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90_HB3809 SEE INDEX Creates the Illinois Procurement Code. 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 promulgate procurement policies and rules. Provides for an Inspector General appointed by the Governor to oversee implementation of the Board's policies. Grants general procurement and rulemaking authority to 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. Makes competitive sealed bidding the required method of source selection, with exceptions for procurements of a small, emergency, or sole source nature. Provides for procurement preferences, contract requirements, auditing, prohibitions, and penalties. Amends the Governmental Joint Purchasing Act, the Civil Administrative Code of Illinois, and the Personnel Code and repeals various Acts and Sections of Acts governing State purchasing. Creates the Human Services Delivery Act. Effective immediately, in part, and January 1, 1999, in part. LRB9008460JMsb LRB9008460JMsb 1 AN ACT concerning State purchases and delivery of 2 services. 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. 15 (a) This Code applies only to procurements for which 16 contractors were first solicited on or after January 1, 1999. 17 This Code shall not be construed to affect or impair any 18 contract, or any provision of a contract, entered into prior 19 to the implementation date of this Code as described in 20 Article 99, including but not limited to, any covenant 21 entered into with respect to any revenue bonds or similar 22 instruments. 23 (b) This Code applies regardless of the source of the 24 funds with which the contracts are paid, including federal 25 assistance moneys. This Code does not apply to: (1) 26 contracts between the State and its political subdivisions or 27 other governments, or between State governmental bodies 28 except as specifically provided in this Code; (2) grants; (3) 29 purchase of care; (4) contracts for personal services as an -2- LRB9008460JMsb 1 employee rather than as an independent contractor; or (5) 2 collective bargaining contracts. Nothing in this Code or in 3 rules promulgated hereunder shall prevent any State 4 governmental body from complying with the terms and 5 conditions of any grant, gift, bequest, or cooperative 6 agreement. 7 Section 1-15. Definitions. For the purposes of this 8 Code, the words set forth in the following Sections of this 9 Article have the meanings set forth in those Sections. 10 Section 1-15.03. Bidder or offeror. "Bidder" or 11 "offeror" means any person who submits a bid, proposal, or 12 other type of offer. These terms may be used 13 interchangeably. 14 Section 1-15.05. Board. "Board" means the Procurement 15 Policy Board. 16 Section 1-15.10. Business. "Business" means any 17 corporation, partnership, individual, sole proprietorship, 18 joint stock company, joint venture, or other private legal 19 entity. 20 Section 1-15.17. Concession. "Concession" means any use 21 of State property, primarily real estate, by a party not 22 associated with State government, whether or not a charge is 23 levied for that use. 24 Section 1-15.20. Construction. "Construction" means 25 building, altering, repairing, improving, or demolishing any 26 public structure or building, or making improvements of any 27 kind to public real property. Construction does not include 28 the routine operation, routine repair, or routine maintenance -3- LRB9008460JMsb 1 of existing structures, buildings, or real property. 2 Section 1-15.25. Construction agency. "Construction 3 agency" means the Capital Development Board for construction 4 or remodeling of State-owned facilities; the Illinois 5 Department of Transportation for construction or maintenance 6 of roads, highways, bridges, and airports; the Illinois Toll 7 Highway Authority for construction or maintenance of toll 8 highways; and any other State agency entering into 9 construction contracts as authorized by law or by delegation 10 from the Procurement Policy Board. 11 Section 1-15.30. Contract. "Contract" means all types 12 of State agreements, regardless of what they may be called, 13 for the procurement or use of goods, services, including 14 professional or artistic services, construction, or real 15 property leases, and including master contracts and contracts 16 for financing through use of installment or lease-purchase 17 arrangements. 18 Section 1-15.35. Cost-reimbursement contract. 19 "Cost-reimbursement contract" means a contract under which a 20 contractor is reimbursed for costs that are allowable and 21 allocable in accordance with the contract terms and the 22 provisions of this Code, and a fee, if any. 23 Section 1-15.42. Goods. "Goods" means all personal 24 property, including but not limited to, equipment, materials, 25 printing, and insurance, and the financing of those goods. 26 Section 1-15.44. Grant. "Grant" means the furnishing by 27 the State of assistance, whether financial or otherwise, to 28 any person to support a program authorized by law. It does 29 not include an award, the primary purpose of which is to -4- LRB9008460JMsb 1 procure an end product for the direct benefit or use of the 2 State governmental body making the grant, whether in the form 3 of goods, services, or construction; a contract resulting 4 from such an award is not a grant but a procurement contract. 5 Section 1-15.47. Inspector General. "Inspector General" 6 means that person appointed by the Governor as Inspector 7 General for Procurement under Section 5-10. 8 Section 1-15.50. Invitation for bids. "Invitation for 9 bids" means the process by which a purchasing agency requests 10 information from bidders, including all documents, whether 11 attached or incorporated by reference, used for soliciting 12 bids. 13 Section 1-15.53. Negotiation. "Negotiation" means the 14 process of selecting a contractor other than by competitive 15 sealed bids, or multi-step sealed bidding, whereby a 16 purchasing agency can establish any and all terms and 17 conditions of a procurement contract by discussion with one 18 or more prospective contractors. 19 Section 1-15.55. Person. "Person" means any business, 20 public or private corporation, partnership, individual, 21 union, committee, club, unincorporated association or other 22 organization or group of individuals, or other legal entity. 23 Section 1-15.56. Personal services. "Personal services" 24 means services rendered to the State by an individual, as an 25 employee and not an independent contractor, and for whom 26 federal income taxes are withheld. 27 Section 1-15.57. Price. "Price" means any dollar 28 related factor relevant to the State, including but not -5- LRB9008460JMsb 1 limited to, discounts and transportation, and where specified 2 in purchase specifications or descriptions, "price" means 3 total or life cycle costs. 4 Section 1-15.58. Procurement. "Procurement" means 5 buying, renting, leasing, licensing, or otherwise acquiring 6 any goods, services, construction, or real estate lease. It 7 also includes all functions that pertain to the obtaining 8 same, including describing requirements, selection and 9 soliciting sources, preparing and awarding contracts, and all 10 phases of contract administration. 11 Section 1-15.60. Professional and artistic services. 12 "Professional and artistic services" means those services 13 provided under contract to a State agency by a person or 14 business, acting as an independent contractor, qualified by 15 education, experience, and technical ability to advise and 16 assist in solving specific management and programmatic 17 problems involving the organization, planning, direction, 18 control, and operation of State agencies. 19 Section 1-15.65. Purchase description. "Purchase 20 description" means the words used in a solicitation to 21 describe the supplies, services, professional or artistic 22 services, construction, or real property or capital 23 improvements to be procured or leased and includes 24 specifications attached to or made a part of the 25 solicitation. 26 Section 1-15.67. Purchase of care. "Purchase of care" 27 means a contract with a person for the furnishing of medical, 28 educational, psychiatric, vocational, rehabilitative, social, 29 or human services directly to a recipient of a State aid 30 program. -6- LRB9008460JMsb 1 Section 1-15.70. Purchasing agency. "Purchasing agency" 2 means a State agency that is authorized by this Code, by its 3 implementing rules, or by authorized delegation of a State 4 purchasing officer to enter into contracts. 5 Section 1-15.75. Request for proposals. "Request for 6 proposals" means the process by which a purchasing agency 7 requests information from offerors, including all documents, 8 whether attached or incorporated by reference, used for 9 soliciting proposals. 10 Section 1-15.80. Responsible bidder or offeror. 11 "Responsible bidder or offeror" means a person who has the 12 capability in all respects to perform fully the contract 13 requirements and the integrity and reliability that will 14 assure good faith performance. 15 Section 1-15.85. Responsive bidder. "Responsive bidder" 16 means a person who has submitted a bid that conforms in all 17 material respects to the invitation for bids. 18 Section 1-15.90. Services. "Services" means the 19 furnishing of labor, time, or effort by a contractor, not 20 involving the delivery of a specific end product other than 21 reports or supplies that are incidental to the required 22 performance. 23 Section 1-15.93. Solicitation. "Solicitation" means an 24 invitation for bids, request for proposals, request for 25 information, or other means of requesting contractors to 26 respond with offers or qualifications. 27 Section 1-15.95. Specifications. "Specifications" means 28 any description, provision, or requirement pertaining to the -7- LRB9008460JMsb 1 physical or functional characteristics or of the nature of a 2 supply, service, or other item to be procured under a 3 contract. Specifications may include a description of any 4 requirement for inspecting, testing, or preparing a supply, 5 service, professional or artistic service, construction, or 6 other item for delivery. 7 Section 1-15.100. State agency. "State agency" means 8 all officers, boards, commissions, and agencies created by 9 the Constitution, whether in the executive, legislative, or 10 judicial branch, but other than the circuit court; all 11 officers, departments, boards, commissions, agencies, 12 institutions, authorities, universities, bodies politic and 13 corporate of the State; and administrative units or corporate 14 outgrowths of the State government that are created by or in 15 accordance with statute, other than units of local government 16 and their officers, school districts, and boards of election 17 commissioners; and all administrative units and corporate 18 outgrowths of State agencies and as may be created by 19 executive order of the Governor. "State agency" does not 20 include the Illinois Comprehensive Health Insurance Board. 21 Section 1-15.105. State purchasing officer. "State 22 purchasing officer" means a person appointed as provided in 23 Article 10 to exercise the procurement authority created by 24 this Code. 25 Section 1-15.110. Supplies. "Supplies" means all 26 personal property, including but not limited to equipment, 27 materials, printing, and insurance, and the financing of 28 those supplies. 29 Section 1-15.112. Supported employee. "Supported 30 employee" means an individual who has a severe physical or -8- LRB9008460JMsb 1 mental disability that seriously limits functional capacities 2 including, but not limited to, mobility, communications, 3 self-care, self-direction, work tolerance, or work skills and 4 for whom competitive employment has not traditionally 5 occurred or for whom competitive employment has been 6 interrupted or intermittent as a result of a severe 7 disability and who, because of the nature and the severity of 8 that person's disability, needs intensive supported 9 employment services or extended services in order to perform 10 work. 11 Section 1-15.115. Using agency. "Using agency" means a 12 State agency that uses items procured under this Code. 13 ARTICLE 5 14 POLICY ORGANIZATION 15 Section 5-5. Procurement Policy Board. 16 (a) Creation. There is created a Procurement Policy 17 Board. 18 (b) Authority and duties. The Board shall have the 19 authority and responsibility to promulgate rules, consistent 20 with this Code, governing the procurement, management, 21 control, and disposal of supplies, services, professional or 22 artistic services, construction, and real property and 23 capital improvement leases procured by the State. All rules 24 shall be promulgated and published in accordance with the 25 Illinois Administrative Procedure Act. The Board shall 26 consider and decide matters of policy within the provisions 27 of this Code. The Board shall have the power to audit and 28 monitor the implementation of its rules and the requirements 29 of this Code but shall not exercise authority over the award 30 or administration of any particular contract or over any 31 dispute, claim, or litigation pertaining to a particular -9- LRB9008460JMsb 1 contract, except as provided in Sections 20-30 and 20-37. The 2 Board shall maintain a list of all State vendors, 3 contractors, and bidders from information supplied by the 4 State purchasing officers. 5 (c) Members. The Board shall consist of 5 members 6 appointed by the Governor, with the advice and consent of the 7 Senate, three-fifths of the members elected concurring by 8 record vote. No more than 3 members may be of the same 9 political party. Each member shall have demonstrated 10 sufficient business or professional experience in the area of 11 procurement to perform the functions of the Board. 12 (d) Terms. Of the initial appointees, the Governor 13 shall designate one member to serve a one-year term, 2 14 members to serve 2-year terms, and 2 members to serve 3-year 15 terms. Subsequent terms shall be 4 years. Members may be 16 reappointed for succeeding terms. 17 (e) Reimbursement. Members shall receive annual 18 compensation of $20,000 and shall also be reimbursed for any 19 expenses reasonably incurred in the performance of their 20 duties. 21 (f) Staff support. The Board shall have sufficient 22 staff to perform the duties required by this Code. 23 Section 5-10. Inspector General for Procurement. 24 (a) Creation and appointment. There is created the 25 Office of the Inspector General for Procurement. The 26 Governor, with the advice and consent of the Senate, 27 three-fifths of the members elected concurring by record 28 vote, shall appoint the Inspector General for a 6-year term. 29 (b) Authority and duties. The Inspector General shall 30 be responsible for overseeing implementation of the Board's 31 rules and policies. The Inspector General shall report any 32 suspected violations to the appropriate agency, the State's 33 Attorney in the county in which the suspected violation -10- LRB9008460JMsb 1 occurs, and the Attorney General. 2 (c) Compensation. The Inspector General shall be a 3 full-time position compensated in an amount equal to the 4 compensation of the Auditor General. A member of the Board 5 may not serve as Inspector General. 6 (d) Staff support. The Inspector General shall have 7 sufficient staff to perform the duties required by this Code. 8 (e) The Inspector General shall file semi-annual reports 9 with the Legislative Audit Commission. 10 Section 5-25. Rulemaking authority. The Board may 11 authorize a State agency to promulgate rules to make 12 procurements when the Board determines that specific rules 13 are necessary. All rules shall be promulgated in accordance 14 with the Illinois Administrative Procedure Act and shall be 15 subject to the approval of the Board. 16 ARTICLE 10 17 PROCUREMENT ORGANIZATION 18 Section 10-5. Exercise of procurement authority. 19 (a) The State purchasing officers appointed by their 20 respective State officers or State agencies shall exercise 21 the procurement authority created by this Code except as 22 otherwise provided in this Code. 23 (b) (1) Procurements for all construction, construction 24 related services, operation of any facility, and the 25 provision of any service or activity committed by law to the 26 jurisdiction or responsibility of the Illinois Department of 27 Transportation, including the direct or reimbursable 28 expenditure of all federal funds for which the Department of 29 Transportation is responsible or accountable for the use 30 thereof in accordance with federal law, regulation or 31 procedure, shall be exercised by the Secretary of -11- LRB9008460JMsb 1 Transportation if required to comply with federal law. 2 (2) Procurements for all construction, construction 3 related services, operation of any facility, and the 4 provision of any service or activity committed by law to the 5 jurisdiction or responsibility of the Illinois Toll Highway 6 Authority, including the direct or reimbursable expenditure 7 of all federal funds for which the Authority is responsible 8 or accountable for the use thereof in accordance with federal 9 law, regulation or procedure, shall be delegated to the 10 Authority if required to comply with federal law. 11 Section 10-10. Appointment of State purchasing officers. 