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90_HB0497 NEW ACT SEE INDEX Creates the Illinois Procurement Code. Amends the Governmental Joint Purchasing Act and repeals various Acts and Sections of Acts governing State purchasing. Provides for the purchasing of supplies, services, and construction and the leasing of real property and capital improvements by the State. Establishes a Procurement Policy Board appointed by the Governor to develop procurement policies and rules to be implemented by a Chief Procurement Officer appointed by the Board. Grants general procurement authority to 16 State purchasing officers appointed by State officers of the executive, legislative, and judicial branches and the governing boards of State colleges and universities. Permits delegation of procurement authority under certain circumstances. Grants procurement authority for professional or artistic services to individual State entities. Grants procurement authority for construction to the Capital Development Board, the Department of Transportation, the Illinois Toll Highway Authority, and agencies otherwise authorized to enter construction contracts. Makes competitive sealed bidding the required method of source selection, with exceptions for procurements of a small, emergency, or sole source nature or as permitted by rule of the Procurement Policy Board. Requires publication of an Illinois Procurement Bulletin. Provides for procurement preferences, contract requirements, auditing, prohibitions, and penalties. Effective immediately. LRB9002467DNkb LRB9002467DNkb 1 AN ACT to create the Illinois Procurement Code, and to 2 amend and repeal certain named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 ARTICLE 1 6 GENERAL PROVISIONS 7 Section 1-1. Short title. This Act may be cited as the 8 Illinois Procurement Code. 9 Section 1-5. Public policy. It is the purpose of this 10 Code and is declared to be the policy of the State that the 11 principles of competitive bidding and economical procurement 12 practices shall be applicable to all purchases and contracts 13 by or for any State agency. 14 Section 1-10. Application. This Code applies only to 15 contracts entered into after the effective date of this Code 16 unless the parties agree to its application to a contract 17 entered into before the effective date. 18 Section 1-15. Definitions. For the purposes of this 19 Code, the words set forth in the following Sections of this 20 Article have the meanings set forth in those Sections. 21 Section 1-15.05. Board. "Board" means the Procurement 22 Policy Board. 23 Section 1-15.10. Business. "Business" means any 24 corporation, partnership, individual, sole proprietorship, 25 joint stock company, joint venture, or other private legal 26 entity. -2- LRB9002467DNkb 1 Section 1-15.15. Chief Procurement Officer. "Chief 2 Procurement Officer" means that person designated as such by 3 the Procurement Policy Board. 4 Section 1-15.20. Construction. "Construction" means 5 building, altering, repairing, improving, or demolishing any 6 public structure or building, or making improvements of any 7 kind to public real property. Construction does not include 8 the routine operation, routine repair, or routine maintenance 9 of existing structures, buildings, or real property. 10 Section 1-15.25. Construction agency. "Construction 11 agency" means the Capital Development Board for construction 12 or remodeling of State-owned facilities; the Illinois 13 Department of Transportation for construction or maintenance 14 of roads, highways, bridges, and airports; the Illinois Toll 15 Highway Authority for construction or maintenance of toll 16 highways; and any other State agency entering into 17 construction contracts as authorized by law or by delegation 18 from the Procurement Policy Board. 19 Section 1-15.30. Contract. "Contract" means all types 20 of State agreements, regardless of what they may be called, 21 for the procurement, use, or disposal of supplies, services, 22 professional or artistic services, construction, or real 23 property or capital improvement leases, and including master 24 contracts and contracts for financing through use of 25 installment or lease-purchase arrangements. 26 Section 1-15.35. Cost-reimbursement contract. 27 "Cost-reimbursement contract" means a contract under which a 28 contractor is reimbursed for costs that are allowable and 29 allocable in accordance with the contract terms and the 30 provisions of this Code, and a fee, if any. -3- LRB9002467DNkb 1 Section 1-15.40. Council. "Council" means the 2 Procurement Advisory Council. 3 Section 1-15.45. Invitation for bids. "Invitation for 4 bids" means the process by which a purchasing agency requests 5 information from bidders, including all documents, whether 6 attached or incorporated by reference, used for soliciting 7 bids. 8 Section 1-15.50. Negotiation. "Negotiation" means the 9 process of selecting a contractor other than by competitive 10 sealed bids, multi-step sealed bidding, or competitive sealed 11 proposals, whereby a purchasing agency can establish any and 12 all terms and conditions of a procurement contract by 13 discussion with one or more prospective contractors. 14 Section 1-15.55. Person. "Person" means any business, 15 public or private corporation, partnership, individual, 16 union, committee, club, unincorporated association or other 17 organization or group of individuals, or other legal entity. 18 Section 1-15.60. Professional and artistic services. 19 "Professional and artistic services" means those services 20 provided under contract to a State agency by a person or 21 business, acting as an independent contractor, qualified by 22 education, experience, and technical ability to advise and 23 assist in solving specific management and programmatic 24 problems involving the organization, planning, direction, 25 control, and operation of State agencies. 26 Section 1-15.65. Purchase description. "Purchase 27 description" means the words used in a solicitation to 28 describe the supplies, services, professional or artistic 29 services, construction, or real property or capital -4- LRB9002467DNkb 1 improvements to be procured or leased and includes 2 specifications attached to or made a part of the 3 solicitation. 4 Section 1-15.70. Purchasing agency. "Purchasing agency" 5 means a State agency that is authorized by this Code, by its 6 implementing rules, or by authorized delegation of a State 7 purchasing officer to enter into contracts. 8 Section 1-15.75. Request for proposals. "Request for 9 proposals" means the process by which a purchasing agency 10 requests information from offerors, including all documents, 11 whether attached or incorporated by reference, used for 12 soliciting proposals. 13 Section 1-15.80. Responsible bidder or offeror. 14 "Responsible bidder or offeror" means a person who has the 15 capability in all respects to perform fully the contract 16 requirements and the integrity and reliability that will 17 assure good faith performance. 18 Section 1-15.85. Responsive bidder. "Responsive bidder" 19 means a person who has submitted a bid that conforms in all 20 material respects to the invitation for bids. 21 Section 1-15.90. Services. "Services" means the 22 furnishing of labor, time, or effort by a contractor, not 23 involving the delivery of a specific end product other than 24 reports or supplies that are incidental to the required 25 performance. 26 Section 1-15.95. Specifications. "Specifications" means 27 any description, provision, or requirement pertaining to the 28 physical or functional characteristics or of the nature of a -5- LRB9002467DNkb 1 supply, service, or other item to be procured under a 2 contract. Specifications may include a description of any 3 requirement for inspecting, testing, or preparing a supply, 4 service, professional or artistic service, construction, or 5 other item for delivery. 6 Section 1-15.100. State agency. "State agency" means 7 all officers, boards, commissions, and agencies created by 8 the Constitution, whether in the executive, legislative, or 9 judicial branch, but other than the circuit court; all 10 officers, departments, boards, commissions, agencies, 11 institutions, authorities, universities, bodies politic and 12 corporate of the State; and administrative units or corporate 13 outgrowths of the State government that are created by or in 14 accordance with statute, other than units of local government 15 and their officers, school districts, and boards of election 16 commissioners; and all administrative units and corporate 17 outgrowths of State agencies and as may be created by 18 executive order of the Governor. "State agency" does not 19 include the Illinois Comprehensive Health Insurance Board. 20 Section 1-15.105. State purchasing officer. "State 21 purchasing officer" means a person appointed as provided in 22 Article 10 to exercise the procurement authority created by 23 this Code. 24 Section 1-15.110. Supplies. "Supplies" means all 25 personal property, including but not limited to equipment, 26 materials, printing, and insurance, and the financing of 27 those supplies. 28 Section 1-15.115. Using agency. "Using agency" means a 29 State agency that uses items procured under this Code. -6- LRB9002467DNkb 1 ARTICLE 5 2 POLICY ORGANIZATION 3 Section 5-5. Procurement Policy Board. 4 (a) Creation. There is created a Procurement Policy 5 Board. 6 (b) Authority and duties. The Board shall have the 7 authority and responsibility to promulgate rules, consistent 8 with this Code, governing the procurement, management, 9 control, and disposal of supplies, services, professional or 10 artistic services, construction, and real property and 11 capital improvement leases procured by the State. The Board 12 shall consider and decide matters of policy within the 13 provisions of this Code. The Board shall have the power to 14 audit and monitor the implementation of its rules and the 15 requirements of this Code but shall not exercise authority 16 over the award or administration of any particular contract 17 or over any dispute, claim, or litigation pertaining to a 18 particular contract. 19 (c) Members. The Board shall consist of 5 members 20 appointed by the Governor and confirmed by the Senate. No 21 more than 3 members may be of the same political party. Each 22 member shall have demonstrated sufficient business or 23 professional experience in the area of procurement to perform 24 the functions of the Board. 25 (d) Terms. Of the initial appointees, the Governor 26 shall designate one member to serve a one-year term, 2 27 members to serve 2-year terms, and 2 members to serve 3-year 28 terms. Subsequent terms shall be 4 years. Members may be 29 reappointed for succeeding terms. 30 (e) Reimbursement. Members shall receive no 31 compensation but shall be reimbursed for any expenses 32 reasonably incurred in the performance of their duties. -7- LRB9002467DNkb 1 Section 5-10. Chief Procurement Officer. 2 (a) Creation. There is created the Office of the Chief 3 Procurement Officer. 4 (b) Authority and duties. The Chief Procurement Officer 5 shall be responsible for overseeing implementation of the 6 Board's rules and policies and shall be appointed by a 7 majority vote of the Board. The Chief Procurement Officer 8 may be removed at the discretion of the Board. 9 (c) Compensation. The Chief Procurement Officer shall 10 be a full-time position compensated in an amount determined 11 by the Board. A member of the Board may not serve as Chief 12 Procurement Officer. 13 Section 5-15. Procurement Advisory Council. 14 (a) Creation. There is created the Procurement Advisory 15 Council. The Council shall consist of the Chief Procurement 16 Officer and the 16 State purchasing officers appointed as 17 provided in Article 10. The Chief Procurement Officer shall 18 act as chair of the Council. 19 (b) Purposes. The Council shall: 20 (1) advise the Board on procurement policies; 21 (2) coordinate purchases of the same item by more 22 than one purchasing agency to obtain volume discounts; 23 (3) recommend specific State purchasing officers or 24 State agencies as responsible for certain categories of 25 purchases; and 26 (4) assist State purchasing officers and State 27 agencies in planning, purchasing, installing, and using 28 certain technology, including telecommunications systems. 29 Section 5-20. Joint Purchasing Program Advisory Council. 30 There is created a Joint Purchasing Program Advisory Council. 31 Members of the Joint Purchasing Program Advisory Council 32 shall be appointed by the Board and shall consist of -8- LRB9002467DNkb 1 representatives of local governmental units and 2 representatives of the Procurement Advisory Council. The 3 Joint Purchasing Program Advisory Council shall advise and 4 consult with the Board on the scope and nature of joint 5 governmental purchasing. 