditions and the rights and obligations under contracts resulting from such procurements shall not be impaired.

 

c)         A solicitation occurs on or before June 30, 1998, as follows:

 

1)         When advertising was required in the Official State Newspaper, the first advertisement must run no later than June 30, 1998.

 

2)         When advertising was not required:

 

A)        if the procurement was advertised, even though advertising was not required, the first advertisement must have run no later than June 30, 1998;

 

B)        if the procurement was by direct solicitation by  mail, the solicitation must have been postmarked or placed in the control of a private carrier no later than June 30, 1998;

 

C)        if the procurement was by direct solicitation by fax, the fax must show a transmission date no later than June 30, 1998;

 

D)        if the procurement was solicited in-person or by telephone, the solicitation must have occurred no later than June 30, 1998, and  the State officer or employee who made the solicitation must state in writing when the procurement was discussed and must name the party with whom the discussion took place.

 

3)         In all circumstances, the solicitations must be for the procurement of particular needs.  A general discussion to determine if there is any interest on the part of a State agency in the supplies or services of a vendor or  vendors,  or  on  the part of a vendor or vendors in providing the supplies or services, is not considered a solicitation.

 

d)         The Code and this Part do not apply to:

 

1)         contracts between the State and its political subdivisions or other governments, or between State governmental bodies except as specifically provided in this Code.  (For purposes of this subsection (d)(1), "governmental  bodies" includes the State universities and their governing boards, community colleges and their governing boards and school districts. This provision applies to contracts between governmental entities; it does not allow State agencies to utilize contracts established by other governmental entities.);

 

2)         grants;

 

3)         hiring of an individual as employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual;

 

4)         collective bargaining contracts;

 

5)         purchase of real estate; or

 

6)         contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Secretary of State shall give his or her prior approval [30 ILCS 500/1-10]. Anticipated litigation is that which a State agency may prosecute or defend before a court or administrative body and actions necessary to prepare for and conduct the effective legal prosecution or defense of litigation, including, but not limited to, contracting for court reporting and contracting for expert witnesses.

 

Section 2000.15  Definition of Terms Used in This Part

 

As used throughout this Part, terms defined in the Illinois Procurement Code shall have the same meaning as in the Code and as further defined in this Section, and each term listed in this Section shall have the meaning set forth in this Section unless its use clearly requires a different meaning. Terms may be defined in particular Sections for use in that Section.

 

"Amendment" – A written unilateral or bilateral modification to a contract term, as permitted by the original contract.  These modifications shall alter the performance and completion of the contract, including but not limited to such matters as extra work and increases or decreases in quantities of goods not included within the scope of the original contract.

 

"Award" – The selection of a vendor for a contract.

 

"Bid" – The response to an Invitation for Bids.

 

"Bidder" – Any person other than an individual acting as a sole proprietor who submits a bid.

 

"Bidder or Offeror Authorized to do Business in Illinois" – A person (other than an individual acting as a sole proprietor) that is a legal entity authorized to do business in Illinois by the SOS Department of Business Services.

 

"Brand Name or Equal Specification" – A specification that uses one or more  manufacturer's names or catalogue numbers to describe the standard of quality, performance, and other characteristics needed to meet State requirements, and that allows the submission of equivalent products.

 

"Brand Name Specification" – A specification limited to one or more items by manufacturers' names or catalogue numbers.

 

"Bulletin" – Any Procurement Bulletin promulgated and produced by a State agency or institution as set forth in the Illinois Procurement Code.

 

"Change Order" – A change order shall have the same meaning as an "amendment".

 

"Code" – The Illinois Procurement Code [30 ILCS 500].

 

"Concession" – The right or a lease to engage in a certain activity for profit on the lessor's premises (e.g., a refreshment or parking concession).

 

"Consulting Services" – Services provided by a business or person as an independent contractor to advise and assist an agency in solving specific management or programmatic problems involving the organization, planning, direction, control or operations of a State agency.  The services may or may not rise to the level of professional and artistic as defined in the Code and this Part.

 

"Contract" – A  contract may be in written or oral form.  The term contract as used in the Code and this Part does not include:  supplies or services the terms governing which are established by tariff of the Illinois Commerce Commission or the Federal Communications Commission, bonds issued by or on behalf of any State agency, or contracts, other than for "concessions",  that the State agency signs, but has no financial obligation to the other parties.

 

"Contractor" or "Vendor" – The terms contractor and vendor are used interchangeably for purposes of the Code and this Part.

 

"Day" – Calendar day.  In computing any period of time, the day of the event from which the designated period of time begins to run shall not be included, but the last day of the period shall be included unless it is a Saturday, Sunday, or a State holiday, in which event the period shall run to the end of the next business day.

 

"DCMS" – The Department of Central Management Services.

 

"Items" – Anything that may be procured under this Code.

 

"Invitation for Bids" or "IFB" – The process by which a purchasing agency requests information from bidders, including all documents, whether attached or incorporated by reference, used for soliciting bids. [30 ILCS 500/1-15.45]

 

"Multi-Year Contract" – A multi-year contract is a contract with a performance term of more than 12 months.

 

"Offeror" – A person who responds to an Invitation for Bids, Request for Proposals or other form of solicitation.

 

"Procurement Officer" – The Chief Procurement Officer (CPO) or appropriate State Purchasing Officer (SPO) who conducts the particular procurement, or a designee of either.

 

"Proposal" – The response to a Request for Proposals.

 

"Protest Review Office" – The office address of the person designated in the solicitation documents to which protests must be directed.  The person designated in the solicitation documents will respond to or coordinate the response to the protest.

 

"Qualified Products List" – An approved list of supplies described  by model or catalogue numbers that, prior to competitive solicitation, the State has determined will meet the applicable specification requirements.

 

"Renewal" – An extension of an original contract with materially identical terms to the original contract.

 

"Request for Information" or "RFI" – The process by which a purchasing agency requests information from offerors for all State contracts for leases of real property or capital improvements.

 

"Request for Proposals" or "RFP" – The process by which a purchasing agency requests information from offerors, including all documents, whether attached or incorporated by reference, used for soliciting proposals. [30 ILCS 500/1-15.75]

 

"Responsible Bidder or Offeror" – A person who has the capability in all respects to perform fully the contract requirements and the integrity and reliability that will assure good faith performance.  A responsible bidder or offeror shall not include a business or other entity that does not exist as a legal entity at the time the bid or proposal is submitted for State contract.

 

"Reverse Auction" – A source selection technique that allows for purchase of supplies or services through a competitive auction process.  A reverse auction allows bidders to electronically submit prices for an Invitation for Bids during a predefined time period and is designed to obtain the lowest cost for supplies and services.

 

"Service" – The furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports or supplies that are incidental to the required performance [30 ILCS 500/1-15.90] and the financing thereof.

 

"Solicitation" – An Invitation for Bids, a Request for Proposals or other request to one or more vendors to respond to a procurement need expressed by the State.

 

"SOS" – The Office of the Secretary of State.

 

"Specification" – Any description of the physical, functional, or performance characteristics, or of the nature, of a supply or service.  A specification includes, as appropriate, requirements for inspecting, testing, or preparing a supply or service item for delivery.  Unless the context requires otherwise, the terms "specification" and "purchase description" are used interchangeably throughout this Part.

 

"Specification for a Common or General Use Item" – A specification that has been developed and approved for repeated use in procurements.

 

"State" – The Office of the Secretary of State.

 

"Subcontract" – A contract between one person and another person who has or is seeking a contract subject to this Code, pursuant to which the subcontractor provides to the contractor some or all of the goods, services, property, remuneration or other form of consideration that are the subject of the primary contract and includes, among other things, subleases from a lessee of a State agency.

 

"Subcontractor" – A person or entity that enters into a contractual agreement, for an amount greater than the small purchases limits set by Section 20-20 of the Code (or an amount set by rule pursuant to Section 20-20(c) of the Code) or Section 35-35 of the Code or Section 45 of the Architectural, Engineering and Land Surveying Qualifications Based Selection Act [30 ILCS 535/45], with a contractor who has or is seeking a contract subject to the Code, to provide the contractor some or all of the goods, services, property, remuneration or other form of consideration that are the contractor's contractual obligations.

 

"Supplies" – All personal property, including but not limited to equipment, materials, printing, and insurance, and the financing of those supplies. [30 ILCS 500/1-15.110]

 

"Unsolicited Offer" – Any offer other than one submitted in response to a solicitation.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.25  Property Rights

 

Receipt of an Invitation for Bids or other procurement document, or submission of any response thereto, or other offer, confers no right to receive an award or contract, nor does it obligate the State in any manner.

SUBPART B: PROCUREMENT RULES

 

Section 2000.525  Rules

 

a)         To the extent practicable, the SOS may avail itself of master, scheduled or open-ended  contracts established by DCMS; items available from the Paper and Printing Warehouse; and DCMS contracts for telecommunications equipment, software and services, paper and envelopes, and vehicles and vehicle services. The CPO or SPO may submit purchase requests to DCMS in accordance with rules promulgated by DCMS.

 

b)         The Office of the Secretary of State shall procure its capital needs in a manner substantially in accordance with the requirements of this Part and will promulgate rules specifically for capital construction that are no less restrictive than the requirements of the Code.  Until specific Secretary of State rules can be promulgated for this purpose, the Office will conform its capital procurement activities to the requirements of the Procurement Code by following the administrative rules of the Capital Development Board (44 Ill. Adm. Code 910, 950 and 980) and the Department of Central Management Services (44 Ill. Adm. Code 1).

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

SUBPART C: PROCUREMENT AUTHORITY

 

Section 2000.1005  Conduct and Oversight of Procurements

 

a)         Chief Procurement Officer.  The Secretary of State shall designate a chief procurement officer (CPO) for purposes of the Code and this Part. The CPO may conduct any or all procurements on behalf of the SOS.  The CPO must have at least 5 years of experience in State budgeting or procurement activities or be a certified professional public buyer or certified public purchasing officer by the Universal Public Purchasing Certification Council.  The CPO must be a resident of the State of Illinois and shall owe a fiduciary duty to the State.  The CPO is responsible for signing all written award determination letters, stating the reasoning for any contract award decision. The CPO performs other duties as required by law.

 

b)         State Purchasing Officer (SPO).  The Secretary may appoint one or more SPOs to conduct procurement in accordance with the terms of the appointment and this Part.  The employee performing the duties of the SPO will be classified as a Merit Compensation employee pursuant to Secretary of State Department of Personnel rules (80 Ill. Adm. Code 410 and 420) and, upon attaining certified status, will have the employment protections afforded that status.  SPOs must be certified as a professional public buyer or a public purchasing officer by the Universal Public Purchasing Certification Council within 18 months after appointment.  In the absence of an SPO, the CPO may designate a temporary acting SPO.  The SPO exercises procurement authority at the direction of the CPO, and the decisions of an SPO are subject to review by the CPO.  The SPO may enter into contracts on behalf of the Office of the Secretary of State.  The SPO performs other duties as required by law.

 

c)         Procurement Compliance Monitor.  The Secretary of State Inspector General appointed pursuant to Section 14 of the Secretary of State Act [15 ILCS 305], or a designee, shall serve as the Procurement Compliance Monitor.  If a designee is appointed to serve as the monitor, that designee will be classified as a Merit Compensation employee pursuant to Secretary of State Department of Personnel rules (80 Ill. Adm. Code 410 and 420) and, upon attaining certified status, will have the employment protections afforded that status.  It is the duty of the monitor to oversee and review the procurement processes.  The monitor communicates directly with the Secretary and:

 

1)         has the right to review all contracts, attend any procurement meeting, and access reports and files;

 

2)         issues reports to the CPO regarding outstanding procurement problems; 

 

3)         ensures transparency and compliance with procurement laws;

 

4)         reports findings of waste to SOS departments.  If the department does not correct circumstances causing the waste, the monitor will report to the CPO and the Inspector General; and

 

5)         performs other duties as required by law.

 

d)         Procurement Policy Board.  The Secretary shall appoint a Secretary of State Procurement Policy Board (SOS PPB).  The SOS PPB consists of 5 members.  In making appointments to the SOS PPB, the Secretary will consider an individual's knowledge and experience in State government procurements and operations.  The members shall receive no compensation for serving on the SOS PPB other than reimbursement for expenses reasonably incurred in the performance of their duties. Except as provided in subsection (e), the SOS PPB will:

 

1)         be authorized to review, comment upon, and recommend rules and practices governing the procurement, management, control and disposal of supplies, services, professional or artistic services, construction, and capital improvements procured by the Office of the Secretary of State;

 

2)         be authorized to review any proposal, bid or contract, and may issue recommendations regarding procurement matters;

 

3)         be notified by the CPO if a conflict of interest is identified, discovered, or reasonably suspected to exist.  In the event of such notification, the SOS PPB is to recommend action and give its recommendation to the CPO and Secretary.  The SOS PPB's recommendation is published in the Bulletin;

 

4)         report to the Inspector General whenever the PPB has cause to believe there has been a violation of the Procurement Code; and

 

5)         perform other duties as required by law.

 

e)         Real Estate Review Committee.  The Secretary shall appoint a Secretary of State Real Estate Review Committee (RRC), consisting of 4 members plus the Chief of Staff.  The 4 appointed members will include professionals with real estate experience.  The RRC is authorized to review, comment upon, and recommend rules and practices governing the procurement, leasing, management, control, and disposal of real property by the Secretary of State.  Reviews of real property transactions shall consider issues related to: legality; fair market value; verifications of property information, including square footage, property taxes, etc.; accuracy of rent allocation schedules; accuracy of vendor disclosure documents; and possible conflicts of interest. 

 

f)         Chief Internal Auditor.  The Secretary shall appoint a chief internal auditor.  The auditor must have a bachelor's degree, and must be either a certified internal auditor, a certified public accountant with at least 4 years of auditing experience, or an auditor with 5 years of experience.  Any chief internal auditor appointed on or after July 1, 2010, shall be appointed for a period of 5 years and may only be removed for cause.  The chief internal auditor reports directly to the Secretary.  Subject to the approval of the Secretary, and consistent with the Fiscal Control and Internal Auditing Act [30 ILCS 10], the chief internal auditor:

 

1)         directs the internal audit functions and activities;

 

2)         prepares audit reports and assesses program goals;

 

3)         is responsible for the preparation of an annual audit plan for submission to and subject to the approval of the Secretary; and

 

4)         performs other duties as required by law.

 

(Source:  Amended at 47 Ill. Reg. 10622, effective July 3, 2023)

SUBPART D: PUBLICIZING PROCUREMENT ACTIONS

 

Section 2000.1510  Illinois Procurement Bulletin

 

Notice of any procurement action required by the Code to be publicized in a recognized Procurement Bulletin will be forwarded to the appropriate State agency or institution for inclusion in the appropriate volume of the Bulletin.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.1560  Supplemental Notice

 

Publication in the Bulletin may be supplemented by publication elsewhere at the discretion of the SOS.

 

Section 2000.1570  Error in Notice

 

When a required publication contains an error, the error may be corrected by  a single notice published in the Bulletin.

 

Section 2000.1580  Direct Solicitation

 

In addition to giving notice in the Bulletin, the SOS may directly contact prospective vendors by providing copies of Invitations for Bids,  Requests for Proposals, or other procurement information.  Direct solicitation may be oral or in writing, but care should be taken to ensure that all vendors solicited in this manner receive the same information as provided to others.  No direct solicitation shall be made prior to the date any required notice first appears in the Bulletin.

SUBPART E: SOURCE SELECTION AND CONTRACT FORMATION

 

Section 2000.2005  General Provisions

 

a)         Late Bids or Proposals, Late Withdrawals and Late Modifications

 

1)         Definition. Any bid or proposal received after the time and date for receipt, and at other than the specified location, is late. A bid that is delivered to the wrong location but that is subsequently delivered to the correct location by the date and time specified shall be considered, but the agency shall not be responsible for ensuring such subsequent delivery. Any withdrawal or modification of a bid or proposal received after the time and date set for opening of bids or proposals is late. If received at other than the specified location, the submission is late.

 

2)         Treatment.  No late bid or proposal, late modification, or late withdrawal will be considered unless the Procurement Officer, and not a designee, determines it would have been timely but for the action or inaction of State personnel directly serving the procurement activity (e.g., providing the wrong address).

 

3)         Records. Records shall be made and, in accordance with the State Records Act [5 ILCS 160], kept for each late bid or proposal, late modification, or late withdrawal.

 

4)         Other Submissions. Any other submission that has a time or date deadline shall be treated in the same manner as a late bid.

 

b)         Extension of Time

 

1)         The Procurement Officer may, prior to the date or time for submitting or modifying a bid or proposal, extend the date or time for the convenience of the State.

 

2)         After opening bids or proposals, the Procurement Officer may request bidders or offerors who submitted timely bids or proposals to extend the time during which the State may accept the bids or proposals, provided that, with regard to bids, no other change is permitted. This extension does not provide an opportunity for others to submit bids or proposals.

 

c)         Electronic and Facsimile Submissions

 

1)         The Invitation for Bids (IFB) or Request for Proposals (RFP) may state that electronic and facsimile machine submissions will be considered if they are received at the designated office by the time and date set for receipt. Any required attachments will be submitted as stated in the IFB or RFP.

 

2)         Electronic submissions authorized by specific language in the IFB or RFP will be opened in accordance with electronic security measures in effect at the SOS at the time of opening. Unless the electronic submission procedures provide for a secure receipt, vendor assumes risk of premature disclosure due to submission in unsealed form.

 

3)         Fax submissions authorized by specific language in the IFB or RFP will be placed in a sealed container upon receipt and opened as other submissions. Vendor assumes risk of premature disclosure due to submission in unsealed form.

 

d)         Intent to Submit

The Invitation for Bids or the Request for Proposals may require that vendors submit, by a certain time and date, a notice of their intent to submit a bid or proposal in response to the IFB or RFP. Bids and proposals submitted without complying with the notice of intent requirement may be rejected.

 

e)         Only One Bid or Proposal Received

If only one bid or proposal is received, an award may be made to the single bidder or offeror if the Procurement Officer finds that the price submitted is fair and reasonable, and that either other prospective bidders had reasonable opportunity to respond or there is not adequate time for resolicitation. Otherwise:

 

1)         new bids or offers may be solicited, including under sole source (Section 2000.2025) or emergency (Section 2000.2030) procedures; or

 

2)         the procurement may be canceled.

 

f)         Alternate or Multiple Bids or Proposals

 

1)         Alternate bids or proposals may be accepted if:

 

A)        permitted by the solicitation and in accordance with instructions in the solicitation; or

 

B)        only one vendor responded, in which case the alternate submission may be evaluated and treated in accordance with Section 2000.2025 (Sole Economically Feasible Source Procurement); or

 

C)        the low bidder, who has met all requirements of the solicitation, has provided a lower cost alternative that meets all of the material requirements of the specifications.

 

2)         Multiple bids or proposals may be accepted if:

 

A)        permitted by the solicitation and submitted in accordance with instructions in the solicitation; or

 

B)        only one vendor responded, then, one or more of the submissions may be evaluated, provided that, in the case of bids, only the lowest cost bid meeting specifications may be considered.

 

3)         If a vendor clearly indicates a primary submission among alternate or multiple bids or proposals, then that primary submission shall be considered for award as though it were the only bid or proposal submitted by the vendor.

 

g)         Multiple Items

An Invitation for Bids or Request for Proposals may call for pricing of multiple items of similar or related type with award based on individual line item, group total of certain items, or grand total of all items.

 

h)         "All or None" Bids or Proposals

All or none bids or proposals may be accepted if the evaluation shows an all or none award to be the lowest cost or best value of those submitted.

 

i)          Conditioning Bids or Proposals Upon Other Awards

Any bid or proposal that is conditioned upon receiving award of the particular contract being solicited and one or more other State contracts shall:

 

1)         be rejected unless the vendor removes the condition; or

 

2)         be evaluated and award made to that vendor if the vendor is also independently evaluated as the winner of the other IFBs or RFPs provided the agency need not delay procurement actions to accommodate the vendor's all or none condition.

 

j)          Unsolicited Offers

 

1)         Processing of Unsolicited Offers. The Procurement Officer may consider unsolicited offers and shall have final authority with respect to evaluation, acceptance and rejection of such unsolicited offer.

 

2)         Conditions for Consideration. An unsolicited offer must be in writing and must be sufficiently detailed to allow a judgment to be made concerning the potential utility of the offer to the State.

 

3)         Award. An award may not be made based on an unsolicited offer in place of the notice and competition requirements of the Code and this Part except if that unsolicited offer meets the requirements for a small (Section 2000.2020), sole source (Section 2000.2025), or emergency (Section 2000.2030) procurement.

 

k)         Clarification of Bids and Proposals

The Procurement Officer may request that a vendor clarify its bid or proposal as a part of the evaluation process. A vendor shall not be allowed to materially change its bid or proposal in response to a request for clarification. A clarification is not an opportunity to make changes or for submission of best and finals as authorized elsewhere in this Part.

 

l)          Extension of Time on Indefinite Quantity Contracts

The time of performance of an indefinite quantity contract may be extended upon agreement of the parties, provided the extension is for 90 days or less and the Procurement Officer determines in writing that it is not practical to award another contract at the time of such extension.

 

m)        Increase in Quantity on Definite Quantity Contracts

 

1)         The quantity that may be ordered from a definite quantity contract without additional notice and competition may be increased by up to 20% provided the Procurement Officer determines that separate bidding for the additional quantity is not likely to achieve lower pricing. A particular procurement may specify a different percentage.

 

2)         The quantity may be increased by any percentage provided the dollar value of the increase does not exceed the applicable small purchase (Section 2000.2020) threshold.

 

n)         Subsequent Purchase Request

If, within 30 days after making an award to a particular vendor pursuant to a competitive sealed bid on behalf of the SOS, the SPO receives a purchase request for the same item and for the same or lesser quantity, the SPO may contract with that vendor on the same terms and conditions, including price, without additional notice and competition, if such contract is acceptable to the vendor.

 

o)         Assignment, Novation or Change of Name

 

1)         Assignment. No State contract is transferable, or otherwise assignable, without the written consent of the Procurement Officer, provided, however, that a vendor may assign money receivable under a contract after due notice to the State. Assignment may require the execution of a contract with the assignee and in such cases the assignee must meet all requirements for contracting with the State.