12 (a) General appointments. The following State officers 13 shall each appoint a State purchasing officer to exercise 14 within his or her jurisdiction the procurement authority 15 created by this Code: 16 (1) Director of Central Management Services. 17 (2) Attorney General. 18 (3) Comptroller. 19 (4) Secretary of State. 20 (5) Treasurer. 21 (6) Auditor General. 22 (7) Supreme Court. 23 (8) Speaker of the House of Representatives. 24 (9) President of the Senate. 25 (10) Minority leader of the House of 26 Representatives. 27 (11) Minority leader of the Senate. 28 (12) Chair of the Joint Committee on Legislative 29 Support Services. 30 (13) Board of Trustees of the University of 31 Illinois. 32 (14) Board of Trustees of Southern Illinois 33 University. -12- LRB9008460JMsb 1 (15) Board of Trustees of Chicago State University. 2 (16) Board of Trustees of Eastern Illinois 3 University. 4 (17) Board of Trustees of Governors State 5 University. 6 (18) Board of Trustees of Illinois State 7 University. 8 (19) Board of Trustees of Northeastern Illinois 9 University. 10 (20) Board of Trustees of Northern Illinois 11 University. 12 (21) Board of Trustees of Western Illinois 13 University. 14 (22) Illinois State Board of Education. 15 No new personnel position may be created to fill the 16 position of State purchasing officer. 17 (b) Legislative support services agencies. The State 18 purchasing officer appointed under subsection (a) by the 19 chair of the Joint Committee on Legislative Support Services 20 shall serve as the State purchasing officer for the 21 legislative support services agencies during the term of the 22 chair. 23 (c) Central Management Services. The State purchasing 24 officer appointed under subsection (a) by the Director of 25 Central Management Services shall serve as the State 26 purchasing officer for all State agencies under the 27 jurisdiction of the Governor or Lieutenant Governor and all 28 State agencies outside the jurisdiction of any other State 29 purchasing officer. 30 (d) Vendor list. Each State purchasing officer shall 31 maintain a list of vendors, contractors, and bidders and 32 forward that list to the Board at least once per month in 33 accordance with Board rules. -13- LRB9008460JMsb 1 Section 10-15. Delegation of authority. A State 2 purchasing officer may delegate procurement powers and duties 3 to an employee under that officer's jurisdiction as 4 authorized by the Board. 5 ARTICLE 15 6 PROCUREMENT BULLETIN 7 Section 15-5. Publisher. The Board shall designate a 8 State agency responsible for publishing the Illinois 9 Procurement Bulletin. 10 Section 15-10. Contents. The Illinois Procurement 11 Bulletin shall contain notices and other information required 12 by this Code or by rules promulgated under this Code to be 13 published in the Illinois Procurement Bulletin. The rules of 14 the Board promulgated under this Section shall require 15 inclusion in the Bulletin sufficient information to 16 adequately inform the public of the nature of each contract. 17 Each issue shall include a comprehensive index of its 18 contents. A purchasing agency may also choose, as applicable 19 and in accordance with rules of the Board, to place notices 20 in the official State newspaper or a newspaper circulating in 21 a locality relevant to the specified procurement. 22 Section 15-15. Publication. The Illinois Procurement 23 Bulletin shall be published at least twice monthly. It shall 24 be available through subscription for a minimal fee not 25 exceeding publication and distribution costs. The Illinois 26 Procurement Bulletin shall be distributed free to public 27 libraries within Illinois. A purchasing officer may on his 28 or her own authority authorize publication in electronic form 29 or in the official newspaper in addition to publication in 30 the Illinois Procurement Bulletin. -14- LRB9008460JMsb 1 Section 15-20. Qualified bidders. Subscription to the 2 Illinois Procurement Bulletin shall not be required to 3 qualify as a bidder or offeror under this Code. 4 ARTICLE 20 5 SOURCE SELECTION AND CONTRACT FORMATION 6 Section 20-5. Method of source selection. Unless 7 otherwise authorized by this Code or by other law, all State 8 contracts shall be awarded by competitive sealed bidding, in 9 accordance with Section 20-10. 10 Section 20-10. Competitive sealed bidding. 11 (a) Conditions for use. All contracts shall be awarded 12 by competitive sealed bidding except as otherwise provided in 13 Section 20-5. 14 (b) Invitation for bids. An invitation for bids shall 15 be issued and shall include a purchase description and the 16 material contractual terms and conditions applicable to the 17 procurement. 18 (c) Public notice. Public notice of the invitation for 19 bids shall be published in the Illinois Procurement Bulletin 20 at least 28 days before the date set in the invitation for 21 the opening of bids. 22 (d) Bid submission and opening. Bids shall be submitted 23 in a sealed form and shall be opened publicly in the presence 24 of one or more witnesses at the time and place designated in 25 the invitation for bids. The rules may provide for the 26 acceptance of bids submitted by fax, electronic data 27 exchange, or by other methods. The name of each bidder, the 28 amount of each bid, and other relevant information as may be 29 specified by rule shall be recorded. After the award of the 30 contract, the winning bid and the record of each unsuccessful 31 bid shall be open to public inspection. -15- LRB9008460JMsb 1 (e) Bid acceptance and bid evaluation. Bids shall be 2 unconditionally accepted without alteration or correction, 3 except as authorized in this Code. Bids shall be evaluated 4 based on the requirements set forth in the invitation for 5 bids, which may include criteria to determine acceptability 6 such as inspection, testing, quality, workmanship, delivery, 7 and suitability for a particular purpose. Those criteria 8 that will affect the bid price and be considered in 9 evaluation for award, such as discounts, transportation 10 costs, and total or life cycle costs, shall be objectively 11 measurable. The invitation for bids shall set forth the 12 evaluation criteria to be used. Only criteria set forth in 13 the invitation for bids may be used in the bid evaluation. 14 (f) Correction or withdrawal of bids. Correction or 15 withdrawal of inadvertently erroneous bids before or after 16 award, or cancellation of awards of contracts based on bid 17 mistakes, shall be permitted in accordance with rules of the 18 Board. After bid opening, no changes in bid prices or other 19 provisions of bids prejudicial to the interest of the State 20 or fair competition shall be permitted. All decisions to 21 permit the correction or withdrawal of bids based on bid 22 mistakes shall be supported by written determination made by 23 a purchasing agency. 24 (g) Award. The contract shall be awarded with 25 reasonable promptness by written notice to the lowest 26 responsible and responsive bidder whose bid meets the 27 requirements and criteria set forth in the invitation for 28 bids. 29 (h) Multi-step sealed bidding. When it is considered 30 impracticable to initially prepare a purchase description to 31 support an award based on price, an invitation for bids may 32 be issued, in accordance with the rules of the Board, 33 requesting the submission of unpriced offers to be followed 34 by an invitation for bids limited to those bidders whose -16- LRB9008460JMsb 1 offers have been qualified under the criteria set forth in 2 the first solicitation. 3 Section 20-20. Small purchases. 4 (a) Amount. Any individual procurement of supplies or 5 services not exceeding $5,000 may be made without competitive 6 sealed bidding. Procurements shall not be artificially 7 divided so as to constitute a small purchase under this 8 Section. 9 (b) Adjustment. Each July 1, the small purchase maximum 10 established in subsection (a) shall be adjusted for inflation 11 as determined by the Consumer Price Index for All Urban 12 Consumers as determined by the United States Department of 13 Labor and rounded to the nearest $100. 14 Section 20-25. Sole source procurements. Contracts may 15 be awarded without notice or competition when there is only 16 one economically feasible source for the item, including but 17 not limited to, contracts for specific works of art and for 18 the services of a particular artist. Procurements under this 19 Section must be approved in advance by the Board. The 20 procuring agency shall maintain a list of contracts awarded 21 on a sole source basis including the reasons for determining 22 the contractor was the sole economically feasible source. 23 The list and the reasons shall be open to inspection, and 24 shall be published in the Illinois Procurement Bulletin in 25 the issue published after the contract is awarded. 26 Section 20-30. Emergency purchases. 27 (a) Conditions for use. In accordance with standards 28 set forth in rules promulgated by the Board, a purchasing 29 agency may make emergency procurements without competitive 30 sealed bidding or prior notice when there exists a threat to 31 public health or public safety, or when immediate expenditure -17- LRB9008460JMsb 1 is necessary for repairs to State property in order to 2 protect against further loss of or damage to State property, 3 to prevent or minimize serious disruption in State services, 4 or to ensure the integrity of State records. Emergency 5 procurements shall be made with as much competition as is 6 practical under the circumstances and as required by the rule 7 of the Board. Emergency procurements must be approved in 8 advance by at least one member of the Board. A written 9 description of the basis for the emergency and reasons for 10 the selection of the particular contractor shall be included 11 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 Inspector 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. The Board shall review the 30 affidavits for each emergency procurement at least once a 31 month, and any member of the Board may append comments. At 32 the end of each fiscal quarter, the Inspector General shall 33 file with the Auditor General, the Legislative Audit 34 Commission, and the Governor a complete listing of all -18- LRB9008460JMsb 1 emergency procurements reported during that fiscal quarter. 2 The Legislative Audit Commission shall review the emergency 3 procurements so reported and, in its annual reports, advise 4 the General Assembly of procurements that appear to 5 constitute an abuse of this Section. 6 (d) Quick purchases. The Board may promulgate policies 7 extending the circumstances by which a purchasing agency may 8 make purchases under this Section, including but not limited 9 to the procurement of items available at a discount for a 10 limited period of time. 11 Section 20-35. Competitive selection procedures. 12 (a) Conditions for use. The services specified in 13 Article 35 shall be procured in accordance with this Section, 14 except as authorized under Sections 20-25 and 20-30 of this 15 Article or as authorized by the Board in accordance with the 16 provisions of this Code. 17 (b) Statement of qualifications. Potential contractors 18 may submit statements of qualifications and expressions of 19 interest. The Board may specify a uniform format for 20 statements of qualifications. Persons may amend these 21 statements at any time by filing a new statement. 22 (c) Public announcement and form of request for 23 proposals. Public notice of the need for the procurement 24 shall be given in the form of a request for proposals and 25 published in the Illinois Procurement Bulletin at least 14 26 days before the date set in the request for proposals for the 27 opening of proposals. The request for proposals shall 28 describe the services required, list the type of information 29 and data required of each offeror, and shall state the 30 relative importance of particular qualifications. 31 (d) Discussions. The purchasing agency may conduct 32 discussions with any offeror who has submitted a proposal to 33 determine the offeror's qualifications for further -19- LRB9008460JMsb 1 consideration. Discussions shall not disclose any 2 information derived from proposals submitted by other 3 offerors. 4 (e) Award. Award shall be made to the offeror 5 determined in writing by the purchasing agency to be best 6 qualified based on the evaluation factors set forth in the 7 request for proposals and negotiation of compensation 8 determined to be fair and reasonable. If compensation cannot 9 be agreed upon with the best qualified offeror, then 10 negotiations shall be formally terminated with the selected 11 offeror. If proposals were submitted by one or more other 12 offerors determined to be qualified, negotiations may be 13 conducted with the other offeror or offerors, in the order of 14 their respective qualification ranking. The contract may be 15 awarded to the offeror then ranked as best qualified if the 16 amount of compensation is determined to be fair and 17 reasonable. 18 Section 20-37. Legal, medical, and related services. If 19 premature disclosure of the need for legal and related 20 services or of the name of the law firm, attorney, or related 21 service provider might jeopardize the State's ability to 22 formulate policy or its position in litigation, or similar 23 reasons, legal and related services may be procured without 24 notice of competition. Procurements under this Section must 25 be approved in advance by at least one member of the Board. 26 If a person's health is in jeopardy, medical services may be 27 procured without notice of competition. The procuring agency 28 shall maintain a list of contracts awarded under these 29 provisions including the reason why a competitive method of 30 source selection was not used. The list and the reasons 31 shall be open to inspection after the purchasing officer 32 determines that release of the list would no longer 33 jeopardize the State's ability to formulate policy or its -20- LRB9008460JMsb 1 position in litigation, or similar reasons, no longer exist. 2 Section 20-38. Other government contracts. Notice and 3 competition are not required by the United States General 4 Services Administration, or when the Board determines that 5 use of a contract established by another governmental entity 6 is in the State's best interest. 7 Section 20-39. Sheltered workshops and supported 8 employees. Goods and services may be procured without notice 9 and competition from businesses that meet the requirements 10 set forth in Sections 45-35 and 45-37. 11 Section 20-40. Cancellation of invitations for bids or 12 requests for proposals. An invitation for bids, a request 13 for proposals, or any other solicitation may be cancelled, or 14 any and all bids or proposals may be rejected in whole or in 15 part as may be specified in the solicitation, when it is in 16 the best interests of the State in accordance with rules 17 promulgated by the Board. The reasons for cancellation or 18 rejection shall be made part of the contract file. 19 Section 20-45. Prequalification of suppliers. The Board 20 shall promulgate rules for the development of prequalified 21 supplier lists for appropriate categories of purchases and 22 the periodic updating of those lists. 23 Section 20-50. Specifications. Specifications shall be 24 prepared in accordance with standards set forth in rules 25 promulgated by the Board. Those standards shall include a 26 prohibition against the use of brand-name products except 27 under specified circumstances and a restriction on the use of 28 specifications drafted by a potential bidder. All 29 specifications shall seek to promote overall economy for the -21- LRB9008460JMsb 1 purposes intended and encourage competition in satisfying the 2 State's needs and shall not be unduly restrictive. 3 Section 20-55. Types of contracts. Subject to the 4 limitations of this Section and unless otherwise authorized 5 by law, any type of contract that will promote the best 6 interests of the State may be used, except that 7 cost-plus-a-percentage-of-cost contracts are prohibited. A 8 cost-reimbursement contract may be used only when a 9 determination is made in writing that a cost-reimbursement 10 contract is likely to be less costly to the State than any 11 other type or that it is impracticable to obtain the item 12 required except under that type of contract. The general 13 form of contracts shall be specified by the Comptroller. 