6 Section 5-25. Rulemaking authority. A State agency 7 authorized to make procurements under this Code shall have 8 the authority to promulgate rules to carry out that 9 authority. All rules shall be promulgated in accordance with 10 the Illinois Administrative Procedure Act and shall be 11 subject to the approval of the Board. 12 ARTICLE 10 13 PROCUREMENT ORGANIZATION 14 Section 10-5. Exercise of procurement authority. The 15 State purchasing officers appointed by their respective State 16 officers or State agencies shall exercise the procurement 17 authority created by this Code except as otherwise provided 18 in this Code. 19 Section 10-10. Appointment of State purchasing officers. 20 (a) General appointments. The following State officers 21 shall each appoint a State purchasing officer to exercise 22 within his or her jurisdiction the procurement authority 23 created by this Code: 24 (1) Director of Central Management Services. 25 (2) Attorney General. 26 (3) Comptroller. 27 (4) Secretary of State. 28 (5) Treasurer. 29 (6) Auditor General. 30 (7) Supreme Court. -9- LRB9002467DNkb 1 (8) Speaker of the House of Representatives. 2 (9) President of the Senate. 3 (10) Minority leader of the House of 4 Representatives. 5 (11) Minority leader of the Senate. 6 (12) Chair of the Joint Committee on Legislative 7 Support Services. 8 (13) Board of Trustees of the University of 9 Illinois. 10 (14) Board of Trustees of Southern Illinois 11 University. 12 (15) Board of Governors of State Colleges and 13 Universities. 14 (16) Board of Regents of Regency Universities. 15 (b) Legislative support services agencies. The State 16 purchasing officer appointed under subsection (a) by the 17 chair of the Joint Committee on Legislative Support Services 18 shall serve as the State purchasing officer for the 19 legislative support services agencies during the term of the 20 chair. 21 (c) Central Management Services. The State purchasing 22 officer appointed under subsection (a) by the Director of 23 Central Management Services shall serve as the State 24 purchasing officer for all State agencies under the 25 jurisdiction of the Governor or Lieutenant Governor and all 26 State agencies outside the jurisdiction of any other State 27 purchasing officer. 28 Section 10-15. Delegation of authority. A State 29 purchasing officer may delegate procurement powers and duties 30 to any State agency under that officer's jurisdiction as 31 authorized by the Board. 32 ARTICLE 15 -10- LRB9002467DNkb 1 PROCUREMENT BULLETIN 2 Section 15-5. Publisher. The Board shall designate a 3 State agency responsible for publishing the Illinois 4 Procurement Bulletin. 5 Section 15-10. Contents. The Illinois Procurement 6 Bulletin shall contain notices and other information required 7 by this Code or by rules promulgated under this Code to be 8 published in the Illinois Procurement Bulletin. Each issue 9 shall include a comprehensive index of its contents. A 10 purchasing agency may also choose, as applicable and in 11 accordance with rules of the Board, to place notices in the 12 official State newspaper or a newspaper circulating in a 13 locality relevant to the specified procurement. 14 Section 15-15. Publication. The Illinois Procurement 15 Bulletin shall be published at least twice monthly. It shall 16 be available through subscription for a minimal fee not 17 exceeding publication and distribution costs. The Illinois 18 Procurement Bulletin shall be distributed free to public 19 libraries within Illinois. 20 Section 15-20. Qualified bidders. Subscription to the 21 Illinois Procurement Bulletin shall not be required to 22 qualify as a bidder or offeror under this Code. 23 ARTICLE 20 24 SOURCE SELECTION AND CONTRACT FORMATION 25 Section 20-5. Method of source selection. Unless 26 otherwise authorized by law, all State contracts shall be 27 awarded by competitive sealed bidding, in accordance with 28 Section 20-10, except as provided in Sections 20-15, 20-20, -11- LRB9002467DNkb 1 20-25, 20-30, 20-35, 30-15, and 40-20. 2 Section 20-10. Competitive sealed bidding. 3 (a) Conditions for use. All contracts shall be awarded 4 by competitive sealed bidding except as otherwise provided in 5 Section 20-5. 6 (b) Invitation for bids. An invitation for bids shall 7 be issued and shall include a purchase description and the 8 material contractual terms and conditions applicable to the 9 procurement. 10 (c) Public notice. Public notice of the invitation for 11 bids shall be published in the Illinois Procurement Bulletin 12 at least 2 weeks before the date set in the invitation for 13 the opening of bids. 14 (d) Bid opening. Bids shall be opened publicly in the 15 presence of one or more witnesses at the time and place 16 designated in the invitation for bids. The name of each 17 bidder, the amount of each bid, and other relevant 18 information as may be specified by rule of the Board shall be 19 recorded. After the award of the contract, each bid and the 20 record of each bid shall be open to public inspection. 21 (e) Bid acceptance and bid evaluation. Bids shall be 22 unconditionally accepted without alteration or correction, 23 except as authorized in this Code. Bids shall be evaluated 24 based on the requirements set forth in the invitation for 25 bids, which may include criteria to determine acceptability 26 such as inspection, testing, quality, workmanship, delivery, 27 and suitability for a particular purpose. Those criteria 28 that will affect the bid price and be considered in 29 evaluation for award, such as discounts, transportation 30 costs, and total or life cycle costs, shall be objectively 31 measurable. The invitation for bids shall set forth the 32 evaluation criteria to be used. Only criteria set forth in 33 the invitation for bids may be used in the bid evaluation. -12- LRB9002467DNkb 1 (f) Correction or withdrawal of bids. Correction or 2 withdrawal of inadvertently erroneous bids before or after 3 award, or cancellation of awards of contracts based on bid 4 mistakes, shall be permitted in accordance with rules of the 5 Board. After bid opening, no changes in bid prices or other 6 provisions of bids prejudicial to the interest of the State 7 or fair competition shall be permitted. All decisions to 8 permit the correction or withdrawal of bids based on bid 9 mistakes shall be supported by written determination made by 10 a purchasing agency. 11 (g) Award. The contract shall be awarded with 12 reasonable promptness by written notice to the lowest 13 responsible and responsive bidder whose bid meets the 14 requirements and criteria set forth in the invitation for 15 bids. 16 (h) Multi-step sealed bidding. When it is considered 17 impracticable to initially prepare a purchase description to 18 support an award based on price, an invitation for bids may 19 be issued requesting the submission of unpriced offers to be 20 followed by an invitation for bids limited to those bidders 21 whose offers have been qualified under the criteria set forth 22 in the first solicitation. 23 Section 20-15. Competitive sealed proposals. 24 (a) Conditions for use. When, under this Code or under 25 rules promulgated by the Board, the purchasing agency 26 determines in writing that the use of competitive sealed 27 bidding is either not practicable or not advantageous to the 28 State, a contract may be entered into by competitive sealed 29 proposals. The Board may provide by rule that it is either 30 not practicable or not advantageous to the State to procure 31 specified types of supplies, services, or construction by 32 competitive sealed bidding. 33 (b) Request for proposals. Proposals shall be solicited -13- LRB9002467DNkb 1 through a request for proposals. 2 (c) Public notice. Public notice of the request for 3 proposals shall be published in the Illinois Procurement 4 Bulletin at least 2 weeks before the date set in the 5 invitation for the opening of proposals. 6 (d) Receipt of proposals. Proposals shall be opened 7 publicly in the presence of one or more witnesses at the time 8 and place designated in the request for proposals, but 9 proposals shall be opened in a manner to avoid disclosure of 10 contents to competing offerors during the process of 11 negotiation. A register of proposals shall be prepared and 12 shall be open for public inspection after contract award. 13 (e) Evaluation factors. The requests for proposals 14 shall state the relative importance of price and other 15 evaluation factors. Proposals shall be submitted in 2 parts: 16 the first, covering items except price; and the second, 17 covering price. The first part of all proposals shall be 18 evaluated and ranked prior to the opening of the second part 19 of all proposals. 20 (f) Discussion with responsible offerors and revisions 21 of proposals. As provided in the request for proposals and 22 under rules of the Board, discussions may be conducted with 23 responsible offerors who submit proposals determined to be 24 reasonably susceptible of being selected for award for the 25 purpose of clarifying and assuring full understanding of and 26 responsiveness to the solicitation requirements. Those 27 offerors shall be accorded fair and equal treatment with 28 respect to any opportunity for discussion and revision of 29 proposals. Revisions may be permitted after submission and 30 before award for the purpose of obtaining best and final 31 offers. In conducting discussions there shall be no 32 disclosure of any information derived from proposals 33 submitted by competing offerors. 34 (g) Award. Awards shall be made to the responsible -14- LRB9002467DNkb 1 offeror whose proposal is determined in writing to be the 2 most advantageous to the State, taking into consideration 3 price and the evaluation factors set forth in the request for 4 proposals. No other factors or criteria shall be used in the 5 evaluation. The contract file shall contain the basis on 6 which the award is made. 7 Section 20-20. Small purchases. 8 (a) Amount. Any individual procurement of supplies or 9 services other than professional or artistic services, not 10 exceeding $10,000 and any procurement of construction not 11 exceeding $25,000 may be made without competitive sealed 12 bidding. Procurements shall not be artificially divided so 13 as to constitute a small purchase under this Section. 14 (b) Adjustment. Each July 1, the small purchase maximum 15 established in subsection (a) shall be adjusted for inflation 16 as determined by the Consumer Price Index for All Urban 17 Consumers as determined by the United States Department of 18 Labor and rounded to the nearest $100. 19 Section 20-25. Sole source procurements. In accordance 20 with standards set by the Board, contracts may be awarded 21 without use of the specified method of source selection when 22 there is only one economically feasible source for the item. 23 At least 2 weeks before entering into a sole source contract, 24 the purchasing agency shall publish in the Illinois 25 Procurement Bulletin a notice of intent to do so along with a 26 description of the item to be procured and the intended sole 27 source contractor. 28 Section 20-30. Emergency purchases. 29 (a) Conditions for use. In accordance with standards 30 set by the Board, a purchasing agency may make emergency 31 procurements without competitive sealed bidding or prior -15- LRB9002467DNkb 1 notice when there exists a threat to public health or public 2 safety, or when immediate expenditure is necessary for 3 repairs to State property in order to protect against further 4 loss of or damage to State property, to prevent or minimize 5 serious disruption in State services, or to ensure the 6 integrity of State records. Emergency procurements shall be 7 made with as much competition as is practicable under the 8 circumstances and as required by the rule of the Board. A 9 written description of the basis for the emergency and 10 reasons for the selection of the particular contractor shall 11 be included in the contract file. 12 (b) Notice. Before the 10th of each month, the 13 purchasing agency shall publish in the Illinois Procurement 14 Bulletin a copy of each written description and reasons and 15 the total cost of each emergency procurement made during the 16 previous month. When only an estimate of the total cost is 17 known at the time of publication, the estimate shall be 18 identified as an estimate and published. When the actual 19 total cost is determined, it shall also be published in like 20 manner before the 10th day of the next succeeding month. 21 (c) Affidavits. A purchasing agency making a 22 procurement under this Section shall file affidavits with 23 the Board and the Auditor General within 10 days after the 24 procurement setting forth the amount expended, the name of 25 the contractor involved, and the conditions and circumstances 26 requiring the emergency procurement. When only an estimate 27 of the cost is available within 10 days after the 28 procurement, the actual cost shall be reported immediately 29 after it is determined. At the end of each fiscal quarter, 30 the Auditor General shall file with the Legislative Audit 31 Commission and the Governor a complete listing of all 32 emergency procurements reported during that fiscal quarter. 