 

2)         Recognition of a Successor in Interest; Novation. When in the best interest of the State, a successor in interest may be recognized in a novation agreement in which the transferor and the transferee agree that:

 

A)        the transferee assumes all of the transferor's obligations;

 

B)        the transferee meets all requirements for contracting with the State;

 

C)        the transferor waives all rights under the contract as against the State; and

 

D)        unless the transferor guarantees performance of the contract by the transferee, the transferee shall, if required by the State, furnish a satisfactory performance bond.

 

3)         Change of Name. A vendor may submit to the Procurement Officer a written request to change the name in which it holds a contract with the State. The name change shall not alter any of the terms and conditions of the contract or the obligations of the vendor.

 

4)         Reports. All change of name or novation agreements under this subsection (o) shall be reported to the CPO of DCMS within 30 days after the date the agreement becomes effective so that the bid list may be updated.

 

p)         Contracting for Installment Purchase Payments, Including Interest

Contracts may provide for installment purchase payments, including interest charges, over a period of time. The interest rate may not exceed that established by law, including the Bond Authorization Act [30 ILCS 305].

 

q)         Use of Source Selection Method that is Not Required

If SOS uses a method of source selection that it is not, by law, required to use (e.g., use of a competitive sealed bid for a small purchase), the SOS is not bound to strict compliance with the Code and rules governing the method of source selection used.

 

r)          Vendor Signature

A bid or proposal submitted unsigned will be evaluated if the vendor submits a written signature acceptable to the Procurement Officer within the time specified by that officer.

 

s)         Stringing

Dividing or planning procurements to avoid use of competitive procedures (stringing) is prohibited.

 

t)          Confidential Data

Vendors must clearly identify any information that is exempt from the disclosure requirement of the Illinois Freedom of Information Act [5 ILCS 140] and must request special handling of that material.

 

u)         Documentation of Procurement Actions

Each SPO shall maintain in the procurement or associated contract file all substantive documents and records of communications that pertain to the procurement and any resulting contract.  This shall include, as applicable, but is not limited to:

 

1)         Procurement Business Case, signed by the CPO or SPO, that establishes the reason for the contract decision or other form of decision memo showing CPO or SPO approvals to proceed with the contract award;

 

2)         Bulletin postings;

 

3)         Solicitation document (e.g., IFB) and all amendments, clarifications and Best & Final requests;

 

4)         Vendors' responses, including clarifications and responses to Best & Final requests;

 

5)         Evaluation material (e.g., scoring guidelines and forms; completed score sheets for individual evaluators, including notes; evaluation committee's combined score sheets; evaluation committee's recommendation; and management's decision);

 

6)         Protest and resolution;

 

7)         Contract and any order, change, amendments, renewal or extension;

 

8)         Contractor Performance Reviews;

 

9)         All information from subsections (u)(1) through (8), less information exempt from disclosure under the Freedom of Information Act [5 ILAC 140], shall be prepared and available for inspection and copying, with information from subsections (u)(1) through (5) available on the date any award is posted to the Bulletin.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.2010  Competitive Sealed Bidding

 

a)         Application

Competitive sealed bidding is the required method of source selection except as allowed by the Code and this Part. The provisions of this Section apply to every procurement required to be conducted by competitive sealed bidding.

 

b)         The Invitation for Bids

 

1)         Use. The Invitation for Bids is used to initiate a competitive sealed bid procurement.

 

2)         Content. The Invitation for Bids shall include, at a minimum, the following:

 

A)        instructions and information to bidders concerning the bid submission requirements, including the time and date set for receipt of bids, the address of the office to which bids are to be delivered, and the maximum time for bid acceptance by the State;

 

B)        the purchase description, evaluation factors, delivery or performance schedule, and such inspection and acceptance requirements as are not included in the purchase description; and

 

C)        the contract terms and conditions, including warranty and bonding or other security requirements, as applicable.

 

3)         Incorporation by Reference.  The Invitation for Bids may incorporate documents by reference provided that the Invitation for Bids specifies where such documents can be obtained.

 

c)         Bidding Time

Bidding time is the period of time between the date of notice or distribution of the Invitation for Bids and the time and date set for receipt of bids. In each case, bidding time will be set to provide bidders a reasonable time to prepare their bids. A minimum of 14 days shall be provided unless a shorter time is authorized by the Code or this Part.

 

d)         Bidder Submissions

 

1)         Bid Form. The Invitation for Bids may include a form or format for submitting bids. If a form or format is specified, vendor shall submit bids as instructed.

 

2)         Bid Samples and Descriptive Literature

 

A)        Bid samples or descriptive literature may be required when it is necessary to evaluate required characteristics of the items bid.

 

B)        Unsolicited bid samples or descriptive literature is submitted at the bidder's risk, may not be examined or tested, will not be deemed to vary any of the provisions of the Invitation for Bids, and may not be utilized by the vendor to contest a decision or understanding with the State.

 

e)         Public Notice

 

1)         Publication.  Every procurement for supplies and services in excess of the small purchase amount that must be procured using an Invitation for Bids shall be publicized in the Bulletin (see Section 2000.1510).

 

2)         Public Availability. A copy of the Invitation for Bids shall be made available for public inspection.

 

3)         Distribution. Invitations for Bids or Notices of the Availability of Invitations for Bids may be mailed or otherwise furnished to a sufficient number of bidders for the purpose of securing competition. Notices of Availability shall, at a minimum, indicate where Invitations for Bids may be obtained; generally describe what is needed; and indicate the due date for bids. Where appropriate, the Procurement Officer may require payment of a fee or a deposit for supplying the Invitation for Bids.

 

f)         Pre-Bid Conference

A pre-bid conference may be conducted to enhance understanding of the procurement requirements. The pre-bid conference shall be announced as a part of the Invitation for Bids notice. The conference may be designated as "attendance mandatory" or "attendance optional". The conference should be held long enough after the Invitation for Bids has been issued to allow bidders to become familiar with it, but sufficiently before bid opening to allow consideration of the conference results in preparing their bids. Nothing stated at the pre-bid conference shall change the Invitation for Bids unless a change is made by written modification to the Invitation for Bids. Amendments shall be supplied to all those prospective bidders known to have received an Invitation for Bids. If the conference is mandatory, the amendment shall be supplied to attendees only.

 

g)         Amendments to Invitations for Bids

 

1)         Form. Amendments to Invitations for Bids shall be clearly identified and shall reference the portion of the IFB it amends.

 

2)         Distribution. Amendments shall be made available to all prospective bidders known to have received an Invitation for Bids.

 

3)         Timeliness. Amendments shall be made available within a reasonable time to allow prospective bidders to consider them in preparing their bids. If the time and date set for receipt of bids will not permit such preparation, the amendment shall extend the response time. If necessary, the response time may be extended by fax or telephone and confirmed in the amendment.

 

h)         Pre-Opening Modification or Withdrawal of Bids

 

1)         Procedure. Bids may be modified or withdrawn by written notice received in the office designated in the Invitation for Bids prior to the time and date set for bid opening.

 

2)         Disposition of Bid Security. If a bid is withdrawn in accordance with this Section, the bid security, if any, shall be returned to the bidder.

 

3)         Records. All documents relating to the modification or withdrawal of bids shall be made a part of the appropriate procurement file.

 

i)          Receipt, Opening and Recording of Bids

 

1)         Receipt.  Upon its receipt, each bid and modification shall be time-stamped but not opened and shall be stored in a secure place until the time and date set for bid opening. If a bid is opened in error, the file shall so state.

 

2)         Opening and Recording

 

A)        Bids and modifications shall be opened publicly at the time, date, and place designated in the Invitation for Bids. Opening shall be witnessed by a State employee or any other person present, but the person opening bids shall not serve as witness. The name of each bidder, the bid price, and such other information as is deemed appropriate by the Procurement Officer, shall be recorded and the name of each bidder read aloud or otherwise made available. The name of the witness shall also be recorded at the opening.

 

B)        The winning bid shall be available for public inspection after award, along with the record of each unsuccessful bid.

 

3)         Confidential Data. The SPO shall examine the bids to determine the validity of any requests for nondisclosure of trade secrets and other proprietary data identified in writing. If the parties do not agree as to the disclosure of data or other information, the bid shall be rejected as nonresponsive.

 

j)          Bid Evaluation and Award

 

1)         General. The contract is to be awarded to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the Invitation for Bids, except as permitted in the Code and this Part. The Invitation for Bids shall set forth the requirements and criteria that will be used to determine the lowest responsive bidder. No bid shall be evaluated for any requirements or criteria that are not disclosed in the Invitation for Bids.

 

2)         Responsibility. Responsibility of prospective vendors is covered by Section 2000.2046 (Responsibility).

 

3)         Responsiveness. A bid must conform in all material respects to the Invitation for Bids.

 

A)        Product or Service Acceptability. The Invitation for Bids shall set forth any evaluation criteria to be used in determining product or service acceptability. It may require the submission of bid samples, descriptive literature, technical data, references, licenses, or other information or material. It may also provide for accomplishing any of the following prior to award:

 

i)          inspection or testing of a product or service prior to award for such characteristics as quality or workmanship;

 

ii)         examination of such elements as appearance, finish, taste, or feel;

 

iii)        other examinations to determine whether it conforms with any other purchase description requirements.

 

B)        The acceptability evaluation is not conducted for the purpose of determining whether one bidder's product or service capability is superior to another, but only to determine that a bidder's offering is acceptable as set forth in the Invitation for Bids. Any bidder's offering that does not meet the acceptability requirements shall be rejected.

 

4)         Determination of Lowest Bidder. Following determination of product or service acceptability as set forth in this subsection (j), bids will be evaluated to determine which bidder offers the lowest cost to the State in accordance with the evaluation criteria set forth in the Invitation for Bids. Only objectively measurable criteria that are set forth in the Invitation for Bids shall be applied in determining the lowest bidder. Examples of such criteria include, but are not limited to, transportation cost and ownership or life-cycle cost formulas. Evaluation factors need not be precise predictors of actual future costs, but to the extent possible such evaluation factors shall be reasonable estimates based upon information the State has available concerning future use and shall provide for the equitable treatment of all bids. Pricing for optional supplies or services, or for renewal terms, may be considered, particularly when the pricing for such items or terms is unbalanced when compared to other pricing in the bid.

 

5)         Price Negotiation. Negotiations are permitted with the low bidder to obtain a lower price for the item bid.

 

k)         Documentation of Award

Following award, a record showing the successful bidder shall be made a part of the procurement file.

 

l)          Award to Other Than Low Bidder

 

1)         The Procurement Officer, but not a designee, may award to other than the lowest responsible and responsive bidder upon a written determination that award to another bidder is in the State's best interest. The written explanation must be published in the appropriate volume of the Bulletin.

 

2)         This action may be appropriate when the difference in quality or speed of delivery is so great as compared to the difference in price, and considering the needs of the agency, that a best value award is justified. However, if the difference in price is significant, the Procurement Officer may not utilize this provision.

 

3)         The explanation must include:

 

A)        a description of the SOS's needs;

 

B)        a determination that the anticipated cost will be fair and reasonable;

 

C)        a listing of all reasonable and responsive bidders; and

 

D)        the name of the bidder selected, pricing, and the reasons for selecting that bidder.

 

4)         The explanation shall be filed with the Legislative Audit Commission and the SOS PPB.

 

m)        Publicizing Award

The successful bidder shall be notified of award and the notification may be in the form of a letter, purchase order or other clear communication. In procurements over the small purchase limit set in Section 2000.2020 (Small Purchases), notice of award shall be published in the Bulletin.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.2012  Multi-Step Sealed Bidding

 

a)         Definition.  Multi-step sealed bidding is a two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers to be evaluated by the State, and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered.

 

b)         Conditions for Use.  The multi-step sealed bidding method may be used when it is not practical to prepare initially a definitive purchase description that will be suitable to permit an award based on price.  Multi-step sealed bidding may be used when it is considered desirable:

 

1)         to invite and evaluate possible diverse technical offers to determine their acceptability to fulfill the purchase description requirements; and

 

2)         to conduct discussions for the purposes of facilitating  understanding of the technical offer and purchase description requirements and, where appropriate, obtain supplemental information, permit amendments of technical offers, or amend the purchase description.

 

c)         Pre-Bid Conference in Multi-Step Sealed Bidding

Prior to the submission or evaluation of unpriced technical offers, a pre-bid conference as contemplated by Section 2000.2010(f) (Pre-Bid Conference) may be conducted by the Procurement Officer.

 

d)         Procedure for Phase One of Multi-Step Sealed Bidding

 

1)         Form.  Multi-step sealed bidding shall be initiated by the issuance of an Invitation for Bids in  the form required by Section 2000.2010 (Competitive Sealed Bidding), except as hereinafter provided.  In addition to the requirements set forth in Section 2000.2010, the multi-step Invitation for Bids shall state:

 

A)        that unpriced technical offers are requested;

 

B)        whether priced bids are to be submitted at the same time as unpriced technical offers; if they are, such priced bids shall be submitted in a separate sealed envelope;

 

C)        that it is a multi-step sealed bid procurement, and priced bids will be considered only in the second phase and only from those bidders whose unpriced technical offers are found acceptable in the first phase;

 

D)        the criteria to be used in the evaluation of the unpriced technical offers;

 

E)        that the Procurement Officer may conduct oral or written discussions of the unpriced technical offers;

 

F)         that the item being procured shall be furnished generally in accordance with the bidder's technical offer as found to be finally acceptable and shall meet the requirements of the Invitation for Bids.

 

2)         Amendments to the Invitation for Bids.  After receipt of unpriced technical offers, amendments to the Invitation for Bids shall be distributed only to bidders who submitted unpriced technical offers, and they shall be permitted to submit new unpriced technical offers or to amend those submitted. If, in the opinion of the Procurement Officer, a contemplated amendment will significantly change the nature of the procurement, the Invitation for Bids may be canceled in accordance with Section 2000.2040 (Cancellation of Solicitation; Rejection of Bids or Proposals) of this Part and a new Invitation for Bids issued.

 

3)         Receipt and Handling of Unpriced Technical Offers.  Unpriced technical offers submitted by bidders shall be opened in the presence of at least one witness.  Such offers shall not be disclosed to unauthorized persons.

 

4)         Evaluation  of Unpriced Technical Offers.  The unpriced technical offers submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the Invitation for Bids.  The unpriced technical offers shall be categorized as:

 

A)        acceptable;

 

B)        potentially acceptable, that is, reasonably susceptible of being made acceptable; or

 

C)        unacceptable, in which case the Procurement Officer shall record in writing the basis for finding an offer unacceptable, notify the vendor and make it part of the procurement file.

 

5)         The Procurement Officer may initiate phase two of the procedure if, in the Procurement Officer's opinion, there are sufficient acceptable unpriced technical offers to assure effective price competition in the second phase without technical discussions.  If the Procurement Officer finds discussion of the technical offers is necessary, the Procurement Officer shall commence discussions of the unpriced technical proposals.

 

6)         Discussion of Unpriced Technical Offers.  The Procurement Officer may conduct discussions with any vendor who submits an acceptable or potentially acceptable technical offer.  During the course of such discussions, the Procurement Officer shall not disclose any information derived from one unpriced technical offer to any other bidder.  Any such bidder may submit supplemental information amending its technical offer at any time until the closing date established by the Procurement Officer.  Such submission may be made at the request of the Procurement Officer or upon the bidder's own initiative.

 

7)         Unacceptable Unpriced Technical Offer.  When the Procurement Officer determines a bidder's unpriced technical offer to be unacceptable, such offeror shall not be afforded an additional opportunity to supplement its technical offer.

 

e)         Procedure for Phase Two

 

1)         Initiation.  Upon the completion of phase one, the Procurement  Officer shall either:

 

A)        open priced bids submitted in phase one (if priced bids were required to be submitted) from bidders whose unpriced technical offers were found to be acceptable; or

 

B)        if priced bids have not been submitted, invite each acceptable bidder to submit a priced bid.

 

2)         Conduct.  Phase two shall be conducted as any other competitive sealed bid procurement except:

 

A)        no public notice need be given of this invitation to submit priced bids because such notice was previously given;

 

B)        after award, the unpriced technical offer of the successful bidder shall be disclosed as follows:  The Procurement Officer shall examine written requests of confidentiality for trade secrets and proprietary data in the technical offer of such bidder to determine the validity of any such requests. If the parties do not agree as to the disclosure of data, the Procurement Officer shall reject the offer.  Such technical offer shall be open to public inspection subject to any continuing prohibition on the disclosure of confidential data; and

 

C)        unpriced technical offers of bidders who are not awarded the contract shall not be open to public inspection.

 

Section 2000.2015  Competitive Sealed Proposals

 

a)         Competitive Sealed Proposals may be used whenever permitted by the Code and as described in this Part.

 

b)         The Competitive Sealed Proposal method of source selection may be used to procure the following categories (note that the following services, if they are professional or artistic, must be procured pursuant to Section 2000.2035 of this Part):

 

1)         electronic data processing equipment, software, and services;

 

2)         telecommunications equipment, software, and services;

 

3)         consulting services; and

 

4)         employee benefits and management of those benefits.

 

c)         Competitive Sealed Proposals may be used on a case-by-case basis when it is determined by the Procurement Officer that competitive sealed bidding is either not practicable or advantageous.

 

1)         "Practicable" Distinguished from "Advantageous." As used in Section 20-15 (Competitive Sealed Proposals) of the Illinois Procurement Code and in this Section, "practicable" denotes what may be accomplished or put into practical application, and "advantageous" connotes a judgmental assessment of what is in the State's best interest. Competitive sealed bidding may be practicable, that is, reasonably possible, but not necessarily advantageous, that is, in the State's best interest. Before a procurement may be conducted by competitive sealed proposals, the Procurement Officer shall determine in writing that competitive sealed bidding is either not practicable or not advantageous to the State.

 

2)         General Discussion

 

A)        If competitive sealed bidding is not practicable or is not advantageous, competitive sealed proposals should be used.

 

B)        The key element in determining whether use of a proposal is advantageous is the need for flexibility. The competitive sealed proposal method differs from competitive sealed bidding in two important ways:

 

i)          it permits discussions with competing offerors and changes in their proposals, including price; and

 

ii)         it allows comparative judgmental evaluations to be made when selecting among acceptable proposals for award of the contract.

 

C)        Where evaluation factors involve the relative abilities of offerors to perform, including degrees of experience or expertise, where the types of supplies or services may require the use of comparative, judgmental evaluations to evaluate them adequately, or where the type of need to be satisfied involves weighing aesthetic values to the extent that price is a secondary consideration, use of competitive sealed proposals is the appropriate procurement method.

 

3)         When Competitive Sealed Bidding Is Not Practicable. Competitive sealed bidding is not practicable unless the nature of the procurement permits award to a low bidder who agrees by its bid to perform without condition or reservation in accordance with the purchase description, delivery or performance schedule, and all other terms and conditions of the Invitation for Bids. Factors to be considered in determining whether competitive sealed bidding is not practicable include:

 

A)        whether the contract needs to be other than a fixed-price type;

 

B)        whether oral or written discussions may need to be conducted with offerors concerning technical and price aspects of their proposals;

 

C)        whether offerors may need to be afforded the opportunity to revise their proposals, including price;

 

D)        whether award may need to be based upon a comparative evaluation, as stated in the Request for Proposals, of differing price, quality, and contractual factors in order to determine the most advantageous offering to the State. Quality factors include technical and performance capability and the content of the technical proposal; and

 

E)        whether the primary consideration in determining award may not be price.

 

4)         When Competitive Sealed Bidding Is Not Advantageous. A determination may be made to use competitive sealed proposals if it is determined that it is not advantageous to the State, even though practicable, to use competitive sealed bidding. Factors to be considered in determining whether competitive sealed bidding is not advantageous include:

 

A)        if prior procurements indicate that competitive sealed proposals may result in more beneficial contracts for the State; and

 

B)        whether the factors listed in subsection (c)(3) of this Section are desirable, in conducting a procurement, rather than necessary; if they are, then such factors may be used to support a determination that competitive sealed bidding is not advantageous.

 

d)         Content of the Request for Proposals

The Request for Proposals shall be prepared in accordance with Section 2000.2010 (Competitive Sealed Bidding), provided that it shall also include:

 

1)         a statement that discussions may be conducted with offerors who submit proposals determined to be reasonably susceptible of being selected for award, but that proposals may be accepted without such discussions; and

 

2)         a statement of when and how price should be submitted.

 

e)         Receipt and Registration of Proposals

 

1)         Proposals and modifications shall be opened publicly at the time, date and place designated in the Request for Proposals. Opening shall be witnessed by a State employee or by any other person present, but the person opening proposals shall not serve as witness. A record shall be prepared that shall include the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the supply or service item offered. The record of proposals shall be open to public inspection after award of the contract.

 

2)         Proposals and modifications shall be opened in a manner to avoid disclosing contents to competitors. Only State personnel and contractual agents may review the proposals prior to award.

 

f)         Evaluation of Proposals

 

1)         Evaluation Factors in the Request for Proposals. The Request for Proposals shall state all of the evaluation factors, including price, and their relative importance.

 

2)         Evaluation. The evaluation shall be based on the evaluation factors set forth in the Request for Proposals. Factors not specified in the Request for Proposals shall not be considered. Numerical rating systems may be used but are not required.

 

3)         Classifying Proposals. For the purpose of conducting discussions, proposals may be initially classified as:

 

A)        acceptable;

 

B)        potentially acceptable, that is, reasonably susceptible of being made acceptable; or

 

C)        unacceptable. Offerors whose proposals are unacceptable shall be so notified promptly.

 

g)         Proposal Discussions with Individual Offerors

 

1)         "Offerors" Defined. For the purposes of Section 20-15(f) (Competitive Sealed Proposals, Discussion with Responsible Offerors and Revisions to Proposals) of the Illinois Procurement Code and of this Section, the term "offerors" includes only those businesses submitting proposals that are acceptable or potentially acceptable. The term shall not include businesses that submitted unacceptable proposals.

 

2)         Purposes of Discussions. Discussions are held to:

 

A)        promote understanding of the State's requirements and the offerors' proposals; and

 

B)        facilitate arriving at a contract that will be most advantageous to the State, taking into consideration price and the other evaluation factors set forth in the Request for Proposals.

 

3)         Conduct of Discussions. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussions and revisions of proposals. If during discussions there is a need for any substantial clarification of, or change to, the Request for Proposals, the Request shall be amended to incorporate such clarification or change. Auction techniques (revealing one offeror's price to another) and disclosure of any information from competing proposals are prohibited. Any substantial oral clarification of a proposal shall be reduced to writing by the offeror.