14 Section 20-57. Contracts of $100,000 or more in a fiscal 15 year. 16 (a) Approval or signature. With respect to new 17 contracts, contract renewals, orders against master 18 contracts, and leases in the amount of $100,000 or more in a 19 fiscal year, and with respect to contract amendments or 20 changes to existing contracts, including change orders, task 21 orders, or requisitions that increase the value of such 22 contract to or by $100,000 or more in a fiscal year, no State 23 agency has authority to enter into any such new contract, 24 renewal, order, amendment, or change, or to file it with the 25 Comptroller, or to make payment thereon, unless and until it 26 has been approved in writing or signed by at least the 27 following 3 individuals: 28 (1) the director, secretary, or chief executive of 29 the State agency; 30 (2) the agency's State purchasing officer; and 31 (3) the chief legal counsel of the State agency; 32 provided, however, that if it does not employ a chief -22- LRB9008460JMsb 1 legal counsel, then a senior administrative official of 2 the State agency. 3 (b) Artificial division. Procurements shall not be 4 artificially divided to avoid the requirements of this 5 Section. 6 (c) Notification. The State purchasing officer shall 7 notify the Board and the Inspector General within 10 days of 8 the execution of any contract pursuant to this Section. 9 Section 20-60. Duration of contracts. 10 (a) Maximum duration. A contract may be entered into 11 for any period of time deemed by the Board to be in the best 12 interests of the State but not exceeding 10 years. The 13 length of a lease for real property or capital improvements 14 may be in accordance with the provisions of Section 40-25. 15 (b) Subject to appropriation. All contracts made or 16 entered into shall recite that they are subject to 17 termination and cancellation in any year for which the 18 General Assembly fails to make an appropriation to make 19 payments under the terms of the contract. 20 Section 20-65. Right to audit records. 21 (a) Maintenance of books and records. Every contract 22 and subcontract shall require the contractor or 23 subcontractor, as applicable, to maintain books and records 24 relating to the performance of the contract or subcontract 25 and necessary to support amounts charged to the State under 26 the contract or subcontract. The books and records shall be 27 maintained by the contractor for a period of 5 years from the 28 later of the date of final payment under the contract or 29 completion of the contract and by the subcontractor for a 30 period of 5 years from the later of the date of final payment 31 under the subcontract or completion of the subcontract. 32 However, the 5-year period shall be extended for the duration -23- LRB9008460JMsb 1 of any audit in progress at the time of that period's 2 expiration. 3 (b) Audit. Every contract and subcontract shall provide 4 that all books and records required to be maintained under 5 subsection (a) shall be available for review and audit by the 6 Auditor General and the purchasing agency. Every contract 7 and subcontract shall require the contractor and 8 subcontractor, as applicable, to cooperate fully with any 9 audit. 10 (c) Failure to maintain books and records. Failure to 11 maintain the books and records required by this Section shall 12 establish a presumption in favor of the State for the 13 recovery of any funds paid by the State for which required 14 books and records are not available. 15 Section 20-70. Finality of determinations. 16 Determinations made by a purchasing agency under this Code 17 are final and conclusive unless they are clearly erroneous, 18 arbitrary, capricious, or contrary to law. 19 Section 20-75. Disputes and protests. The Board shall 20 by rule establish procedures to be followed by purchasing 21 agencies in resolving protested solicitations and awards and 22 contract controversies, for debarment or suspension of 23 contractors, and for resolving other procurement-related 24 disputes. 25 Section 20-80. Contract files. 26 (a) Written determinations. All written determinations 27 required under this Article shall be placed in the contract 28 file maintained by the purchasing agency. 29 (b) Filing with Comptroller. Except for (1) contracts 30 paid from personal services or (2) contracts between the 31 State and its employees to defer compensation in accordance -24- LRB9008460JMsb 1 with Article 24 of the Illinois Pension Code, whenever a 2 contract liability exceeding $5,000 is incurred by any State 3 agency, a copy of the contract, purchase order, or lease 4 shall be filed with the Comptroller within 15 days 5 thereafter. Any cancellation or modification to any such 6 contract liability shall be filed with the Comptroller within 7 15 days after its execution. 8 (c) Late filing affidavit. When a contract, purchase 9 order, or lease required to be filed by this Section has not 10 been filed within 30 days after execution, the Comptroller 11 shall refuse to issue a warrant for payment thereunder until 12 the agency files with the Comptroller the contract, purchase 13 order, or lease and an affidavit, signed by the chief 14 executive officer of the agency or his or her designee, 15 setting forth an explanation of why the contract liability 16 was not filed within 30 days after execution. A copy of this 17 affidavit shall be filed with the Inspector General. 18 (d) Professional and artistic services contracts. No 19 voucher shall be submitted to the Comptroller for a warrant 20 to be drawn for the payment of money from the State treasury 21 or from other funds held by the State Treasurer on account of 22 any contract for services involving professional or artistic 23 skills involving an expenditure of more than $5,000 for the 24 same type of service at the same location during any fiscal 25 year unless the contract is reduced to writing before the 26 services are performed and filed with the Comptroller. When 27 a contract for professional or artistic skills in excess of 28 $5,000 was not reduced to writing before the services were 29 performed, the Comptroller shall refuse to issue a warrant 30 for payment for the services until the State agency files 31 with the Comptroller: 32 (1) a written contract covering the services, and 33 (2) an affidavit, signed by the chief executive 34 officer of the State agency or his or her designee, -25- LRB9008460JMsb 1 stating that the services for which payment is being made 2 were agreed to before commencement of the services and 3 setting forth an explanation of why the contract was not 4 reduced to writing before the services commenced. 5 A copy of this affidavit shall be filed with the Inspector 6 General. The Comptroller shall maintain professional or 7 artistic service contracts filed under this Section 8 separately from other filed contracts. 9 (e) Method of source selection. When a contract is 10 filed with the Comptroller under this Section, the 11 Comptroller's file shall identify the method of source 12 selection used in obtaining the contract. 13 Section 20-85. List of State contractors and bidders. 14 Each State Purchasing Officer and each Construction Agency 15 shall compile and maintain a list of all vendors, bidders, 16 and contractors who submit a bid, proposal, or other type of 17 offer, whether successful or unsuccessful. The list shall be 18 forwarded to the Board as provided by Board rules. The Board 19 shall compile and maintain a complete list of all bidders for 20 all State agencies. The Board shall update the list at least 21 semi-annually. The list shall be made publicly available. 22 ARTICLE 25 23 SUPPLIES AND SERVICES (EXCLUDING 24 PROFESSIONAL OR ARTISTIC) 25 Section 25-5. Applicability. All contracts for supplies 26 and services shall be procured in accordance with the 27 provisions of this Article. 28 Section 25-10. Authority. State purchasing officers 29 shall have the authority to procure supplies and services, 30 except as that authority may be limited by the Board or -26- LRB9008460JMsb 1 delegated by the State purchasing officer in accordance with 2 Section 10-15. 3 Section 25-20. Prevailing wage requirements. 4 (a) Applicability. All services furnished under 5 printing contracts exceeding $25,000 and under service 6 contracts exceeding $2,000 or $200 per month shall be 7 performed by employees of the contractor receiving the 8 prevailing wage rate and working under conditions prevalent 9 in the locality in which the work is produced. A contract 10 bidder or offeror, in order to be considered a responsible 11 bidder or offeror for the purposes of this Code, shall 12 certify to the State purchasing officer that wages paid to 13 its employees are no less, and fringe benefits and working 14 conditions of employees are not less favorable, than those 15 prevailing in the locality where the contract is to be 16 performed. Prevailing wages and working conditions shall be 17 determined by the Director of Labor. Whenever a collective 18 bargaining agreement is in effect between an employer, other 19 than a State agency, and service or printing employees as 20 defined in this Section who are represented by a responsible 21 organization that is in no way influenced or controlled by 22 the management, that agreement and its provisions shall be 23 considered as conditions prevalent in that locality and shall 24 be the minimum requirements taken into consideration by the 25 Director of Labor. Collective bargaining agreements between 26 State employees and the State of Illinois shall not be taken 27 into account by the Department of Labor in determining the 28 prevailing wage rate. 29 (b) Services and printing defined. As used in this 30 Section, "services" means janitorial cleaning services, 31 window cleaning services, food services, and security 32 services. "Printing" means all processes and operations 33 involved in printing and any type of photographic -27- LRB9008460JMsb 1 reproduction or other duplicating process, including but not 2 limited to letterpress, offset, and gravure processes, the 3 multilith method, any type of photographic or other 4 duplicating process, and the operations of composition, 5 platemaking, presswork, and binding; and the end products of 6 those processes, methods, and operations. As used in this 7 Section "printing" does not include photocopiers used in the 8 course of normal business activities, photographic equipment 9 used for geographic mapping, printed matter used in the 10 normal day to day operations of the General Assembly, the 11 printing of State Lottery tickets, shares, or other State 12 Lottery game related materials, or preprinted or printed 13 matter that is commonly available to the general public from 14 contractor inventory. 15 (c) Inapplicability. This Section does not apply to 16 services furnished under contracts for professional or 17 artistic services. This Section does not apply to vocational 18 programs of training for persons with physical or mental 19 disabilities. 20 Section 25-25. Printing cost offsets. The Board may 21 promulgate rules permitting the exchange of advertising 22 rights in or receipt of free copies of printed products 23 procured under this Article as a means of reducing printing 24 costs. The Board's rules shall specify the appropriate 25 method of source selection to be used to competitively 26 acquire printing cost offsets. 27 Section 25-30. More favorable terms. A supply or 28 service contract may include, if determined by a State 29 purchasing officer to be in the best interests of the State, 30 a clause requiring that if more favorable terms are granted 31 by the contractor to any similar state or local governmental 32 agency in any state in a contemporaneous agreement let under -28- LRB9008460JMsb 1 the same or similar financial terms and circumstances for 2 comparable supplies or services, the more favorable terms 3 shall be applicable under the contract. 4 Section 25-35. Purchase of coal and postage stamps. 5 (a) Delivery of necessary supplies. To avoid 6 interruption or impediment of delivery of necessary supplies, 7 commodities, and coal, State purchasing officers may make 8 purchases of or contracts for supplies and commodities after 9 April 30 of a fiscal year when delivery of the supplies and 10 commodities is to be made after June 30 of that fiscal year 11 and payment for which is to be made from appropriations for 12 the next fiscal year. 13 (b) Postage. All postage stamps purchased from State 14 funds must be perforated for identification purposes. A 15 General Assembly member may furnish the U.S. Post Office with 16 a warrant so as to allow for the creation or continuation of 17 a bulk rate mailing fund in the name of the General Assembly 18 member or may furnish a postage meter company or post office 19 with a warrant so as to facilitate the purchase of a postage 20 meter and its stamps. Any postage meter so purchased must 21 also contain a stamp that shall state "Official State Mail". 22 Section 25-40. Freight increases. If the Illinois 23 Department of Transportation provides by contract or 24 regulation that general increases in freight rates incurred 25 by a contractor after entering into the contract may be added 26 to the contract price or passed through to the Department, 27 then this remedy shall be available to the contractor whether 28 the increased general freight rates are for railroads, barge 29 lines, or motor carriers of property. 30 Section 25-45. Energy conservation program. State 31 purchasing officers may enter into energy conservation -29- LRB9008460JMsb 1 program contracts that provide for utility cost savings. The 2 Board shall promulgate and adopt rules for the implementation 3 of this Section. 4 Section 25-50. Human services. Every purchasing agency 5 that contracts or provides grants for human services may, 6 upon request of the service provider, review the contract or 7 grant, upon notification by the provider that the cost of the 8 provider's property and casualty insurance has increased by 9 25% or more. The purchasing agency may adjust the existing 10 contract or grant with the service provider in accordance 11 with any agreement reached and subject to the limitations of 12 that agency's appropriated funds. For purposes of this 13 Section the revised contract amount shall not exceed the 14 percentage calculated by dividing the total contract or grant 15 amount by the provider's total budget as agreed to by the 16 purchasing agency. 17 Section 25-55. Annual reports. Every printed annual 18 report produced by a State agency shall bear a statement 19 indicating whether it was printed by the State of Illinois or 20 by contract and indicating the printing cost per copy and the 21 number of copies printed. The Department of Central 22 Management Services shall prepare and submit to the General 23 Assembly on the fourth Wednesday of January in each year a 24 report setting forth with respect to each State agency for 25 the calendar year immediately preceding the calendar year in 26 which the report is filed the total quantity of annual 27 reports printed, the total cost, and the cost per copy and 28 the cost per page of the annual report of the State agency 29 printed during the calendar year covered by the report. 30 Section 25-60. General Assembly printing; session laws. 31 (a) Authority. Public printing for the use of either -30- LRB9008460JMsb 1 House of the General Assembly shall be subject to its 2 control. Any printing or operation of printing that the 3 Legislative Printing Unit is unable to perform may be 4 purchased in accordance with this Article. 5 (b) Time of delivery. Daily calendars, journals, and 6 other similar printing for which manuscript or copy is 7 delivered to the Legislative Printing Unit by the clerical 8 officer of either House shall be printed so as to permit 9 delivery at any reasonable time required by the clerical 10 officer. Any petition, bill, resolution, joint resolution, 11 memorial, and similar manuscript or copy delivered to the 12 Legislative Printing Unit by the clerical officer of either 13 House shall be printed at any reasonable time required by 14 that officer. 15 (c) Style. The manner, form, style, size, and 16 arrangement of type used in printing the bills, resolutions, 17 amendments, conference reports, and journals, including daily 18 journals, of the General Assembly shall be as provided in the 19 Rules of the General Assembly. 