33 The Legislative Audit Commission shall review the emergency 34 procurements so reported and, in its annual reports, advise -16- LRB9002467DNkb 1 the General Assembly of procurements that appear to 2 constitute an abuse of this Section. 3 (d) Quick purchases. The Board may promulgate policies 4 extending the circumstances by which a purchasing agency may 5 make purchases under this Section, including but not limited 6 to the procurement of items available at a discount for a 7 limited period of time. 8 Section 20-35. Competitive selection procedures. 9 (a) Conditions for use. The services specified in 10 Article 35 shall be procured in accordance with this Section, 11 except as authorized under Sections 20-25 and 20-30 of this 12 Article or as authorized by the Board in accordance with the 13 provisions of this Code. 14 (b) Statement of qualifications. Potential contractors 15 may submit statements of qualifications and expressions of 16 interest. The Board may specify a uniform format for 17 statements of qualifications. Persons may amend these 18 statements at any time by filing a new statement. 19 (c) Public announcement and form of request for 20 proposals. Public notice of the need for the procurement 21 shall be given in the form of a request for proposals and 22 published in the Illinois Procurement Bulletin at least 2 23 weeks before the date set in the request for proposals for 24 the opening of proposals. The request for proposals shall 25 describe the professional or artistic services required, list 26 the type of information and data required of each offeror, 27 and state the relative importance of particular 28 qualifications. 29 (d) Discussions. The purchasing agency may conduct 30 discussions with any offeror who has submitted a proposal to 31 determine the offeror's qualifications for further 32 consideration. Discussions shall not disclose any 33 information derived from proposals submitted by other -17- LRB9002467DNkb 1 offerors. 2 (e) Award. Award shall be made to the offeror 3 determined in writing by the purchasing agency to be best 4 qualified based on the evaluation factors set forth in the 5 request for proposals and negotiation of compensation 6 determined to be fair and reasonable. If compensation cannot 7 be agreed upon with the best qualified offeror, then 8 negotiations shall be formally terminated with the selected 9 offeror. If proposals were submitted by one or more other 10 offerors determined to be qualified, negotiations may be 11 conducted with the other offeror or offerors, in the order of 12 their respective qualification ranking. The contract may be 13 awarded to the offeror then ranked as best qualified if the 14 amount of compensation is determined to be fair and 15 reasonable. 16 Section 20-40. Cancellation of invitations for bids or 17 requests for proposals. An invitation for bids, a request 18 for proposals, or any other solicitation may be cancelled, or 19 any and all bids or proposals may be rejected in whole or in 20 part as may be specified in the solicitation, when it is in 21 the best interests of the State in accordance with rules 22 promulgated by the Board. The reasons for cancellation or 23 rejection shall be made part of the contract file. 24 Section 20-45. Prequalification of suppliers. The Board 25 shall promulgate rules for the development of prequalified 26 supplier lists for appropriate categories of purchases and 27 the periodic updating of those lists. 28 Section 20-50. Specifications. Specifications shall be 29 prepared in accordance with standards promulgated by the 30 Board. Those standards shall include a prohibition against 31 the use of brand-name products except under specified -18- LRB9002467DNkb 1 circumstances and a restriction on the use of specifications 2 drafted by a potential bidder. All specifications shall seek 3 to promote overall economy for the purposes intended and 4 encourage competition in satisfying the State's needs and 5 shall not be unduly restrictive. 6 Section 20-55. Types of contracts. Subject to the 7 limitations of this Section and unless otherwise authorized 8 by law, any type of contract that will promote the best 9 interests of the State may be used, except that 10 cost-plus-a-percentage-of-cost contracts are prohibited. A 11 cost-reimbursement contract may be used only when a 12 determination is made in writing that a cost-reimbursement 13 contract is likely to be less costly to the State than any 14 other type or that it is impracticable to obtain the item 15 required except under that type of contract. The general 16 form of contracts shall be specified by the Comptroller. 17 Section 20-60. Duration of contracts. 18 (a) Maximum duration. A contract may be entered into 19 for any period of time deemed by the Board to be in the best 20 interests of the State but not exceeding 10 years. The 21 length of a lease for real property or capital improvements 22 may be in accordance with the provisions of Section 40-25. 23 (b) Renewal. The Board may develop rules permitting 24 renewal of contracts without additional competitive 25 procedures when that renewal is permitted by the terms of the 26 initial contract and is in the best interests of the State. 27 (c) Subject to appropriation. All contracts made or 28 entered into shall recite that they are subject to 29 termination and cancellation in any year for which the 30 General Assembly fails to make an appropriation to make 31 payments under the terms of the contract. -19- LRB9002467DNkb 1 Section 20-65. Right to audit records. 2 (a) Maintenance of books and records. Every contract 3 and subcontract shall require the contractor or 4 subcontractor, as applicable, to maintain books and records 5 relating to the performance of the contract or subcontract 6 and necessary to support amounts charged to the State under 7 the contract or subcontract. The books and records shall be 8 maintained by the contractor for a period of 3 years from the 9 later of the date of final payment under the contract or 10 completion of the contract and by the subcontractor for a 11 period of 3 years from the later of the date of final payment 12 under the subcontract or completion of the subcontract. 13 However, the 3-year period shall be extended for the duration 14 of any audit in progress at the time of that period's 15 expiration. 16 (b) Audit. Every contract and subcontract shall provide 17 that all books and records required to be maintained under 18 subsection (a) shall be available for review and audit by the 19 Auditor General and the purchasing agency. Every contract 20 and subcontract shall require the contractor and 21 subcontractor, as applicable, to cooperate fully with any 22 audit. 23 (c) Failure to maintain books and records. Failure to 24 maintain the books and records required by this Section shall 25 establish a presumption in favor of the State for the 26 recovery of any funds paid by the State for which required 27 books and records are not available. 28 Section 20-70. Finality of determinations. 29 Determinations made by a purchasing agency under this Code 30 are final and conclusive unless they are clearly erroneous, 31 arbitrary, capricious, or contrary to law. 32 Section 20-75. Disputes and protests. The Board shall -20- LRB9002467DNkb 1 by rule establish procedures to be followed by purchasing 2 agencies in resolving protested solicitations and awards and 3 contract controversies, for debarment or suspension of 4 contractors, and for resolving other procurement-related 5 disputes. 6 Section 20-80. Contract files. 7 (a) Written determinations. All written determinations 8 required under this Article shall be placed in the contract 9 file maintained by the purchasing agency. 10 (b) Filing with Comptroller. Whenever a contract 11 liability, except for: 12 (1) contracts paid from personal services, or 13 (2) contracts between the State and its employees 14 to defer compensation in accordance with Article 24 of 15 the Illinois Pension Code 16 exceeding $5,000 is incurred by any State agency, a copy of 17 the contract, purchase order, or lease shall be filed with 18 the Comptroller within 15 days thereafter. Any cancellation 19 or modification to any such contract liability shall be filed 20 with the Comptroller within 15 days of its execution. 21 (c) Late filing affidavit. When a contract, purchase 22 order, or lease required to be filed by this Section has not 23 been filed within 30 days of execution, the Comptroller shall 24 refuse to issue a warrant for payment thereunder until the 25 agency files with the Comptroller the contract, purchase 26 order, or lease and an affidavit, signed by the chief 27 executive officer of the agency or his or her designee, 28 setting forth an explanation of why the contract liability 29 was not filed within 30 days of execution. A copy of this 30 affidavit shall be filed with the Auditor General. 31 (d) Professional and artistic services contracts. No 32 voucher shall be submitted to the Comptroller for a warrant 33 to be drawn for the payment of money from the State treasury -21- LRB9002467DNkb 1 or from other funds held by the State Treasurer on account of 2 any contract for services involving professional or artistic 3 skills involving an expenditure of more than $5,000 for the 4 same type of service at the same location during any fiscal 5 year unless the contract is reduced to writing before the 6 services are performed and filed with the Comptroller. When 7 a contract for professional or artistic skills in excess of 8 $5,000 was not reduced to writing before the services were 9 performed, the Comptroller shall refuse to issue a warrant 10 for payment for the services until the State agency files 11 with the Comptroller: 12 (1) a written contract covering the services, and 13 (2) an affidavit, signed by the chief executive 14 officer of the State agency or his or her designee, 15 stating that the services for which payment is being made 16 were agreed to before commencement of the services and 17 setting forth an explanation of why the contract was not 18 reduced to writing before the services commenced. 19 A copy of this affidavit shall be filed with the Auditor 20 General. The Comptroller shall maintain professional or 21 artistic service contracts filed under this Section 22 separately from other filed contracts. 23 (e) Method of source selection. When a contract is 24 filed with the Comptroller under this Section, the 25 Comptroller's file shall identify the method of source 26 selection used in obtaining the contract. 27 ARTICLE 25 28 SUPPLIES AND SERVICES (EXCLUDING 29 PROFESSIONAL OR ARTISTIC) 30 Section 25-5. Applicability. All contracts for supplies 31 and services shall be procured in accordance with the 32 provisions of this Article. -22- LRB9002467DNkb 1 Section 25-10. Authority. State purchasing officers 2 shall have the authority to procure supplies and services, 3 except as that authority may be limited by the Board or 4 delegated by the State purchasing officer in accordance with 5 Section 10-15. 6 Section 25-15. Method of source selection. 7 (a) Competitive sealed bidding. Except as provided in 8 subsection (b) and Sections 20-20, 20-25, and 20-30, all 9 State contracts for supplies and services shall be awarded by 10 competitive sealed bidding in accordance with Section 20-10. 11 (b) Other methods. The Board shall establish by rule 12 categories of purchases that may be made without competitive 13 sealed bidding and the most competitive alternate method of 14 source selection that shall be used for each category of 15 purchase. 16 Section 25-20. Prevailing wage requirements. 17 (a) Applicability. All services furnished under 18 printing contracts and under service contracts exceeding 19 $2,000 or $200 per month shall be performed by employees of 20 the contractor receiving the prevailing wage rate and working 21 under conditions prevalent in the locality in which the work 22 is produced. A contract bidder or offeror, in order to be 23 considered a responsible bidder or offeror for the purposes 24 of this Code, shall certify to the State purchasing officer 25 that wages paid to its employees are no less, and fringe 26 benefits and working conditions of employees are not less 27 favorable, than those prevailing in the locality where the 28 contract is to be performed. Prevailing wages and working 29 conditions shall be determined by the Director of Labor. 