 

4)         Best and Final Offers. The Procurement Officer may request best and final offers from those offerors deemed acceptable after completion of any discussions. Best and final offers shall be submitted by a specified date and time. The Procurement Officer may conduct additional discussions or change the State's requirements and require another submission of best and final offers (e.g., to clarify the terms of an offer). The scope of the best and final and the number of vendors allowed to participate shall be defined by the Procurement Officer (e.g., depending on the number of potential vendors and the availability of the item being procured). If an offeror does not submit either a notice of withdrawal or another best and final offer, that offeror's immediately previous offer will be construed as its best and final offer.

 

h)         Award

An award shall be made by the Procurement Officer pursuant to a written determination showing the basis on which the award was found to be most advantageous to the State, based on the factors set forth in the Request for Proposals.

 

i)          Publicizing Awards

The successful offeror shall be notified of award and such notification may be in the form of a letter, purchase order or other clear communication. When the award exceeds the small purchase limit set in Section 2000.2020 of this Part, notice of award shall be published in the Bulletin.

 

Section 2000.2020  Small Purchases

 

a)         Application

 

1)         Procurements of $100,000 or less for supplies or services, other than professional and artistic, and $100,000 or less for construction may be made using the method of source selection determined by the Procurement Officer to be most appropriate to the circumstances.

 

2)         Procurements of less than $20,000 for professional and artistic services and that have a non-renewable term of one year or less may be made using the method of source selection determined by the Procurement Officer to be most appropriate to the circumstances.

 

b)         In determining whether a contract is under the limit, the stated value of the supplies or services, plus any optional supplies and services, shall be utilized.  Where the term is calculated month-to-month or in a similar fashion, the amount shall be calculated for a twelve month period.

 

c)         If only a unit price or hourly rate is known, the contract shall be considered small and shall have a not to exceed limit applicable to the type of procurement (see subsection (a)).

 

d)         If, after signing the contract, the actual cost of completing the contract is determined to exceed the small purchase amount, and the Procurement Officer determines that a supplemental procurement is not economically feasible or practicable because of the immediacy of the agency's needs or other circumstances, the Procurement Officer must follow the procedures for sole source or emergency procurement, whichever is applicable, to complete the contract.

 

e)         Procurement requirements shall not be artificially divided to avoid using the other source selection methods set forth in Section 20-5 of the Illinois Procurement Code.

 

f)         If there is a repetitive need for small procurements of the same type, the Procurement Officer shall consider issuing a competitive sealed bid or proposal for procurement of those needs.

 

(Source:  Amended at 45 Ill. Reg. 14500, effective November 4, 2021)

 

Section 2000.2025  Sole Economically Feasible Source Procurement

 

a)         Application

The provisions of this Part apply to procurement from a sole economically feasible source (referred to as sole source) unless the estimated amount of the procurement is within the limit set in Section 2000.2020 (Small Purchases) or unless emergency conditions exist as defined in Section 2000.2030 (Emergency Procurements) of this Part.

 

b)         Conditions for Use of Sole Source Procurement

Sole source procurement is permissible when a requirement is available from only a single supplier or when only one supplier is deemed economically feasible.  A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror authorized to provide that item.   The following are examples of circumstances that could necessitate sole source procurement:

 

1)         the compatibility of equipment, accessories, replacement parts, or service is a paramount consideration;

 

2)         a sole supplier's items are needed for trial use or testing;

 

3)         a sole supplier's item is to be procured for commercial resale;

 

4)         public utility regulated services are to be procured;

 

5)         the item is copyrighted or patented and the item or service is not available except from the holder of the copyright or patent;

 

6)         the procurement of the media for advertising;

 

7)         the procurement of art or entertainment services; and

 

8)         changes to existing contracts (see subsection (c)).

 

c)         Changes

 

1)         Changes to an existing contract that are germane and reasonable in scope and cost in relation to the original contract or program, that are necessary or desirable to complete the contract or program, and that can be best accomplished by the contract holder may be procured under this Section when the Procurement Officer determines that the cost of delay or disruption to the contract or program, and the cost of a new solicitation, clearly indicate that the existing vendor is the sole economically feasible source.

 

2)         A change (whether in cost or rate) that does not exceed the applicable small purchase limit as defined in Section 2000.2020 of this Part, or that is an emergency as defined in Section 2000.2030 of this Part, may be made in accordance with procedures governing those Sections and need not comply with these sole source procedures.  A change in the length of the contract that does not exceed 30 days and other minor, immaterial changes to the scope or administrative provisions of a contract shall not be considered changes subject to these sole source procedures.

 

d)         Procurement Officer to Determine

 

1)         The determination as to whether a procurement shall be made as a sole source shall be made by the Procurement Officer.  Such determination and the basis therefore shall be in writing.  Such officer may specify the application of such determination and the duration of its effectiveness.

 

2)         Any purchase request submitted to the CPO suggesting that a procurement be restricted to one potential vendor shall be accompanied by an explanation as to why no other vendor will be suitable or acceptable to meet the need.

 

e)         Publication of Sole Source Notice

The Procurement Officer shall publish in the Bulletin notice of intent  to contract with that vendor at least 14 days prior to execution of the contract.

 

1)         If no challenge to this determination is made by a vendor within the 14 day period, the Procurement Officer may execute a contract with that vendor.

 

2)         If a challenge is received, the Procurement Officer shall consider the information and shall commence a competitive procurement if the Procurement Officer determines that more than one economically feasible source may be available and the sole source designation is, therefore, not appropriate, unless an emergency situation exists.

 

f)         Negotiation in Sole Source Procurement

The Procurement Officer shall conduct negotiations, as appropriate, to reach contract terms, including price, and shall maintain a record of each sole source procurement showing:

 

1)         the vendor's name;

 

2)         the amount and type of the contract;

 

3)         what was procured; and

 

4)         the identification number of the contract file.

 

g)         Prohibition Against Amending a Contract for Professional or Artistic Services Based on Sole Source  

The provisions of subsection (c) shall not permit an amendment to a contract for professional or artistic services if:

 

1)         there is an increase in the amount paid under the contract of more than 5% of the initial award; or

 

2)         the term of the contract would extend by a period not to exceed the time reasonably needed for a competitive procurement or 2 months, whichever is less.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

 

Section 2000.2030  Emergency Procurements

 

a)         Applications

The provisions of this Part apply to every procurement over the small purchase limit set in Section 2000.2020 (Small Purchases) of this Part and that is not a sole source procurement under Section 2000.2025 of this Part made under emergency, including quick purchase, conditions.

 

b)         Definition of Emergency Conditions

Procurements may be made under this Section 2000.2030 in the following circumstances:

 

1)         Traditional circumstances include but are not limited to:

 

A)        public health or safety, including the health or safety of any particular person, is threatened;

 

B)        immediate repairs are needed to State property to protect against further loss or damage to State property, or to prevent loss or damage to State property;

 

C)        immediate action is needed to prevent or minimize serious disruption in State services;

 

D)        action is needed to ensure the integrity of State records;

 

E)        equipment or services are necessary in the furtherance of covert activities lawfully conducted by a State agency.  Any required disclosures shall be made so as not to jeopardize those covert activities;

 

F)         immediate action is necessary to avoid lapsing or loss of  federal or donated funds;

 

G)        the need for items to protect or further State interests is immediate and use of other competitive source selection procedures under the Code and this Part cannot be accomplished without significant risk of causing serious disadvantage to the State; or

 

H)        immediate action is necessary to protect the collection of substantial State revenue.

 

2)         After Unsuccessful Competitive Sealed Bidding or Proposals or Request for Proposals.  When bids or proposals received pursuant to a competitive sealed bid or competitive sealed proposal method are unreasonable or noncompetitive, or the price exceeds available funds, and time or other circumstances will not permit the delay required to resolicit competitive sealed bids or proposals, and if emergency conditions exist after an unsuccessful attempt to use competitive sealed bidding, an emergency procurement may be made.

 

3)         Extension to Allow Competition.  Extending an existing contract for such period of time as is needed to conduct a competitive method of source selection where terminating or allowing the contract to terminate would not be advantageous to the State.

 

4)         Quick Purchase

 

A)        A supplier announces bankruptcy, cessation of business, or loss of franchise, or gives other similar reason so that making a purchase immediately is more advantageous to the State than instituting a competitive procurement under the provisions of the Code for the supplies or services;

 

B)        Items are available on the spot market or at discounted prices for a limited time so that good business judgment mandates a purchase immediately to take advantage of the availability and price;

 

C)        Availability of rare items, such as books of historical value;

 

D)        The procurement is for entertainment.

 

c)         Scope of Emergency Conditions

 

1)         Emergency procurements shall be limited to the items, quantity and term necessary to meet the emergency need.

 

2)         Emergency procurements shall be limited to the time reasonably needed for a competitive procurement, but in no event shall it exceed 90 days unless the CPO determines additional time is needed.

 

3)         In the event an emergency procurement exceeds 90 days, the contract scope and duration may be extended.  The extension shall be limited in items, quantity and days.

 

d)         Authority to Make Emergency Procurements

Authority to make emergency procurements is established in Subpart C. Whenever practical, existing State contracts shall be utilized and, whenever practical, approval by the SPO shall be obtained prior to the procurement. The CPO or SPO shall be responsible for making the filings required in Section 20-30 of the Code.

 

e)         Source Selection Methods

Any method of source selection, whether or not identified in this Part, may be used to conduct the procurement in emergency situations.  The procedure used shall be selected to assure that the required items are procured in time to meet the emergency.  Such competition as is practicable shall be obtained.

 

f)         Determination and Record of Emergency Procurement

 

1)         Determination.  The Procurement Officer shall make a written determination stating the basis for an emergency procurement and for the selection of the particular vendor.  The determinations shall be kept in the contract file of the Procurement Officer.

 

2)         Record.  An affidavit of each emergency procurement shall be filed by the CPO with the SOS PPB and the Auditor General within 10 days after the procurement and shall include the following information:

 

A)        the vendor's name;

 

B)        the amount and type of the contract, provided that, if only an estimate of the amount is available immediately, the record shall be supplemented with the final amount once known;

 

C)        a description of what the vendor will do or provide;

 

D)        the reasons for using the emergency method of source selection.

 

3)         Notice of the emergency procurement shall be published in the Bulletin in accordance with Subpart D of this Part.

 

g)         Extensions of Emergency

In the event an emergency procurement exceeds 90 days, the emergency procurement may be extended.  Prior to the execution of the extension:

 

1)         the CPO must determine additional time is necessary;

 

2)         the contract scope and duration must be limited to the emergency;

 

3)         a public hearing must be held;

 

4)         the CPO must provide written justification for the emergency contract;

 

5)         notice of the intent to extend shall be provided to the SOS PPB and published in the Bulletin in accordance with Subpart D of this Part.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

 

Section 2000.2035  Competitive Selection Procedures for Professional and Artistic Services

 

a)         Application

 

1)         The provisions of this Section apply to every procurement of professional and artistic services except those subject to the Architectural, Engineering and Land Surveying Qualifications Based Selection Act [30 ILCS 535] and except as provided in Section 2000.2035(e).

 

2)         "Professional and artistic services" means those services provided under contract to a State agency by a person or business, acting as an independent contractor, qualified by education, experience, and technical ability [30 ILCS 500/1-15.60].

 

b)         Professional and artistic services are further defined as follows:

 

1)         "Qualified by education" means the individual who would perform the services must have obtained the level of education specified in the Request for Proposals.

 

2)         "Qualified by experience" means the individual who would perform the services must have the level of general experience specified in the Request for Proposals.

 

3)         "Qualified by technical ability" means the individual who would perform the services must demonstrate a high degree of skill or ability in performing services that are the same, similar or closely related in nature to those specified in the Request for Proposals.

 

4)         An essential element distinguishing professional and artistic services from other services is confidence, trust, and belief in not only the ability, but the talent, of the individual performing the service. These services are primarily for intellectual or creative skills. Contracts for services primarily involving manual skills or labor are not professional and artistic services contracts. (See Illinois Attorney General Opinion S-256, January 20, 1971.)

 

5)         If the professional or artistic contract is with a firm or other business entity, the individuals whose education, experience and technical ability provided the basis on which the firm or other business entity was selected must meet the qualifications.

 

6)         When SOS requires services that meet the requirements of this subsection (b), the competitive selection procedures described in this Section must be followed. Services that do not meet the requirements of this Section must be procured in accordance with other methods of source selection authorized by the Code and this Part.

 

c)         The categories of services enumerated below shall be considered and procured as professional and artistic services. With regard to other services, the SPO may determine whether the factors identified in subsection (b), when applied to particular services to be procured, require such services to be procured as professional and artistic under these competitive selection procedures, or as services that are subject to one of the other methods of source selection authorized by the Code and this Part. The following categories are examples of disciplines that would always be professional and artistic services:

 

1)         law;

 

2)         accounting;

 

3)         medicine;

 

4)         dentistry; and

 

5)         clinical psychology.

 

d)         Architect, engineering and land surveying services shall be procured pursuant to the procedures of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act [30 ILCS 535]. Such procurements are not subject to the procedures for other professional services established in the Code or this Part.

 

e)         Conditions for Use of Competitive Selection Procedures

Except as authorized under Section 20-25 (Sole Source Procurement) or Section 20-30 (Emergency Procurements) of the Code, these competitive selection procedures shall be used for all procurements of professional and artistic services of $20,000 or more. Services of less than $20,000 and for a nonrenewable term of one year or less may be procured in accordance with Section 2000.2020 (Small Purchases) of this Part.

 

f)         Prequalification. The CPO shall maintain a list of prequalified professional and artistic vendors in accordance with Section 2000.2045 of this Part. Persons may amend statements of qualifications at any time by filing a new statement. Failure of a professional and artistic vendor to prequalify shall not be cause for rejection of a proposal provided that the responsive offeror supplies with its proposal all information defined by the prequalification process.

 

g)         Public Notice of Competitive Selection Procedures

 

1)         Notice of the need for professional and artistic services shall be made by the Procurement Officer in the form of a Request for Proposals.

 

2)         Notice shall be given as provided in Section 2000.2010 (Competitive Sealed Bidding) of this Part.

 

3)         Notice shall also be distributed to prequalified persons interested in performing the services required by the proposed contract.

 

h)         Request for Proposals

 

1)         Contents. The Request for Proposals shall be in the form specified by the CPO and shall contain at least the following information:

 

A)        the type of services required;

 

B)        a description of the work involved;

 

C)        an estimate of when and for how long the services will be required;

 

D)        the type of contract to be used;

 

E)        a date by which proposals for the performance of the services shall be submitted;

 

F)         a statement of the minimum information that the proposal shall contain, which may, by way of example, include:

 

i)          the name of the offeror, the location of the offeror's principal place of business and, if different, the place of performance of the proposed contract;

 

ii)         if deemed relevant by the Procurement Officer, the age of the offeror's business and average number of employees over a previous period of time, as specified in the Request for Proposals;

 

iii)        the abilities, qualifications, and experience of all persons who would be assigned to provide the required services;

 

iv)        a listing of other contracts under which services similar in scope, size, or discipline to the required services were performed or undertaken within a previous period of time, as specified in the Request for Proposals;

 

v)         a plan, giving as much detail as is practical, explaining how the services will be performed;

 

G)        price (to be submitted in a separate envelope in the proposal package and not mentioned elsewhere in the proposal package); and

 

H)        the factors to be used in the evaluation and selection process and their relative importance.

 

2)         Evaluation. Proposals shall be evaluated only on the basis of evaluation factors stated in the Request for Proposals. Price will not be evaluated until ranking of all proposals and identification of the most qualified vendor. The relative importance of the evaluation factors will vary according to the type of services being procured. The minimum factors are:

 

A)        the plan for performing the required services;

 

B)        ability to perform the services as reflected by technical training and education, general experience, specific experience in providing the required services, and the qualifications and abilities of personnel proposed to be assigned to perform the services;

 

C)        the personnel, equipment, and facilities to perform the services currently available or demonstrated to be made available at the time of contracting; and

 

D)        a record of past performance of similar work.

 

i)          Pre-Proposal Conference

A pre-proposal conference, if appropriate, shall be conducted in accordance with Section 2000.2010(f) (Pre-Bid Conference). Such a conference may be held anytime prior to the date established for submission of proposals.

 

j)          Delivery, Receipt and Handling of Proposals

 

1)         Proposals shall be submitted to and opened by the SPO in accordance with instructions given by the SPO.

 

2)         Public Opening

 

A)        Proposals and modifications shall be opened publicly at the time, date and place designated in the Request for Proposals.

 

B)        Opening shall be witnessed by a State employee or by any other person present, but the person opening proposals shall not serve as witness. A record shall be prepared that shall include the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the supply or service item offered. The record of proposals shall be open to public inspection after award of the contract.

 

C)        Proposals and modifications shall be opened in a manner designed to avoid disclosing contents to competitors. Only State personnel and contractual agents may review the proposals prior to award.

 

D)        Proposals of offerors who are not awarded the contract shall not be open to public inspection.

 

k)         Discussions

 

1)         Discussions Permissible. The Procurement Officer may conduct discussions with any offeror to:

 

A)        determine in greater detail such offeror's qualifications; and

 

B)        explore with the offeror the scope and nature of the required services, the offeror's proposed method of performance, and the relative utility of alternative methods of approach. The Procurement Officer may allow changes to the proposal based on those discussions.

 

2)         No Disclosure of Information. Discussions shall not disclose any information derived from proposals submitted by other offerors, and the agency conducting the procurement shall not disclose any information contained in any proposals until after award of the proposed contract has been made. The proposal of the offeror awarded the contract shall be open to public inspection except as otherwise provided in the contract.

 

l)          Selection of the Best Qualified Offerors

After conclusion of validation of qualifications, evaluation, and discussion, the Procurement Officer shall rank the acceptable offerors in the order of their respective qualifications.

 

m)        Evaluation of Pricing Data

Pricing submitted for all proposals timely submitted shall be opened and ranked.

 

1)         If the low price is submitted by the most qualified vendor, the Procurement Officer may award to that vendor.

 

2)         If the price of the most qualified vendor is not low and if it does not exceed $25,000, the Procurement Officer, but not a designee, may award to that vendor.

 

3)         If the price of the best qualified vendor exceeds $25,000, the Procurement Officer, but not a designee, must state why a vendor other than the low priced vendor was selected and that determination shall be published in the Bulletin.

 

n)         Negotiation and Award of Contract

 

1)         General. The Procurement Officer shall attempt to negotiate a contract with the best qualified offeror for the required services at fair and reasonable compensation. The Procurement Officer may, in the interest of efficiency, negotiate with other vendors, while negotiating with the best qualified vendor.

 

2)         Elements of Negotiation. At a minimum, contract negotiations shall be directed toward:

 

A)        making certain that the offeror has a clear understanding of the scope of the work, specifically, the essential requirements involved in providing the required services;

 

B)        determining that the offeror will make available the necessary personnel and facilities to perform the services within the required time; and

 

C)        agreeing upon compensation that is fair and reasonable, taking into account the estimated value of the required services and the scope, complexity, and nature of such services.

 

3)         Successful Negotiation of Contract with Best Qualified Offeror

 

A)        If compensation, contract requirements, and contract documents can be agreed upon with the best qualified offeror, the contract shall be awarded to that offeror, unless the procurement is canceled.

 

B)        Compensation must be determined in writing to be fair and reasonable. Fair and reasonable compensation shall be determined by the Procurement Officer based on the circumstances of the particular procurement, including but not limited to the nature of the services needed, qualifications of the offerors, consideration of range of prices received in the course of the procurement, and the agency's identified budget.

 

4)         Failure to Negotiate Contract with Best Qualified Offeror

 

A)        If compensation, contract requirements, or contract documents cannot be agreed upon with the best qualified offeror, a written record stating the reasons therefore shall be placed in the file. The Procurement Officer shall advise such offeror of the termination of negotiations.

 

B)        Upon failure to negotiate a contract with the best qualified offeror, the Procurement Officer may enter into negotiations with the next most qualified offeror.

 

C)        Nothing in this Section shall prohibit the Procurement Officer from making a selection that represents the best value, qualifications, price and other relevant factors established in the request for proposals being considered. The Procurement Officer may, in considering best value, determine the proposal from a fully qualified vendor that submitted the lowest price to be the best value without further evaluation.

 

o)         Notice of Award

Written notice of award shall be public information and made a part of the contract file. The SPO shall publish the names of the responsible decision makers of the purchasing agency, the name of the agency, the successful vendor, a contract reference number or other identifier, and the value of the contract. Publication shall be in the next available issue of the Bulletin.

 

p)         A CPO may allow an SPO to publish notices of small, sole source and emergency procurements of professional and artistic services under the jurisdiction of an SPO.

 

q)         Post Performance Review

The SPO shall require the using department to provide a synopsis of the contract and shall rate the vendor's performance using the form developed by the SPO. A copy of the completed form shall be provided to the SPO.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

 

Section 2000.2036  Other Methods of Source Selection

 

a)         Split Award

 

1)         An award of a definite quantity requirement may be split between bidders or offerors.  Each portion shall be for a definite quantity and the sum of the portions shall be the total definite quantity required. A split award may be used only when award to more than one bidder or offeror for different amounts of the same item are necessary to obtain the total quantity or the required delivery.

 

2)         The Procurement Officer shall make a written determination setting forth the reasons for the split award, which determination shall be made a part of the procurement file.

 

b)         Multiple Award

 

1)         A multiple award is an award of an indefinite quantity contract to more than one bidder or offeror when the State is obligated to order all of its actual requirements from those vendors.

 

2)         A multiple award may be made when award to two or more bidders or offerors for similar products is necessary for adequate delivery, service, or product compatibility. Any multiple award shall be made in accordance with the provisions of Section 2000.2010 (Competitive Sealed  Bidding), Section 2000.2015  (Competitive Sealed Proposals), Section 2000.2020 (Small Purchases), and Section 2000.2030 (Emergency Procurements), as applicable. Awards shall not be made for the purpose of simply dividing the business or to select products or suppliers to allow for user preference unrelated to utility or economy.  Any such awards shall be limited to the least number of suppliers necessary to meet the valid requirements of the State.

 

3)         The State shall reserve the right to take bids separately if a particular quantity requirement arises that exceeds its normal requirement or an amount specified in the contract.

 

4)         If a multiple award is anticipated, the solicitation shall state this fact as well as the criteria for award.