20 (d) Daily journal. The Clerk of the House of 21 Representatives and the Secretary of the Senate shall each 22 prepare and deliver to the Legislative Printing Unit, 23 immediately after the close of each daily session, a 24 printer's copy of the daily journal for their respective 25 House. 26 (e) Daily and bound journals. 27 (1) Subscriptions. The Legislative Printing Unit 28 shall have printed the number of copies of the daily 29 journal as may be requested by the clerical officer of 30 each House. The Secretary of the Senate and the Clerk of 31 the House of Representatives shall furnish a copy of each 32 daily journal of their respective House to those persons 33 who apply therefor upon payment of a reasonable 34 subscription fee established separately by the Secretary -31- LRB9008460JMsb 1 of the Senate and the Clerk of the House for their 2 respective House. Each subscriber shall specify at the 3 time he or she subscribes the address where he or she 4 wishes the journals mailed. The daily journals shall be 5 furnished free of charge on a pickup basis to State 6 offices and to the public as long as the supply lasts. 7 The Secretary of the Senate and the Clerk of the House 8 shall determine the number of journals available for 9 pickup at their respective offices. 10 (2) Other copies. After the General Assembly 11 adjourns, the Clerk of the House and the Secretary of the 12 Senate shall prepare and deliver to the Legislative 13 Printing Unit a printer's copy of matter for the regular 14 House and Senate journals, together with any matter, not 15 previously printed in the daily journals, that is 16 required by law, by order of either House, or by joint 17 resolution to be printed in the journals. The 18 Legislative Printing Unit shall have printed the number 19 of copies of the bound journal as may be requested by the 20 clerical officer of each House. A reasonable number of 21 bound volumes of the journal of each House of the General 22 Assembly shall be provided to State and local officers, 23 boards, commissions, institutions, departments, agencies, 24 and libraries requesting them through canvasses conducted 25 separately by the Secretary of the Senate and the Clerk 26 of the House. Reasonable fees established separately by 27 the Secretary of the Senate and the Clerk of the House 28 may be charged for bound volumes of the journal of each 29 House of the General Assembly. 30 (f) Session laws. Immediately after the General Assembly 31 adjourns, the Secretary of State shall prepare a printer's 32 copy for the "Session Laws of Illinois" that shall set forth 33 in full all Acts and joint resolutions passed by the General 34 Assembly at the session just concluded and all executive -32- LRB9008460JMsb 1 orders of the Governor taking effect under Article V, Section 2 11 of the Constitution and the Executive Reorganization 3 Implementation Act. The printer's copy shall be furnished 4 and delivered to the Secretary of State by the Enrolling and 5 Engrossing Department of the 2 Houses. At the time an 6 enrolled law is filed with the Secretary of State, whether 7 before or after the conclusion of the session in which it was 8 passed, it shall be assigned a Public Act number, the first 9 part of which shall be the number of the General Assembly 10 followed by a dash and then a number showing the order in 11 which that law was filed with the Secretary of State. The 12 title page of each volume of the session laws shall contain 13 the following: "Printed by the authority of the General 14 Assembly of the State of Illinois". The laws shall be 15 arranged by the Secretary of State and printed in the 16 chronological order of Public Act numbers. At the end of 17 each Act the dates when the Act was passed by the General 18 Assembly and when the Act was approved by the Governor shall 19 be stated. Any Act becoming law without the approval of the 20 Governor shall be marked at its end in the session laws by 21 the printed certificate of the Secretary of State. Executive 22 orders taking effect under Article V, Section 11 of the 23 Constitution and the Executive Reorganization Implementation 24 Act shall be printed in chronological order of executive 25 order number and shall state at the end of each executive 26 order the date it was transmitted to the General Assembly and 27 the date it takes effect. In the case of an amendatory Act, 28 the changes made by the amendatory Act shall be indicated in 29 the session laws in the following manner: (i) all new matter 30 shall be printed in italics; and (ii) all matter deleted by 31 the amendatory Act shall be shown crossed with a line. The 32 Secretary of State shall prepare and furnish a table of 33 contents and an index to each volume of the session laws. 34 (g) Distribution. The bound volumes of the session laws -33- LRB9008460JMsb 1 of the General Assembly shall be made available to the 2 following: 3 (1) one copy of each to each State officer, board, 4 commission, institution, and department requesting a copy 5 in accordance with a canvass conducted by the Secretary 6 of State before the printing of the session laws except 7 judges of the appellate courts and judges and associate 8 judges of the circuit courts; 9 (2) 10 copies to the law library of the Supreme 10 Court; one copy each to the law libraries of the 11 appellate courts; and one copy to each of the county law 12 libraries or, in those counties without county law 13 libraries, one copy to the clerk of the circuit court; 14 (3) one copy of each to each county clerk; 15 (4) 10 copies of each to the library of the 16 University of Illinois; 17 (5) 3 copies of each to the libraries of the 18 University of Illinois at Chicago, Southern Illinois 19 University at Carbondale, Southern Illinois University at 20 Edwardsville, Northern Illinois University, Western 21 Illinois University, Eastern Illinois University, 22 Illinois State University, Chicago State University, 23 Northeastern Illinois University, Chicago Kent College of 24 Law, DePaul University, John Marshall Law School, Loyola 25 University, Northwestern University, Roosevelt 26 University, and the University of Chicago; 27 (6) a number of copies sufficient for exchange 28 purposes to the Legislative Reference Bureau and the 29 University of Illinois College of Law Library; 30 (7) a number of copies sufficient for public 31 libraries in the State and the State Library; and 32 (8) the remainder shall be retained for 33 distribution as the interests of the State may require to 34 persons making application in writing or in person for -34- LRB9008460JMsb 1 the publication. 2 (h) Messages and reports. The following shall be 3 printed in a quantity not to exceed the maximum stated in 4 this subsection and bound and distributed at public expense: 5 (1) messages to the General Assembly by the 6 Governor, 10,000 copies; 7 (2) the biennial report of the Lieutenant Governor, 8 1,000 copies; 9 (3) the biennial report of the Secretary of State, 10 3,000 copies; 11 (4) the biennial report of the State Comptroller, 12 5,000 copies; 13 (5) the biennial report of the State Treasurer, 14 3,000 copies; 15 (6) the annual report of the State Board of 16 Education, 6,000 copies; and 17 (7) the biennial report and annual opinions of the 18 Attorney General, 5,000 copies. 19 The reports of all other State officers, boards, 20 commissions, institutions, and departments shall be printed, 21 bound, and distributed at public expense in a number of 22 copies determined from previous experience not to exceed the 23 probable and reasonable demands of the State therefor. Any 24 other report required by law to be made to the Governor 25 shall, upon his or her order, be printed in the quantity 26 ordered by the Governor, bound and distributed at public 27 expense. 28 (i) Prohibition. All books, pamphlets, documents, and 29 reports published through or by the State of Illinois or any 30 State agency, board, or commission shall have printed thereon 31 "Printed by authority of the State of Illinois", the date of 32 each publication, the number of copies printed, and the 33 printing order number. Each using agency shall be 34 responsible for ascertaining the compliance of printing -35- LRB9008460JMsb 1 materials procured by or for it with this subsection. No 2 printing or reproduction contract shall be let and no 3 printing or reproduction shall be accomplished when that 4 wording does not appear on the material to be printed or 5 reproduced. No publication may have written, stamped, or 6 printed on it, or attached to it, "Compliments of ........ 7 (naming a person)" or any words of similar import. 8 Section 25-65. Federal requirements. A State agency 9 receiving federal funds shall have authority to adapt its 10 procedures, rules, project statements, drawings, maps, 11 surveys, plans, specifications, contract terms, estimates, 12 bid forms, bond forms, and other documents or practices 13 necessary to comply with the regulations, policies, and 14 procedures of the designated authority, administration or 15 department of the United States in order to remain eligible 16 for such federal funds; provided that procurement by any such 17 State agency using non-federal funds shall be subject to the 18 provisions of this Code. 19 Section 25-70. Foreign country procurements. 20 Procurements to meet the needs of State offices located in 21 foreign countries shall comply with the provisions of this 22 Code to the extent practical. 23 Section 25-75. Donations. Nothing in this Code or in 24 the rules promulgated hereunder shall prevent any State 25 agency from complying with the terms and conditions of any 26 grant, gift, or bequest which calls for the procurement of a 27 particular good or service, or use of a particular 28 contractor, provided the grant, gift, or bequest provides 29 complete funding for the contract. 30 ARTICLE 30 -36- LRB9008460JMsb 1 CONSTRUCTION AND CONSTRUCTION- 2 RELATED PROFESSIONAL SERVICES 3 Section 30-5. Applicability. Construction and 4 construction-related professional services shall be procured 5 in accordance with this Article. 6 Section 30-10. Authority. Construction agencies shall 7 have the authority to procure construction and 8 construction-related professional services. 9 Section 30-15. Method of source selection. 10 (a) Competitive sealed bidding. Except as provided 11 otherwise by this Code or by other law, all State 12 construction contracts shall be awarded by competitive sealed 13 bidding in accordance with Section 20-10. 14 (b) Construction-related professional services. All 15 construction-related professional services contracts shall be 16 awarded in accordance with the provisions of the 17 Architectural, Engineering, and Land Surveying Qualifications 18 Based Selection Act and Article 35 of this Code. 19 "Professional services" means those services within the scope 20 of the practice of architecture, professional engineering, 21 structural engineering, or registered land surveying, as 22 defined by the laws of this State. 23 (c) Correctional facilities. Remodeling and 24 rehabilitation projects at correctional facilities under 25 $25,000 are exempt from the provisions of this Code only when 26 the Department of Corrections uses inmate labor for the 27 remodeling or rehabilitation. 28 Section 30-20. Prequalification. The Board shall 29 promulgate rules for the development of prequalified supplier 30 lists for construction and construction-related professional -37- LRB9008460JMsb 1 services and the periodic updating of those lists. 2 Construction and construction-related professional services 3 contracts over $25,000 may be awarded to any qualified 4 suppliers pursuant to the provisions of this Code. 5 Section 30-25. Retention of a percentage of contract 6 price. Whenever any contract entered into by a construction 7 agency for the repair, remodeling, renovation, or 8 construction of a building or structure, for the construction 9 or maintenance of a highway, as those terms are defined in 10 Article 2 of the Illinois Highway Code, or for the 11 reclamation of abandoned lands as those terms are defined in 12 Article I of the Abandoned Mined Lands and Water Reclamation 13 Act provides for the retention of a percentage of the 14 contract price until final completion and acceptance of the 15 work, upon the request of the contractor and with the 16 approval of the construction agency the amount so retained 17 may be deposited under a trust agreement with an Illinois 18 bank of the contractor's choice and subject to the approval 19 of the construction agency. The contractor shall receive any 20 interest on the deposited amount. Upon application by the 21 contractor, the trust agreement must contain, at a minimum, 22 the following provisions: 23 (1) the amount to be deposited subject to the 24 trust; 25 (2) the terms and conditions of payment in case of 26 default by the contractor; 27 (3) the termination of the trust agreement upon 28 completion of the contract; and 29 (4) the contractor shall be responsible for 30 obtaining the written consent of the bank trustee and for 31 any costs or service fees. 32 The trust agreement may, at the discretion of the 33 construction agency and upon request of the contractor, -38- LRB9008460JMsb 1 become effective at the time of the first partial payment in 2 accordance with existing statutes and rules of the Board. 3 Section 30-30. Contracts in excess of $250,000. For 4 construction contracts in excess of $250,000, separate 5 specifications shall be prepared for all equipment, labor, 6 and materials in connection with the following 5 subdivisions 7 of the work to be performed: 8 (1) plumbing; 9 (2) heating, piping, refrigeration, and automatic 10 temperature control systems, including the testing and 11 balancing of those systems; 12 (3) ventilating and distribution systems for 13 conditioned air, including the testing and balancing of 14 those systems; 15 (4) electric wiring; and 16 (5) general contract work. 17 The specifications must be so drawn as to permit separate 18 and independent bidding upon each of the 5 subdivisions of 19 work. All contracts awarded for any part thereof shall award 20 the 5 subdivisions of work separately to responsible and 21 reliable persons, firms, or corporations engaged in these 22 classes of work. The contracts, at the discretion of the 23 construction agency, may be assigned to the successful bidder 24 on the general contract work or to the successful bidder on 25 the subdivision of work designated by the construction agency 26 before the bidding as the prime subdivision of work, provided 27 that all payments will be made directly to the contractors 28 for the 5 subdivisions of work upon compliance with the 29 conditions of the contract. A contract may be let for one or 30 more buildings in any project to the same contractor. The 31 specifications shall require, however, that unless the 32 buildings are identical, a separate price shall be submitted 33 for each building. The contract may be awarded to the lowest -39- LRB9008460JMsb 1 responsible bidder for each or all of the buildings included 2 in the specifications. 3 Section 30-35. Expenditure in excess of contract price. 4 (a) Germaneness. No funds in excess of the contract 5 price may be obligated or expended unless the additional work 6 to be performed or materials to be furnished is germane to 7 the original contract. Even if germane to the original 8 contract, no additional expenditures or obligations may, in 9 their total combined amounts, be in excess of the percentages 10 of the original contract amount set forth in subsection (b) 11 unless they have received the prior written approval of the 12 construction agency. In the event that the total of the 13 combined additional expenditures or obligations exceeds the 14 percentages of the original contract amount set forth in 15 subsection (b), the construction agency shall investigate all 16 the additional expenditures or obligations in excess of the 17 original contract amount and shall in writing approve or 18 disapprove subsequent expenditures or obligations and state 19 in detail the reasons for the approval or disapproval. 20 (b) Written determination required. When the contract 21 amount is no more than $75,000, the percentage shall be 9% 22 (maximum $6,750). When the contract amount is between 23 $75,001 and $200,000, the percentage shall be 7% of the 24 amount above $75,000 plus $6,750, but not to exceed 7% of 25 $200,000 (maximum $14,000). When the contract amount is 26 between $200,001 and $500,000, the percentage shall be 5% of 27 the amount above $200,000 plus $14,000, but not to exceed 5% 28 of $500,000 (maximum $25,000). When the contract amount is 29 in excess of $500,000, the percentage shall be 3% of the 30 amount above $500,000 plus $25,000. 