30 Whenever a collective bargaining agreement is in effect 31 between an employer, other than a State agency, and service 32 or printing employees as defined in this Section who are -23- LRB9002467DNkb 1 represented by a responsible organization that is in no way 2 influenced or controlled by the management, that agreement 3 and its provisions shall be considered as conditions 4 prevalent in that locality and shall be the minimum 5 requirements taken into consideration by the Director of 6 Labor. Collective bargaining agreements between State 7 employees and the State of Illinois shall not be taken into 8 account by the Department of Labor in determining the 9 prevailing wage rate. 10 (b) Services and printing defined. As used in this 11 Section, "services" means janitorial cleaning services, 12 window cleaning services, food services, and security 13 services. "Printing" means all processes and operations 14 involved in printing and any type of photographic 15 reproduction or other duplicating process, including but not 16 limited to letterpress, offset, and gravure processes, the 17 multilith method, any type of photographic or other 18 duplicating process, and the operations of composition, 19 platemaking, presswork, and binding; and the end products of 20 those processes, methods, and operations. As used in this 21 Section "printing" does not include photocopiers used in the 22 course of normal business activities, photographic equipment 23 used for geographic mapping, printed matter used in the 24 normal day to day operations of the General Assembly, the 25 printing of State Lottery tickets, shares, or other State 26 Lottery game related materials, or preprinted or printed 27 matter that is commonly available to the general public from 28 contractor inventory. 29 (c) Inapplicability. This Section does not apply to 30 services furnished under contracts for professional or 31 artistic services. This Section does not apply to vocational 32 programs of training for persons with physical or mental 33 disabilities. -24- LRB9002467DNkb 1 Section 25-25. Printing cost offsets. The Board may 2 promulgate rules permitting the exchange of advertising 3 rights in or receipt of free copies of printed products 4 procured under this Article as a means of reducing printing 5 costs. The Board's rules shall specify the appropriate 6 method of source selection to be used to competitively 7 acquire printing cost offsets. 8 Section 25-30. More favorable terms. A supply or 9 service contract may include, if determined by a State 10 purchasing officer to be in the best interests of the State, 11 a clause requiring that if more favorable terms are granted 12 by the contractor to any similar state or local governmental 13 agency in any state in a contemporaneous agreement let under 14 the same or similar financial terms and circumstances for 15 comparable supplies or services, the more favorable terms 16 shall be applicable under the contract. 17 Section 25-35. Purchase of coal and postage stamps. 18 (a) Delivery of necessary supplies. To avoid 19 interruption or impediment of delivery of necessary supplies, 20 commodities, and coal, State purchasing officers may make 21 purchases of or contracts for supplies and commodities after 22 April 30 of a fiscal year when delivery of the supplies and 23 commodities is to be made after June 30 of that fiscal year 24 and payment for which is to be made from appropriations for 25 the next fiscal year. 26 (b) Postage. All postage stamps purchased from State 27 funds must be perforated for identification purposes. A 28 General Assembly member may furnish the U.S. Post Office with 29 a warrant so as to allow for the creation or continuation of 30 a bulk rate mailing fund in the name of the General Assembly 31 member or may furnish a postage meter company or post office 32 with a warrant so as to facilitate the purchase of a postage -25- LRB9002467DNkb 1 meter and its stamps. Any postage meter so purchased must 2 also contain a stamp that shall state "Official State Mail". 3 Section 25-40. Freight increases. If the Illinois 4 Department of Transportation provides by contract or 5 regulation that general increases in freight rates incurred 6 by a contractor after entering into the contract may be added 7 to the contract price or passed through to the Department, 8 then this remedy shall be available to the contractor whether 9 the increased general freight rates are for railroads, barge 10 lines, or motor carriers of property. 11 Section 25-45. Energy conservation program. State 12 purchasing officers may enter into energy conservation 13 program contracts that provide for utility cost savings. The 14 Board shall promulgate and adopt rules for the implementation 15 of this Section. 16 Section 25-50. Human services. Every purchasing agency 17 that contracts or provides grants for human services may, 18 upon request of the service provider, review the contract or 19 grant, upon notification by the provider that the cost of the 20 provider's property and casualty insurance has increased by 21 25% or more. The purchasing agency may adjust the existing 22 contract or grant with the service provider in accordance 23 with any agreement reached and subject to the limitations of 24 that agency's appropriated funds. For purposes of this 25 Section the revised contract amount shall not exceed the 26 percentage calculated by dividing the total contract or grant 27 amount by the provider's total budget as agreed to by the 28 purchasing agency. 29 Section 25-55. Annual reports. Every printed annual 30 report produced by a State agency shall bear a statement -26- LRB9002467DNkb 1 indicating whether it was printed by the State of Illinois or 2 by contract and indicating the printing cost per copy and the 3 number of copies printed. The Department of Central 4 Management Services shall prepare and submit to the General 5 Assembly on the fourth Wednesday of January in each year a 6 report setting forth with respect to each State agency for 7 the calendar year immediately preceding the calendar year in 8 which the report is filed the total quantity of annual 9 reports printed, the total cost, and the cost per copy and 10 the cost per page of the annual report of the State agency 11 printed during the calendar year covered by the report. 12 Section 25-60. General Assembly printing; session laws. 13 (a) Authority. Public printing for the use of either 14 House of the General Assembly shall be subject to its 15 control. Any printing or operation of printing that the 16 Legislative Printing Unit is unable to perform may be 17 purchased in accordance with this Article. 18 (b) Time of delivery. Daily calendars, journals, and 19 other similar printing for which manuscript or copy is 20 delivered to the Legislative Printing Unit by the clerical 21 officer of either House shall be printed so as to permit 22 delivery at any reasonable time required by the clerical 23 officer. Any petition, bill, resolution, joint resolution, 24 memorial, and similar manuscript or copy delivered to the 25 Legislative Printing Unit by the clerical officer of either 26 House shall be printed at any reasonable time required by 27 that officer. 28 (c) Style. The manner, form, style, size, and 29 arrangement of type used in printing the bills, resolutions, 30 amendments, conference reports, and journals, including daily 31 journals, of the General Assembly shall be as provided in the 32 Rules of the General Assembly. 33 (d) Daily journal. The Clerk of the House of -27- LRB9002467DNkb 1 Representatives and the Secretary of the Senate shall each 2 prepare and deliver to the Legislative Printing Unit, 3 immediately after the close of each daily session, a 4 printer's copy of the daily journal for their respective 5 House. 6 (e) Daily and bound journals. 7 (1) Subscriptions. The Legislative Printing Unit 8 shall have printed the number of copies of the daily 9 journal as may be requested by the clerical officer of 10 each House. The Secretary of the Senate and the Clerk of 11 the House of Representatives shall furnish a copy of each 12 daily journal of their respective House to those persons 13 who apply therefor upon payment of a reasonable 14 subscription fee established separately by the Secretary 15 of the Senate and the Clerk of the House for their 16 respective House. Each subscriber shall specify at the 17 time he or she subscribes the address where he or she 18 wishes the journals mailed. The daily journals shall be 19 furnished free of charge on a pickup basis to State 20 offices and to the public as long as the supply lasts. 21 The Secretary of the Senate and the Clerk of the House 22 shall determine the number of journals available for 23 pickup at their respective offices. 24 (2) Other copies. After the General Assembly 25 adjourns, the Clerk of the House and the Secretary of the 26 Senate shall prepare and deliver to the Legislative 27 Printing Unit a printer's copy of matter for the regular 28 House and Senate journals, together with any matter, not 29 previously printed in the daily journals, that is 30 required by law, by order of either House, or by joint 31 resolution to be printed in the journals. The 32 Legislative Printing Unit shall have printed the number 33 of copies of the bound journal as may be requested by the 34 clerical officer of each House. A reasonable number of -28- LRB9002467DNkb 1 bound volumes of the journal of each House of the General 2 Assembly shall be provided to State and local officers, 3 boards, commissions, institutions, departments, agencies, 4 and libraries requesting them through canvasses conducted 5 separately by the Secretary of the Senate and the Clerk 6 of the House. Reasonable fees established separately by 7 the Secretary of the Senate and the Clerk of the House 8 may be charged for bound volumes of the journal of each 9 House of the General Assembly. 10 (f) Session laws. Immediately after the General Assembly 11 adjourns, the Secretary of State shall prepare a printer's 12 copy for the "Session Laws of Illinois" that shall set forth 13 in full all Acts and joint resolutions passed by the General 14 Assembly at the session just concluded and all executive 15 orders of the Governor taking effect under Article V, Section 16 11 of the Constitution and the Executive Reorganization 17 Implementation Act. The printer's copy shall be furnished 18 and delivered to the Secretary of State by the Enrolling and 19 Engrossing Department of the 2 Houses. At the time an 20 enrolled law is filed with the Secretary of State, whether 21 before or after the conclusion of the session in which it was 22 passed, it shall be assigned a Public Act number, the first 23 part of which shall be the number of the General Assembly 24 followed by a dash and then a number showing the order in 25 which that law was filed with the Secretary of State. The 26 title page of each volume of the session laws shall contain 27 the following: "Printed by the authority of the General 28 Assembly of the State of Illinois". The laws shall be 29 arranged by the Secretary of State and printed in the 30 chronological order of Public Act numbers. At the end of 31 each Act the dates when the Act was passed by the General 32 Assembly and when the Act was approved by the Governor shall 33 be stated. Any Act becoming law without the approval of the 34 Governor shall be marked at its end in the session laws by -29- LRB9002467DNkb 1 the printed certificate of the Secretary of State. Executive 2 orders taking effect under Article V, Section 11 of the 3 Constitution and the Executive Reorganization Implementation 4 Act shall be printed in chronological order of executive 5 order number and shall state at the end of each executive 6 order the date it was transmitted to the General Assembly and 7 the date it takes effect. In the case of an amendatory Act, 8 the changes made by the amendatory Act shall be indicated in 9 the session laws in the following manner: (i) all new matter 10 shall be printed in italics; and (ii) all matter deleted by 11 the amendatory Act shall be shown crossed with a line. The 12 Secretary of State shall prepare and furnish a table of 13 contents and an index to each volume of the session laws. 14 (g) Distribution. The bound volumes of the session laws 15 of the General Assembly shall be made available to the 16 following: 17 (1) one copy of each to each State officer, board, 18 commission, institution, and department requesting a copy 19 in accordance with a canvass conducted by the Secretary 20 of State before the printing of the session laws except 21 judges of the appellate courts and judges and associate 22 judges of the circuit courts; 23 (2) 10 copies to the law library of the Supreme 24 Court; one copy each to the law libraries of the 25 appellate courts; and one copy to each of the county law 26 libraries or, in those counties without county law 27 libraries, one copy to the clerk of the circuit court; 28 (3) one copy of each to each county clerk; 29 (4) 10 copies of each to the library of the 30 University of Illinois; 31 (5) 3 copies of each to the libraries of the 32 University of Illinois at Chicago, Southern Illinois 33 University at Carbondale, Southern Illinois University at 34 Edwardsville, Northern Illinois University, Western -30- LRB9002467DNkb 1 Illinois University, Eastern Illinois University, 2 Illinois State University, Chicago State University, 3 Northeastern Illinois University, Chicago Kent College of 4 Law, DePaul University, John Marshall Law School, Loyola 5 University, Northwestern University, Roosevelt 6 University, and the University of Chicago; 7 (6) a number of copies sufficient for exchange 8 purposes to the Legislative Reference Bureau and the 9 University of Illinois College of Law Library; 10 (7) a number of copies sufficient for public 11 libraries in the State to the State Library; and 12 (8) the remainder shall be retained for 13 distribution as the interests of the State may require to 14 persons making application in writing or in person for 15 the publication. 