 

5)         In a multiple award situation, one vendor may be designated as the primary recipient of orders. The other awardees may receive orders in the event the primary vendor is unable to deliver or for other reasons as determined by the Procurement Officer.

 

c)         Term and Condition Contracts

 

1)         A term and condition contract contains agreed  contractual  terms and conditions established for the convenience of the parties to be used in conjunction with a subsequent procurement and processed in accordance with the requirements of the Code and this Part. A term and condition contract is not a procurement. It creates no obligation on the part of the State to procure from the vendor, except as provided in subsection (c)(2).

 

2)         Orders may be placed against term and condition contracts without use of any prescribed method of source selection for convenience of processing sole source, emergency or small procurements.

 

d)         Auction

Purchases may be made at auction in accordance with the procedural requirements applicable to the particular auction. Notice and competition is not required and the amount payable shall be the amount bid and accepted plus any required buyer's premium.

 

e)         Non-governmental Joint Purchase

 

1)         The SPO may enter into an agreement with a person not eligible for the Governmental Joint Purchasing Act for the joint procurement of anything covered by the Code. Any method of source selection may be used and may be modified or adapted to meet the needs of the non-State entity.

 

2)         The primary use of this provision shall be to accommodate mutual relationships between the State and not-for-profit groups whose purpose is to conduct programs adjunct to those of the State agency that is party to the contract.

 

f)         Federal Requirements

The Procurement Officer may conduct procurements in accordance with federal requirements that are necessary to receive or maintain those federal aid funds, grants or loans or to remain in compliance with federal requirements.

 

g)         Donations

When a procurement will have the majority of funding from a donation, the terms of which donation require use of particular procurement or contracting procedures, the Procurement Officer may follow those procedures, but shall follow the Code and this Part whenever practicable.

 

Section 2000.2037  Tie Bids and Proposals

 

a)         Tie bids or proposals are those from responsive and responsible vendors that are identical in price or evaluation and represent the low price.

 

b)         Tie bids or proposals will be treated as follows:

 

1)         If the tied vendors include an Illinois resident vendor, the Illinois resident vendor shall be given the award. In all other situations, including if two or more Illinois resident bidders are tied, the decision shall be made in accordance with this subsection (b). "Illinois resident vendor" has the meaning given in Section 2000.4510 (Resident Bidder Preference) of this Part.

 

2)         If there is a significant difference in responsibility (including ability to provide the service or deliver in the quantity and at the time required), the award will be made to the vendor who is deemed to be the most responsible. A vendor who has had experience in contracting with the State shall be given additional consideration in determining responsibility if the Procurement Officer determines that dealing with a vendor that has knowledge of State requirements, contracts, job sites, payment practices and such other factors and with which there has been favorable past experience increases the likelihood of successful performance.

 

3)         If there is no significant difference in responsibility, but there is a difference in the quality of the supplies or services offered, the vendor offering the best quality will be accepted.

 

4)         If there is no significant difference in responsibility and no difference in quality of the supplies or services offered, the vendor offering the earliest delivery time will be accepted in any case in which the solicitation specified that the needs of the State require delivery as early as possible.

 

5)         If the bids or proposals are equal in every respect, the award shall be made by lot unless the Procurement Officer determines that splitting the award among two or more of the tied bidders is in the best interest of the State. Awards may be split if all affected bidders agree, if splitting is feasible given the type of supplies or services requested, if overall pricing would not increase, if delivery would be better ensured, or if necessary or desirable to promote future competition.

 

c)         Record

Records shall be maintained of all procurements on which tie bids or proposals were received. The record shall provide at least the following information:

 

1)         the identification number of the solicitation;

 

2)         a description of what was procured; and

 

3)         a listing of all the bidders and the prices submitted.

 

Section 2000.2038  Mistakes

 

a)         General

Corrections to bids, proposals or other procurement processes are allowed, but only to the extent not contrary to the best interest of the State or the fair treatment of other bidders.

 

b)         Mistakes Discovered Before Opening

A vendor may correct mistakes discovered before the time and date set for opening by withdrawing or correcting as provided in this Section.

 

c)         Confirmation of Mistake

When the Procurement Officer knows or has reason to conclude that a mistake has been made, such officer shall request the vendor to confirm the information.  Situations in which confirmation should be requested include obvious or apparent errors on the face of the document or a price unreasonably lower than the others submitted.  If the vendor alleges a mistake, the bid or proposal may be corrected or withdrawn if the conditions set forth in this Section, as applicable, are met.

 

d)         Mistakes in Bids Discovered After Opening but Before Award

This subsection (d) sets forth procedures to be applied in situations in which mistakes in bids are discovered after the time and date set for bid opening but before award.

 

1)         Minor informalities. A minor informality or irregularity is one that is a matter of form or pertains to some immaterial or inconsequential defect or variation of a bid from the exact requirement of the Invitation for Bids, the correction or waiver of which would not be prejudicial to the State (i.e., the effect on price, quality, quantity, delivery, or contractual conditions is negligible). The Procurement Officer shall waive such informalities or allow the bidder to correct them depending on which is in the best interest of the State. Examples of minor informalities as to form include the failure of a bidder to:

 

A)        return the number of signed bids required by the Invitation for Bids;

 

B)        sign the bid, but only if the unsigned bid is accompanied by other material indicating the bidder's intent to be bound, including but not limited to signature on an auxiliary form, submission of a bid guarantee or submission of a signed transmittal letter; or

 

C)        acknowledge receipt of an amendment to the Invitation for Bids, but only if:

 

i)          it is clear from the bid that the bidder received the amendment and intended to be bound by its terms; or

 

ii)         the amendment involved had a negligible effect on price, quantity, quality, or delivery.

 

2)         Mistakes Where Intended Correct Bid Is Evident. If the mistake and the intended correct bid are clearly evident on the face of the bid document, the bid shall be corrected to the intended correct bid and may not be withdrawn. Examples of mistakes that may be clearly evident on the face of the bid document are typographical  errors,  errors  in  extending  unit prices, transposition errors, and arithmetical errors.

 

3)         Mistakes Where Intended Correct Bid Is Not Evident. A bidder may be permitted to withdraw a low bid if:

 

A)        a mistake is clearly evident on the face of the bid document but the intended correct bid is not similarly evident; or

 

B)        the bidder submits proof of evidentiary value that clearly and convincingly demonstrates that a mistake was made.

 

e)         Mistakes in Proposals Discovered After Receipt, but Before Award

This subsection (e) sets forth procedures to be applied in four situations in which mistakes in proposals are discovered after receipt of proposals but before award.

 

1)         During Discussions; Prior to Best and Final Offers.  Once discussions are commenced with any offeror or after best and final offers are requested, any offeror may freely correct any mistake prior to the date set for conclusion of discussions or for receipt of best and final offers.

 

2)         Minor Informalities.  Minor informalities, unless otherwise corrected by an offeror as provided in this Section, shall be treated as they are under subsection (d).

 

3)         Correction of Mistakes. If discussions are not held or if the best and final offers upon which award will be made have been received, mistakes may be corrected and the intended correct offer considered only if:

 

A)        the mistake and the intended correct offer are clearly evident on the face of the proposal, in which event the proposal may not be withdrawn; or

 

B)        the mistake is not clearly evident on the face of the proposal, but the offeror submits adequate proof that clearly and convincingly demonstrates both the existence of a mistake  and the intended correct offer, and such correction would not be contrary to the fair and equal treatment of other offerors.

 

4)         Withdrawal of Proposals. If discussions are not held, or if the best and final offers upon which award will be made have been received, the offeror may be permitted to withdraw the proposal if:

 

A)        the mistake is clearly evident on the face of the proposal and the intended correct offer is not;

 

B)        the offeror submits proof of evidentiary value that clearly and convincingly demonstrates that a mistake was made but does not demonstrate the intended correct offer; or

 

C)        the offeror submits adequate proof that clearly and convincingly demonstrates the intended correct offer, but to allow corrections would be contrary to the fair and equal treatment of other offerors.

 

f)         Mistakes Discovered After Award

Mistakes shall not be corrected after award of the contract except where the Procurement Officer finds it would be unconscionable (e.g., if the mistake resulted in a windfall to the State) not to allow the mistake to be corrected.

 

g)         Determinations Required

When a proposal is corrected or withdrawn, or correction or withdrawal is denied, a written determination shall be prepared showing that relief was granted or denied in accordance with this Part.  The Procurement Officer shall prepare the determination.

 

Section 2000.2040  Cancellation of Solicitations; Rejection of Bids or Proposals

 

a)         Scope of this Section

The provisions of this Section shall govern the cancellation of any solicitations whether issued by the State under competitive sealed bidding, competitive sealed proposals, small purchases, or any other source selection method, and rejection of bids or proposals in whole or in part.

 

b)         Policy

Any solicitation may be canceled when the Procurement Officer believes cancellation to be in the State's best interest. Nothing shall compel the award of a contract.

 

c)         Cancellation of Solicitation; Rejection of All Bids or Proposals Prior to Opening

 

1)         As used in this Section, "opening" means the date set for opening of bids, receipt of unpriced technical offers in multi-step sealed bidding, or receipt of proposals in competitive sealed proposals.

 

2)         Prior to opening, a solicitation may be canceled in whole or in part when the Procurement Officer determines in writing that such action is in the State's best interest for reasons including, but not limited to:

 

A)        the State no longer requires the supplies or services;

 

B)        the State no longer can reasonably expect to fund the procurement;

 

C)        proposed amendments to the solicitation would be of such magnitude that a new solicitation is desirable;

 

D)        ambiguous or otherwise inadequate specifications;

 

E)        the solicitation did not provide for consideration of all factors of significance to the State;

 

F)         prices exceed available funds and it would not be appropriate to adjust quantities to come within available funds;

 

G)        all otherwise acceptable bids or proposals received are at clearly unreasonable prices; or

 

H)        there is reason to question whether the bids or proposals may not have been independently arrived at in open competition, may have been the result of collusion or may have been submitted in bad faith.

 

3)         When a solicitation is canceled prior to opening, notice of cancellation shall be sent to all businesses that responded to the solicitation.

 

4)         The notice of cancellation shall:

 

A)        identify the solicitation;

 

B)        briefly explain the reason for cancellation; and

 

C)        where appropriate, explain that an opportunity will be given to compete on any resolicitation or any future procurements of similar supplies or services.

 

d)         Cancellation of Solicitation; Rejection of All Bids or Proposals After Opening

 

1)         After opening but prior to award, all bids or proposals may be rejected in whole or in part when the Procurement Officer determines in writing that the action is in the State's best interest. Reasons for the Procurement Officer's determination may include, but are not limited to:

 

A)        the supplies or services being procured are no longer required;

 

B)        ambiguous or otherwise inadequate specifications were part of the solicitation;

 

C)        the solicitation did not provide for consideration of all factors of significance to the State;

 

D)        prices exceed available funds and it would not be appropriate to adjust quantities to come within available funds;

 

E)        all otherwise acceptable bids or proposals received are at clearly unreasonable prices; or

 

F)         there is reason to question whether the bids or proposals may not have been independently arrived at in open competition, may have been collusive, or may have been submitted in bad faith.

 

2)         When the solicitation is canceled or when all bids or proposals are rejected, all vendors who submitted bids or proposals shall be sent a notice upon request informing them of the reasons for the cancellation or rejection.

 

e)         Documentation

The reasons for cancellation or rejection shall be made a part of the procurement file and shall be available for public inspection.

 

f)         Rejection of Individual Bids or Proposals

 

1)         General. This subsection (f) applies to rejections of individual bids or proposals in whole or in part.

 

2)         Notice in Solicitation. Each solicitation shall provide that any bid or proposal may be rejected in whole or in part when in the best interest of the State as provided in this Section.

 

3)         Reasons for Rejection

Reasons for rejecting a bid or proposal may include, but are not limited to:

 

A)        the business that submitted the bid or proposal is nonresponsible as determined under Section 2000.2046 (Responsibility) of this Part;

 

B)        the bid or proposal is not responsive, that is, it does not conform in all material respects to the solicitation;

 

C)        the proposal ultimately (that is, after any opportunity has passed for altering or clarifying the proposal) fails to meet the announced requirements of the State in some material respect;

 

D)        the supply or service item offered in the bid is unacceptable by reason of its failure to meet the requirements of the specifications or permissible alternates or other acceptability criteria set forth in the Invitation for Bids; or

 

E)        the proposed price is clearly unreasonable.

 

4)         Notice of Rejection. Upon request, unsuccessful bidders or offerors shall be advised of the reasons for rejection.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

SUBPART F: SUPPLIERS, PREQUALIFICATION AND RESPONSIBILITY

 

Section 2000.2043  Suppliers

 

a)         The Procurement Officer may contract with any qualified source of supply, but must procure from the Directed Sources except as permitted by those sources, and must consider the following Special Sources.

 

b)         Directed Sources − State-Produced Supplies or Services

 

1)         Correctional Industries. The CPO, after consulting with the Department of Corrections, shall determine the type and extent of the preference given to supplies produced or services performed by Correctional Industries. Factors to be considered in determining the preference include, but are not limited to, the ability of Correctional Industries to meet the State's requirements, the price charged and the reason for the Correctional Industries program.

 

2)         Central Services. Supplies and services available from the program operations of the Department of Central Management Services shall be utilized whenever possible.

 

c)         Special Sources

 

1)         Prior to any equipment procurement, the SOS may consider property available from the State and Federal Surplus Warehouses, which are under the jurisdiction of the Department of Central Management Services. The State Property Control Act [30 ILCS 605/7a] requires that surplus furniture be considered before any purchase of new furniture valued at $500 or more per piece.

 

2)         Various supplies and services are available from qualified workshops for the disabled and procurement from these workshops is encouraged. Notice and competition is not required pursuant to Section 45-35 of the Code. Information regarding the workshops is available from DCMS.

 

3)         Various supplies and services are available from State agencies and other governmental units. These may be procured without notice and competition.

 

Section 2000.2044 Vendor List/Required Use

 

a)         The CPO may maintain a list of vendors interested in doing business with the State. The names and addresses of vendors on the list shall be available for public inspection.

 

b)         Inclusion on, or exclusion from, the list shall not be a factor in determining whether a vendor is a responsible vendor.

 

c)         When vendors are directly solicited by the State, Invitations for Bids and other solicitations will be sent to vendors on the vendor list for supplies or services in question, except in the following cases:

 

1)         The vendor does not sell the particular commodity or equipment.

 

2)         The number of vendors for a procurement classification is of such magnitude that optimum prices may reasonably be expected without soliciting the entire vendor list. The Procurement Officer may, if he/she determines that the best interest of the State would be served, rotate the selection from the list on any equitable basis.

 

3)         The Procurement Officer determines that the best interests of the State will be served by limiting vendors to those in defined geographic areas (example: purchases of ready-mix concrete, perishables, and equipment requiring immediate service).

 

d)         The CPO may alternately refer to vendor lists maintained by DCMS.

 

Section 2000.2045  Prequalification

 

a)         General

 

1)         The CPO shall identify by publication in the Bulletin the categories of supplies and services (including professional and artistic services) for which the CPO may prequalify vendors of those supplies and services.  The CPO is not required to prequalify vendors but may do so when determination of a vendor's qualifications prior to procurement would be advantageous to the State.

 

2)         The SPO may require that vendors be prequalified as a condition of being placed on the bid list.  An opportunity to prequalify shall be allowed at least one time each fiscal year. The opportunity to prequalify and whether prequalification will be a condition of bidding or being awarded a contract shall be announced in the Bulletin.  The notice shall alert vendors that failure to participate in the prequalification process may result in the vendor being ineligible to receive contracts.

 

3)         When prequalifying a vendor, the CPO may limit prequalifications to determining whether a vendor has been and is likely to be "responsible" using the criteria set forth in Section 2000.2046 of this Part.  The fact that a prospective vendor has been prequalified does not necessarily represent a finding of responsibility for a particular procurement.

 

4)         When prequalifying a vendor, the CPO may consider factors tailored to a specific procurement or type of procurement that shall be announced in the Bulletin.

 

5)         Except in the case of professional and artistic services, distribution of and responses to the solicitation may be limited to prequalified vendors and award of a contract may be denied because a vendor was not prequalified.  If eligibility for the procurement will be limited to prequalified vendors, the Invitation for Bids, Request for Proposals or other procurement request shall state that fact.

 

b)         Professional and Artistic Services

 

1)         Any prequalification of vendors of professional and artistic services shall include, at a minimum, a specified level of:

 

A)        education;

 

B)        experience; and

 

C)        technical ability;

 

            and may require certification or licensure, or membership in professional associations.

 

2)         Categories for prequalification will include, but are not limited to, those listed in Section 2000.2035 of this Part.

 

c)         Qualified Products Lists

Qualified products lists are treated in Section 2000.2050 (Specifications and Samples) of this Part.

 

Section 2000.2046  Responsibility

 

a)         Application

Contracts are to be made only with responsible vendors unless no responsible vendor is available to meet the State's needs.  If there is doubt about responsibility, and if a bond or other security would adequately protect the State's interests, then that vendor may be awarded a contract upon receipt of the bond or other security.

 

b)         Standards of Responsibility

 

1)         Standards.  Factors to be considered in determining whether the standard of responsibility has been met may include, but are not limited to, whether:

 

A)        has available the appropriate financial, material, equipment, facility, and personnel resources and expertise (or the ability to obtain them) necessary to indicate its capability to meet all contractual requirements (the Procurement Officer may designate a level of financial resource below which the vendor will be deemed "not responsible");

 

B)        is able to comply with required or proposed delivery or performance schedules, taking into consideration all existing commercial and governmental commitments;

 

C)        has a satisfactory record of performance.  Vendors who are or have been deficient in current or recent contract performance in dealing with the State or other customers may be deemed "not responsible" unless the deficiency is shown to have been beyond the reasonable control of the vendor;

 

D)        has a satisfactory record of integrity and business ethics.  Vendors who are under investigation or indictment for criminal or civil actions that bear on the particular procurement or that create a reasonable inference or appearance of a lack of integrity on the part of the vendor may be declared not responsible for the particular procurement;

 

E)        is qualified legally to contract with the State;

 

F)         has supplied all necessary information in connection with the inquiry concerning responsibility;

 

G)        has a current Public Contracts number from the Illinois Department of Human Rights, pursuant to 44 Ill. Adm. Code 750.210, if required.  Proof of application prior to opening of bids or proposals will be sufficient for an initial determination;

 

H)        pays prevailing wages, if required by law; and

 

I)         is current in payment of all State of Illinois taxes, including the unemployment insurance tax.

 

2)         Information Pertaining to Responsibility.  The prospective vendor shall supply information requested by the Procurement Officer concerning the responsibility of such vendor.  The State may supplement this information from other sources and may require additional documentation at any time.  If such vendor fails to supply the requested information, the Procurement Officer shall base the determination of responsibility upon any available information, or may find the prospective vendor nonresponsible.

 

c)         Ability to Meet Standards

The prospective vendor may demonstrate the availability of necessary financing, equipment, facilities, expertise, and personnel by submitting upon request:

 

1)         evidence that such vendor possesses such necessary items;

 

2)         acceptable plans to subcontract for such necessary items; or

 

3)         a documented commitment from, or explicit arrangement with, a satisfactory source to provide the necessary items.

 

d)         Duty Concerning Responsibility

Before awarding a contract, the Procurement Officer must be satisfied that the prospective vendor is responsible.  Responsibility can be proven until time of contract execution unless the solicitation or other law requires that the vendor submit information necessary to determine responsibility by a stated date or time.

 

e)         Written Determination of Nonresponsibility Required

If a vendor who otherwise would have been awarded a contract is found nonresponsible, a written determination of nonresponsibility setting forth the basis of the finding shall be prepared by the Procurement Officer.  The final determination shall be made part of the procurement file.

 

f)         Bond for Responsibility

Vendors not having a history of performance may be considered responsible if no other disqualifying factors exist.  A bond or other security may be required of such vendors.

 

g)         Affiliated Companies

Vendors who are newly formed business concerns having substantially the same owners, officers, directors, or beneficiaries as a previously existing vendor that has been determined not responsible will also be determined not to be responsible unless the new organization can prove it was not set up for the purpose of avoiding an earlier determination of nonresponsibility.

SUBPART G: BID, PROPOSAL AND PERFORMANCE SECURITY

 

Section 2000.2047 Security Requirements

 

a)         A Procurement Officer may require that a vendor furnish bid, proposal, or performance security on State contracts. Whenever security is required, except as provided herein, the procurement document will clearly indicate the type and amount of security.

 

b)         Security, unless otherwise specified, may be in the form of cashier's check, certified check, money order, irrevocable letter of credit or bond. Any bond must be issued by a surety company authorized to do business in the State of Illinois.

 

c)         Unless the amount is set by law, the Procurement Officer will determine the amount, in dollars or percentage of contract price, that will adequately protect the State's interests. That amount will vary depending on the type of procurement and the risks and potential losses associated with delay or failure to complete the project, and for other such reasons.

 

d)         A vendor may be required to furnish up to 100% performance security at any time during contract performance and at its cost, if it appears that delivery or production schedules cannot be met, quality is poor, responsibility is questioned and for similar reasons.

 

e)         Permissive/Mandatory Security

 

1)         Bid or proposal security is permissive on any contract but is not appropriate on emergency or sole source procurements.

 

2)         Performance security is permissive on any contract and is recommended on contracts calling for advance payment.

 

3)         Performance security is required on all public works contracts.

 

f)         A vendor may submit a single or continuous security each year that will be applicable on all SOS contracts. When such security has been obligated in an amount equal to the sum of accumulated security requirements, additional security must be submitted.

 

g)         Bid or proposal security will be returned to unsuccessful vendors as soon after award as possible. The bid or proposal security of the successful vendor will be returned after contracts have been signed and performance security, if any, submitted. Performance security will be returned upon full performance.

SUBPART H: SPECIFICATIONS AND SAMPLES

 

Section 2000.2050  Specifications and Samples

 

a)         Responsibilities Regarding Specifications

 

1)         The Procurement Officer shall write the necessary specifications except as noted in this subsection (a).

 

2)         If a specification for general or common use or a qualified products list exists for an item to be procured under Section 20-20 of the Code (Small Purchases), it shall be used except as otherwise authorized by the SPO. If no such specification exists, the Procurement Officer shall have the authority to prepare specifications for use in such purchases. In an emergency under Section 20-30 of the Code, any necessary specification may be utilized without regard to the provisions of this Subpart.