31 Section 30-40. Certification. Any contract entered into 32 or expenditure of funds by a construction agency for -40- LRB9008460JMsb 1 remodeling, renovation, or construction, involving an 2 expenditure in excess of $5,000, shall be subject to the 3 supervision of a licensed architect or engineer. No payment 4 shall be made for the remodeling, renovation, or construction 5 unless the vouchers or invoice for the work is accompanied by 6 a written certificate of the licensed architect or engineer 7 that the payment represents work satisfactorily completed, 8 labor, or materials incorporated in or stored at the site of 9 the work; provided, periodic payments can be made during the 10 course of the work upon a certificate of the licensed 11 architect or engineer indicating the proportionate amount of 12 the total work completed satisfactorily. Architect or 13 engineer supervision and certification shall not apply to 14 refurbishing, repair, or maintenance projects that are 15 determined by the Illinois Capital Development Board's 16 Executive Director or its designated technical staff as not 17 being the practice of architecture as defined in Section 3 of 18 the Illinois Architecture Practice Act of 1989, nor the 19 practice of professional engineering as defined in Section 3 20 of the Professional Engineering Practice Act of 1989, nor the 21 practice of structural engineering as defined in Section 5 of 22 the Structural Engineering Licensing Act of 1989. 23 Section 30-45. Other Acts. This Article is subject to 24 applicable provisions of the following Acts: 25 (1) the Prevailing Wage Act; 26 (2) the Public Construction Bond Act; 27 (3) the Public Works Employment Discrimination Act; 28 (4) the Public Works Preference Act; 29 (5) the Employment of Illinois Workers on Public 30 Works Act; 31 (6) the Public Contract Fraud Act; and 32 (7) the Illinois Construction Evaluation Act. -41- LRB9008460JMsb 1 ARTICLE 35 2 PROFESSIONAL OR ARTISTIC SERVICES 3 Section 35-5. Applicability. All contracts for 4 professional or artistic services shall be procured in 5 accordance with the provisions of this Article. 6 Section 35-10. Authority. Each State agency shall have 7 the authority to procure its own professional or artistic 8 services. 9 Section 35-15. Method of source selection. Competitive 10 selection procedures. Except as provided otherwise by this 11 Code or by other law, all State contracts for professional or 12 artistic services of more than $5,000 but less than $50,000 13 shall be awarded by a competitive request for proposal 14 process in accordance with this Section and Section 20-35. 15 Except as provided otherwise by this Code or by other law, 16 all State contracts for professional or artistic services of 17 $50,000 or more shall be awarded by competitive sealed 18 bidding in accordance with Section 20-10. Nothing in this 19 Section shall prohibit a contract of more than $5,000 but 20 less than $50,000 from being awarded by competitive sealed 21 bidding in accordance with Section 20-10. 22 Section 35-20. Uniformity in procurement. 23 (a) The Board shall develop, cause to be printed, and 24 distribute uniform documents for the solicitation, review, 25 and acceptance of all professional and artistic services. 26 (b) All State purchasing officers and their designees 27 shall use the uniform procedures and forms specified in this 28 Code for all professional and artistic services. 29 (c) These forms shall include in detail, in writing, at 30 least: -42- LRB9008460JMsb 1 (1) a description of the goal to be achieved; 2 (2) the services to be performed; 3 (3) the need for the service; 4 (4) the qualifications that are necessary; and 5 (5) a plan for post-performance review. 6 Section 35-25. Uniformity in contract. 7 (a) The Board shall develop, cause to be printed, and 8 distribute uniform documents for the contracting of 9 professional and artistic services. 10 (b) All State purchasing officers and their designees 11 shall use these uniform contracts and forms in contracting 12 for all professional and artistic services. 13 (c) These contracts and forms shall include in detail, 14 in writing, at least: 15 (1) the detail listed in subsection (c) of Section 16 35-20; 17 (2) the duration of the contract, with a schedule 18 of delivery, when applicable; 19 (3) the method for charging and measuring cost 20 (hourly, per day, etc.); 21 (4) the rate of remuneration; and 22 (5) the maximum price. 23 Section 35-35. Subcontractors. 24 (a) Use specified. Any contract for professional or 25 artistic services shall state whether the services of a 26 subcontractor will be used. The contract shall include the 27 names and addresses of all subcontractors and the anticipated 28 amount of money that they will receive under the contract. 29 (b) Amendment. If at any time a contractor for 30 professional or artistic services that had not intended to 31 use the services of a subcontractor decides to use a 32 subcontractor, the contractor and the State agency shall file -43- LRB9008460JMsb 1 an amendment to the original contract with the Comptroller 2 stating the names and addresses of all subcontractors and the 3 anticipated amount of money that they will receive under the 4 original contract. 5 ARTICLE 40 6 REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES 7 Section 40-5. Applicability. All leases for real 8 property or capital improvements, including office and 9 storage space, buildings, and other facilities for State 10 agencies, shall be procured in accordance with the provisions 11 of this Article. 12 Section 40-10. Authority. State purchasing officers 13 shall have the authority to procure leases for real property 14 or capital improvements, except as that authority may be 15 limited by the Board or delegated by the State purchasing 16 officer in accordance with Section 10-15. 17 Section 40-15. Method of source selection. 18 (a) Request for information. Except as provided in 19 subsections (b) and (c), all State contracts for leases of 20 real property or capital improvements shall be awarded by a 21 request for information process in accordance with Section 22 40-20. 23 (b) Other methods. A request for information process 24 need not be used in procuring any of the following leases: 25 (1) Property of less than 10,000 square feet. 26 (2) Rent of less than $100,000 per year. 27 (3) Duration of less than one year that cannot be 28 renewed. 29 (4) Specialized space available at only one 30 location. -44- LRB9008460JMsb 1 (c) Leases with governmental units. Leases with other 2 governmental units may be negotiated without using the 3 request for information process when deemed by the Board to 4 be in the best interest of the State. 5 Section 40-20. Request for information. 6 (a) Conditions for use. Leases shall be procured by 7 request for information except as otherwise provided in 8 Section 40-15. 9 (b) Form. A request for information shall be issued and 10 shall include: 11 (1) the type of property to be leased; 12 (2) the proposed uses of the property; 13 (3) the duration of the lease; 14 (4) the preferred location of the property; and 15 (5) a general description of the configuration 16 desired. 17 (c) Public notice. Public notice of the request for 18 information for the availability of real property to lease 19 shall be published in the Illinois Procurement Bulletin at 20 least 14 days before the date set forth in the request for 21 receipt of responses and shall also be published in similar 22 manner in a newspaper of general circulation in the community 23 or communities where the using agency is seeking space. 24 (d) Response. The request for information response 25 shall consist of written information sufficient to show that 26 the respondent can meet minimum criteria set forth in the 27 request. State purchasing officers may enter into 28 discussions with respondents for the purpose of clarifying 29 State needs and the information supplied by the respondents. 30 On the basis of the information supplied and discussions, if 31 any, a State purchasing officer shall make a written 32 determination identifying the responses that meet the minimum 33 criteria set forth in the request for information. -45- LRB9008460JMsb 1 Negotiations shall be entered into with all qualified 2 respondents for the purpose of securing a lease that is in 3 the best interest of the State. A written report of the 4 negotiations shall be retained in the lease files and shall 5 include the reasons for the final selection. All leases 6 shall be reduced to writing and filed in accordance with the 7 provisions of Section 20-80. 8 (e) Exceptions. A request for information process need 9 not be used and the procurement may be negotiated when, 10 according to Board rules, the purchasing officer determines 11 that negotiations are in the best interest of the State in 12 the following situations: 13 (1) renewal or extension of leases; 14 (2) temporary space as defined by rule; or 15 (3) specialized space available at only one 16 location and parking. 17 Section 40-25. Length of leases. 18 (a) Maximum term. Leases shall be for a term not to 19 exceed 10 years and shall include a termination option in 20 favor of the State after 5 years. 21 (b) Renewal. Leases may include a renewal option. An 22 option to renew may be exercised only when a State purchasing 23 officer determines in writing that renewal is in the best 24 interest of the State. 25 (c) Subject to appropriation. All leases shall recite 26 that they are subject to termination and cancellation in any 27 year for which the General Assembly fails to make an 28 appropriation to make payments under the terms of the lease. 29 Section 40-30. Purchase option. Initial leases of all 30 space in entire, free-standing buildings shall include an 31 option to purchase exerciseable by the State, unless the 32 purchasing officer determines that inclusion of such purchase -46- LRB9008460JMsb 1 option is not in the State's best interest and makes that 2 determination in writing along with the reasons for making 3 that determination. Leases from governmental units and 4 not-for-profit entities are exempt from requirements of this 5 Section. 6 Section 40-35. Rent without occupancy. Except when 7 deemed by the Board to be in the best interest of the State, 8 no State agency may incur rental obligations before occupying 9 the space rented. 10 Section 40-40. Local site preferences. Upon the request 11 of the chief executive officer of a unit of local government, 12 leasing preferences may be given to sites located in 13 enterprise zones, tax increment districts, or redevelopment 14 districts. 15 ARTICLE 42 16 CONCESSIONS 17 Section 42-10. Concessions and leases of State property. 18 (a) Authority. Concessions, including the assignment, 19 license, sale, or transfer of interests in or rights to 20 discoveries, inventions, patents, or copyrightable works, and 21 leases of State property, including easements, may be entered 22 into by the State agency with jurisdiction over the property, 23 whether tangible or intangible. 24 (b) Awards. All concessions and leases of State 25 property shall be reduced to writing and shall be awarded 26 under the provisions of Article 20, except that the contract 27 shall be awarded to the highest and best bidder or offeror. 28 Section 42-20. Contract duration and terms. The 29 duration and terms of concessions and leases of State -47- LRB9008460JMsb 1 property shall be in accordance with applicable law or rule. 2 ARTICLE 45 3 PREFERENCES 4 Section 45-5. Procurement preferences. To promote 5 business and employment opportunities in Illinois, 6 procurement preferences are established and shall be 7 applicable to any procurement made under this Code. 8 Section 45-10. Resident bidders. 9 (a) Amount of preference. 10 (1) A resident contractor shall be allowed a 11 preference as against a non-resident contractor in the 12 event of a tie bid. 13 (2) A resident contractor shall be allowed a 14 preference as against a non-resident contractor from any 15 state that gives or requires a preference to contractors 16 from that state. The preference shall be equal to the 17 preference given or required by the state of the 18 non-resident contractor. 19 (3) If only non-resident contractors are competing, 20 the purchasing agency is within its right to specify that 21 Illinois labor and manufacturing locations be used as a 22 part of the manufacturing process, if applicable. This 23 specification may be negotiated as part of the 24 procurement process. 25 (b) Residency. A resident bidder is a person authorized 26 to transact business in this State and having a bona fide 27 establishment for transacting business within this State 28 where it was actually transacting business on the date when 29 any bid for a public contract is first advertised or 30 announced. A resident bidder includes a foreign corporation 31 duly authorized to transact business in this State that has a -48- LRB9008460JMsb 1 bona fide establishment for transacting business within this 2 State where it was actually transacting business on the date 3 when any bid for a public contract is first advertised or 4 announced. 5 (c) Federal funds. This Section does not apply to any 6 contract for any project as to which federal funds are 7 available for expenditure when its provisions may be in 8 conflict with federal law or federal regulation. 9 Section 45-15. Soybean oil-based ink. 10 (a) Contracts requiring the procurement of printing 11 services shall specify the use of soybean oil-based ink 12 unless a State purchasing officer determines that another 13 type of ink is required to assure high quality and reasonable 14 pricing of the printed product. 15 (b) All other printing done by or for the State shall 16 use soybean oil-based ink unless the agency by or for whom 17 the printing is done determines that another type of ink is 18 required to assure high quality and reasonable pricing of the 19 printed product. Printing done by or for the State in 20 soybean oil-based ink shall state, if practical, that soybean 21 oil-based ink was used. 22 Section 45-20. Recycled materials. When a public 23 contract is to be awarded to the lowest responsible bidder, 24 an otherwise qualified bidder who will fulfill the contract 25 through the use of products made of recycled materials may, 26 on a pilot basis or in accordance with a pilot study, be 27 given preference over other bidders unable to do so, provided 28 that the cost included in the bid of products made of 29 recycled materials is not more than 10% greater than the cost 30 of products not made of recycled materials. 31 Section 45-25. Recyclable paper. All paper purchased -49- LRB9008460JMsb 1 for use by State agencies must be recyclable paper unless 2 recyclable paper cannot be used to meet the requirements of 3 the State agencies. State agencies shall determine their 4 paper requirements to allow the use of recyclable paper 5 whenever possible, including without limitation using plain 6 paper rather than colored paper that is not recyclable. 7 Section 45-30. Correctional industries. Notwithstanding 8 any other provision to the contrary, the Board shall, in 9 consultation with the Department of Corrections, determine 10 which articles, materials, industry related services, food 11 stuffs, and supplies that are produced or manufactured by 12 persons confined in institutions and facilities of the 13 Department of Corrections shall be given preference by 14 purchasing agencies procuring those items. The Board shall 15 develop and distribute to the various Procurement and Using 16 Agencies procedures for executing this Section. 17 Section 45-35. Sheltered workshops for the severely 18 handicapped. 19 (a) Qualification. Supplies and services may be 20 procured without advertising or calling for bids from any 21 qualified not-for-profit agency for the severely handicapped 22 that: 23 (1) complies with Illinois laws governing private 24 not-for-profit organizations; 25 (2) is certified as a sheltered workshop by the 26 Wage and Hour Division of the United States Department of 27 Labor; and 28 (3) meets the Department of Human Services just 29 standards for rehabilitation facilities. 30 (b) Participation. To participate, the not-for-profit 31 agency must have indicated an interest in providing the 32 supplies and services, must meet the specifications and needs -50- LRB9008460JMsb 1 of the using agency, and must set a fair market price. 