16 (h) Messages and reports. The following shall be 17 printed in a quantity not to exceed the maximum stated in 18 this subsection and bound and distributed at public expense: 19 (1) messages to the General Assembly by the 20 Governor, 10,000 copies; 21 (2) the biennial report of the Lieutenant Governor, 22 1,000 copies; 23 (3) the biennial report of the Secretary of State, 24 3,000 copies; 25 (4) the biennial report of the State Comptroller, 26 5,000 copies; 27 (5) the biennial report of the State Treasurer, 28 3,000 copies; 29 (6) the annual report of the State Board of 30 Education, 6,000 copies; and 31 (7) the biennial report and annual opinions of the 32 Attorney General, 5,000 copies. 33 The reports of all other State officers, boards, 34 commissions, institutions, and departments shall be printed, -31- LRB9002467DNkb 1 bound, and distributed at public expense in a number of 2 copies determined from previous experience not to exceed the 3 probable and reasonable demands of the State therefor. Any 4 other report required by law to be made to the Governor 5 shall, upon his or her order, be printed in the quantity 6 ordered by the Governor, bound and distributed at public 7 expense. 8 (i) Prohibition. All books, pamphlets, documents, and 9 reports published through or by the State of Illinois or any 10 State agency, board, or commission shall have printed thereon 11 "Printed by authority of the State of Illinois", the date of 12 each publication, the number of copies printed, and the 13 printing order number. Each using agency shall be 14 responsible for ascertaining the compliance of printing 15 materials procured by or for it with this subsection. No 16 printing or reproduction contract shall be let and no 17 printing or reproduction shall be accomplished when that 18 wording does not appear on the material to be printed or 19 reproduced. No publication may have written, stamped, or 20 printed on it, or attached to it, "Compliments of ........ 21 (naming a person)" or any words of similar import. 22 ARTICLE 30 23 CONSTRUCTION AND CONSTRUCTION- 24 RELATED PROFESSIONAL SERVICES 25 Section 30-5. Applicability. Construction and 26 construction-related professional services shall be procured 27 in accordance with this Article. 28 Section 30-10. Authority. Construction agencies shall 29 have the authority to procure construction and 30 construction-related professional services. -32- LRB9002467DNkb 1 Section 30-15. Method of source selection. 2 (a) Competitive sealed bidding. Except as provided in 3 subsections (b), (c), and (d) and Sections 20-20, 20-25, and 4 20-30, all State construction contracts shall be awarded by 5 competitive sealed bidding in accordance with Section 20-10. 6 (b) Other methods. The Board shall establish by rule 7 construction purchases that may be made without competitive 8 sealed bidding and the most competitive alternate method of 9 source selection that shall be used. 10 (c) Construction-related professional services. All 11 construction-related professional services contracts shall be 12 awarded in accordance with the provisions of the 13 Architectural, Engineering, and Land Surveying Qualifications 14 Based Selection Act. "Professional services" means those 15 services within the scope of the practice of architecture, 16 professional engineering, structural engineering, or 17 registered land surveying, as defined by the laws of this 18 State. 19 (d) Correctional facilities. Remodeling and 20 rehabilitation projects at correctional facilities under 21 $25,000 funded from the General Revenue Fund are exempt from 22 the provisions of this Article. The Department of 23 Corrections may use inmate labor for the remodeling or 24 rehabilitation of correctional facilities on those projects 25 under $25,000 funded from the General Revenue Fund. 26 Section 30-20. Prequalification. The Board shall 27 promulgate rules for the development of prequalified supplier 28 lists for construction and construction-related professional 29 services and the periodic updating of those lists. All 30 construction and construction-related professional services 31 contracts over $25,000 shall be awarded only to prequalified 32 suppliers. -33- LRB9002467DNkb 1 Section 30-25. Retention of a percentage of contract 2 price. Whenever any contract entered into by a construction 3 agency for the repair, remodeling, renovation, or 4 construction of a building or structure, for the construction 5 or maintenance of a highway, as those terms are defined in 6 Article 2 of the Illinois Highway Code, or for the 7 reclamation of abandoned lands as those terms are defined in 8 Article I of the Abandoned Mined Lands and Water Reclamation 9 Act provides for the retention of a percentage of the 10 contract price until final completion and acceptance of the 11 work, upon the request of the contractor and with the 12 approval of the construction agency the amount so retained 13 may be deposited under a trust agreement with an Illinois 14 bank of the contractor's choice and subject to the approval 15 of the construction agency. The contractor shall receive any 16 interest on the deposited amount. Upon application by the 17 contractor, the trust agreement must contain, at a minimum, 18 the following provisions: 19 (1) the amount to be deposited subject to the 20 trust; 21 (2) the terms and conditions of payment in case of 22 default by the contractor; 23 (3) the termination of the trust agreement upon 24 completion of the contract; and 25 (4) the contractor shall be responsible for 26 obtaining the written consent of the bank trustee and for 27 any costs or service fees. 28 The trust agreement may, at the discretion of the 29 construction agency and upon request of the contractor, 30 become effective at the time of the first partial payment in 31 accordance with existing statutes and rules of the Board. 32 Section 30-30. Contracts in excess of $250,000. For 33 construction contracts in excess of $250,000, separate -34- LRB9002467DNkb 1 specifications shall be prepared for all equipment, labor, 2 and materials in connection with the following 5 subdivisions 3 of the work to be performed: 4 (1) plumbing; 5 (2) heating, piping, refrigeration, and automatic 6 temperature control systems, including the testing and 7 balancing of those systems; 8 (3) ventilating and distribution systems for 9 conditioned air, including the testing and balancing of 10 those systems; 11 (4) electric wiring; and 12 (5) general contract work. 13 The specifications must be so drawn as to permit separate 14 and independent bidding upon each of the 5 subdivisions of 15 work. All contracts awarded for any part thereof shall award 16 the 5 subdivisions of work separately to responsible and 17 reliable persons, firms, or corporations engaged in these 18 classes of work. The contracts, at the discretion of the 19 construction agency, may be assigned to the successful bidder 20 on the general contract work or to the successful bidder on 21 the subdivision of work designated by the construction agency 22 before the bidding as the prime subdivision of work, provided 23 that all payments will be made directly to the contractors 24 for the 5 subdivisions of work upon compliance with the 25 conditions of the contract. A contract may be let for one or 26 more buildings in any project to the same contractor. The 27 specifications shall require, however, that unless the 28 buildings are identical, a separate price shall be submitted 29 for each building. The contract may be awarded to the lowest 30 responsible bidder for each or all of the buildings included 31 in the specifications. 32 Section 30-35. Expenditure in excess of contract price. 33 (a) Germaneness. No funds in excess of the contract -35- LRB9002467DNkb 1 price may be obligated or expended unless the additional work 2 to be performed or materials to be furnished is germane to 3 the original contract. Even if germane to the original 4 contract, no additional expenditures or obligations may, in 5 their total combined amounts, be in excess of the percentages 6 of the original contract amount set forth in subsection (b) 7 unless they have received the prior written approval of the 8 construction agency. In the event that the total of the 9 combined additional expenditures or obligations exceeds the 10 percentages of the original contract amount set forth in 11 subsection (b), the construction agency shall investigate all 12 the additional expenditures or obligations in excess of the 13 original contract amount and shall in writing approve or 14 disapprove subsequent expenditures or obligations and state 15 in detail the reasons for the approval or disapproval. 16 (b) Written determination required. When the contract 17 amount is no more than $75,000, the percentage shall be 9% 18 (maximum $6,750). When the contract amount is between 19 $75,001 and $200,000, the percentage shall be 7% of the 20 amount above $75,000 plus $6,750, but not to exceed 7% of 21 $200,000 (maximum $14,000). When the contract amount is 22 between $200,001 and $500,000, the percentage shall be 5% of 23 the amount above $200,000 plus $14,000, but not to exceed 5% 24 of $500,000 (maximum $25,000). When the contract amount is 25 in excess of $500,000, the percentage shall be 3% of the 26 amount above $500,000 plus $25,000. 27 Section 30-40. Certification. Any contract entered into 28 or expenditure of funds by a construction agency for 29 remodeling, renovation, or construction, involving an 30 expenditure in excess of $5,000, shall be subject to the 31 supervision of a licensed architect or engineer. No payment 32 shall be made for the remodeling, renovation, or construction 33 unless the vouchers or invoice for the work is accompanied by -36- LRB9002467DNkb 1 a written certificate of the licensed architect or engineer 2 that the payment represents work satisfactorily completed, 3 labor, or materials incorporated in or stored at the site of 4 the work; provided, periodic payments can be made during the 5 course of the work upon a certificate of the licensed 6 architect or engineer indicating the proportionate amount of 7 the total work completed satisfactorily. 8 Section 30-45. Other Acts. This Article is subject to 9 applicable provisions of the following Acts: 10 (1) the Prevailing Wage Act; 11 (2) the Public Construction Bond Act; 12 (3) the Public Works Employment Discrimination Act; 13 (4) the Public Works Preference Act; 14 (5) the Employment of Illinois Workers on Public 15 Works Act; 16 (6) the Public Contract Fraud Act; and 17 (7) the Illinois Construction Evaluation Act. 18 ARTICLE 35 19 PROFESSIONAL OR ARTISTIC SERVICES 20 Section 35-5. Applicability. All contracts for 21 professional or artistic services shall be procured in 22 accordance with the provisions of this Article. 23 Section 35-10. Authority. Each State agency shall have 24 the authority to procure its own professional or artistic 25 services. 26 Section 35-15. Method of source selection. 27 (a) Competitive selection procedures. Except as 28 provided in subsection (b) and Sections 20-25 and 20-30, all 29 State contracts for professional or artistic services of -37- LRB9002467DNkb 1 $25,000 or more shall be awarded by competitive selection 2 procedures in accordance with Section 20-35. 3 (b) Other methods. The Board shall identify categories 4 of professional and artistic services and shall determine the 5 method of source selection that is in the best interests of 6 the State for each category. A State agency may award a 7 professional or artistic service contract by a method of 8 source selection other than the method designated by the 9 Board for that category of service only when justified in 10 writing to the Board and approved by the Board in advance of 11 the award. 12 Section 35-20. Prequalification. The Board shall 13 develop appropriate prequalification standards for each 14 category of professional and artistic services identified by 15 the Board under subsection (b) of Section 35-15. 