HR1579

LRB095 22630 RLJ 53037 r






1

HOUSE RESOLUTION


 
2
    WHEREAS, The Governmental Joint Purchasing Act authorizes 
3
governmental units to purchase personal property, supplies, 
4
and services jointly with one or more other governmental units 
5
through a competitive bid process; and

 
6
    WHEREAS, The Governmental Joint Purchasing Act provides 
7
that when the State of Illinois is a party to the joint 
8
purchase agreement, the Illinois Department of Central 
9
Management Services ("CMS") shall conduct the letting of bids; 
10
and

 
11
    WHEREAS, On June 20, 2008, CMS issued Solicitation No. 
12
222600 (the "Original Solicitation") requesting bids for bulk 
13
rock salt to be used for ice control by the Department of 
14
Transportation, the Illinois State Toll Highway Authority, 
15
other State agencies, and over 700  units of local government in 
16
98 counties statewide (the "pool participants"); and

 
17
    WHEREAS, Responses to the Original Solicitation were due on 
18
July 16, 2008; responses were submitted by four vendors, but 
19
none of the responses received by CMS for the Original 
20
Solicitation contained bids for the salt requirements for the 
21
majority of the pool participants located in Cook County, or 
22
for any of the pool participants located in Lake or McHenry 
 


 






HR1579
- 2 -
LRB095 22630 RLJ 53037 r




1
County; and

 
2
    WHEREAS, On July 25, 2008, CMS issued Solicitation No. 
3
223231, a Supplemental Re-bid seeking bids for the salt 
4
requirements of the pool participants in Cook, Lake, and 
5
McHenry County (the "Re-bid"); and

 
6
    WHEREAS, Responses to the Re-bid were due on August 12, 
7
2008;  responses to the Re-bid were submitted by three vendors, 
8
but all of the vendors responded to the Original Solicitation 
9
and  limited their bids to the pool participants in Cook County; 
10
and
 
11
    WHEREAS, On August 19, 2008, CMS advised the pool 
12
participants in Lake and McHenry County that, if they wished 
13
CMS to continue efforts to procure salt for them, they would 
14
have to commit to a price per ton in the range of $145 to $165; 
15
and
 
16
    WHEREAS, On August 21, 2008, CMS awarded contracts in a 
17
total amount of $182,293,805.48 to the four vendors that 
18
responded to the Original Solicitation, notwithstanding the 
19
vendors' failure to submit bids for the salt requirements of 
20
the pool participants in Cook, Lake, and McHenry County; and
 
21
    WHEREAS, On August 28, 2008, certain pool participants in 
 


 






HR1579
- 3 -
LRB095 22630 RLJ 53037 r




1
Lake and McHenry County submitted a bid protest, claiming, 
2
pursuant to the Governmental Joint Purchasing Act and the 
3
Illinois Procurement Code, and the rules promulgated 
4
thereunder that: (1) the proposals submitted in response to the 
5
Original Solicitation were materially incomplete due to their 
6
failure to provide bids for the salt requirements of all 
7
governmental units participating in the joint procurement; (2) 
8
CMS should have rejected the bids as non-responsive; and (3) 
9
CMS should conduct an investigation into the bidding activities 
10
of the responding vendors to ensure that the vendors complied 
11
with all applicable State laws; and
 
12
    WHEREAS, On August 29, 2008, CMS awarded $19,564,788.68 in 
13
contracts to two of the three vendors responding to the Re-bid, 
14
notwithstanding their failure to submit a bid for the salt 
15
requirements of the pool participants in Lake and McHenry 
16
County in either the Original Solicitation or the Re-Bid; and
 
17
    WHEREAS, On September 4, 2008, CMS issued a no-bid, 
18
emergency purchase award in the amount of $8,597,382.32 to one 
19
of the vendors that had received an award under  the Original 
20
Solicitation and submitted a response to the Re-bid, but had 
21
not submitted a price for pool participants in Lake or McHenry 
22
County in either solicitation; and
 
23
    WHEREAS, Information in the press indicates that certain 
 


 






HR1579
- 4 -
LRB095 22630 RLJ 53037 r




1
local governments not participating in the joint procurement, 
2
but located in geographic proximately to certain pool 
3
participants, were able to obtain bulk rock salt at more 
4
competitive prices than the pool participants; and
 
5
    WHEREAS, Because a sealed bid process was used by CMS, bid 
6
documents are not accessible, and CMS has not provided 
7
information that would explain the price fluctuations for rock 
8
salt within and outside of the joint purchasing pool; 
9
therefore, be it

 
10
    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE 
11
NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that 
12
the Auditor General is directed pursuant to Section 3-2 of the 
13
Illinois State Auditing Act to conduct an audit of CMS' 
14
decisions relating to the joint purchasing procurements of bulk 
15
rock salt to determine whether good procurement practices were 
16
exercised in accordance with applicable State laws and rules; 
17
and be it further

 
18
    RESOLVED, That the Auditor General is authorized pursuant 
19
to Section 3-2 of the Illinois State Auditing Act to review, 
20
determine, and publicly report on whether CMS' activities and 
21
decisions in connection with the joint procurement of rock salt 
22
were in the best interests of the State and participating units 
23
of local government; and be it further
 
 


 






HR1579
- 5 -
LRB095 22630 RLJ 53037 r




1
    RESOLVED, That the Auditor General commence this audit as 
2
soon as possible and report his findings and recommendations 
3
upon completion in accordance with the Illinois State Auditing 
4
Act; and be it further
 
5
    RESOLVED, That a copy of this resolution be delivered to 
6
the Auditor General, the Governor, and the Director of Central 
7
Management Services.