 

b)         Procedures for the Development of Specifications

 

1)         If the SPO develops a specification for a common or general use item or has developed a qualified products list in accordance with this Section for a particular supply or service, it shall be used unless the SPO authorizes use of another specification.

 

2)         All procurements shall be based on specifications that accurately reflect the State's needs. Specifications shall clearly and precisely describe the salient technical or performance requirements.

 

3)         Specifications shall not include restrictions that do not significantly affect the technical requirements or performance requirements, or other legitimate State needs. All specifications shall be written in such a manner as to describe the requirements to be met, without having the effect of exclusively requiring a proprietary supply or service, or procurement from a sole source, unless no other manner of description will suffice.

 

4)         Any specifications or standards adopted by business, industry, not-for-profit organization or governmental unit may be adopted by reference.

 

5)         A specification may provide alternate descriptions where two or more design, functional, or performance criteria will satisfactorily meet the State's requirements.

 

c)         Brand Name or Equal Specification

 

1)         Brand name or equal specifications may be used when the Procurement Officer determines in writing that:

 

A)        no specification for a common or general use specification or qualified products list is available;

 

B)        time does not permit the preparation of another form of specification, not including a brand name specification;

 

C)        the nature of the product or the nature of the State's requirement makes use of a brand name or equal specification suitable for the procurement; or

 

D)        use of a brand name or equal specification is in the State's best interest.

 

2)         Brand name or equal specifications shall seek to designate more than one brand as "or equal", and shall further state that substantially equivalent products to those designated will be considered for award.

 

3)         Unless the Procurement Officer determines that the essential characteristics of the brand names included in the specifications are commonly known in the industry or trade, brand name or equal specifications shall include a description of the particular design, functional, or performance characteristics that are required.

 

4)         Where a brand name or equal specification is used in a solicitation, the solicitation shall contain explanatory language that the use of a brand name is for the purpose of describing the standard of quality, performance, and characteristics desired and is not intended to limit or restrict competition. "Or equal" submissions will not be rejected because of minor differences in design, construction or features that do not affect the suitability of the product for its intended use. Burden of proof that the product is equal is on the bidder.

 

d)         Brand Name Only Specification

 

1)         Determination. A brand name only specification may be used only when the Procurement Officer makes a written determination that only the identified brand name item or items will satisfy the State's needs.

 

2)         Use. Brand name alone may be specified in order to ensure compatibility in existing systems, to preserve warranty, to ensure maintenance, or as authorized in writing by the SPO. The Procurement Officer may, pursuant to an authorized competitive procedure, select a particular vendor to provide supplies or services for a specified period of time, and for that period the supplier of additional, related and updated supplies and services may be limited to the selected vendor or the brand initially selected.

 

3)         Competition. The Procurement Officer shall seek to identify sources from which the designated brand name item or items can be obtained and shall solicit such sources to achieve whatever degree of competition is practicable. If only one source can supply the requirement, the procurement shall be made under Section 2000.2025 (Sole Economically Feasible Source Procurement).

 

4)         Small and Emergency Procurements. Brand name only specifications may be used when procuring items under the small (Section 2000.2020) and emergency (Section 2000.2025) provisions.

 

e)         Qualified Products List

 

1)         Use. A qualified products list may be developed by the Procurement Officer when testing or examination of the supplies prior to issuance of the solicitation is desirable or necessary in order to best satisfy State requirements.

 

2)         Solicitation. When developing a qualified products list, a representative group of potential suppliers shall be solicited in writing to submit products for testing and examination to determine acceptability for inclusion in a qualified products list. Any potential supplier, even though not solicited, may offer its products for consideration during the time allowed for testing and examination.

 

3)         Testing and Confidential Data. Inclusion on a qualified products list shall be based on results of tests or examinations conducted in accordance with established requirements. Except as otherwise provided by law, trade secrets, test data, and similar information provided by the supplier will be kept confidential when requested in writing by the supplier.

 

f)         Proven Products

The supply or service may be rejected if it has not been offered to other governmental or commercial accounts for at least one year. Specifications may require that the supply or services must have been used in business or industry for a specified period of time to be considered.

 

g)         State Required Samples

 

1)         Any required samples must be submitted as instructed in the solicitation with transportation prepaid by the vendor. Each sample must be labeled with the vendor's name, address and a means of matching the sample with the applicable bid or proposal.

 

2)         Any sample submitted must be representative of the item that would be delivered if a contract were awarded for that item. Samples submitted by a successful vendor will be retained to check continuing quality. Submission of samples will not limit the State's right to require adherence to specifications.

 

3)         No payment will be made for State Required Samples. Samples not destroyed or consumed by examination or testing will be returned upon request and at vendor's expense. Such request must be made at time of submission with return collect or prepayment provisions and instructions for return accompanying the samples.

 

h)         Product Demonstration

Any vendor may request time and space to demonstrate a product or service. Agreement to allow such demonstration will be solely at the State's discretion and will not entitle the bidder to a contract nor shall payment for the demonstration be allowed unless a written contract had been executed prior to the demonstration.

 

i)          Specifications Prepared by Other Than State Personnel

 

1)         Specifications may be prepared by other than State personnel, including, but not limited to, consultants, architects, engineers, designers, and other drafters of specifications for public contracts when the Procurement Officer determines that there will be no substantial conflict of interest involved and it is otherwise in the best interest of the State, and provided the Procurement Officer retains the authority to finally approve the specifications. Contracts for the preparation of specifications by other than State personnel shall require the specification writer to adhere to State requirements.

 

2)         The person who prepared the specifications shall not submit a bid or proposal to meet the procurement need unless the Secretary of State, and not a designee, determines in writing that it would be in the best interest to accept such a bid or proposal from that person. A notice to that effect shall be published in the Bulletin.

 

j)          Pre-solicitation Assistance/Specifications Prepared by Other Than State Personnel

 

1)         Prior to issuing a solicitation, an SPO may issue an RFI to obtain services of any person or business to conduct research, analyze requirements or provide general design or other assistance to help the SOS develop its procurement strategy, specifications and documents and to identify and address other related needs.  No services can be obtained to assist the SOS in reviewing, drafting or preparing an RFP or RFI or to provide similar assistance.

 

2)         Notice.  A Request for Information shall be published in the Bulletin for at least 7 calendar days.  All information received in response to an RFI shall be published in the Bulletin for at least 7 calendar days.

 

3)         The RFI shall contain at least the following:

 

A)        the name of the requesting agency;

 

B)        a brief description of the agency's need; and

 

C)        a statement that the RFI is not a solicitation.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

SUBPART I: CONTRACT TYPE

 

Section 2000.2055  Types of Contracts

 

a)         Scope

This Section contains descriptions of types of contracts and limitations as to when they should be utilized by the State in its procurements. Types of contracts not mentioned in this Section may also be utilized.

 

b)         Prohibition of Cost-Plus-a-Percentage-of-Cost Contracting

The cost-plus-a-percentage-of-cost contract is prohibited by Section 20-55 of the Illinois Procurement Code. This type of contracting may not be used alone or in conjunction with an authorized type of contract. A cost-plus-percentage-of-cost contract is one in which the vendor selects the supply or service on which the vendor's percentage is applied.

 

1)         A percentage mark-up from an agreed price list is not a cost-plus-a-percentage-of-cost contract.

 

2)         A percentage mark-up from the price of a supply or service selected by the State or another vendor under contract to the State is not a cost-plus-a-percentage-of-cost contract.

 

c)         Types of Fixed-Price Contracts

 

1)         Firm Fixed-Price Contract. A firm fixed-priced contract provides a price that is not subject to adjustment because of variations in the vendor's cost of performing the work specified in the contract.

 

2)         Fixed-Price Contract with Price Adjustment

 

A)        A fixed-price contract with price adjustment provides for variation in the contract price under special conditions defined in the contract, other than customary provisions authorizing price adjustments due to modifications to the work. The formula or other basis by which the adjustment in the vendor's price can be made shall be specified in the solicitation and the resulting contract. Adjustment allowed may be upward or downward only, or both upward and downward. Examples of conditions under which adjustments may be provided in fixed-price contracts are:

 

i)          changes in the vendor's labor agreement rates as applied to an industry or area (such as are frequently found in contracts for the purchase of coal);

 

ii)         changes due to rapid and substantial price fluctuations that can be related to an accepted index (such as contracts for gasoline, heating oils, and dental gold alloy); and

 

iii)        in requirement contracts, where a vendor is selected to provide all of the State's needs for the items specified in the contract, when a general price change applicable to all customers occurs, or when a general price change alters the base price (such as a change in a manufacturer's published price list or posted price to which a fixed discount is applied pursuant to the contract to determine the contract price).

 

B)        If the contract permits unilateral action by the vendor to bring about the condition under which a price increase may occur, the State shall have the right to reject the price increase and terminate without cost the future performance of the contract.

 

d)         Cost-Reimbursement Contracts

 

1)         Determination Prior to Use

 

A)        A cost-reimbursement type contract may be used only when the Procurement Officer determines in writing that such a contract is likely to be less costly to the State than any other type or that it is impracticable to obtain the items.

 

B)        Reimbursement of travel expenses in accordance with applicable travel control board regulations is authorized without further determinations.

 

2)         Cost Contract. A cost contract provides that the vendor will be reimbursed for allowable costs incurred in performing the contract, but will not receive a fee.

 

3)         Cost-Plus-Fixed-Fee Contract. This is a cost-reimbursement type contract that provides for payment to the vendor of an agreed fixed fee in addition to reimbursement of allowable incurred costs. The fee is established at the time of contract award and does not vary if the actual cost of contract performance is greater or less than the initial estimated cost established for such work. Thus, the fee is fixed but not the contract amount because the final contract amount will depend on the allowable costs reimbursed. The fee is subject to adjustment only if the contract is modified to provide for an increase or decrease in the scope of work specified in the contract.

 

4)         Cost Incentive Contracts

 

A)        General. A cost-incentive type of contract provides for the reimbursement to the vendor of allowable costs incurred up to the ceiling amount and establishes a formula whereby the vendor is rewarded for performing at less than target cost (that is, the parties' agreed best estimate of the cost of performing the contract will vary inversely with the actual, allowable costs of performance and consequently is dependent on how effectively the vendor controls cost in the performance of the contract).

 

B)        Fixed-Price Cost-Incentive Contract. In a fixed-price cost-incentive contract, the parties establish at the outset a target cost, a target profit (that is, the profit that will be paid if the actual cost of performance equals the target cost), a formula that provides a percentage increase or decrease of the target profit depending on whether the actual cost of performance is less than or exceeds the target cost, and a ceiling price. After performance of the contract, the actual cost of performance is arrived at based on the total incurred allowable costs as provided in the contract. The final contract price is then established in accordance with the formula using the actual cost of performance. The final contract price may not exceed the ceiling price. The vendor is obligated to complete performance of the contract, and, if actual costs exceed the ceiling price, the vendor suffers a loss.

 

C)        Cost-Reimbursement Contract with Cost-Incentive Fee. In a cost-reimbursement contract with cost-incentive fee, the parties establish at the outset a target cost; a target fee; a formula for increase or decrease of fee depending on whether actual cost of performance is less than or exceeds the target cost, with maximum and minimum fee limitations; and a cost ceiling that represents the maximum amount that the State is obligated to reimburse the vendor. The vendor continues performance until the work is complete or costs reach the ceiling specified in the contract, including any modification thereof, whichever first occurs. After performance is complete or costs reach the ceiling, the total incurred, allowable costs reimbursed as provided in the contract are applied to the formula to establish the incentive fee payable to the vendor.

 

e)         Performance Incentive Contracts

In a performance incentive contract, the parties establish at the outset a pricing basis for the contract, performance goals, and a formula that varies the profit or the fee if the specified performance goals are exceeded or not met. For example, early completion may entitle the vendor to a bonus, while late completion may entitle the State to a price decrease.

 

f)         Time and Materials Contracts; Labor Hour Contracts

Time and materials contracts provide an agreed basis for payment for materials supplied and labor performed. Labor hour contracts provide only for the payment of labor performed. Such contracts shall, to the extent possible, contain a stated ceiling or an estimate that shall not be exceeded without prior State approval.

 

g)         Definite Quantity and Indefinite Quantity Contracts

 

1)         Definite Quantity. A definite quantity contract is a fixed-price contract that provides for delivery of a specified quantity of supplies or services either at specified times or when ordered.

 

2)         Indefinite Quantity. An indefinite quantity contract is a contract for an indefinite amount of supplies or services to be furnished at specified times, or as ordered, that establishes unit prices of a fixed-price type. Generally an approximate quantity or the best information available as to quantity is stated in the solicitation. The contract may provide a minimum quantity the State is obligated to order and may also provide for a maximum quantity provision that limits the State's obligation to order.

 

3)         Requirements Contracts. A requirements contract is an indefinite quantity contract for supplies or services that specifically obligates the State to order all the actual requirements of designated State agencies during a specified period of time.

 

h)         Leases

A lease is a contract for the use of supplies or real property under which title will not pass to the State at any time, except pursuant to an option to purchase.

 

i)          Recovery Contracts

Contracts may provide for payment to the vendor of a percentage of the amount the vendor recovers or collects on behalf of the State. The percentage may be fixed or may vary depending on amount of recovery or other factors, and the percentage may be paired with a fixed price or cost reimbursement method.

 

j)          Option Provisions

 

1)         Contract Provision. When a contract is to contain an option for renewal, extension, or purchase, notice of such provision shall be included in the solicitation. These options may be exercised without taking other procurement action when the option is established for exercise at the State's option.

 

2)         Lease with Purchase Option. A purchase option in a lease may be exercised only if the lease containing the purchase option was awarded under competitive sealed bidding or competitive sealed proposals, the leased supply or facility is the only supply or facility that can meet the State's requirements, the purchase option price is less than the small purchase limit or emergency conditions exist.

 

k)         State Produced Supplies and Services

Notwithstanding any provision in any contract, supplies or services available from the State's own programs, such as Correctional Industries, may be ordered without violating any contract.

 

l)          Extraordinary Quantities

Notwithstanding any provision in any contract, the State reserves the right to take bids separately if a particular quantity requirement arises that exceeds the State's normal needs or ordering requirements.

 

m)        Energy Conservation

The CPO may authorize an IFB, RFP or sole source negotiation for energy conservation measures whereby the State would make payment based on utility cost savings. Such contract shall require a clearly defined baseline of energy usage and method of measuring cost savings taking into account at least differing weather conditions, changes in facility usage and cost of energy.

 

n)         Sale of Advertising in State Publications

 

1)         Pursuant to Section 20-110 of the Code, a Procurement Officer may sell ads or advertising space in publications issued by the Secretary of State.

 

2)         These arrangements shall be made pursuant to specifications included in an IFB or, if appropriate, an RFP.

 

3)         The advertising in, or authorized use of, State publications shall be appropriate to the type of publication and the program operations of the agency.

 

4)         This procedure is authorized in conjunction with, for example, publications that promote literacy, organ donation, senior services and the State Library. The Secretary of State and not a designee must concur in writing to accept advertising from a person the agency regulates.

 

5)         Proceeds from the sale of the advertisements shall be paid as stated in the IFB or RFP, including, but not limited to, the following:

 

A)        to the General Revenue Fund;

 

B)        to a special fund authorized to receive the proceeds;

 

C)        as free or additional copies; or

 

D)        directly to the printer by the advertiser.

SUBPART J: DURATION OF CONTRACTS

 

Section 2000.2060  Duration of Contracts − General

 

a)         General

 

1)         A multi-term contract for a term of up to 10 years is authorized when determined by the CPO to be in the best interest of the State, inclusive of proposed contract renewals.

 

2)         A software license may have a term longer than 10 years, including for a perpetual term, provided the payment term is limited to no more than 10 years.

 

3)         The length of the payment terms of the bonds issued by or on behalf of the SOS shall be limited as provided in the statute authorizing the issuance of bonds.

 

b)         The contractual obligation of both parties in each fiscal period succeeding the first is subject to appropriation and availability of funds. The contract shall provide that, in the event that funds are not available for any succeeding fiscal period, the remainder of such contract shall be canceled without penalty to, or further payment being required by, the State.  This provision applies to only those contracts that are funded in whole or in part by funds appropriated by the Illinois General Assembly or other governmental entity.

 

c)         Conditions for Use of Multi-Year Contracts

A multi-year contract may be used when:

 

1)         special production of definite quantities or  the  furnishing  of long-term services is required to meet State needs; or

 

2)         a multi-year contract will serve the best interests of the State by encouraging effective competition or otherwise promoting economies in State procurement.  The following factors are among those relevant to such a determination:

 

A)        firms that are not willing or able to compete because of high start-up costs or capital investment in facility expansion will be encouraged to participate in the competition when they are assured of recouping those costs during the period of contract performance;

 

B)        lower production costs because of larger quantity of service requirements, and substantial continuity of production or performance over a longer period of time, can be expected to result in lower unit prices;

 

C)        stabilization of the vendor's work force over a longer period of time may promote economy and consistent quality; or

 

D)        the cost and burden of contract solicitation, award, and administration of the procurement may be reduced.

 

d)         Multi-Year Contract Procedure

The solicitation shall state:

 

1)         the proposed term;

 

2)         the amount of supplies or services required for the proposed contract period;

 

3)         the type of pricing requested (e.g., firm for term);

 

4)         how award will be determined.

 

e)         Renewals

 

1)         When the original procurement specifically called for an initial term plus renewals, the renewals may be exercised without further procurement activity, provided the initial term and the exercised renewals may not exceed 10 years, the terms and conditions do not change except as provided in the contract (such as price escalations tied to an index) and the option is reserved solely to the State or is by mutual agreement.  A renewal option that requires modification to a material term or condition of the contract shall be treated as a new contract and shall be subject to competitive procurement procedures established by the Code and this Part.

 

2)         When the original procurement was silent as to renewals, the renewal must be procured using one of the methods of source selection authorized by the Code and this Part.  This renewal shall start a new term not to exceed 10 years.

 

3)         When a renewal will result in the total term, counting the initial term and any previous renewals, to exceed 10 years, the renewal must be procured using one of the methods of source selection authorized by the Code and this Part.  This renewal will start a new term that shall not exceed 10 years.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

SUBPART K: CONTRACT MATTERS

 

Section 2000.2560  Prevailing Wage

 

a)         For the following classifications and if competition exists, no bidder will be awarded a contract unless its employees are paid wages and benefits and are working under conditions prevalent in the location where the work is to be performed.

 

1)         Public works

 

2)         Printing

 

3)         Janitorial services, window washing and security guard services having a monthly contract price of at least $200 or a yearly price of at least $2,000.

 

b)         Prevailing wage and conditions prevalent means the hourly wage rate, overtime, holiday pay, pension, welfare, premium differential, vacation pay and other benefits received by employees and the environmental conditions under which they work.

 

c)         Prevailing Wage Rates

 

1)         Prevailing wage rates, benefits and conditions will be those in effect on the first date of the contract, provided that, if the rate changes during the contract term and the amount of change is known before execution of the contract, then the contract rate will vary in like amount.

 

2)         If the change in the collective bargaining agreement cannot be determined in advance, the contract will be changed by the amount of the change in wage rate and all components of price that are dependent on the usage rate, such as payroll taxes, worker's compensation insurance, vacation, sick days, and pension, provided that profit shall not increase due to prevailing wage increases.  The SPO shall have the option to cancel the contract if the new price is unacceptable.

 

3)         If the initial prevailing wage, etc., cannot be determined prior to execution, contracts may be entered into and will remain valid for the stated term.

 

d)         If a collective bargaining agreement is in effect governing the type of printing, janitorial, window washing or security guard service sought, that agreement will define minimum wages, benefits and conditions that must be paid in order for a bidder to be considered responsible.

 

e)         For public works, location means the county where the physical work upon public works is performed, except that if there is not available in the county a sufficient number of competent skilled laborers, workers and mechanics to construct the public works efficiently and properly, "locality" includes any other county nearest the one in which the work or construction is to be performed and from which such persons may be obtained in sufficient numbers to perform the work.

 

f)         Printing Contracts

 

1)         For printing contracts, location means one of the following areas:

 

A)        Cook County;

 

B)        Boone, Bureau, Carroll, Champaign, DeKalb, DeWitt, DuPage, Ford, Fulton, Grundy, Hancock, Henderson, Henry, Iroquois, Jo Daviess, Kane, Kankakee, Kendall, Knox, Lake, LaSalle, Lee, Livingston, Logan, Marshall, Mason, McDonough, McHenry, McLean, Mercer, Ogle, Peoria, Piatt, Putnam, Rock Island, Schuyler, Stark, Stephenson, Tazewell, Vermilion, Warren, Whiteside, Will, Winnebago, and Woodford counties;

 

C)        Adams, Alexander, Bond, Brown, Calhoun, Cass, Christian, Clark, Clay, Clinton, Coles, Crawford, Cumberland, Douglas, Edgar, Edwards, Effingham, Fayette, Franklin, Gallatin, Greene, Hamilton, Hardin, Jackson, Jasper, Jefferson, Jersey, Johnson, Lawrence, Macon, Macoupin, Madison, Marion, Massac, Menard, Monroe, Montgomery, Morgan, Moultrie, Perry, Pike, Pope, Pulaski, Randolph, Richland, Saline, Sangamon, Scott, Shelby, St. Clair, Union, Wabash, Washington, Wayne, White, and Williamson counties.

 

2)         Where the printing is performed in a plant outside the jurisdiction of this State, it shall be deemed produced in the Illinois locality in which delivery of the printing ordered is required to be made.  Where such printing is required to be delivered to more than one Illinois locality, such printing shall be deemed produced in the Illinois locality to which the largest dollar volume of printing under the contract is to be delivered.

 

g)         For janitorial services, window washing and security guard services, location means the county in which the work is to be performed.

 

h)         Prevailing wages, benefits and conditions will be determined by the Illinois Department of Labor.

 

Section 2000.2570  Equal Employment Opportunity; Affirmative Action

 

a)         Public Contracts. Every party to a public contract and every eligible bidder shall:

 

1)         Refrain from unlawful discrimination and discrimination based on citizenship status in employment and undertake affirmative action to assure equality of employment opportunity and eliminate the effects of past discrimination;

 

2)         Comply with the procedures and requirements of the Department of Human Right's (DHR) regulations concerning equal employment opportunities and affirmative action;

 

3)         Provide such information, with respect to its employees and applicants for employment, and assistance as DHR may reasonably request;

 

4)         Have written sexual harassment policies that shall include, at a minimum, the following information:

 

A)        the illegality of sexual harassment;

 

B)        the definition of sexual harassment under State law;

 

C)        a description of sexual harassment, utilizing examples;

 

D)        the vendor's internal complaint process, including penalties;

 

E)        the legal recourse, investigative and complaint process available through DHR and the Human Rights Commission;

 

F)         directions on how to contact DHR and the Commission; and

 

G)        protection against retaliation as provided by Section 6-101 of the Illinois Human Rights Act (IHRA) [775 ILCS 5].