2 (c) Committee. There is created within the jurisdiction 3 of the Board a committee to facilitate the purchase of 4 products and services of persons so severely handicapped by a 5 physical or mental disability that they cannot engage in 6 normal competitive employment. The committee shall consist 7 of the Director of Central Management Services, the Director 8 of Human Services, and 2 representatives from private 9 business and 2 public members all appointed by the Governor 10 who are knowledgeable in the needs and concerns of 11 rehabilitation facilities in Illinois. The public members 12 shall serve 2 year terms, commencing upon appointment and 13 every 2 years thereafter. A public member may be 14 reappointed, and vacancies may be filled by appointment for 15 the completion of the term. The members shall serve without 16 compensation but shall be reimbursed for expenses at a rate 17 equal to that of State employees on a per diem basis by the 18 Board. All members shall be entitled to vote on issues before 19 the 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 and the 31 Board annually. 32 (5) To prepare a publication that lists all 33 supplies and services currently available from any 34 qualified not-for-profit agency for the severely -51- LRB9008460JMsb 1 handicapped. This list and any revisions shall be 2 distributed to all purchasing agencies. 3 (6) To encourage diversity in supplies and services 4 provided by qualified not-for-profit agencies for the 5 severely handicapped and discourage unnecessary 6 duplication or competition among facilities. 7 (7) To develop guidelines to be followed by 8 qualifying agencies for participation under the 9 provisions of this Section. The guidelines shall be 10 developed within 6 months after the effective date of 11 this Code and made available on a nondiscriminatory basis 12 to all qualifying agencies. 13 (8) To review all bids submitted under the 14 provisions of this Section and reject any bid for any 15 purchase that is determined to be substantially more than 16 the purchase would have cost had it been competitively 17 bid. 18 (d) Former committee. The committee created under 19 subsection (c) shall replace the committee created under 20 Section 7-2 of the Illinois Purchasing Act, which shall 21 continue to operate until the appointments under subsection 22 (c) are made. 23 Section 45-37. Purchases from qualified private business 24 with a supported employment work force. A State agency may 25 buy products and services, without advertising or using 26 competitive procedures, from a qualified private business 27 that: 28 (1) complies with Illinois laws governing private, 29 for-profit enterprises; 30 (2) employs individuals meeting the definition of 31 supported employee; 32 (3) provides necessary supports to its supported 33 employees to assist them in maintaining their employment; -52- LRB9008460JMsb 1 (4) provides its employees with an integrated 2 setting in which: 3 (A) at least 5% and not more than 20% of 4 employees are supported employees approved by the 5 Department of Human Services; 6 (B) most interpersonal interactions of a 7 supported employment worker that are in or 8 associated with the work place are with employees of 9 that work place who are not supported employment 10 workers; and 11 (C) most (at least 50%) of the work expended 12 to produce the amount of the goods and services to 13 be sold to the State is provided by supported 14 employees; 15 (5) completes a Bidders Application form that is on 16 file with the Department of Central Management Services; 17 and 18 (6) meets the bid specifications or the needs of 19 the purchasing agency at a fair market price. 20 Those businesses must file a quarterly report with 21 Department of Central Management Services listing all 22 contracts with State agencies. 23 The State Use Committee is responsible for interpreting 24 the provisions of this Section and for monitoring and making 25 decisions regarding contracts under this Section. 26 Section 45-40. Gas mileage. 27 (a) Specification. Contracts for the purchase or lease 28 of new passenger automobiles, other than station wagons, 29 vans, four-wheel drive vehicles, emergency vehicles, and 30 police and fire vehicles, shall specify the procurement of a 31 model that, according to the most current mileage study 32 published by the U.S. Environmental Protection Agency, can 33 achieve at least the minimum average fuel economy in miles -53- LRB9008460JMsb 1 per gallon imposed upon manufacturers of vehicles under Title 2 V of The Motor Vehicle Information and Cost Savings Act. 3 (b) Exemptions. The State purchasing officer may exempt 4 procurements from the requirement of subsection (a) when 5 there is a demonstrated need, submitted in writing, for an 6 automobile that does not meet the minimum average fuel 7 economy standards. The Board shall promulgate rules for 8 determining need consistent with the intent of this Section. 9 Section 45-45. Small businesses. 10 (a) Set-asides. The Board has authority to designate as 11 small business set-asides a fair proportion of construction, 12 supply, and service contracts for award to small businesses 13 in Illinois. Advertisements for bids or offers for those 14 contracts shall specify designation as small business 15 set-asides. In awarding the contracts, only bids or offers 16 from qualified small businesses shall be considered. 17 (b) Small business. "Small business" means a business 18 that is independently owned and operated and that is not 19 dominant in its field of operation. The Board shall 20 establish a detailed definition by rule, using in addition to 21 the foregoing criteria other criteria, including the number 22 of employees and the dollar volume of business. When 23 computing the size status of a bidder, annual sales and 24 receipts of the bidder and all of its affiliates shall be 25 included. The maximum number of employees and the maximum 26 dollar volume that a small business may have under the rules 27 promulgated by the Board may vary from industry to industry 28 to the extent necessary to reflect differing characteristics 29 of those industries, subject to the following limitations: 30 (1) No wholesale business is a small business if 31 its annual sales for its most recently completed fiscal 32 year exceed $7,500,000. 33 (2) No retail business or business selling services -54- LRB9008460JMsb 1 is a small business if its annual sales and receipts 2 exceed $1,500,000. 3 (3) No manufacturing business is a small business 4 if it employs more than 250 persons. 5 (4) No construction business is a small business if 6 its annual sales and receipts exceed $3,000,000. 7 (c) Fair proportion. For the purpose of subsection (a), 8 a fair proportion of construction contracts shall be no less 9 than 25% nor more than 40% of the annual total contracts for 10 construction. 11 (d) Withdrawal of designation. A small business 12 set-aside designation may be withdrawn by the purchasing 13 agency when deemed in the best interests of the State. Upon 14 withdrawal, all bids or offers shall be rejected, and the 15 bidders or offerors shall be notified of the reason for 16 rejection. The contract shall then be awarded in accordance 17 with this Code without the designation of small business 18 set-aside. 19 (e) Small business assistance. The purchasing officers 20 shall assist small businesses by: 21 (1) Compiling and maintaining a comprehensive 22 bidders list of small businesses. In this duty, he or 23 she shall cooperate with the Federal Small Business 24 Administration in locating potential sources for various 25 products and services. 26 (2) Assisting small businesses in complying with 27 the procedures for bidding on State contracts. 28 (3) Examining requests from State agencies for the 29 purchase of property or services to help determine which 30 invitations to bid are to be designated small business 31 set-asides. 32 (4) Making recommendations to the Board for the 33 simplification of specifications and terms in order to 34 increase the opportunities for small business -55- LRB9008460JMsb 1 participation. 2 (5) Assisting in investigations by purchasing 3 agencies to determine the responsibility of bidders on 4 small business set-asides. 5 (f) Small business annual report. The State purchasing 6 officer designated under subsection (e) shall annually before 7 December 1 report in writing to the General Assembly 8 concerning the awarding of contracts to small businesses. 9 The report shall include the total value of awards made in 10 the preceding fiscal year under the designation of small 11 business set-aside. 12 The requirement for reporting to the General Assembly 13 shall be satisfied by filing copies of the report as required 14 by Section 3.1 of the General Assembly Organization Act. 15 Section 45-50. Illinois agricultural products. In 16 awarding contracts requiring the procurement of agricultural 17 products, preference may be given to an otherwise qualified 18 bidder or offeror who will fulfill the contract through the 19 use of agricultural products grown in Illinois. 20 Section 45-55. Corn-based plastics. In awarding 21 contracts requiring the procurement of plastic products, 22 preference may be given to an otherwise qualified bidder or 23 offeror who will fulfill the contract through the use of 24 plastic products made from Illinois corn by-products. 25 Section 45-60. Vehicles powered by agricultural 26 commodity-based fuel. In awarding contracts requiring the 27 procurement of vehicles, preference may be given to an 28 otherwise qualified bidder or offeror who will fulfill the 29 contract through the use of vehicles powered by ethanol 30 produced from Illinois corn or biodiesel fuels produced from 31 Illinois soybeans. -56- LRB9008460JMsb 1 Section 45-65. Additional preferences. This Code is 2 subject to applicable provisions of: 3 (1) the Public Purchases in Other States Act; 4 (2) the Illinois Mined Coal Act; 5 (3) the Steel Products Procurement Act; 6 (4) the Veterans Preference Act; and 7 (5) the Business Enterprise for Minorities, 8 Females, and Disabled Persons Act. 9 ARTICLE 50 10 PROHIBITIONS, RESTRICTIONS, AND PENALTIES 11 Section 50-5. Bribery. 12 (a) Prohibition. No person or business shall be awarded 13 a contract or subcontract under this Code who: 14 (1) has been convicted under the laws of Illinois 15 or any other state of bribery or attempting to bribe an 16 officer or employee of the State of Illinois or any other 17 state in that officer's or employee's official capacity; 18 or 19 (2) has made an admission of guilt of that conduct 20 that is a matter of record but has not been prosecuted 21 for that conduct. 22 (b) Businesses. No business shall be barred from 23 contracting with any unit of State or local government as a 24 result of a conviction under this Section of any employee or 25 agent of the business if the employee or agent is no longer 26 employed by the business and: 27 (1) the business has been finally adjudicated not 28 guilty; or 29 (2) the business demonstrates to the governmental 30 entity with which it seeks to contract, and that entity 31 finds that the commission of the offense was not 32 authorized, requested, commanded, or performed by a -57- LRB9008460JMsb 1 director, officer, or high managerial agent on behalf of 2 the business as provided in paragraph (2) of subsection 3 (a) of Section 5-4 of the Criminal Code of 1961. 4 (c) Conduct on behalf of business. For purposes of this 5 Section, when an official, agent, or employee of a business 6 committed the bribery or attempted bribery on behalf of the 7 business and in accordance with the direction or 8 authorization of a responsible official of the business, the 9 business shall be chargeable with the conduct. 10 (d) Certification. Every bid submitted to and contract 11 executed by the State shall contain a certification by the 12 contractor that the contractor is not barred from being 13 awarded a contract or subcontract under this Section. A 14 contractor who makes a false statement, material to the 15 certification, commits a Class 3 felony. 16 Section 50-10. Felons. Unless otherwise provided, no 17 person or business convicted of a felony shall do business 18 with the State of Illinois or any State agency from the date 19 of conviction until 5 years after the date of completion of 20 the sentence for that felony, unless no person held 21 responsible by a prosecutorial office for the facts upon 22 which the conviction was based continues to have any 23 involvement with the business. 24 Section 50-15. Conflicts of interest. 25 (a) Prohibition. It is unlawful for any person holding 26 an elective office in this State, holding a seat in the 27 General Assembly, or appointed to or employed in any of the 28 offices or agencies of State government, or who is an officer 29 or employee of the Capital Development Board or the Illinois 30 Toll Highway Authority, or who is the spouse or minor child 31 of any such person to have or acquire any contract, or any 32 direct pecuniary interest in any contract therein, whether -58- LRB9008460JMsb 1 for stationery, printing, paper, or any services, materials, 2 or supplies, that will be wholly or partially satisfied by 3 the payment of funds appropriated by the General Assembly of 4 the State of Illinois or in any contract of the Capital 5 Development Board or the Illinois Toll Highway Authority. 6 (b) Interests. It is unlawful for any firm, 7 partnership, association, or corporation in which any person 8 listed in subsection (a) is entitled to receive (i) more than 9 7 1/2% of the total distributable income, or (ii) an amount 10 in excess of the salary of the Governor, whichever is lower, 11 to have or acquire any such contract or direct pecuniary 12 interest therein. 13 (c) Combined interests. It is unlawful for any firm, 14 partnership, association, or corporation in which any person 15 listed in subsection (a) together with his or her spouse or 16 minor children is entitled to receive (i) more than 15%, in 17 the aggregate, of the total distributable income, or (ii) an 18 amount in excess of 2 times the Governor's salary, whichever 19 is lower, to have or acquire any such contract or direct 20 pecuniary interest therein. 21 (d) Securities. Nothing in this Section invalidates the 22 provisions of any bond or other security previously offered 23 or to be offered for sale or sold by or for the State of 24 Illinois. 25 (e) Prior interests. This Section does not affect the 26 validity of any contract made between the State and an 27 officer or employee of the State or member of the General 28 Assembly, his or her spouse, minor child or any combination 29 of those persons if that contract was in existence before his 30 or her election or employment as an officer, member, or 31 employee. The contract is void, however, if it cannot be 32 completed within 6 months after the officer, member, or 33 employee takes office or is employed. 34 (f) Exceptions. -59- LRB9008460JMsb 1 (1) Public aid payments. This Section does not 2 apply to payments made for a public aid recipient. 3 (2) Teaching. This Section does not apply to a 4 contract for personal services as a teacher or school 5 administrator between a member of the General Assembly or 6 his or her spouse, or a State officer or employee or his 7 or her spouse, and any school district, public community 8 college district, or the State colleges and universities 9 and their governing boards. 10 (3) Ministerial duties. This Section does not 11 apply to a contract for personal services of a wholly 12 ministerial character, including but not limited to 13 services as a laborer, clerk, typist, stenographer, page, 14 bookkeeper, receptionist, or telephone switchboard 15 operator, made by a spouse or minor child of an elective 16 or appointive State officer or employee or of a member of 17 the General Assembly. 18 (4) Child and family services. This Section does 19 not apply to payments made to a member of the General 20 Assembly, a State officer or employee, his or her spouse 21 or minor child acting as a foster parent, homemaker, 22 advocate, or volunteer for or in behalf of a child or 23 family served by the Department of Children and Family 24 Services. 25 (g) Penalty. Any person convicted of a violation of 26 this Section is guilty of a business offense and shall be 27 fined not less than $1,000 nor more than $5,000. 28 Section 50-20. Negotiations. 29 (a) Prohibition. Except as provided in Section 50-25, 30 it is unlawful for any person employed in or on a continual 31 contractual relationship with any of the offices or agencies 32 of State government to participate in contract negotiations 33 on behalf of that office or agency with any firm, -60- LRB9008460JMsb 1 partnership, association, or corporation with whom that 2 person has a contract for future employment or is negotiating 3 concerning possible future employment. 4 (b) Penalty. Any person violating this Section is 5 guilty of a business offense and shall be fined not less than 6 $1,000 and not more than $5,000. 