16 Section 35-25. Service details. Before entering into a 17 contract for professional or artistic services, a State 18 agency shall detail in writing: 19 (1) the need for the service; 20 (2) the qualifications of the contractor; and 21 (3) a plan for post performance evaluation. 22 Section 35-30. Contract contents. A contract for 23 professional or artistic services other than a public 24 performance by an artistic performer shall include: 25 (1) a description of the goal to be achieved; 26 (2) the services to be performed; 27 (3) the duration of the contract with a schedule of 28 delivery dates when applicable; 29 (4) the rate of remuneration; and 30 (5) the maximum price. -38- LRB9002467DNkb 1 Section 35-35. Subcontractors. 2 (a) Use specified. Any contract for professional or 3 artistic services shall state whether the services of a 4 subcontractor will be used. The contract shall include the 5 names and addresses of all subcontractors and the anticipated 6 amount of money that they will receive under the contract. 7 (b) Amendment. If at any time a contractor for 8 professional or artistic services that had not intended to 9 use the services of a subcontractor decides to use a 10 subcontractor, the contractor and the State agency shall file 11 an amendment to the original contract with the Comptroller 12 stating the names and addresses of all subcontractors and the 13 anticipated amount of money that they will receive under the 14 original contract. 15 ARTICLE 40 16 REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES 17 Section 40-5. Applicability. All leases for real 18 property or capital improvements, including office and 19 storage space, buildings, and other facilities for State 20 agencies, shall be procured in accordance with the provisions 21 of this Article. 22 Section 40-10. Authority. State purchasing officers 23 shall have the authority to procure leases for real property 24 or capital improvements, except as that authority may be 25 limited by the Board or delegated by the State purchasing 26 officer in accordance with Section 10-15. 27 Section 40-15. Method of source selection. 28 (a) Request for information. Except as provided in 29 subsections (b) and (c), all State contracts for leases of 30 real property or capital improvements shall be awarded by a -39- LRB9002467DNkb 1 request for information process in accordance with Section 2 40-20. 3 (b) Other methods. A request for information process 4 need not be used in procuring any of the following leases: 5 (1) Property of less than 10,000 square feet. 6 (2) Rent of less than $100,000 per year. 7 (3) Duration of less than one year that cannot be 8 renewed. 9 (4) Specialized space available at only one 10 location. 11 (c) Leases with governmental units. Leases with other 12 governmental units may be negotiated without using the 13 request for information process when deemed by the Board to 14 be in the best interest of the State. 15 Section 40-20. Request for information. 16 (a) Conditions for use. Leases shall be procured by 17 request for information except as otherwise provided in 18 Section 40-15. 19 (b) Form. A request for information shall be issued and 20 shall include: 21 (1) the type of property to be leased; 22 (2) the proposed uses of the property; 23 (3) the duration of the lease; 24 (4) the preferred location of the property; and 25 (5) a general description of the configuration 26 desired. 27 (c) Public notice. Public notice of the request for 28 information for the availability of real property to lease 29 shall be published in the Illinois Procurement Bulletin at 30 least 30 days before the date set forth in the request for 31 receipt of responses and shall also be published in similar 32 manner in a newspaper of general circulation in the community 33 or communities where the using agency is seeking space. -40- LRB9002467DNkb 1 (d) Response. The request for information response 2 shall consist of written information sufficient to show that 3 the respondent can meet minimum criteria set forth in the 4 request. State purchasing officers may enter into 5 discussions with respondents for the purpose of clarifying 6 State needs and the information supplied by the respondents. 7 On the basis of the information supplied and discussions, if 8 any, a State purchasing officer shall make a written 9 determination identifying the responses that meet the minimum 10 criteria set forth in the request for information. 11 Negotiations shall be entered into with all qualified 12 respondents for the purpose of securing a lease that is in 13 the best interest of the State. A written report of the 14 negotiations shall be retained in the lease files and shall 15 include the reasons for the final selection. All leases 16 shall be reduced to writing and filed in accordance with the 17 provisions of Section 20-80. 18 Section 40-25. Length of leases. 19 (a) Maximum term. Leases shall be for a term not to 20 exceed 10 years and shall include a termination option in 21 favor of the State after 5 years. 22 (b) Renewal. Leases may include a renewal option. An 23 option to renew may be exercised only when a State purchasing 24 officer determines in writing that renewal is in the best 25 interest of the State. 26 (c) Subject to appropriation. All leases shall recite 27 that they are subject to termination and cancellation in any 28 year for which the General Assembly fails to make an 29 appropriation to make payments under the terms of the lease. 30 Section 40-30. Purchase option. Initial leases of all 31 space in entire, free-standing buildings shall include an 32 option to purchase exerciseable by the State. -41- LRB9002467DNkb 1 Section 40-35. Rent without occupancy. Except when 2 deemed by the Board to be in the best interest of the State, 3 no State agency may incur rental obligations before occupying 4 the space rented. 5 Section 40-40. Local site preferences. Upon the request 6 of the chief executive officer of a unit of local government, 7 leasing preferences may be given to sites located in 8 enterprise zones, tax increment districts, or redevelopment 9 districts. 10 ARTICLE 45 11 PREFERENCES 12 Section 45-5. Procurement preferences. To promote 13 business and employment opportunities in Illinois, 14 procurement preferences are established and shall be 15 applicable to any procurement made under this Code. 16 Section 45-10. Resident bidders. 17 (a) Amount of preference. When a contract is to be 18 awarded to the lowest responsible bidder, a resident bidder 19 shall be allowed a preference as against a non-resident 20 bidder from any state that gives or requires a preference to 21 bidders from that state. The preference shall be equal to 22 the preference given or required by the state of the 23 non-resident bidder. Further, if only non-resident bidders 24 are bidding, the purchasing agency is within its right to 25 specify that Illinois labor and manufacturing locations be 26 used as a part of the manufacturing process, if applicable. 27 This specification may be negotiated as part of the 28 solicitation process. 29 (b) Residency. A resident bidder is a person authorized 30 to transact business in this State and having a bona fide -42- LRB9002467DNkb 1 establishment for transacting business within this State 2 where it was actually transacting business on the date when 3 any bid for a public contract is first advertised or 4 announced. A resident bidder includes a foreign corporation 5 duly authorized to transact business in this State that has a 6 bona fide establishment for transacting business within this 7 State where it was actually transacting business on the date 8 when any bid for a public contract is first advertised or 9 announced. 10 (c) Federal funds. This Section does not apply to any 11 contract for any project as to which federal funds are 12 available for expenditure when its provisions may be in 13 conflict with federal law or federal regulation. 14 Section 45-15. Soybean oil-based ink. Contracts 15 requiring the procurement of printing services shall specify 16 the use of soybean oil-based ink unless a State purchasing 17 officer determines that another type of ink is required to 18 assure high quality and reasonable pricing of the printed 19 product. 20 Section 45-20. Recycled materials. When a public 21 contract is to be awarded to the lowest responsible bidder, 22 an otherwise qualified bidder who will fulfill the contract 23 through the use of products made of recycled materials may, 24 on a pilot basis or in accordance with a pilot study, be 25 given preference over other bidders unable to do so, provided 26 that the cost included in the bid of products made of 27 recycled materials is not more than 10% greater than the cost 28 of products not made of recycled materials. 29 Section 45-25. Recyclable paper. All paper purchased 30 for use by State agencies must be recyclable paper unless 31 recyclable paper cannot be used to meet the requirements of -43- LRB9002467DNkb 1 the State agencies. State agencies shall determine their 2 paper requirements to allow the use of recyclable paper 3 whenever possible, including without limitation using plain 4 paper rather than colored paper that is not recyclable. 5 Section 45-30. Correctional industries. All articles, 6 materials, industry related services, food stuffs, and 7 supplies that are produced or manufactured by persons 8 confined in institutions and facilities of the Department of 9 Corrections shall be given preference by purchasing agencies 10 procuring those items. 11 Section 45-35. Sheltered workshops for the severely 12 handicapped. 13 (a) Qualification. Supplies and services may be 14 procured without advertising or calling for bids from any 15 qualified not-for-profit agency for the severely handicapped 16 that: 17 (1) complies with Illinois laws governing private 18 not-for-profit organizations; 19 (2) is certified as a sheltered workshop by the 20 Wage and Hour Division of the United States Department of 21 Labor; and 22 (3) meets the Illinois Department of Rehabilitation 23 Services or the Department of Human Services as successor 24 to the Illinois Department of Rehabilitation Services 25 just standards for rehabilitation facilities. 26 (b) Participation. To participate, the not-for-profit 27 agency must have indicated an interest in providing the 28 supplies and services, must meet the specifications and needs 29 of the using agency, and must set a fair market price. 30 (c) Committee. There is created within the Department 31 of Central Management Services a committee to facilitate the 32 purchase of products and services of persons so severely -44- LRB9002467DNkb 1 handicapped by a physical or mental disability that they 2 cannot engage in normal competitive employment. The 3 committee shall consist of the Director of Central Management 4 Services, the Director of Mental Health and Developmental 5 Disabilities until July 1, 1997, the Director of 6 Rehabilitation Services until July 1, 1997, the Director of 7 Human Services, on or after July 1, 1997, and 2 8 representatives from private business and 2 public members 9 all appointed by the Governor who are knowledgeable in the 10 needs and concerns of rehabilitation facilities in Illinois. 11 The public members shall serve 2 year terms, commencing upon 12 appointment and every 2 years thereafter. A public member 13 may be reappointed, and vacancies may be filled by 14 appointment for the completion of the term. The members 15 shall serve without compensation but shall be reimbursed for 16 expenses at a rate equal to that of State employees on a per 17 diem basis by the Department of Central Management Services. 18 All members shall be entitled to vote on issues before the 19 committee. 20 The committee shall have the following powers and duties: 21 (1) To request from any State agency information as 22 to product specification and service requirements in 23 order to carry out its purpose. 24 (2) To meet quarterly or more often as necessary to 25 carry out its purposes. 26 (3) To request a quarterly report from each 27 participating qualified not-for-profit agency for the 28 severely handicapped describing the volume of sales for 29 each product or service sold under this Section. 30 (4) To prepare a report for the Governor annually. 31 (5) To prepare a publication that lists all 32 supplies and services currently available from any 33 qualified not-for-profit agency for the severely 34 handicapped. This list and any revisions shall be -45- LRB9002467DNkb 1 distributed to all purchasing agencies. 2 (6) To encourage diversity in supplies and services 3 provided by qualified not-for-profit agencies for the 4 severely handicapped and discourage unnecessary 5 duplication or competition among facilities. 