 

            A copy of the policies shall be provided to the Department of Human Rights upon request.

 

b)         Section 7-105A of the IHRA authorizes the Department of Human Rights to promulgate policies, rules and regulations to implement the provisions of the IHRA applicable to eligible bidders and public contractors. DHR has promulgated rules, 44 Ill. Adm. Code 750, that establish public contractor and eligible bidder duties, obligations, and reporting requirements. Those rules require that certain employers register with DHR in order to be eligible for the award of certain public contracts (44 Ill. Adm. Code 750.Appendix A).

 

Section 2000.2580  Subcontractors

 

All competitive sealed proposals, including proposals for professional and artistic services, shall include a provision to require each offeror to identify, either in its proposal or prior to award, the identity of the subcontractors that will be used in the performance of the contract, as well as the amounts expected to be paid to each subcontractor. 

 

(Source:  Added at 35 Ill. Reg. 4629, effective March 3, 2011)

SUBPART L: CONTRACT PRICING

 

Section 2000.2800  All Costs Included

 

The IFB or RFP and any resulting contract should define whether prices cover transportation, transit insurance, delivery, installation, taxes, and any other costs.

SUBPART M: CONSTRUCTION AND CONSTRUCTION RELATED PROFESSIONAL SERVICES

 

Section 2000.3005  Construction and Construction Related Professional Services

 

Construction and construction-related services are procured by the CPO in accordance with the Secretary of State Act [15 ILCS 305/5] under rules promulgated by the SOS (71 Ill. Adm. Code 2000).

SUBPART N: REAL PROPERTY LEASES AND CAPITAL IMPROVEMENT LEASES

 

Section 2000.4000  Applicability

 

Except as otherwise authorized by law, real property leases and capital improvement leases are subject to, and shall be procured by, the Office of the Secretary of State in accordance with the Code and this Part.

 

Section 2000.4005  Requests for Space/Department Responsibilities

 

a)         Departments shall indicate their space needs by submitting a written request to the CPO on the forms required by the CPO.

 

b)         Departments shall give early notice of new or changing space requirements. Each Department shall provide information as may be required in advance of projected needs with six months being the preferred notice.

 

c)         Each department head shall certify the need for space required, the number of personnel to occupy the premises and the availability of funds on each Space Request.

 

Section 2000.4010  General Acquisition Procedures

 

a)         SOS will review State-owned space leased by other agencies that may be suitable to fill the department space request. Such space, because it involves no outside expenditure or because use would avoid unnecessary lease costs, will be used in preference to newly acquired leased space. Exceptions will only be granted upon strong justification submitted by the Director of the department requesting space.

 

b)         Acquisition of space by lease will be on the basis most favorable to the State, with due consideration to maintenance and operation efficiency. In those instances where alterations to a property are needed, CPO will review and approve the scope of work and method of payment prior to the commencement of work. Departments are not to perform alterations to leased properties or enter into contracts for alterations without CPO approval. Factors that could influence the decision to approve alteration include but are not limited to: length of term, cost relative to base cost, cost of base plus alterations compared to other site costs, degree of permanency of alterations, and demonstrated program need for alterations.

 

c)         The CPO will determine the appropriate term for a given lease (not to exceed 10 years unless paid solely by federal funds) and negotiate accordingly. The particular terms and conditions of a given lease will in general conform to the SOS standard lease form provisions. Changes, additions or deletions to these terms shall be at CPO's discretion.

 

d)         The CPO will attempt to negotiate a favorable renewal option, State-option cancellation clause, and purchase option provision when appropriate.

 

e)         All leases shall be accompanied by a full written disclosure of the identity of every owner and beneficiary having any interest in the premises being leased.

 

1)         Such disclosure shall be subscribed and sworn or otherwise affirmed on oath by an owner, authorized trustee, corporate official, or managing agent.

 

2)         Such disclosure shall set forth all ownership interests. By way of example, the disclosure should identify the names of the beneficiaries of a land trust in addition to the trustee, the names of all partners whether general or limited in nature, and names of all shareholders in a corporation who are entitled to receive more than 7 1/2% of the total distributable income of the corporation. If stock in a corporation is publicly traded and no readily known individual owns more than a 7 1/2% interest, then the requirements of this Part may be met by an officer or managing agent of the corporation making an affirmative statement to this effect under oath.

 

3)         Such disclosure shall set forth the identify of any State officer, employee or elected official, or the wife, husband, or minor child of such person having an ownership or beneficial interest under the lease. In the event such person is so set forth, the disclosure shall include a specific designation of the percentage of the total distributable income such person, together with that of the wife, husband, or minor child of such person, is entitled to receive from any firm, partnership, association, or corporation that is the lessor.

 

4)         It shall be the responsibility of the lessor to notify the CPO of any change in ownership of beneficial interest and to submit updated disclosure statements reflecting such changes within 30 days after such change.

 

f)         All leases shall be in writing and shall include:

 

1)         a provision that the lease is subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.

 

2)         a termination option in favor of the State.

 

g)         Space that is not in compliance with the applicable accessibility standards or is not capable of being brought in compliance with the installation of minimum essential features of accessibility by the time of occupancy shall not be considered for use.

 

h)         A copy of all leases whose annual rent is $10,000 or more shall be filed with the Comptroller within 15 days after their execution by the CPO.

 

i)          In selecting sites, preference may be given to sites located in enterprise zones, TIF districts, or redevelopment districts when requested by the Chief Executive Officer of a unit of local government located within the boundaries of the site search area.

 

Section 2000.4015  Acquisition of Leases by RFI

 

All leases, except those falling under the exceptions listed in Section 2000.4020 or emergency procurements (Section 2000.4045) will be acquired as follows:

 

a)         All leases will be procured by a Request for Information (RFI).  RFIs will contain at a minimum the following information:

 

1)         A description of the general type of property to be leased.

 

2)         The proposed use of the property.

 

3)         The proposed term of the lease.

 

4)         The preferred location of the property.

 

5)         The general information such as size of space, configuration desired, and any other appropriate requirements.

 

6)         The address to which requests for proposal may be sent.

 

7)         The date by which responses are due.

 

8)         Response forms and instructions for completing forms.

 

9)         A copy of spatial and performance guidelines required to meet the needs of the SOS Department that will occupy the real property being procured.

 

b)         Notice of the RFI shall be published at least 14 days prior to the deadline for responding in the Bulletin.

 

c)         Responses.

 

1)         The Request for Information may include a form or format for submitting responses. If a form or format is specified, vendor shall submit responses as instructed.

 

2)         The RFI response must detail how the respondent will meet all required criteria set forth in the RFI.

 

d)         Proposal packages must, at a minimum, include:

 

1)         A Proposal Form.

 

2)         A copy of the agency program requirements.

 

3)         The date by which proposals must be submitted.

 

e)         All responses to the RFI will be publicly opened on the announced opening date.  Names of all parties submitting proposals will be made available to the public.

 

f)         Secretary of State representatives may conduct discussions with respondents to further clarify the needs of the State or obtain further information on responses.

 

g)         Based on the responses to the RFI, the Chief Procurement Officer (CPO) or a designee will make a written determination of which RFIs submitted are responsive to the State's basic criteria.

 

h)         Secretary of State representatives will enter into negotiations with all parties submitting responsive RFIs for the purpose of obtaining the best terms for the State.  A written record of all negotiations will be maintained by the Secretary of State.

 

i)          A Secretary of State representative will review all relevant information and recommend to the CPO which proposal should be accepted.

 

j)          The CPO will make the final award, which will be announced in the Bulletin.

 

k)         The lease will be reduced to writing and executed by all parties.

 

l)          If the lowest-priced proposal is not selected, the CPO will publish notice, along with the reasons for such selection, in the next available edition of the Bulletin.

 

m)        The Secretary of State reserves the right to reject any and all proposals and to request and evaluate "best and final" proposals.  All decisions on compliance, evaluations, terms, and conditions will be made solely at the Secretary of State's discretion and made to favor the State.

 

(Source:  Amended at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4020  Leases Acquired by Other Methods

 

a)         The following types of leases may be acquired without a formal RFI process:

 

1)         Leases for less than 10,000 square feet.

 

2)         Leases in which the base rent is estimated to be less than $100,000 per year.

 

3)         Leases in which the term is less than one year and whose term is not subject to renewal.

 

4)         Specialized space available only at one location.  Specialized space is defined as space of unique function or configuration, not generally available on the market on an as-built or turnkey basis.  Examples of specialized space include, but are not limited to:  laboratories, vehicle testing stations, correctional facilities, medical facilities, boat docks, and evidence storage facilities.

 

5)         Leases with other governmental units.

 

b)         The CPO may authorize a new lease term at an existing location when the existing location is the most economically feasible location available.

 

c)         Acquisitions of such leases shall be by negotiation.  Written summaries of all negotiations will be maintained in Secretary of State files.

 

d)         The Secretary of State is not restricted to negotiating only with those who respond to advertisements.  The Secretary will remain responsible for considering other buildings or spaces known to meet general criteria.

 

e)         Recommendation of sites shall be reduced to writing and the final determination shall be made by the CPO.  Reasons for selection will be documented and maintained in Secretary of State lease files.

 

f)         Nothing in this Section prohibits the CPO from ordering a lease procurement to be made under the RFI provisions of Section 2000.4015 if the CPO deems it in the best interests of the State.

 

(Source:  Amended at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4025  Renewal or Extension of Lease in Effect Prior to July 1, 1998 (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4030  Renewal of Leases

 

a)         Leases may be renewed if:

 

1)         The CPO determines in writing that such renewal is in the best interest of the State.

 

2)         A Notice of renewal must be published in the Bulletin at least 60 days prior to the exercise of that option to renew a lease when required by a formal procurement.

 

b)         Documentation justifying renewals will be maintained in Secretary of State lease files.

 

(Source:  Amended at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4035  Purchase Options

 

a)         All leases of free standing facilities shall contain an option to purchase exercisable by the State.

 

b)         Purchase options may be omitted if:

 

1)         The lease is with a governmental entity or a not-for-profit entity.

 

2)         The CPO determines that the purchase option is not in the State's best interest and publishes his/her written determination in the Bulletin.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.4040  Lease Administration

 

a)         Officials or employees of the departments for which the CPO will acquire leased space shall at no time, before or after a space request is submitted to the CPO or after a lease agreement is made, directly or indirectly contact lessors, offerors, or potential offerors for the purpose of making oral or written representation or commitments or agreements with respect to the terms of occupancy of particular space, tenant improvements, alteration and repairs, unless authorized by the CPO.  Consequently, when it is ascertained by the CPO that an unauthorized contact has been made, lease acquisition action may be deferred until its nature and impact can be determined.  Whenever an unauthorized contact is judged by the responsible Secretary of State leasing official to be detrimental to the State's interest, further leasing action may be suspended for such time as may be required to eliminate or minimize the detrimental impact.

 

b)         Lessors, offerors, or potential offerors, or their agents, shall be referred to the appropriate Secretary of State office.

 

c)         Departments shall not negotiate lease terms, negotiate settlements, withhold rentals, or vacate a leased property without the prior approval of the CPO.  Departments are encouraged to deal with minor landlord/tenant problems (i.e., minor repairs, building comfort complaints, etc.) at a local level.  Any significant difficulties shall immediately be reported to CPO for handling. All problems shall be noted on the local level on the forms provided by the CPO for this purpose and proper records maintained for use in the event a specific problem goes unresolved and further action is required.

 

d)         Each department is responsible for budgeting sufficient money in appropriate line items to cover all obligations.  Payments are to be made by the occupying Department and will not be considered the responsibility of the CPO.

 

e)         Except when deemed by the CPO to be in the best interest of the State, no department may incur rental obligations before occupying the space rented.

 

Section 2000.4045  Emergency Lease Procurement

 

Emergency lease procurements may be made pursuant to 44 Ill. Adm. Code 2000.2030 of this Part.

 

Section 2000.4050  Area Measurement

 

a)         To calculate rentable area, area measurement will be based on the following standards when the State is the exclusive tenant.

 

1)         If the State is the exclusive tenant on a single floor of a multi-story building, the rentable area will include the entire area within the exterior walls, measured to the inside finished surface of the dominant portion of the permanent outer building walls, excluding any major vertical penetrations of the floor and walls enclosing those penetrations (e.g., elevators, shafts, duct chases, pipe chases, and stairways).  Public corridors, restrooms, janitor closets, utility closets, and machine rooms serving the single floor exclusively will be included as rentable area.

 

2)         If the State is the exclusive tenant in a one-story building, those areas excluded in subsection (a)(1), will be included in the rentable area.

 

3)         If the State is the only tenant in a multi-story building, those areas excluded in subsection (a)(1) will be included in the rentable area.

 

4)         The standards in subsection (d).

 

b)         To calculate rentable area, area measurements, will be based on the following standards when the State is not an exclusive tenant.

 

1)         If there are multiple tenants on the same floor in a multiple-story building, or on the same floor in a one-story building, the rentable area will be calculated by measuring from the inside finished surface of the dominant portion of the permanent outer building walls to the office side of any corridor wall or other permanent wall and to the center of demising walls separating rentable areas.

 

2)         If there are multiple tenants on the same floor in a multiple-story building, or on the same floor in a one-story building, the rentable area will include the percentage of floor common area equal to the percentage of usable area on that floor occupied by the State tenant.  Floor common area includes public corridors, restrooms, janitor closets, utility closets, and machine rooms used in common with other tenants.  Floor common area does not include elevator shafts, duct chases, pipe chases, and stairways.

 

3)         If the State is one of multiple tenants in a multi-story building, the rentable area may not include public areas of the main lobby floor and areas such as atriums, health clubs, conference centers, tenant lounges, vending areas, or other common building amenities for the beneficial use of all building tenants.

 

4)         Those standards listed in subsection 2000.4050(d).

 

c)         To calculate rentable area, area measurements will be based on the following standards when the State leases space in a ground floor store area.

 

1)         If the State is the exclusive tenant, subsection (a) is applicable, except for street frontages when measurements will be taken from the building line instead of the inside finished surface of the dominant portion of the permanent outer building walls.

 

2)         If the State is not an exclusive tenant, subsection (b) is applicable, except for street frontages when measurements will be taken from the building line instead of the inside finished surface of the dominant portion of the permanent outer building walls.

 

3)         No deductions will be made for vestibules inside the building line or for columns or projections necessary to the building.

 

4)         No additions will be made for bay windows extending outside the building line.

 

d)         To calculate rentable area, area measurements will be based on the following standards when the State is the exclusive tenant and when the State is not an exclusive tenant.

 

1)         The inside finished surface of the dominant portion of the permanent outer building wall may be a glass surface, interior wall, or other surface.

 

2)         No deductions may be made to the rentable area for elements necessary to maintain the building’s structural integrity (e.g., columns, bracing, etc.).

 

3)         Central boiler rooms and mechanical, electrical, or communications equipment rooms serving more than one floor and more than one tenant shall be excluded from rentable areas.  Mechanical penthouses, mechanical, electrical, or communications equipment rooms located on floors containing no tenant space are excluded from rentable areas.

 

4)         Exterior areas, such as balconies, terraces, open courtyards, open-air walkways, exitways, or corridors and enclosed skywalk systems, are excluded from rentable areas.

 

5)         Parking spaces are excluded from rentable areas.

 

6)         Basement storage areas are excluded from rentable areas unless the basement also includes occupiable tenant space.

 

e)         To calculate construction area, area measurement will be based on the following standards.

 

1)         If the State occupies a building not constructed for the exclusive use of the State, the construction area shall equal the rentable area for initial tenant build-out work and all tenant improvement work.

 

2)         If the buildings are constructed for the exclusive use of the State, the construction area shall include the entire area within the exterior walls measured to the outside finished surface of permanent outer building walls.  The construction area of the building will be the sum of the construction areas of all enclosed floors including basements, mechanical equipment floors, and penthouses.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4055  Space Planning Assistance

 

The CPO and Property Management will aid departments in the preparation of the initial space layout.  When a department requires subsequent space layout assistance, a request for such assistance shall be made to the CPO.  The CPO will determine the scope of assistance required and will provide or authorize such service.  No contractual space planning is authorized without the CPO’s approval.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4060  Space Allowance and Standards

 

The CPO will provide space standards that support efficient and cost-effective use of facilities, support flexibility, and provide employees with productive work environments. These space standards dictate the allotment of individual, collaborative, and support space.  The planning of office space, size, and layout must be consistent with the standards listed in Appendix A.  The Secretary of State's implementation of the space standards must be done in cooperation with the CPO and shall support the needs of the SOS.  The CPO space standards are implemented to reduce costs, optimize the State facilities portfolio, and minimize construction costs, while providing employees with better workspaces in which they can collaborate, focus, and serve the citizens of the State of Illinois.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4065  Office Furnishings

 

a)         Departments are expected to exercise restraint in specifying furnishings and equipping their offices.  All alterations and amenities costs must be fair and reasonable.

 

b)         As long as an office is in good repair and suitable to the function of the position to which it is assigned, personal preferential modifications with a change in occupant are discouraged.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4070  Accessibility for Persons with Disabilities

 

a)         Each leased facility will, to the extent practicable, be accessible to persons with disabilities. Each lease of office space negotiated by SOS must contain specifications for accessibility.  Exceptions to the specifications will be allowed by request of the SOS Department using the space and for legitimate reasons only.  The CPO may only waive certain specifications at its own discretion in accordance with subsection (b). 

 

b)         Exceptions may be based upon one or more of the following criteria:

 

1)         No other suitable location exists within the geographic boundaries required by the operation/program at the site.

 

2)         No funds are appropriated to cover expenses for:

 

A)        relocation to an accessible site;

 

B)        remodeling an existing site to achieve accessibility; or

 

C)        construction of a new facility.

 

3)         The operations at the site are part of an on-going program that cannot be interrupted or terminated pending relocation, remodeling, or new construction.

 

4)         The operations at the site are part of a new program that must be implemented without delay to avoid:

 

A)        delay or interruption of vital services; or

 

B)        loss of funds associated with the program.

 

5)         The operations/programs at the site:

 

A)        generate a low frequency of public use; or

 

B)        provide a low number of job opportunities.

 

c)         For sites carrying out programs funded in whole or in part by Federal funds, exceptions will be granted only upon written certification from the Director of the Department whose employees are using the space that:

 

1)         Alternative methods have been established to deliver services to persons with disabilities; and

 

2)         The Secretary of State will provide necessary structural modification for qualified employees with disabilities unless this modification would cause the Secretary of State to incur undue hardship.  This requirement is based on Federal law (Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706)) and any federal regulations implementing that Act, including those promulgated by the Department of Health and Human Services.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)

 

Section 2000.4075  Improvements to Real Property

 

a)         The Secretary of State will rent private space that requires minimal improvements to meet State needs. Temporary and permanent improvements may, however, be necessary to make the property appropriate for SOS use.  When necessary, these improvements are an integral part of the lease.

 

b)         Improvements to leasehold property may result in the enrichment of the building owner.  Unjust enrichment shall be avoided and controlled using the following:

 

1)         Temporary Improvements

 

A)        Temporary improvements are defined as goods and services provided to meet the specific physical needs of the department occupying leased space. Temporary improvements are those that primarily benefit the tenant although there may be coincidental benefits to the lessor after the term of the lease.  The value of temporary improvements will generally be fully depreciated by the end of the lease.  Examples of temporary improvements include painting, carpeting, interior non-load bearing office partitions, and provision of wiring, lighting, heating, and cooling beyond minimal building standards to satisfy needs for electronic or scientific equipment or other such reasons.

 

B)        Temporary improvements may be contracted for as a provision in a lease, as a lease amendment, or as a separate contract.  The temporary improvement is integrally related to SOS leasing authority and must be approved by the CPO.

 

C)        The CPO will approve temporary improvements only upon a showing that the requested services and incidental goods are necessary for the operation of the agency and are of a quality designed to last for the duration of the lease or some lesser period.  The CPO may suggest or require alternatives to the temporary improvements requested by the department.

 

D)        Payment for temporary improvements may be made as an addition to base rent made in monthly installments over the term of the lease.  If more beneficial, a single additional payment may be made to cover the costs of temporary improvements.

 

2)         Permanent Improvements

 

A)        Permanent improvements are those that would clearly benefit the lessor beyond the term of the lease.  These are defined as goods or services provided to meet basic occupancy requirements of habitability, building and health code compliance, and fitness for the general purpose intended (i.e., for office as opposed to warehouse space, etc.).  Value of permanent improvements will generally not be fully depreciated under normal depreciation tables.  Examples include structural work, providing basic heating and air conditioning units, utility service, restrooms, elevators, paving, and insulation.

 

B)        Permanent improvements may only be contracted for in the initial lease or as an amendment to the lease.

 

C)        The CPO will review all requests for permanent improvements and determine whether they are necessary, whether temporary improvement could suffice, or whether another location would prove to be more cost-effective.

 

D)        All permanent improvement items will be assigned a normal life for depreciation purposes and the cost of such improvements will be noted. The State will not pay more than its proportionate share of the permanent improvement cost as shown by the lease term divided by the normal life times the actual cost.

 

E)        If circumstances require full payment during the term, the lease will provide for:

 

i)          renewals at the State’s option in initial lease term increments until improvement is fully amortized; and

 

ii)         an option to remove any permanent improvement that it paid for, leaving the building in the condition it was in at the start of the lease; or

 

iii)        a rebate of the unamortized value of the permanent improvements.

 

F)         A purchase option at fair market value less value of permanent improvements may substitute for subsections (d)(4) and (d)(5) in extraordinary circumstances.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)

SUBPART O: PREFERENCES

 

Section 2000.4505  Procurement Preferences

 

The procurement preferences identified in Article 45 of the Code must be considered in developing procurement documents, conducting evaluations and drafting contracts.