7 Section 50-25. Exemptions. The Board may exempt named 8 individuals or business from the prohibitions of Section 9 50-5, 50-10, or 50-15 when, in the discretion of the Board, 10 it is determined that the public interest in having the 11 individual in the service of the State outweighs the public 12 policy evidenced in those Sections. An exemption is 13 effective only when it is filed with the Secretary of State 14 and the Comptroller and includes a statement setting forth 15 the name of the individual and all the pertinent facts that 16 would make that Section applicable, setting forth the reason 17 for the exemption, and declaring the individual exempted from 18 that Section. Notice of each exemption shall be published in 19 the Illinois Procurement Bulletin. 20 Section 50-30. Inducement. Any person who offers or 21 pays any money or other valuable thing to any person to 22 induce him or her not to bid for a State contract or as 23 recompense for not having bid on a State contract is guilty 24 of a Class 4 felony. Any person who accepts any money or 25 other valuable thing for not bidding for a State contract or 26 who withholds a bid in consideration of the promise for the 27 payment of money or other valuable thing is guilty of a Class 28 4 felony. 29 Section 50-35. Revolving door prohibition. State 30 employees whose duties with the State were directly related 31 to procurement may not, for a period of 2 years following -61- LRB9008460JMsb 1 separation of service with the employing agency, have a 2 contract with that agency, or engage in lobbying that agency 3 whether directly or as an employee or agent of another. 4 Section 50-40. Disclosures by contractors and bidders. 5 (a) All offers from responsive bidders or offerors with 6 an annual value of more than $5,000 shall be accompanied by 7 disclosure of the financial interests of the contractor, 8 bidder, or proposer. The financial disclosure of each 9 successful bidder or offeror shall become part of the 10 publicly available contract or procurement file. The nature 11 and extent of the disclosure required by this Section shall 12 be established in rules formulated by the Board. 13 (b) The disclosure in subsection (a) is not intended to 14 prohibit or prevent any contract. The disclosure is meant to 15 fully and publicly disclose any potential conflict. 16 Section 50-45. Disclosures by State employees and 17 officers. 18 (a) Contract negotiations. Any person participating in 19 the making of a contract, or who enters into a contract, on 20 behalf of an office or agency of State government with the 21 knowledge that his or her spouse, child, parent, or sibling 22 is entitled to receive (i) more than 7.5% of the total 23 distributable income of the other contracting party or (ii) 24 an amount in excess of the salary of the Governor, whichever 25 is lower, or in which that child, parent, or sibling, 26 together with his or her spouse or minor children, is 27 entitled to receive (i) more than 15%, in the aggregate, of 28 the total distributable income of the other contracting party 29 or (ii) an amount in excess of 2 times the salary of the 30 Governor, whichever is lower, 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 -62- LRB9008460JMsb 1 the office or agency and be kept available for public 2 inspection. A copy of the statement shall be forwarded by 3 the administrative head to the Inspector General. A person 4 failing to file a statement or filing a false statement is 5 guilty of a business offense and shall be fined not less than 6 $1,000 and not more than $5,000. Any such contract is 7 contrary to public policy and may be voided at the option of 8 the State unless it is shown to be in the best interests of 9 the State. Moreover, if fraud or substantial monetary harm 10 to the State results from the nepotic element of the 11 transaction, the government officer or employee involved in 12 the element is guilty of a Class A misdemeanor. 13 (b) Other positions and contracts. Each State employee 14 is responsible for annually notifying his or her State 15 employer of contracts held by the employee or by the 16 employee's spouse and minor children and of other payroll 17 positions held by the employee. The State employee shall 18 notify his or her employer of any changes in this 19 notification at the time the changes occur. 20 Section 50-50. Identical bids. Every State agency that 21 obtains 2 or more identical bids under this Code shall inform 22 the Inspector General and the Attorney General in writing of 23 those facts within 30 days after the disposition of all bids 24 received in response for bids, whether by the awarding of the 25 contract or other action. The Attorney General shall 26 prescribe the form and manner of notification. 27 Section 50-55. Reporting of anticompetitive practices. 28 When for any reason collusion or other anticompetitive 29 practices are suspected among any bidders or offerors, a 30 notice of the relevant facts shall be transmitted to the 31 Inspector General and the Attorney General. -63- LRB9008460JMsb 1 Section 50-58. Confidentiality. The Inspector General 2 or any State purchasing officer, designee, or executive 3 officer who willfully uses or allows the use of 4 specifications, competitive bid documents, proprietary 5 competitive information, proposals, contracts, or selection 6 information to compromise the fairness or integrity of the 7 procurement, bidding, or contract process shall be subject to 8 discipline up to and including immediate dismissal, 9 regardless of the Personnel Code, and may in addition be 10 subject to criminal prosecution. 11 Section 50-60. Insider information. It is unlawful for 12 any current or former elected or appointed State official or 13 State employee to knowingly use confidential information 14 available only by virtue of that office or employment for 15 actual or anticipated personal gain or for the actual or 16 anticipated personal gain of another person. 17 Section 50-65. Supply inventory. Every State agency 18 shall inventory or stock no more than a 12-month need of 19 equipment, supplies, commodities, articles, and other items, 20 except as otherwise authorized by the State agency's 21 regulations. Every State agency shall periodically review 22 its inventory to ensure compliance with this Section. If, 23 upon review, an agency determines it has more than a 12-month 24 supply of any equipment, supplies, commodities, or other 25 items, the agency shall undertake transfers of the 26 oversupplied items or other action necessary to maintain 27 compliance with this Section. This Section shall not apply 28 to lifesaving medications, mechanical spare parts, and items 29 for which the supplier requires a minimum order stipulation. 30 Section 50-75. Suspension and debarment. Any contractor 31 may be suspended for violation of this Code or for failure to -64- LRB9008460JMsb 1 conform to specifications or terms of delivery. Suspension 2 shall be for cause and may be for a period of up to 2 years 3 at the discretion of the applicable State procurement 4 officer. Contractors may be debarred in accordance with 5 rules promulgated by the Board or as otherwise provided by 6 law. 7 Section 50-80. Additional provisions. This Code is 8 subject to applicable provisions of the following Acts: 9 (1) Article 33E of the Criminal Code of 1961; 10 (2) the Illinois Human Rights Act; 11 (3) the Discriminatory Club Act; 12 (4) the Illinois Governmental Ethics Act; 13 (5) the State Prompt Payment Act; 14 (6) the Public Officer Prohibited Activities Act; 15 and 16 (7) the Drug Free Workplace Act. 17 Section 50-85. Other violations. 18 (a) The Inspector General or any State purchasing 19 officer or designee who willfully violates or allows the 20 violation of this Code shall be subject to discipline up to 21 and including immediate dismissal, regardless of the 22 Personnel Code. 23 (b) Except as otherwise provided in this Code, whoever 24 violates this Code or the rules promulgated under it is 25 guilty of a Class A misdemeanor. 26 ARTICLE 90 27 MISCELLANEOUS PROVISIONS 28 Section 90-5. References to repealed provisions. After 29 the effective date of this Act, all references to the 30 provisions of law repealed by this Act shall be construed, -65- LRB9008460JMsb 1 where necessary and appropriate, as references to the 2 Illinois Procurement Code. 3 Section 90-10. Severability. If any provision of this 4 Code or any application of it to any person or circumstance 5 is held invalid, that invalidity shall not affect other 6 provisions or applications of this Code that can be given 7 effect without the invalid provision or application, and to 8 this end the provisions of this Code are declared to be 9 severable. 10 Section 90-20. Voidable contracts. If any contract is 11 entered into or purchase or expenditure of funds is made in 12 violation of this Code or any other law, the contract may be 13 declared void by the purchasing officer, or may be 14 terminated, ratified and affirmed, provided it is determined 15 that ratification is in the best interests of the State. If 16 the contract is ratified and affirmed, it shall be without 17 prejudice to the State's rights to any appropriate damages. 18 ARTICLE 95 19 AMENDATORY AND REPEALING PROVISIONS 20 Section 95-5. The Governmental Joint Purchasing Act is 21 amended by changing Section 3 as follows: 22 (30 ILCS 525/3) (from Ch. 85, par. 1603) 23 Sec. 3. Any agreement of the governmental units which 24 desire to make joint purchases, one of the governmental units 25 shall conduct the letting of bids. Where the State of 26 Illinois is a party to the joint purchase agreement, the 27 Department of Central Management Services shall conduct the 28 letting of bids. Expenses of such bid-letting may be shared 29 by the participating governmental units in proportion to the -66- LRB9008460JMsb 1 amount of personal property, supplies or services each unit 2 purchases. 3 When the State of Illinois is a party to the joint 4 purchase agreement, the acceptance of bids shall be in 5 accordance with the Illinois Procurement Code and rules 6 promulgated under that Code. When the State of Illinois is 7 not a party to the joint purchase agreement, the acceptance 8 of bids shall be governed by the agreement. 9 The personal property, supplies or services involved 10 shall be distributed or rendered directly to each 11 governmental unit taking part in the purchase. The person 12 selling the personal property, supplies or services may bill 13 each governmental unit separately for its proportionate share 14 of the cost of the personal property, supplies or services 15 purchased. 16 The credit or liability of each governmental unit shall 17 remain separate and distinct. Disputes between bidders and 18 governmental units shall be resolved between the immediate 19 parties. 20 (Source: P.A. 87-860.) 21 (15 ILCS 405/11 rep.) 22 (15 ILCS 405/15 rep.) 23 Section 95-10. The State Comptroller Act is amended by 24 repealing Sections 11 and 15. 25 (20 ILCS 5/29 rep.) 26 (20 ILCS 5/30 rep.) 27 (20 ILCS 405/35.7b rep.) 28 (20 ILCS 405/67.01 rep.) 29 (20 ILCS 405/67.04 rep.) 30 Section 95-15. The Civil Administrative Code of Illinois 31 is amended by repealing Sections 29, 30, 35.7b, 67.01, and 32 67.04. -67- LRB9008460JMsb 1 Section 95-16. The Civil Administrative Code of Illinois 2 is amended by changing Section 67.02 as follows: 3 (20 ILCS 405/67.02) (from Ch. 127, par. 63b13.2) 4 Sec. 67.02. (a) To lease or purchase office and storage 5 space, buildings, land and other facilities for all State 6 agencies, authorities, boards, commissions, departments, 7 institutions, bodies politic and all other administrative 8 units or outgrowths of the executive branch of State 9 government except the Constitutional officers, the State 10 Board of Education and the State colleges and universities 11 and their governing bodies. However, before leasing or 12 purchasing any office or storage space, buildings, land or 13 other facilities in any municipality the Department shall 14 survey the existing State-owned and State-leased property to 15 make a determination of need. Such leases shall be for a 16 term not to exceed 5 years, except that such leases may 17 contain a renewal clause subject to acceptance by the State 18 after that date or an option to purchase. Such purchases 19 shall be made through contracts which may provide for the 20 title to the property to transfer immediately to the State or 21 a trustee or nominee for the benefit of the State and which 22 shall: provide for the consideration to be paid in 23 installments to be made at stated intervals during a certain 24 term not to exceed 30 years from the date of the contract and 25 may provide for the payment of interest on the unpaid balance 26 at a rate that does not exceed a rate determined by adding 3 27 percentage points to the annual yield on United States 28 Treasury obligations of comparable maturity as most recently 29 published in the Wall Street Journal at the time such 30 contract is signed. Such leases and purchase contracts shall 31 be and shall recite that they are subject to termination and 32 cancellation in any year for which the General Assembly fails 33 to make an appropriation to pay the rent or purchase -68- LRB9008460JMsb 1 installments payable under the terms of the lease or purchase 2 contract. Additionally such purchase contract shall specify 3 that title to the office and storage space, buildings, land 4 and other facilities being acquired under such a contract 5 shall revert to the Seller in the event of the failure of 6 the General Assembly to appropriate suitable funds. 7 However, this limitation on the term of such leases does not 8 apply to leases to and with the Illinois Building Authority, 9 as provided for in the Act enacted by the Seventy-second 10 General Assembly entitled the Building Authority Act, which 11 leases to and with said Authority may be entered into for a 12 term not to exceed 30 years and shall be and shall recite 13 that they are subject to termination and cancellation in any 14 year for which the General Assembly fails to make an 15 appropriation to pay the rent payable under the terms of such 16 lease. These limitations do not apply where the lease or 17 purchase contract contains a provision limiting the liability 18 for the payment of the rentals or installments thereof solely 19 to funds received from the Federal government. 20 (b) To lease from an airport authority office, aircraft 21 hangar and service buildings constructed upon a public 22 airport under the Airport Authorities Act for the use and 23 occupancy of the State Department of Transportation, which 24 lease may be entered into for a term not to exceed 30 years. 25 (c) To establish training programs for teaching State 26 leasing procedures and practices to new employees of the 27 Department and to keep all employees of the Department 28 informed about current leasing practices and developments in 29 the real estate industry. 30 (d) To enter into an agreement with a municipality or 31 county to construct, remodel or convert a structure for the 32 purposes of its serving as a correctional institution or 33 facility pursuant to paragraph (c) of Section 3-2-2 of the 34 Unified Code of Corrections. -69- LRB9008460JMsb 1 (e) To enter into an agreement with a private 2 individual, trust, partnership or corporation or a 3 municipality or other unit of local government, when 4 authorized to do so by the Department of Corrections, whereby 5 such individual, trust, partnership or corporation or 6 municipality or other unit of local government will 7 construct, remodel or convert a structure for the purposes of 8 its serving as a correctional institution or facility and 9 then lease such structure to the Department for the use of 10 the Department of Corrections. A lease entered into pursuant 11 to the authority granted in this subsection shall be for a 12 term not to exceed 30 years, but may grant to the State the 13 option to purchase the structure outright. 14 Such leases shall be and shall recite that they are 15 subject to termination and cancellation in any year for which 16 the General Assembly fails to make an appropriation to pay 17 the rent payable under the terms of the lease. 18 (f) On and after September 17, 1983, the powers granted 19 to the Department under this Section shall be exercised 20 exclusively by the Department and no other State agency may 21 concurrently exercise any such power, unless specifically 22 authorized otherwise by a later enacted law. This subsection 23 is not intended to impair any contract existing as of 24 September 17, 1983. 