6 (7) To develop guidelines to be followed by 7 qualifying agencies for participation under the 8 provisions of this Section. The guidelines shall be 9 developed within 6 months after the effective date of 10 this Code and made available on a nondiscriminatory basis 11 to all qualifying agencies. 12 (8) To review all bids submitted under the 13 provisions of this Section and reject any bid for any 14 purchase that is determined to be substantially more than 15 the purchase would have cost had it been competitively 16 bid. 17 (d) Former committee. The committee created under 18 subsection (c) shall replace the committee created under 19 Section 7-2 of the Illinois Purchasing Act, which shall 20 continue to operate until the appointments under subsection 21 (c) are made. 22 Section 45-40. Gas mileage. 23 (a) Specification. Contracts for the purchase or lease 24 of new passenger automobiles, other than station wagons, 25 vans, four-wheel drive vehicles, emergency vehicles, and 26 police and fire vehicles, shall specify the procurement of a 27 model that, according to the most current mileage study 28 published by the U.S. Environmental Protection Agency, can 29 achieve at least the minimum average fuel economy in miles 30 per gallon imposed upon manufacturers of vehicles under Title 31 V of The Motor Vehicle Information and Cost Savings Act. 32 (b) Exemptions. The State purchasing officer may exempt 33 procurements from the requirement of subsection (a) when -46- LRB9002467DNkb 1 there is a demonstrated need, submitted in writing, for an 2 automobile that does not meet the minimum average fuel 3 economy standards. The Board shall promulgate rules for 4 determining need consistent with the intent of this Section. 5 Section 45-45. Small businesses. 6 (a) Set-asides. The Board has authority to designate as 7 small business set-asides a fair proportion of construction, 8 supply, and service contracts for award to small businesses 9 in Illinois. Advertisements for bids or offers for those 10 contracts shall specify designation as small business 11 set-asides. In awarding the contracts, only bids or offers 12 from qualified small businesses shall be considered. 13 (b) Small business. "Small business" means a business 14 that is independently owned and operated and that is not 15 dominant in its field of operation. The Board shall 16 establish a detailed definition by rule, using in addition to 17 the foregoing criteria other criteria, including the number 18 of employees and the dollar volume of business. When 19 computing the size status of a bidder, annual sales and 20 receipts of the bidder and all of its affiliates shall be 21 included. The maximum number of employees and the maximum 22 dollar volume that a small business may have under the rules 23 promulgated by the Board may vary from industry to industry 24 to the extent necessary to reflect differing characteristics 25 of those industries, subject to the following limitations: 26 (1) No wholesale business is a small business if 27 its annual sales for its most recently completed fiscal 28 year exceed $7,500,000. 29 (2) No retail business or business selling services 30 is a small business if its annual sales and receipts 31 exceed $1,500,000. 32 (3) No manufacturing business is a small business 33 if it employs more than 250 persons. -47- LRB9002467DNkb 1 (4) No construction business is a small business if 2 its annual sales and receipts exceed $3,000,000. 3 (c) Fair proportion. For the purpose of subsection (a), 4 a fair proportion of construction contracts shall be no less 5 than 25% nor more than 40% of the annual total contracts for 6 construction. 7 (d) Withdrawal of designation. A small business 8 set-aside designation may be withdrawn by the purchasing 9 agency when deemed in the best interests of the State. Upon 10 withdrawal, all bids or offers shall be rejected, and the 11 bidders or offerors shall be notified of the reason for 12 rejection. The contract shall then be awarded in accordance 13 with this Code without the designation of small business 14 set-aside. 15 (e) Small business specialist. The Board shall 16 designate a State purchasing officer who will be responsible 17 for engaging an experienced contract negotiator to serve as 18 its small business specialist, whose duties shall include: 19 (1) Compiling and maintaining a comprehensive 20 bidders list of small businesses. In this duty, he or 21 she shall cooperate with the Federal Small Business 22 Administration in locating potential sources for various 23 products and services. 24 (2) Assisting small businesses in complying with 25 the procedures for bidding on State contracts. 26 (3) Examining requests from State agencies for the 27 purchase of property or services to help determine which 28 invitations to bid are to be designated small business 29 set-asides. 30 (4) Making recommendations to the Board for the 31 simplification of specifications and terms in order to 32 increase the opportunities for small business 33 participation. 34 (5) Assisting in investigations by purchasing -48- LRB9002467DNkb 1 agencies to determine the responsibility of bidders on 2 small business set-asides. 3 (f) Small business annual report. The State purchasing 4 officer designated under subsection (e) shall annually before 5 December 1 report in writing to the General Assembly 6 concerning the awarding of contracts to small businesses. 7 The report shall include the total value of awards made in 8 the preceding fiscal year under the designation of small 9 business set-aside. 10 The requirement for reporting to the General Assembly 11 shall be satisfied by filing copies of the report as required 12 by Section 3.1 of the General Assembly Organization Act. 13 Section 45-50. Illinois agricultural products. In 14 awarding contracts requiring the procurement of agricultural 15 products, preference may be given to an otherwise qualified 16 bidder or offeror who will fulfill the contract through the 17 use of agricultural products grown in Illinois. 18 Section 45-55. Corn-based plastics. In awarding 19 contracts requiring the procurement of plastic products, 20 preference may be given to an otherwise qualified bidder or 21 offeror who will fulfill the contract through the use of 22 plastic products made from Illinois corn by-products. 23 Section 45-60. Vehicles powered by agricultural 24 commodity-based fuel. In awarding contracts requiring the 25 procurement of vehicles, preference may be given to an 26 otherwise qualified bidder or offeror who will fulfill the 27 contract through the use of vehicles powered by ethanol 28 produced from Illinois corn or biodiesel fuels produced from 29 Illinois soybeans. 30 Section 45-65. Additional preferences. This Code is -49- LRB9002467DNkb 1 subject to applicable provisions of: 2 (1) the Public Purchases in Other States Act; 3 (2) the Illinois Mined Coal Act; 4 (3) the Steel Products Procurement Act; 5 (4) the Veterans Preference Act; and 6 (5) the Business Enterprise for Minorities, 7 Females, and Persons with Disabilities Act. 8 ARTICLE 50 9 PROHIBITIONS, RESTRICTIONS, AND PENALTIES 10 Section 50-5. Bribery. 11 (a) Prohibition. No person or business shall be awarded 12 a contract or subcontract under this Code who: 13 (1) has been convicted under the laws of Illinois 14 or any other state of bribery or attempting to bribe an 15 officer or employee of the State of Illinois or any other 16 state in that officer's or employee's official capacity; 17 or 18 (2) has made an admission of guilt of that conduct 19 that is a matter of record but has not been prosecuted 20 for that conduct. 21 (b) Businesses. No business shall be barred from 22 contracting with any unit of State or local government as a 23 result of a conviction under this Section of any employee or 24 agent of the business if the employee or agent is no longer 25 employed by the business and: 26 (1) the business has been finally adjudicated not 27 guilty; or 28 (2) the business demonstrates to the governmental 29 entity with which it seeks to contract, and that entity 30 finds that the commission of the offense was not 31 authorized, requested, commanded, or performed by a 32 director, officer, or high managerial agent on behalf of -50- LRB9002467DNkb 1 the business as provided in paragraph (2) of subsection 2 (a) of Section 5-4 of the Criminal Code of 1961. 3 (c) Conduct on behalf of business. For purposes of this 4 Section, when an official, agent, or employee of a business 5 committed the bribery or attempted bribery on behalf of the 6 business and in accordance with the direction or 7 authorization of a responsible official of the business, the 8 business shall be chargeable with the conduct. 9 (d) Certification. Every bid submitted to and contract 10 executed by the State shall contain a certification by the 11 contractor that the contractor is not barred from being 12 awarded a contract or subcontract under this Section. A 13 contractor who makes a false statement, material to the 14 certification, commits a Class 3 felony. 15 Section 50-10. Felons. Unless otherwise provided, no 16 person or business convicted of a felony shall do business 17 with the State of Illinois or any State agency from the date 18 of conviction until one year after the date of completion of 19 the sentence for that felony, unless no person held 20 responsible by a prosecutorial office for the facts upon 21 which the conviction was based continues to have any 22 involvement with the business. 23 Section 50-15. Conflicts of interest. 24 (a) Prohibition. It is unlawful for any person holding 25 an elective office in this State, holding a seat in the 26 General Assembly, or appointed to or employed in any of the 27 offices or agencies of State government, or who is an officer 28 or employee of the Capital Development Board or the Illinois 29 Toll Highway Authority, or who is the spouse or minor child 30 of any such person to have or acquire any contract, or any 31 direct pecuniary interest in any contract therein, whether 32 for stationery, printing, paper, or any services, materials, -51- LRB9002467DNkb 1 or supplies, that will be wholly or partially satisfied by 2 the payment of funds appropriated by the General Assembly of 3 the State of Illinois or in any contract of the Capital 4 Development Board or the Illinois Toll Highway Authority. 5 (b) Interests. It is unlawful for any firm, 6 partnership, association, or corporation in which any person 7 listed in subsection (a) is entitled to receive more than 7 8 1/2%, or above a specific dollar amount established by rule 9 of the Board, of the total distributable income to have or 10 acquire any such contract or direct pecuniary interest 11 therein. 12 (c) Combined interests. It is unlawful for any firm, 13 partnership, association, or corporation in which any person 14 listed in subsection (a) together with his or her spouse or 15 minor children is entitled to receive more than 15%, in the 16 aggregate, of the total distributable income to have or 17 acquire any such contract or direct pecuniary interest 18 therein. 19 (d) Securities. Nothing in this Section invalidates the 20 provisions of any bond or other security previously offered 21 or to be offered for sale or sold by or for the State of 22 Illinois. 23 (e) Prior interests. This Section does not affect the 24 validity of any contract made between the State and an 25 officer or employee of the State or member of the General 26 Assembly, his or her spouse, minor child or any combination 27 of those persons if that contract was in existence before his 28 or her election or employment as an officer, member, or 29 employee. The contract is void, however, if it cannot be 30 completed within 6 months after the officer, member, or 31 employee takes office or is employed. 32 (f) Exceptions. 33 (1) Public aid payments. This Section does not 34 apply to payments made for a public aid recipient. -52- LRB9002467DNkb 1 (2) Teaching. This Section does not apply to a 2 contract for personal services as a teacher or school 3 administrator between a member of the General Assembly or 4 his or her spouse, or a State officer or employee or his 5 or her spouse, and any school district, public community 6 college district, the University of Illinois, Southern 7 Illinois University, or any institution under the control 8 of the Board of Governors of State Colleges and 9 Universities or under the control of the Board of 10 Regents. 11 (3) Ministerial duties. This Section does not 12 apply to a contract for personal services of a wholly 13 ministerial character, including but not limited to 14 services as a laborer, clerk, typist, stenographer, page, 15 bookkeeper, receptionist, or telephone switchboard 16 operator, made by a spouse or minor child of an elective 17 or appointive State officer or employee or of a member of 18 the General Assembly. 