 

Section 2000.4510  Resident Bidder Preference

 

a)         "Illinois resident vendor" as used in this Section means a person authorized to transact business in this State and having a bona fide establishment for transacting business within this State at which it was actually transacting business on the date when any competitive solicitation for a public contract was first advertised or announced, including a foreign corporation duly authorized to transact business in  this  State that has a bona fide establishment for transacting business within this State at which it was actually transacting business on the date when any competitive solicitation for a public contract was first advertised or announced.

 

b)         In breaking a tie, an Illinois resident vendor shall be given the award.

 

c)         The CPO of DCMS shall maintain a list of states with in-state preference that shall be consulted in all procurements involving out-of-state vendors.

 

Section 2000.4530  Correctional Industries

 

a)         The SPO shall refer to the listing of the supplies or services available from the Department of Corrections and shall identify those that must be purchased from Corrections.

 

b)         Those items that must be purchased from Corrections may not be procured from any other source without the express written authorization of the SPO.

 

c)         Procurement Officers may procure from Corrections without seeking competition or giving public notice.

 

Section 2000.4535  Sheltered Workshops for the Disabled

 

a)         Use of Sheltered Workshop

The Procurement Officer may determine to contract with a sheltered workshop on the list maintained by the CPO for DCMS, and may do so without notice or competition.

 

b)         Pricing Approval

While notice and competition is not required prior to contracting with a sheltered workshop, prices must be reasonable. Whether a price is reasonable will be determined based upon current market prices, historical prices, prices received by other State agencies for similar supplies or services, the policy of the Code to promote procurements from sheltered workshops, and other such relevant factors.

 

Section 2000.4540  Gas Mileage

 

a)         Passenger automobile specifications shall require compliance with minimum gas mileage requirements established in Section 45-40 of the Code.  Passenger automobiles must achieve at least the minimum average fuel economy in miles per gallon imposed upon manufacturers of vehicles under Title V of the Motor Vehicle Information and Cost Savings Act (15 USC 2001).

 

b)         Passenger automobiles that do not meet the minimum gas mileage requirements may not be procured unless and until the SPO makes a written determination that a non-compliant automobile is necessary to carry out the function of the agency and the SPO's determination is signed by the Secretary of State.

 

c)         If the Secretary of State confirms need for the non-compliant passenger automobile, that vehicle may be procured.  Except in the case of a covert vehicle, notice that a non-compliant passenger automobile is being purchased will be placed in the Bulletin along with the reasons for such a decision.

 

d)         Passenger automobile does not include station wagons, vans, four-wheel drive vehicles, emergency vehicles, or police or fire vehicles.

 

Section 2000.4545  Small Business

 

a)         Set-Aside

The CPO for DCMS may determine categories of supplies or service procurements that will be set aside for small business located in Illinois. The SPO may contact DCMS to determine whether a particular procurement has been set aside for small business, and, if so, the SOS may honor the set aside to the extent practicable.

 

b)         Small Business List

The SOS may refer to the list of responsible vendors that meet the criteria of small business. A business that fits the definition of small on the day of bid or proposal opening will be considered small for the duration of the contract.

 

c)         Required Use

If a Procurement Officer wishes to make a procurement covered by a set-aside designation, the solicitation must note responses are limited to those from responsible small businesses. Bids or proposals received from large businesses will be rejected as nonresponsive.

 

d)         Withdrawal of Set-Aside

If the Procurement Officer determines that acceptance of the best bid or proposal will result in the payment of an unreasonable price, the Procurement Officer shall reject all bids or proposals and withdraw the designation of small business set-aside for the procurement in question. When a small business set-aside is withdrawn, notification shall be published in the Bulletin with an explanation.  After withdrawal of the small business set-aside, the procurement shall be conducted in accordance with the limitations of the Code and this Part.

 

e)         Criteria for Small Business

Unless the CPO provides a definition for a particular procurement that reflects industrial characteristics, a small business is one:

 

1)         Independently owned and operated.

 

2)         Not dominant in its field of operations. This means the business does not exercise a controlling or major influence in a kind of business activity in which a number of business concerns are primarily engaged. In determining dominance, consideration shall be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity.

 

3)         With annual sales for most recently ended fiscal year no greater than:

 

A)        $10,000,000 for wholesale business;

 

B)        $10,000,000 for construction business; or

 

C)        $6,000,000 for retail business.

 

4)         With no more than 250 employees if a manufacturing business.

 

A)        A manufacturing business shall calculate how many people it employs by determining its average full-time equivalent employment, based on the number of persons employed on a full-time, part-time, temporary or other basis, for its most recently ended fiscal year.

 

B)        If a manufacturing business has been in existence for less than a full fiscal year, its average employment should be calculated for the period through one month prior to the bid or proposal due date.

 

5)         If the business is any combination of retailer, wholesaler, or construction business, then the annual sales for each component may not exceed the amounts shown in subsection (e)(3). For example, a business that is both a retailer and a wholesaler may not have total sales exceeding $16,000,000, and the retail component may not exceed $6,000,000 and the wholesale component may not exceed $10,000,000. If the business is also a manufacturer, in addition to meeting the annual sales requirement, the number of manufacturing employees may not exceed the number shown in subsection (e)(4).

 

6)         When computing the size status of a vendor, the number of employees and annual sales and receipts, as applicable, of the vendor and all affiliates shall be included. Concerns are affiliates when either one directly or indirectly controls or has the power to control the other, or when a third party or parties controls or has the power to control both. In determining whether concerns are independently owned and operated and whether affiliation exists, consideration shall be given to all appropriate factors, including use of common facilities, common ownership and management and contractual arrangements. However, a franchise relationship shall not affect small business status if the franchise has the right to profit commensurate with ownership and bears the risk of loss or failure.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.4570  Contracting with Businesses Owned and Controlled by Minorities, Females and Persons with Disabilities

 

a)         Introduction

The Business Enterprise Act for Minorities, Females, and Persons with Disabilities [30 ILCS 575] (Act) sets a goal (minimum 20%) for contracting with businesses owned or controlled by minorities, females, or persons with disabilities.

 

b)         Goal

 

1)         The CPO shall establish a goal that at least 20% of the dollar value of State contracts be awarded to minority-, female-, and persons with disabilities-owned businesses. Of that 20%, 7% shall be for female-owned businesses, 2% for businesses owned by persons with disabilities and not-for-profit agencies for the disabled, and the remaining 11% for other minority-owned businesses, unless these percentages are modified by the Council created under the Act.

 

2)         The goals established in subsection (b)(1) may be satisfied, in whole or in part, by counting expenditures made by the Secretary of State vendors to subcontractors.

 

c)         Upon direction of the CPO, and pursuant to direction from the Council, the SOS may establish set-asides, including but not limited to small businesses and State use, and other preferences for vendors certified under the Act.

 

d)         Certification

Certification procedures are set forth in rules governing the Business Enterprise Program: Contracting with Businesses Owned and Controlled by Minorities, Females and Persons with Disabilities (44 Ill. Adm. Code 10).  In addition to the certifications done by the Business Enterprise Council, the Secretary of State may consider other forms of certifications, including internal certifications of the Secretary of State.

 

e)         List of Certified Businesses

 

1)         The CPO for DCMS shall maintain a list of businesses that have been certified.

 

2)         The names and addresses of certified vendors shall be made available to the public.

 

f)         The CPO may undertake the following actions to reach the goal established in subsection (b):

 

1)         Focus solicitation upon vendors from the list of certified businesses ascertained by the Council, other agencies, or by other means;

 

2)         Advertise in appropriate media;

 

3)         Divide job or project requirements, when economically, technically, and programmatically feasible, into smaller tasks or quantities;

 

4)         Eliminate extended experience or capitalization requirements when programmatically feasible;

 

5)         Identify specific, proposed projects, purchases, or contracts as particularly appropriate for participation by businesses owned by minorities, women, or persons with disabilities; and establish set-asides in accordance with applicable law.

 

g)         The CPO shall acquire and maintain a list of businesses certified by the Council.  The names and addresses of certified vendors shall be made available to the public.

 

h)         Those categories of contracts and expenditures exempted by the Council as set forth in 44 Ill. Adm. Code 10.22 are exempt from the contracting goal established in this Section.  In addition, the CPO may exempt specific contracts or expenditures from the goal, prior to the advertisement for bids or solicitation of proposals, when the CPO has determined, based upon the best information available at the time of the determination, that there is an insufficient number of businesses owned by minorities, women, and persons with disabilities to ensure adequate competition and an expectation of reasonable prices on bids or proposals solicited for the specific contract or expenditure.

 

(Source:  Amended at 43 Ill. Reg. 8944, effective August 2, 2019)

SUBPART P: ETHICS

 

Section 2000.5013  Conflicts of Interest

 

a)         An individual has a direct pecuniary interest in a contract when the individual is owed a payment or otherwise receives a direct financial benefit in conjunction with performance of a contract, including finders fees and commission payments.

 

b)         Distributable income means the income of a company after payment of all expenses, including employee salary and bonus, and retained earnings, which is distributed to those entitled to receive a share of such income. In the case of a for-profit corporation, distributable income means "dividends". When calculating entitlement to distributable income, the entitlement shall be determined at the end of the company's most recent fiscal year.

 

c)         This Section does not apply to contracts with licensed professionals provided such contracts are competitively bid. For purposes of this Section, "bid" means procured pursuant to the competitive procedures identified in Subpart E of this Part.

 

Section 2000.5015  Negotiations for Future Employment

 

a)         It is unlawful for any person employed in or on a continual contractual relationship with any of the offices or agencies of State government to participate in contract negotiations on behalf of that office or agency with any firm, partnership, association, or corporation with whom that person has a contract for future employment or is negotiating concerning possible future employment. [30 ILCS 500/50-15(a)]

 

b)         An individual who performs services pursuant to a contract and who meets the requirements of an "employee" as opposed to an independent contractor is in a "continued contractual relationship" from the effective date of the contract until such time as the contract is terminated.

 

c)         An individual who performs services pursuant to a contract and who meets the requirements of an "independent contractor" as opposed to an "employee" is in a "continued contractual relationship" if the contract term is indefinite, is automatically renewed, is renewable at the individual's option, is renewable unless the State must act to terminate, or has a definite term of at least three months.

 

Section 2000.5020  Exemptions

 

If the Procurement Officer finds a conflict of interest under Section 50-13 of the Code with the vendor selected for award or contract negotiations, the Procurement Officer shall forward to the CPO the name of the vendor and a description of the proposed contract and of the potential conflict, and shall state why an exemption should be granted. The CPO may exempt named individuals from the prohibitions of Section 50-13 of the Code when, in its judgment, the public interest in having the individual in the service of the State outweighs the public policy evidenced in that Section. [30 ILCS 500/50-20]

 

Section 2000.5030  Revolving Door

 

Effective January 15, 1999, the CPO and SPOs shall identify in writing their designees whose job, or whose position description, is at least 51% directly related to State procurement.  The following activities are directly related to State procurement:  drafting specifications, preparing Invitations for Bids and Requests for Proposals, evaluating responses to Invitations for Bids and Requests for Proposals, negotiating contracts and supervising any of the foregoing.  They shall maintain their designation for a period of at least two years following the end or revocation of the designation.

 

Section 2000.5035 Disclosure of Financial Interests and Potential Conflicts of Interest

 

a)         For purposes of Section 50-35(a) of the Code, an "offer from responsive bidders or offerors" means only those offers that are received using an Invitation for Bids or Request for Proposals under Section 20-10, 20-15, or 20-35, or Article 35, of the Code. Disclosures are not required in small, sole source or emergency procurements.

 

b)         For purposes of:

 

1)         Section 50-35(b) of the Code, "parent entity" means a person who owns 100% of the bidding entity.

 

2)         Section 50-35(b)(1) of the Code, "contractual employment of services" means any contract to provide services to the State, whether as independent contractor or employee, which is by and between the State and the named individual.

 

c)         Distributable or distributive income means the income of a company after expenses, including employee salaries and bonuses, and retained earnings, which is distributed to those entitled to receive a share of such income.

 

d)         Personal services shall be any contract for services subject to this Code, including, by way of example, professional and artistic services, repair services, cleaning and guard services, but excludes contracts with employees who are exempt from the Code under Section 1-10(b)(4).

 

e)         "Competitively bid" means a contract let pursuant to Sections 20-10, 20-15 and 20-35 of the Code.

 

f)         "Subject to federal 10K reporting" means subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934. "10K disclosure" means a report required under Section 13 or 15(d) of the Securities Exchange Act of 1934.

 

g)         Once a disclosure is made in relation to a particular contract, the disclosure need not be repeated if the contract is amended.

 

h)         10K Disclosures

 

1)         Any vendor subject to federal 10K reporting requirements may submit its 10K to the State in satisfaction of the disclosure requirement of Section 50-35(b) of the Code provided the vendor also identifies the specific sections or parts in the 10K disclosure where the State may find information, if any, pertaining to those who have an ownership interest or an interest in the distributable income of the vendor or its parent, or other information that the vendor knows or reasonably should know identifies a potential conflict of interest with the State. If the financial interest or conflict of interest information requested by the State is not in the 10K, but is in a document referenced in the 10K, or in a document that may be submitted to the SEC in conjunction with or in lieu of the 10K, then that additional documentation shall be provided as well.

 

2)         10K disclosures are available for public review. Any potential conflict of interest identified by the public and brought to the attention of the CPO or SPO shall be investigated.

 

3)         In circumstances where a vendor may submit a 10K disclosure in lieu of the specific disclosure requirements of the Code and for purposes of the Procurement Officer's duty to consider any conflict or potential conflict of interest that may exist, but that is not subject to specific disclosure requirements of the Code and this Part, and that is not personally known by the Procurement Officer, "publicly known or reasonably available to the public" shall consist of information identified by the vendor in the 10K disclosure and any information disclosed pursuant to public review of the 10K disclosure.

 

Section 2000.5037  Vendor Registration, Certification and Prohibition on Political Contributions

 

a)         Introduction

Illinois law [10 ILCS 5/9-35 and 30 ILCS 500/20-160 and 50-37] (the statutes) restricts political contributions by vendors and affiliated entities; requires registration with the State Board of Elections (SBEL); requires a copy of the registration certificate stamped by SBEL (Registration Certificate) to be submitted with bids/proposals and contracts; and requires solicitation and contract certifications relative to the requirements of the law.  This Section supplements requirements found in the statutes and does not excuse compliance with any of those requirements.

 

b)         General Registration Requirements

 

1)         These requirements apply to contracts, bids and proposals that are subject to the Illinois Procurement Code:

 

A)        Bids/proposals referenced in this Section are those submitted in response to a competitive solicitation that is posted to the Bulletin on or after January 1, 2009, regardless of the value assigned to the procurement.

 

B)        Bids and proposals include pending bids and proposals.

 

C)        These requirements generally apply to a vendor whose existing State contracts have an aggregate value in excess of $50,000, whose aggregate value of bids/proposals for State contracts exceeds $50,000, or whose aggregate value of State contracts and bids/proposals exceeds $50,000.

 

D)        This value is calculated on a calendar-year basis.

 

2)         On a calendar-year basis, each vendor or potential vendor must keep track of the value of contracts and bids/proposals.  Vendors must register with SBEL when the vendor determines that the value of the contracts and bids/proposals meets the threshold for registration.

 

3)         An "executive employee" means:

 

A)        the President, Chairman of the Board,  or Chief Executive Officer of a business entity and any other individual that fulfills equivalent duties as the President, Chairman of the Board, or Chief Executive Officer of a business entity.

 

B)        any employee of a business entity whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a State agency to the entity employing the employee, irrespective of the employee's title or status in the business entity.  For the purposes of this subsection (b)(3)(B), compensation determined directly by award or payment of contracts means a payment over and above regular salary that would not be made if it were not for the award of the contract.

 

c)         Bids and Proposals

 

1)         A copy of the Registration Certificate must be submitted with bids/proposals.

 

2)         If the Registration Certificate is not timely submitted, the SOS will reject the bid/proposal.

 

3)         The SOS will not reject a bid/proposal if absence of the Registration Certificate is the result of delay or error by the State, but will require the Registration Certificate before making an award.

 

d)         Contracts

A copy of the Registration Certificate must be in the procurement file as set forth in this subsection (d), unless the Vendor certifies it is not required to register.

 

1)         For contract renewals and extensions, if the value of the renewal or extension by itself, or in combination with the contract being renewed/extended and other contracts and bids/proposals exceeds $50,000, the vendor must provide the Registration Certificate and make the appropriate contract certification, if it has not already done so.

 

2)         For indefinite quantity/estimated value contracts, a vendor who is otherwise not required to register shall register with SBEL when the value of orders placed pursuant to an indefinite/estimated value contract plus all other contracts and bids/proposals exceeds $50,000.

 

3)         For contract amendments, if the value of the amendment, by itself or in combination with the contract being renewed plus other contracts and bids/proposals, exceeds $50,000, the vendor must provide the Registration Certificate and make the appropriate contract certification, if it has not already done so.

 

4)         Any contracts mistakenly executed in violation of this Section must be amended to include the contract certifications, and the vendor must supply the Registration Certificate.  If any violation by the vendor is not cured within 5 business days after receipt of notification of the violation, the contract is voidable by the State without penalty.

 

5)         Contract certification required by the statutes shall be included in or added to each contract that must be filed with the State Comptroller pursuant to Section 20-80 of the Illinois Procurement Code and those written, two-party contracts that need not be filed with the Comptroller.  The SOS may require written confirmation of the rule-imposed certification at any time.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

 

Section 2000.5039  Procurement Communication Reporting Requirement

 

a)         Unless otherwise specified in this Section, any written or oral communication received by a Secretary of State employee who, by the nature of his or her duties, has the authority to participate personally or substantially in the decision to award a State contract and that imparts or requests material information or makes a material argument regarding potential action concerning an active procurement matter, including, but not limited to, an application, a contract or a project, shall be reported to the SOS Procurement Policy Board. [30 ILCS 500/50-39(a)]

 

1)         As soon as practicable, but in no event more than 30 days after receipt of the communication or the first in a series of related communications described in subsection (b), the Secretary of State employee shall report the communication to the SOS Procurement Policy Board.

 

2)         No trade secrets or other proprietary or confidential information shall be included in any communication reported to the SOS Procurement Policy Board. [30 ILCS 500/50-39(b)]

 

b)         A communication must be reported if it is material, regarding a potential action, relating to an active procurement matter, and not otherwise excluded from reporting.

 

1)         Materiality

 

A)        "Material information" is information that a reasonable person would deem important in determining his or her course of action.  It is information pertaining to significant issues, including, but not limited to, price, quantity, and terms of payment or performance.

 

B)        A "material argument" is a communication that a reasonable person would believe was made for the purpose of influencing a decision relating to a procurement matter.  It does not include general information about products, services or industry best practices, or a response to a communication initiated by an SOS employee for the purpose of providing information to evaluate new products, trends, services, or technologies. [30 ILCS 500/50‑39(g)]

 

C)        In determining whether a communication is material, the SOS employee must consider:

 

i)          whether the information conveyed is new or already known to the SOS (or repeated or restated privately) and other participants in the communication; and

 

ii)         the likelihood that the information would influence a pending procurement matter.

 

2)         A "potential action" is one that a reasonable person would believe could affect the initiation, development or outcome of a procurement matter.

 

3)         "Active procurement matter" means a procurement process beginning with the requisition or determination of need by an agency and continuing through the publication of an award notice or other completion of a final procurement action, the resolution of any protests, and the expiration of any protest or SOS Procurement Policy Board review period, if applicable.  The Chief Procurement Officer may designate a document for an agency to use in documenting a determination of need.  "Active procurement matter" also includes communications relating to change orders, renewals or extensions. [30 ILCS 500/50-39(g)]  "Procurement processes" includes the processes of procuring specific goods, supplies, services, professional or artistic services, construction, leases of real property (whether the State is the lessor or lessee), or capital improvements, and includes master contracts, contracts for financing through use of installment or lease-purchase arrangements, renegotiated contracts, amendments to contracts, and change orders.  Active procurement matters include:

 

A)        drafting, reviewing or preparing specifications, plans or requirements, including determining the method of source selection;

 

B)        drafting, reviewing or preparing any Invitations for Bid, Requests for Information, Requests for Proposals, sole source procurement justifications, emergency procurement justifications or selection information;

 

C)        evaluating bids, responses and offers, and other communications among an evaluation team and any technical advisors to the team relating to the evaluation of a procurement not yet awarded;

 

D)        letting or awarding a contract;

 

E)        resolving protests;

 

F)         determining inclusion on prequalification lists or prequalification in general;

 

G)        identifying potential conflicts of interest or voiding or allowing a contract, bid, offer or subcontract for a conflict of interest;

 

H)        allowing a conflict or subcontract pursuant to Section 50-60 of the Code; and

 

I)         determining, drafting, preparing, executing, denying or approving change orders or the renewal or extension of an existing contract.

 

c)         This Section does not apply to the following communications:

 

1)         Statements by a person publicly made in a public forum.  However, communications made in a public forum, if made again privately, must be reported;

 

2)         Statements regarding matters of procedure and practice, such as format, the number of copies required, the manner of filing, and the status of a matter;

 

3)         Communications regarding the administration and implementation of an existing contract, except communications regarding change orders or the renewal or extension of an existing contract;

 

4)         Statements made by an SOS employee to:

 

A)        the employee's department head;

 

B)        other SOS employees;

 

C)        employees of the Executive Ethics Commission;

 

D)        the Office of the Executive Inspector General for the Secretary of State; or

 

E)        an employee of another State agency who, through the communication, is either:

 

i)          exercising his or her experience or expertise in the subject matter of the particular procurement in the normal course of business, for official purposes, and at the initiation of the purchasing agency or the appropriate State Purchasing Officer; or

 

ii)         exercising oversight, supervisory or management authority over the procurement in the normal course of business and as part of official responsibilities;

 

5)         Unsolicited communications providing general information about products, services or industry best practices, before those products or services become involved in a procurement matter;

 

6)         Communications received in response to procurement solicitations pursuant to the Illinois Procurement Code, including, but not limited to, vendor responses to a Request for Information, Request for Proposal, Request for Qualifications, Invitation for Bid or a small purchase, sole source or emergency solicitation, or questions and answers posted to the Bulletin to supplement the procurement action, provided that the communications are made in accordance with the instructions contained in the procurement solicitation, procedures or guidelines;

 

7)         Communications that are privileged, protected or confidential under law;

 

8)         Communications that are part of a formal procurement process as set out by statute, rule or the solicitation, guidance or procedures, including, but not limited to, the posting of procurement opportunities, the processes for approving a procurement business case or its equivalent, fiscal approval, submission of bids, the finalizing of contract terms and conditions with an awardee or apparent awardee, and similar formal procurement processes. [30 ILCS 500/50-39(a)]

 

d)         Notwithstanding any exemption provided in subsection (c), an SOS employee must report any communication that imparts or requests material information or makes a material argument regarding a potential action concerning an active procurement matter if that communication attempts to influence through duress, coercion or the direct or indirect offer or promise of anything of value to any person or entity in consideration for any benefit or preference in the procurement process.

 

e)         Notwithstanding any exemption provided in subsection (c), an SOS employee must report any communication that imparts or requests material information or makes a material argument regarding a potential action concerning an active procurement matter if the employee reasonably believes the communication was made for any improper purpose, including, but not limited to, providing an improper benefit, monetary or nonmonetary, to any person or entity.

 

f)         This Section does not apply to communications concerning procurements that are exempt from the Illinois Procurement Code.

 

g)         For purposes of this Section, "Secretary of State employee" or "SOS employee" means:

 

1)         any person employed full-time, part-time or pursuant to a personal services contract and whose employment duties are subject to the direction and control of the SOS with regard to the material details of how the work is to be performed;

 

2)         any appointed or elected commissioner, trustee, director or board member of a board of the SOS; or

 

3)         any other person appointed to a position in or with the SOS, regardless of whether the position is compensated.

 

h)         For purposes of this Section, "public forum" includes any meeting that satisfies the notice requirements contained in Section 2.02 of the Open Meetings Act [5 ILCS 120], but also includes other public events that are advertised and generally open to the public.  A meeting may be a public forum even if a reasonable fee is required, such as educational seminars and conferences.

 

(Source:  Amended at 43 Ill. Reg. 6185, effective May 9, 2019)

SUBPART Q: CONCESSIONS

 

Section 2000.5310  Concessions

 

a)         A concession is an authorization allowing use of State property for the purpose of making profit, including future profit.

 

b)         An authorization to allow use of State property by not-for-profit entities is not a concession or lease of State property under Article 53 of the Code.

 

c)         Proposed concessions, leases or other uses of State property must be coordinated with the State Property Control Act [30 ILCS 605] and rules implementing that Act.

SUBPART R: COMPLAINTS, PROTESTS AND REMEDIES

 

Section 2000.5510  Complaints Against Vendors or Subcontractors

 

a)         The purpose of this Section is to document performance of vendors or subcontractors.

 

b)         Whenever a vendor or subcontractor fails to meet contract requirements, including but not limited to failure to deliver on time or meet specifications, the SOS shall take appropriate action to initiate a complaint to the vendor or subcontractor.

 

c)         For relatively minor infractions, the SOS may initiate contact by telephone or in person.  If not resolved by this action, a written complaint shall be made.

 

d)         For other infractions, the SOS shall send a written complaint to the vendor or subcontractor detailing the problem.  For complaints regarding contracts established by the CPO for DCMS, a form available from the CPO for DCMS shall be used for processing complaints.

 

e)         A copy of all written complaints and the resolution or status shall be filed with the SPO.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

 

Section 2000.5520  Suspension

 

a)         Application

This Section applies to all debarments or suspensions of vendors or subcontractors from consideration for award of contracts under the Code.

 

b)         The CPO may suspend a vendor or subcontractor from doing business with the SOS, with one or more agencies, or with respect to specific types of supplies or services. A suspension may be issued upon a showing the vendor or subcontractor violated the Code or this Part, or failed to conform to specifications or terms of delivery.

 

c)         When the CPO finds cause exists for suspension, a notice of suspension, including a copy of such determination, shall be sent to the suspended vendor or subcontractor.  Bids or proposals will not be solicited from the suspended vendor or subcontractor, and, if received, will not be considered during the period of suspension.

 

d)         A vendor or subcontractor may be suspended for a period of time commensurate with the seriousness of the offense, but for no more than five years. The suspension will be effective seven calendar days after receipt of notice unless an objection is filed. If an objection is filed, suspension would not become effective until the evaluation of the objection is completed.

 

e)         The CPO may debar a vendor or subcontractor. Debarment is the permanent suspension of a vendor or subcontractor from doing business with the SOS. A debarment may only take place in those instances involving bribery or attempted bribery of a State of Illinois officer or employee, or as otherwise allowed or required by law. Bids or proposals received from the debarred vendor will not be considered.

 

f)         The CPO shall maintain a master list of all suspensions and debarments. The master list will retain information concerning suspensions and debarments as public records. Such records will be maintained for a period of at least three years following the end of the suspension or debarment. Such public information may be considered in determining responsibility.

 

(Source:  Amended at 35 Ill. Reg. 4629, effective March 3, 2011)

 

Section 2000.5530  Resolution of Contract Controversies

 

a)         Authority to Resolve Controversies

The Procurement Officer shall have authority to resolve controversies, but the Secretary of State may set limits on such authority.

 

b)         Authority of Using Agency

The Procurement Officers have the authority to accept delivery of supplies or services in accordance with contract requirements as satisfactory adjustment of a complaint.

 

c)         Substitution of Terms/Price Reduction

If the vendor proposes to make an adjustment by:

 

1)         substituting an alternative specification, or

 

2)         reducing the contract price by a certain amount to compensate for some failure to provide full performance under the contract.

 

Such proposal must be referred to and approved by the Procurement Officer, but not a designee.

 

d)         Cancellation for Breach of Contract

In any of the following cases the Procurement Officer shall have the right to terminate or rescind any contract entered into under this Part:

 

1)         The successful bidder fails to furnish a satisfactory performance bond within the time specified.

 

2)         The vendor fails to make delivery at the place or within the time specified in the contract or as ordered by the purchasing agency.

 

3)         Any supplies or services provided under the contract are rejected (for not meeting specification, not conforming to sample, or not being in good condition when delivered) and are not promptly replaced by the vendor. If there are repeated rejections of the vendor's supplies or services, this shall be grounds for termination or rescission, even though the vendor offers to replace the supplies or services promptly.

 

4)         The vendor is guilty of misrepresentation (for example, misbranding of food or drugs) in connection with another contract for the sale of supplies or services to the State such that the vendor cannot reasonably be depended upon to fulfill his obligations as a responsible vendor under any of his contracts with the State.

 

5)         The vendor should be adjudged bankrupt; enter into receivership or make a general assignment for the benefit of creditors due to insolvency;  disregard laws, rules, or instructions of the Procurement Officer; or act in violation of any provision of the contract; or if the contract conflicts with any statutory or constitutional provision of the State of Illinois or of the United States.

 

6)         Any other breach of contract or other unlawful act by the vendor.

 

e)         Cancellation for Fraud, Collusion, Illegality, Etc.

The SOS may cancel any contract it established if there is sufficient evidence to show that:

 

1)         The contract was obtained by fraud, collusion, conspiracy, or other unlawful means; or

 

2)         The contract conflicts with any statutory provision of the State of Illinois or of the United States.

 

f)         Withholding Money to Compensate State for Damages

If a contract is terminated or rescinded under this Section, the State may deduct from whatever is owed the vendor on that or any other contract an amount sufficient to compensate the State of Illinois for any damages suffered by it because of the vendor's breach of contract or other unlawful act on the vendor's part on which the cancellation is based.

 

g)         Damages

The damages for which the State may be compensated as provided in this Section or by a suit on the vendor's performance bond or by other legal remedy shall include, but are not limited to, the following:

 

1)         the additional cost of supplies or services bought elsewhere;

 

2)         cost of repeating the procurement procedure;

 

3)         any expenses incurred because of delay in receipt of supplies or services; and

 

4)         any other damages caused by the vendor's breach of contract or unlawful act.

 

Section 2000.5540  Violation of Statute or Rule

 

a)         Determination that Solicitation or Award Violates Law

If the CPO or the SPO finds that the solicitation or proposed award is in violation of statute or rule, the CPO or the SPO may cancel the solicitation or proposed award, or make modifications to correct the violation, if such correction may be legally accomplished.

 

b)         Determination that Contract Violates the Code or this Part

Contracts based on awards or solicitations that were in violation of law shall be terminated at no cost to the State unless statute or rule allows the State to modify, ratify or take other corrective action.

 

c)         Effect of Declaring a Contract Null and Void

In all cases in which a contract is voided, the State shall endeavor to return those supplies delivered under the contract that have not been used or distributed. No further payments shall be made under the contract.

 

Section 2000.5550  Protests

 

a)         Protest Resolution by the Procurement Officer

An actual or prospective bidder, offeror, or vendor that may be aggrieved in connection with a procurement may file a protest on any phase of solicitation or award, including but not limited to specifications preparation, bid solicitation, or award.

 

b)         Complaint to Procurement Officer

Complainants should seek resolution of their complaints initially with the SOS.  Such complaints may be made verbally or in writing.

 

c)         Filing of Protest

 

1)         Protests shall be made in writing to the Procurement Officer, if applicable, and shall be filed within 7 calendar days after the protester knows or should have known of the facts giving rise to the protest.  A protest is considered filed when physically received by the Procurement Officer.  Protests filed after the 7 calendar day period shall not be considered.  In regard to a protest regarding specifications, the protest must be received within 7 calendar days after the date the solicitation was issued, and in any event must be received by the State at the designated address before the date for opening of bids or proposals.

 

2)         To expedite handling of protests, the envelope should be labeled "Protest". The written protest shall include as a minimum the following:

 

A)        the name and address of the protester;

 

B)        appropriate identification of the procurement and, if a contract has been awarded, its number;

 

C)        a statement of reasons for the protest; and

 

D)        supporting exhibits, evidence, or documents to substantiate any claims unless not available within the filing time, in which case the expected availability date shall be indicated.

 

d)         Requested Information; Time for Filing

Any additional information requested by the State shall be submitted within the time periods established by the requesting source in order to expedite consideration of the protest.  Failure of the protesting party to comply expeditiously with a request for information by the Procurement Officer may result in resolution of the protest without consideration of that information.

 

e)         Stay of Procurements During Protest

When a protest has been timely filed and before an award has been made, the Procurement Officer shall make no award of the contract until the protest has been resolved.  If timely received but after award, the award shall be revoked without penalty and no award made until the protest has been resolved.  In either case the Procurement Officer may make the award or reinstate the award upon a determination that the needs of the State require an immediate award and performance under the contract.

 

f)         Decision by the Procurement Officer

A decision on a protest shall be made by the Procurement Officer as expeditiously as possible after receiving all relevant requested information.  If a protest is sustained, the available remedies include, but are not limited to, reversal of award and cancellation or revision of the solicitation.

 

g)         Effect of Judicial or Administrative Proceedings

If an action concerning the protest has commenced in court, the Procurement Officer shall not act on the protest, but shall refer the protest to the SOS Chief Legal Counsel.  This Section shall not apply when a court requests, expects, or otherwise expresses interest in the decision of the Procurement Officer.

 

Section 2000.5555 Hearings and Decisions

 

a)         The Chief Procurement Officer shall conduct public hearings prior to awarding contracts for sole source procurements pursuant to Section 20-25 and before extending emergency procurements pursuant to Section 20-30.

 

b)         Notices of hearings shall be published in the Bulletin at least 14 days prior to the date of the public hearing. 

 

1)         All notices shall include the date, time, and location of the public hearing.

 

2)         Notices for sole source procurements shall include the sole source procurement justification form, a description of the item to be procured, and the intended sole source contractor.

 

3)         Notices for extending emergency procurements shall include the CPO's written justification for the emergency contract and the name of the contractor.

 

c)         A copy of the notice and all documents provided at the hearing shall be included in the subsequent Procurement Bulletin. 

 

d)         The SOS PPB and members of the public may present testimony at the hearings.

 

e)         The hearings shall be held in the offices of the Secretary of State or at some other convenient location readily accessible to members of the public. 

 

f)         The CPO or his or her designee shall preside over the hearings and shall issue a written determination within 14 calendar days after the conclusion of the hearing.

 

g)         Copies of all statements and exhibits introduced at the hearings, the written determination of the CPO or designee, and a summary of the proceedings at the hearings shall be included in the appropriate procurement files.

 

(Source:  Added at 35 Ill. Reg. 4629, effective March 3, 2011)

SUBPART S: SUPPLY MANAGEMENT AND DISPOSITIONS

 

Section 2000.6010  Supply Management and Dispositions

 

a)         Inventory Responsibility

The SOS shall maintain accountability for tangible personal property and other supplies under its control subject to the requirements of the State Property Control Act [30 ILCS 605] and rules implementing that Act.

 

b)         Supply Management

The SOS shall order supplies on a schedule and in quantities so as to maintain no more than a 12 month supply in inventory.  Supplies shall be ordered so as to maintain the minimum inventory commensurate with ability to meet agency needs. This 12-month inventory restriction does not apply to lifesaving medications, mechanical spare parts, or when a greater quantity is needed to meet minimum order quantities.

 

c)         Inventory

The SOS shall periodically inventory all warehouses and similar storage areas under their jurisdiction.

 

d)         Report of Inventory

The CPO shall be notified periodically of all supplies in excess of the 12 month restriction on inventory.

SUBPART T: GOVERNMENTAL JOINT PURCHASING

 

Section 2000.6500  General

 

In an effort to make the procurement process more efficient, State and other governmental units may agree to utilize each others' procurement contracts. This authority is governed by this Subpart and the Governmental Joint Purchasing Act [30 ILCS 525].

 

Section 2000.6510  No Agency Relationship

 

In any joint procurement situation, the governmental unit must issue its own purchase order, accept its own deliveries and make its own payments. The State of Illinois shall have no obligation to the vendor for payment of orders placed by other governmental units.

SUBPART U: MISCELLANEOUS PROVISIONS OF GENERAL APPLICABILITY

 

Section 2000.7000  Severability

 

If any provision of this Part or any application thereof is held invalid, such invalidity shall not affect other provisions or applications of this Part that can be given effect without such invalid provision or application.

 

Section 2000.7010  Government Furnished Property

 

If the State provides any property to the vendor in furtherance of the contract, such property shall remain the property of the State but may be consumed by the vendor if necessary to complete the contract.  Vendor will issue a receipt for the property and will be responsible for its safekeeping and for return of unused property to the State.

 

Section 2000.7015  Inspections

 

a)         Inspection of Plant or Site

The State may enter a vendor's or subcontractor's plant or place of business to:

 

1)         inspect supplies or services for acceptance by the State pursuant to the terms of a contract;

 

2)         audit the books and records of any vendor or subcontractor pursuant to Section 2000.7020 (Records and Audits) of this Part;

 

3)         investigate an action to debar or suspend a person from consideration for award of contracts pursuant to the Code;

 

4)         determine whether the standards of responsibility have been met or are capable of being met;

 

5)         determine if  the contract is being performed in accordance with its terms; and

 

6)         accomplish any other purpose permitted by law.

 

b)         Inspection and Testing of Supplies and Services

 

1)         Solicitation and Contractual Provisions.  State contracts may provide that the State may inspect supplies and services at the vendor's or subcontractor's facility and perform tests to determine whether the supplies or services conform to solicitation requirements, or, after award, to contract requirements, and are therefore acceptable.  Such inspections and tests shall be conducted in accordance with the terms of the solicitation and contract.

 

2)         Procedures for Trial Use and Testing.  The Procurement Officers may establish operational procedures governing the testing and trial use of equipment, material, and other supplies, and the application of resulting information and data to specifications or procurements.

 

c)         Conduct of Inspections

 

1)         Inspectors.  Inspections or tests shall be performed so as not to unduly delay the work of the vendor or subcontractor.  No inspector other than the Procurement Officer may change any provision of the specifications or the contract without written authorization of the Procurement Officer.   The presence or absence of an inspector shall not relieve the vendor or subcontractor from any requirements of the contract.

 

2)         Location.  When an inspection is made in the plant or place of business of a vendor or subcontractor, such vendor or subcontractor shall provide without charge all reasonable facilities and assistance for the safety and convenience of the person performing the inspection or testing.

 

3)         Time. Inspection or testing of supplies and services performed at the plant or place of business of any vendor or subcontractor shall be performed at reasonable times.

 

d)         Inspection of Construction Projects

On-site inspection of construction shall be performed in accordance with the terms of the contract.

 

Section 2000.7020  Records and Audits

 

a)         Retention of Books and Records

Books and records that relate to performance of a State contract, including subcontracts, and that support amounts charged to the State, shall be maintained:

 

1)         by a vendor, for three years from the date of final payment under the prime contract;

 

2)         by a subcontractor, for at least three years from the date of final payment under the subcontract; and

 

3)         by a vendor and subcontractor for such longer period of time as is necessary to complete ongoing or announced audits.

 

b)         Contract Audit

 

1)         Types of Contracts Audited.  The type of contract under which books and records should be audited is that in which price is based on costs or is subject to adjustment based on costs, or that in which auditing would be appropriate to assure satisfactory performance, such as a time and materials contract.

 

2)         Situations in which an audit may be warranted include but are not limited to when a question arises in connection with:

 

A)        the financial condition, integrity, and reliability of the vendor or subcontractor;

 

B)        any prior audit experience;

 

C)        the adequacy of the vendor's or subcontractor's accounting system;

 

D)        the number or nature of invoices or reimbursement vouchers submitted by the vendor or subcontractor for payment;

 

E)        the use of federal assistance funds;

 

F)         the fluctuation of market prices affecting the contract; or

 

G)        any other situation in which the Procurement Officer finds that such an audit is necessary for the protection of the State's best interest.

 

Section 2000.7025  Written Determinations

 

a)         Preparation and Execution

When the Code or this Part requires a written determination, the Procurement Officer required to prepare the determination may delegate its preparation, but the responsibility for and the execution of the determination shall not be delegated.

 

b)         Content

Each written determination shall set out sufficient facts, circumstances, and reasoning as will substantiate the specific determination that is made.

 

c)         Obtaining Supporting Information

While an officer is responsible for the execution of the written determination, other State personnel, particularly technical personnel and appropriate personnel, are responsible for furnishing to the person requesting the audit under Section 2000.7020(b), in an accurate and adequate fashion, the information pertinent to the determination. When requested, such information shall be furnished in writing to the person requesting the audit under Section 2000.7020(b) who shall have the authority to decide the final form and content of the determination and to resolve any questions or conflicts arising with respect to the determination.

 

d)         Forms

The SPO is authorized to prescribe methods and operational procedures to be used in preparing written determinations.

 

e)         Retention

Each written determination shall be filed in the solicitation or contract file to which it applies, shall be retained as part of such file for so long as the file is required to be maintained, and, except as otherwise provided by statute or rule, shall be open to public inspection.

 

Section 2000.7030  No Waiver of Sovereign Immunity

 

Nothing in this Part shall be deemed to be a waiver of sovereign immunity.




 

Section 2000.APPENDIX A   Space Standards

 

These space standards guide the design of interior spaces by establishing policies and requirements for Secretary of State employees with functional work environments appropriate for their required tasks, maximize the efficient use of space, and enhance work areas for all employees and the public.  Please note that, in some cases and based upon operations, unique functions and existing building conditions and dimensions that do not meet the space requirements of this Appendix may be greater and/or smaller than what is indicated.  Property Management will evaluate and make final recommendations on a case-by-case basis.

 

These space standards will be reflected in the Space Request form, which is available from Property Management.

 

In the analysis of the basic units of activity, the following standards of space were developed to reflect the requirement of recurring, typical activities.  The standards provide the occupant of each workstation with space sufficient to conduct business in an efficient manner.  The amount of space allocated to each activity type includes allowances for various units of equipment and intrawork station circulation.  Additional allowances are used for supporting space for each job position, as well as general circulation, conference rooms, reception area, special storage, and other unusual space requirements.

 

a)         Enclosed Interior Office Space Standards

 

Enclosed private office space for Secretary of State Directors, Deputy Directors, the head of a Department or Office, and similar employees requiring space to conduct private and confidential business shall be sized using one of the following 3 types:

 

1)         Small Office Type:  100 through 120 SF

 

2)         Medium Office Type:  120 through 150 SF

 

3)         Large Office Type:  225 through 250 SF

 

b)         Open Interior Workstation Space Standards

 

1)         All open interior workstations shall be sized using the following (for workstations and cubicles):

 

A)        Bench Type:  25 SF to 30 SF work areas and desk, with or without separators

 

B)        Small Cubicle Type:  36 SF

 

C)        Medium Cubicle Type:  48 SF

 

D)        Large Cubicle Type:  64 SF to 80 SF

 

2)         Huddle/Collaboration Areas:

 

A)        For 4 Staff:  64 SF

 

B)        For 6 to 8 Staff:  144 SF

 

C)        For 10 to 14 Staff:  25 SF

 

3)         Reception Areas:

 

A)        With No Waiting:  100 through 120 SF

 

B)        With 4-6 Chairs for Waiting:  144 through 160 SF

 

C)        With 8-12 Chairs for Waiting:  225 through 250 SF

 

Part-Time or Field Personnel

Whenever personnel use the assigned space less than 50% of the work week, the area allowances shall be adjusted to maximize efficient space utilization.  Generally, 60 square feet or less should be adequate.  If operational requirements permit, desks and space should be shared by multiple staff.

 

c)         Common Space Standards

 

1)         New conference rooms shall have appropriate sizes (20 SF per person with required circulation and clearances) and may be smaller in size than the dimensions listed in a, b and c.  All requests shall be evaluated by Property Management to determine the size of the conference room that can be constructed:

 

A)        Small Conference Room for 6 to 10 Staff: 100 through 144 SF

 

B)        Medium Conference Room for 14 to 16 Staff: 400 through 425 SF

 

C)        Large Conference/Training Room for 20+ Staff: 625 through 750 SF

 

2)         Breakrooms and Kitchenettes:

 

A)        Small Breakroom: 120 through 150 SF

 

B)        Medium Breakroom for 8 to 10 Staff: 225 through 250 SF

 

C)        Large Breakroom for 20+ Staff: 400 through 425 SF

 

3)         New storage area requests will be evaluated by Property Management to determine if physical walls are required.  Property Management will determine the appropriate size of the storage room, which may be smaller than the following dimensions:

 

A)        Small Storage Area:  100 through 150 SF

 

B)        Medium Storage Area:  225 through 250 SF

 

d)         Federal Space Standards

Departments requesting to use standards other than those established in this Appendix shall supply a copy of those standards to Property Management.  When federal regulations require the use of federal space standards, the Department must estimate its space requirements using the federal standards.

 

(Source:  Added at 47 Ill. Reg. 10622, effective July 3, 2023)