19 (4) Child and family services. This Section does 20 not apply to payments made to a member of the General 21 Assembly, a State officer or employee, his or her spouse 22 or minor child acting as a foster parent, homemaker, 23 advocate, or volunteer for or in behalf of a child or 24 family served by the Department of Children and Family 25 Services. 26 (f) Penalty. Any person convicted of a violation of 27 this Section is guilty of a business offense and shall be 28 fined not more than $2,500. 29 Section 50-20. Negotiations. 30 (a) Prohibition. Except as provided in Section 50-25, 31 it is unlawful for any person employed in or on a continual 32 contractual relationship with any of the offices or agencies 33 of State government to participate in contract negotiations -53- LRB9002467DNkb 1 on behalf of that office or agency with any firm, 2 partnership, association, or corporation with whom that 3 person has a contract for future employment or is negotiating 4 concerning possible future employment. 5 (b) Penalty. Any person violating this Section is 6 guilty of a business offense and shall be fined not more than 7 $2,500. 8 Section 50-25. Exemptions. With the approval of the 9 administrative head of the State agency involved, the 10 Governor may exempt named individuals from the prohibitions 11 of Sections 50-15 and 50-20 when, in his or her judgment, the 12 public interest in having the individual in the service of 13 the State outweighs the public policy evidenced in those 14 Sections. An exemption is not effective unless the Governor 15 files with the Secretary of State and Comptroller a statement 16 naming the individual, setting forth all the pertinent facts 17 that would make those Sections applicable, setting forth the 18 reasons for the exemption, and declaring that the individual 19 is exempted from those Sections. The Governor shall publish 20 notice of the exemption in the Illinois Procurement Bulletin. 21 Section 50-30. Inducement. Any person who offers or 22 pays any money or other valuable thing to any person to 23 induce him or her not to bid for a State contract or as 24 recompense for not having bid on a State contract is guilty 25 of a Class 4 felony. Any person who accepts any money or 26 other valuable thing for not bidding for a State contract or 27 who withholds a bid in consideration of the promise for the 28 payment of money or other valuable thing is guilty of a Class 29 4 felony. 30 Section 50-35. Former employees. Former State employees 31 whose duties with the State were directly related to -54- LRB9002467DNkb 1 procurement are prohibited from doing business that is 2 substantially similar to their prior duties with the State 3 agency formerly employing them for a period of one year from 4 the termination of their employment with the State. The 5 Board shall by rule define the nature of procurement 6 activities that are subject to this prohibition and the 7 meaning of "substantially similar" as it is used in this 8 Section. The Board shall not be authorized to grant any 9 waiver or exemption from this prohibition. 10 Section 50-40. Disclosures by contractors and bidders. 11 Each person who submits a bid in relation to any purchase in 12 excess of $5,000 under this Code must disclose in his or her 13 application to be placed on a bidder list the name of each 14 individual having a beneficial interest of more than 7 1/2% 15 in the bidding enterprise and, if the bidder is a 16 corporation, the names of all its officers and directors. 17 The bidder shall notify the purchasing agency of any changes 18 in its ownership or officers at the time the changes occur. 19 Section 50-45. Disclosures by State employees and 20 officers. 21 (a) Contract negotiations. Any person participating in 22 the making of a contract, or who enters into a contract, on 23 behalf of an office or agency of State government with the 24 knowledge that his or her spouse, child, parent, or sibling 25 is entitled to receive more than 7 1/2% of the total 26 distributable income of the other contracting party, or in 27 which that child, parent, or sibling, together with his or 28 her spouse or minor children, is entitled to receive more 29 than 15%, in the aggregate, of the total distributable income 30 of the other contracting party, shall immediately file a 31 written statement setting out the facts of the transaction. 32 The statement shall be filed with the administrative head of -55- LRB9002467DNkb 1 the office or agency and be kept available for public 2 inspection. A person failing to file a statement or filing a 3 false statement is guilty of a business offense and shall be 4 fined not more than $2,500. Any such contract is contrary to 5 public policy and may be voided at the option of the State 6 unless it is shown to be in the best interests of the State. 7 Moreover, if fraud or substantial monetary harm to the State 8 results from the nepotic element of the transaction, the 9 government officer or employee involved in the element is 10 guilty of a Class A misdemeanor. 11 (b) Other positions and contracts. Each State employee 12 is responsible for annually notifying his or her State 13 employer of contracts held by the employee or by the 14 employee's spouse and minor children and of other payroll 15 positions held by the employee. The State employee shall 16 notify his or her employer of any changes in this 17 notification at the time the changes occur. 18 Section 50-50. Identical bids. Every State agency that 19 obtains 2 or more identical bids under this Code shall inform 20 the Attorney General in writing of those facts within 30 days 21 after the disposition of all bids received in response for 22 bids, whether by the awarding of the contract or other 23 action. The Attorney General shall prescribe the form and 24 manner of notification. 25 Section 50-55. Reporting of anticompetitive practices. 26 When for any reason collusion or other anticompetitive 27 practices are suspected among any bidders or offerors, a 28 notice of the relevant facts shall be transmitted to the 29 Attorney General. 30 Section 50-60. Use of confidential information. It is 31 unlawful for any current or former elected or appointed State -56- LRB9002467DNkb 1 official or State employee to knowingly use confidential 2 information available only by virtue of that office or 3 employment for actual or anticipated personal gain or for the 4 actual or anticipated personal gain of another person. 5 Section 50-65. Supply inventory. Every State agency 6 shall inventory or stock no more than a 12-month need of 7 equipment, supplies, commodities, articles, and other items, 8 except as otherwise authorized by the State agency's 9 regulations. Every State agency shall periodically review 10 its inventory to ensure compliance with this Section. If, 11 upon review, an agency determines it has more than a 12-month 12 supply of any equipment, supplies, commodities, or other 13 items, the agency shall undertake transfers of the 14 oversupplied items or other action necessary to maintain 15 compliance with this Section. This Section shall not apply 16 to lifesaving medications, mechanical spare parts, and items 17 for which the supplier requires a minimum order stipulation. 18 Section 50-70. Void contracts. If any contract is 19 entered into or purchase or expenditure of funds is made in 20 violation of this Code, the rules promulgated under this 21 Code, or any other law, the contract may be declared void by 22 the purchasing agency or may be ratified and affirmed, 23 provided the purchasing agency determines that ratification 24 is in the best interests of the State. If the contract is 25 ratified and affirmed, it shall be without prejudice to the 26 State's rights to any appropriate damages. 27 Section 50-75. Suspension and debarment. Any contractor 28 may be suspended for violation of this Code or for failure to 29 conform to specifications or terms of delivery. Suspension 30 may be for a period of up to one year, or longer if no 31 procurement for which the contractor was qualified to provide -57- LRB9002467DNkb 1 occurred within that period. Contractors may be debarred in 2 accordance with rules promulgated by the Board or as 3 otherwise provided by law. 4 Section 50-80. Additional provisions. This Code is 5 subject to applicable provisions of the following Acts: 6 (1) Article 33E of the Criminal Code of 1961; 7 (2) the Illinois Human Rights Act; 8 (3) the Discriminatory Club Act; 9 (4) the Illinois Governmental Ethics Act; 10 (5) the State Prompt Payment Act; 11 (6) the Public Officer Prohibited Activities Act; 12 and 13 (7) the Drug Free Workplace Act. 14 Section 50-85. Other violations. Except as otherwise 15 provided in this Code, whoever violates this Code or the 16 rules promulgated under it is guilty of a Class A 17 misdemeanor. 18 ARTICLE 55 19 MISCELLANEOUS PROVISIONS 20 Section 55-5. References to repealed provisions. After 21 the effective date of this Act, all references to the 22 provisions of law repealed by this Act shall be construed, 23 where necessary and appropriate, as references to the 24 Illinois Procurement Code. 25 Section 55-10. Exclusive exercise of powers. On and 26 after 120 days following the effective date of this Act, the 27 powers granted under this Code shall be exercised exclusively 28 as granted under this Code, and no State agency may 29 concurrently exercise any such power, unless specifically -58- LRB9002467DNkb 1 authorized otherwise by a later enacted law. This Code is 2 not intended to impair any contract entered into before the 3 effective date of this Act. 4 Section 55-15. Severability. If any provision of this 5 Code or any application of it to any person or circumstance 6 is held invalid, that invalidity shall not affect other 7 provisions or applications of this Code that can be given 8 effect without the invalid provision or application, and to 9 this end the provisions of this Code are declared to be 10 severable. 11 ARTICLE 95 12 AMENDATORY AND REPEALING PROVISIONS 13 Section 95-5. The Governmental Joint Purchasing Act is 14 amended by changing Section 3 as follows: 15 (30 ILCS 525/3) (from Ch. 85, par. 1603) 16 Sec. 3. Any agreement of the governmental units which 17 desire to make joint purchases, one of the governmental units 18 shall conduct the letting of bids. Where the State of 19 Illinois is a party to the joint purchase agreement, the 20 Department of Central Management Services shall conduct the 21 letting of bids. Expenses of such bid-letting may be shared 22 by the participating governmental units in proportion to the 23 amount of personal property, supplies or services each unit 24 purchases. 25 When the State of Illinois is a party to the joint 26 purchase agreement, the acceptance of bids shall be in 27 accordance with the Illinois Procurement Code and rules 28 promulgated under that Code. When the State of Illinois is 29 not a party to the joint purchase agreement, the acceptance 30 of bids shall be governed by the agreement. -59- LRB9002467DNkb 1 The personal property, supplies or services involved 2 shall be distributed or rendered directly to each 3 governmental unit taking part in the purchase. The person 4 selling the personal property, supplies or services may bill 5 each governmental unit separately for its proportionate share 6 of the cost of the personal property, supplies or services 7 purchased. 8 The credit or liability of each governmental unit shall 9 remain separate and distinct. Disputes between bidders and 10 governmental units shall be resolved between the immediate 11 parties. 12 (Source: P.A. 87-860.) 13 (15 ILCS 405/11 rep.) 14 (15 ILCS 405/15 rep.) 15 Section 95-10. The State Comptroller Act is amended by 16 repealing Sections 11 and 15. 17 (20 ILCS 5/29 rep.) 18 (20 ILCS 5/30 rep.) 19 (20 ILCS 405/35.7b rep.) 20 (20 ILCS 405/67.01 rep.) 21 (20 ILCS 405/67.04 rep.) 22 Section 95-15. The Civil Administrative Code of Illinois 23 is amended by repealing Sections 29, 30, 35.7b, 67.01, and 24 67.04. 25 (20 ILCS 1015/13 rep.) 26 Section 95-20. The Public Employment Office Act is 27 amended by repealing Section 13. 28 (30 ILCS 505/Act rep.) 29 Section 95-25. The Illinois Purchasing Act is repealed. -60- LRB9002467DNkb 1 (30 ILCS 510/Act rep.) 2 Section 95-30. The State Paper Purchasing Act is 3 repealed. 4 (30 ILCS 515/Act rep.) 5 Section 95-35. The State Printing Contracts Act is 6 repealed. 7 (30 ILCS 615/Act rep.) 8 Section 95-40. The State Vehicle Mileage Act is 9 repealed. 10 ARTICLE 99 11 EFFECTIVE DATE 12 Section 99-5. Effective date. This Act takes effect upon 13 becoming law. -61- LRB9002467DNkb 1 INDEX 2 Statutes amended in order of appearance 3 30 ILCS 525/3 from Ch. 85, par. 1603 4 15 ILCS 405/11 rep. 5 15 ILCS 405/15 rep. 6 20 ILCS 5/29 rep. 7 20 ILCS 5/30 rep. 8 20 ILCS 405/35.7b rep. 9 20 ILCS 405/67.01 rep. 10 20 ILCS 405/67.04 rep. 11 20 ILCS 1015/13 rep. 12 30 ILCS 505/Act rep. 13 30 ILCS 510/Act rep. 14 30 ILCS 515/Act rep. 15 30 ILCS 615/Act rep.