25 However, no lease for more than 10,000 square feet of 26 space shall be executed unless the Director in consultation 27 with the Executive Director of the Capital Development Board 28 has certified that leasing is in the best interest of the 29 State, considering programmatic requirements, availability of 30 vacant State-owned space, the cost-benefits of purchasing or 31 constructing new space and other criteria as he shall 32 determine. The Director shall not permit multiple leases for 33 less than 10,000 square feet to be executed in order to evade 34 this provision. -70- LRB9008460JMsb 1 (g) To develop and implement, in cooperation with the 2 Interagency Energy Conservation Committee, a system for 3 evaluating energy consumption in facilities leased by the 4 Department, and to develop energy consumption standards for 5 use in evaluating prospective lease sites. 6 (h) (1) After the effective date of this amendatory Act 7 of 1997, the Department shall not enter into an agreement 8 for the installment purchase or lease purchase of 9 buildings, land, or facilities unless: 10 (A) the using agency certifies to the 11 Department that the agency reasonably expects the 12 building, land, or facilities being considered for 13 purchase will meet a permanent space need; 14 (B) the building or facilities will be 15 substantially occupied by State agencies after 16 purchase (or after acceptance in the case of a build 17 to suit); 18 (C) the building or facilities shall be in new 19 or like new condition and have a remaining economic 20 life exceeding the term of the contract; 21 (D) no structural or other major building 22 component or system shall have a remaining economic 23 life of less than 10 years; 24 (E) the building, land or facilities: 25 (i) is free of any identifiable 26 environmental hazard, or 27 (ii) is subject to a management plan, 28 provided by the seller and acceptable to the 29 State, to address the known environmental 30 hazard; 31 (F) the building, land, or facilities satisfy 32 applicable handicap accessibility and applicable 33 building codes; and 34 (G) the State's cost to lease purchase or -71- LRB9008460JMsb 1 installment purchase the building, land, or 2 facilities is less than the cost to lease space of 3 comparable quality, size, and location over the 4 lease purchase or installment purchase term. 5 (2) The Department shall establish the methodology 6 for comparing lease costs to the costs of installment or 7 lease purchases. The cost comparison shall take into 8 account all relevant cost factors including, but not 9 limited to, debt service, operating and maintenance 10 costs, insurance and risk costs, real estate taxes, 11 reserves for replacement and repairs, security costs, and 12 utilities. Such methodology shall also provide: 13 (A) that the comparison will be made using 14 level payment plans; and 15 (B) that a purchase price must not exceed the 16 fair market value of the buildings, land, or 17 facilities, and that such price must be 18 substantiated by an appraisal or by a competitive 19 selection process in accordance with the Illinois 20 Procurement Code. 21 (3) If the Department intends to enter into an 22 installment purchase or lease purchase agreement for 23 buildings, land, or facilities under circumstances that 24 do not satisfy the conditions specified by this Section, 25 it must issue a notice to the Secretary of the Senate and 26 the Clerk of the House. Such notice shall contain (i) 27 specific details of the State's proposed purchase, 28 including the amounts, purposes, and financing terms; 29 (ii) a specific description of how the proposed purchase 30 varies from the procedures set forth in this Section; and 31 (iii) a specific justification, signed by the Director, 32 of why it is in the State's best interests to proceed 33 with the purchase. The Department may not proceed with 34 such an installment purchase or lease purchase agreement -72- LRB9008460JMsb 1 if, within 60 calendar days after delivery of the notice, 2 the General Assembly, by joint resolution, disapproves 3 the transaction. Delivery may take place on a day and at 4 an hour when the Senate and House are not in session so 5 long as the offices of Secretary and Clerk are open to 6 receive the notice. In determining the 60 day period 7 within which the General Assembly must act, the day on 8 which delivery is made to the Senate and House shall not 9 be counted. If delivery of the notice to the 2 houses 10 occurs on different days, the 60 day period shall begin 11 on the day following the later delivery. 12 (4) On or before February 15 of each year, the 13 Department shall submit an annual report to the Director 14 of the Bureau of the Budget and the General Assembly 15 regarding installment purchases or lease purchases of 16 buildings, land, or facilities that were entered into 17 during the preceding calendar year. The report shall 18 include a summary statement of the aggregate amount of 19 the State's obligations under such purchases; specific 20 details pertaining to each purchase, the amounts, 21 purposes, and financing terms and payment schedule for 22 each purchase; and any other matter that the Department 23 deems advisable. 24 The requirement for reporting to the General 25 Assembly shall be satisfied by filing copies of the 26 report with the Auditor General, the Speaker, the 27 Minority Leader, and the Clerk of the House of 28 Representatives and the President, the Minority Leader, 29 and the Secretary of the Senate, the Chairs of the 30 Appropriations Committees, and the Legislative Research 31 Unit, as required by Section 3.1 of the General Assembly 32 Organization Act, and filing such additional copies with 33 the State Government Report Distribution Center for the 34 General Assembly as is required under paragraph (t) of -73- LRB9008460JMsb 1 Section 7 of the State Library Act. 2 (5) Installment purchase and lease purchase 3 agreements for buildings, land, and facilities, whether 4 entered into under this Section or as specified in 5 paragraph (3) of this subsection, are subject to the 6 Illinois Procurement Code. 7 (Source: P.A. 90-520, eff. 6-1-98.) 8 Section 95-17. The Personnel Code is amended by adding 9 Section 25 as follows: 10 (20 ILCS 415/25 new) 11 Sec. 25. Illinois Procurement Code. This Code is 12 subject to the provisions of the Illinois Procurement Code. 13 (20 ILCS 1015/13 rep.) 14 Section 95-20. The Public Employment Office Act is 15 amended by repealing Section 13. 16 (30 ILCS 505/Act rep.) 17 Section 95-25. The Illinois Purchasing Act is repealed. 18 (30 ILCS 510/Act rep.) 19 Section 95-30. The State Paper Purchasing Act is 20 repealed. 21 (30 ILCS 515/Act rep.) 22 Section 95-35. The State Printing Contracts Act is 23 repealed. 24 (30 ILCS 563/Act rep.) 25 Section 95-37. The Real Estate Leasing Act is repealed. 26 (30 ILCS 615/Act rep.) -74- LRB9008460JMsb 1 Section 95-40. The State Vehicle Mileage Act is 2 repealed. 3 Section 95-45. The Toll Highway Act is amended by 4 changing Sections 3, 8, 16, and 16.1 as follows: 5 (605 ILCS 10/3) (from Ch. 121, par. 100-3) 6 Sec. 3. There is hereby created an Authority to be known 7 as The Illinois State Toll Highway Authority, which is hereby 8 constituted an instrumentality and an administrative agency 9 of the State of Illinois. The said Authority shall consist of 10 11 directors; the Governor and the Secretary of the 11 Department of Transportation, ex officio, and 9 directors 12 appointed by the Governor with the advice and consent of the 13 Senate, from the State at large, which said directors and 14 their successors are hereby authorized to carry out the 15 provisions of this Act, and to exercise the powers herein 16 conferred. Of the 9 directors appointed by the Governor, no 17 more than 5 shall be members of the same political party. 18 Vacancies shall be filled for the unexpired term in the same 19 manner as original appointments. All appointments shall be in 20 writing and filed with the Secretary of State as a public 21 record. It is the intention of this section that the 22 Governor's appointments shall be made with due consideration 23 to the location of proposed toll highway routes so that 24 maximum geographic representation from the areas served by 25 said toll highway routes may be accomplished insofar as 26 practicable. The said Authority shall have the power to 27 contract and be contracted with, in accordance with the 28 Illinois Procurement Code in the case of procurement 29 contracts, to acquire, hold and convey personal and real 30 property or any interest therein including rights of way, 31 franchises and easements; to have and use a common seal, and 32 to alter the same at will; to make and establish resolutions, -75- LRB9008460JMsb 1 by-laws, rules, rates and regulations, and to alter or repeal 2 the same as the Authority shall deem necessary and expedient 3 for the construction, operation, relocation, regulation and 4 maintenance of a system of toll highways within and through 5 the State of Illinois. 6 Appointment of the additional directors provided for by 7 this amendatory Act of 1980 shall be made within 30 days 8 after the effective date of this amendatory Act of 1980. 9 (Source: P.A. 86-1164.) 10 (605 ILCS 10/8) (from Ch. 121, par. 100-8) 11 Sec. 8. The Authority shall have the power: 12 (a) To acquire, own, use, hire, lease, operate and 13 dispose of personal property, real property, any interest 14 therein, including rights-of-way, franchises and easements. 15 (b) To enter into all contracts and agreements necessary 16 or incidental to the performance of its powers under this 17 Act. All employment contracts let under this Act shall be in 18 conformity with the applicable provisions of the Prevailing 19 Wage Act"An Act regulating wages of laborers, mechanics and20other workers employed under contracts for public works,"21approved June 26, 1941, as amended. 22 (c) To employ and discharge, without regard to the 23 requirements of any civil service or personnel act, such 24 administrative, engineering, traffic, architectural, 25 construction, and financial experts, and inspectors, and such 26 other employees, as are necessary in the Authority's judgment 27 to carry out the purposes of this Act; and to establish and 28 administer standards of classification of all of such persons 29 with respect to their compensation, duties, performance, and 30 tenure; and to enter into contracts of employment with such 31 persons for such periods and on such terms as the Authority 32 deems desirable. 33 (d) To appoint by and with the consent of the Attorney -76- LRB9008460JMsb 1 General, assistant attorneys for such Authority, which said 2 assistant attorneys shall be under the control, direction and 3 supervision of the Attorney General and shall serve at his 4 pleasure. 5 (e) To retain special counsel, subject to the approval 6 of the Attorney General, as needed from time to time, and fix 7 their compensation, provided however, such special counsel 8 shall be subject to the control, direction and supervision of 9 the Attorney General and shall serve at his pleasure. 10 (f) To acquire, construct, relocate, operate, regulate 11 and maintain a system of toll highways through and within the 12 State of Illinois. However, the Authority does not have the 13 power to acquire, operate, regulate or maintain any system of 14 toll highways or toll bridges or portions of them (including 15 but not limited to any system organized pursuant to Division 16 108 of Article 11 of the Illinois Municipal Code) in the 17 event either of the following conditions exists at the time 18 the proposed acquisition, operation, regulation or 19 maintenance of such system is to become effective: 20 (1) the principal or interest on bonds or other 21 instruments evidencing indebtedness of the system are in 22 default; or 23 (2) the principal or interest on bonds or other 24 instruments evidencing indebtedness of the system have been 25 in default at any time during the 5 year period prior to the 26 proposed acquisition. 27 To facilitate such construction, operation and 28 maintenance and subject to the approval of the Division of 29 Highways of the Department of Transportation, the Authority 30 shall have the full use and advantage of the engineering 31 staff and facilities of the Department. 32 The powers of the Authority are subject to the Illinois 33 Procurement Code. 34 (Source: P.A. 83-1258.) -77- LRB9008460JMsb 1 (605 ILCS 10/16) (from Ch. 121, par. 100-16) 2 Sec. 16. All contracts let for the construction of any 3 work authorized to be done under the provisions of the Act 4 shall be procured in accordance with the Illinois Procurement 5 Code, where the amount thereof is in excess of the sum of6$10,000, shall be let to the lowest responsible bidder, or7bidders, on open, competitive bidding after public8advertisement made at least 15 days prior to the opening of9bids, in a newspaper of general circulation published in each10of the seven largest cities of the State, as determined by11the last preceding Federal census, in such manner and at such12intervals, as may be prescribed by the Authority except for13contracts for the completion of a terminated or defaulted14contract. The successful bidders for such work shall enter15into contracts furnished and prescribed by the Authority.16SuchContracts shall contain a provision that asuch17 successful bidder shall indemnify and save harmless the State 18 of Illinois for any accidental injuries or damages arising 19 out of his or her negligence in the performance of such 20 contract, and shall, and in addition, execute and give bonds, 21 payable to the Authority, with a corporate surety authorized 22 to do business under the laws of the State of Illinois, equal 23 to at least 50% of the contract price, one conditioned upon 24 faithful performance of the contract and the other for the 25 payment of all labor furnished and materials supplied in the 26 prosecution of the contracted work. 27 (Source: P.A. 86-1164.) 28 (605 ILCS 10/16.1) (from Ch. 121, par. 100-16.1) 29 Sec. 16.1.(A)All contracts for services or supplies 30 required from time to time by the Authority in the 31 maintenance and operation of any toll highway or part thereof 32 under the provisions of this Act or all direct contracts for 33 supplies to be used in the construction of any toll highway -78- LRB9008460JMsb 1 or part thereof to be awarded under this Section, rather than 2 as a part of a contract pursuant to Section 16 of this Act, 3 shall be procured in accordance with the Illinois Procurement 4 Code, when the amount of any such supplies or services is in5excess of the sum of $7,500 shall be let to the lowest6responsible bidder or bidders, on open, competitive bidding7after public advertisement made at least 5 days prior to the8opening of bids, in a newspaper of general circulation in any9city of over 500,000 population, or in any county through10which the tollway passes, in such manner and on one or more11occasions as may be prescribed by the Authority, except that12bidding shall not be required in the following cases:131. Where the goods or services to be procured are14economically procurable from only one source, such as15contracts for telephone service, electric energy and16other public utility services, housekeeping services,17books, pamphlets and periodicals and specially designed18business equipment and software.192. Where the services required are for20professional, technical or artistic skills.213. Where the services required are for advertising,22promotional and public relations services.234. In emergencies, provided that an affidavit of24the person or persons authorizing the expenditure shall25be filed with the Authority and the Auditor General26within 10 days after such authorization setting forth the27conditions and circumstances requiring the emergency28purchase, the amount expended and the name of the vendor29or contractor involved; if only an estimate is available,30however, within the 10 days allowed for filing the31affidavit, the actual cost shall be reported immediately32after it is determined.335. In case of expenditures for personal services.346. Contracts for equipment and spare parts in-79- LRB9008460JMsb 1support thereof for the maintenance and operation of any2toll highway, or any part thereof, whenever, the3Authority shall, by resolution, declare and find that a4particular make and type of equipment is required for5efficient maintenance and operation and proper servicing,6for uniformity in and integration with the spare parts7program and inventory control, or for other reasons8peculiar to the problems of the toll highway or its9previously acquired equipment; however, competition and10competitive bids shall be obtained by the Authority with11respect to such specified equipment or spare parts,12insofar as possible, and when effective, pursuant to13public advertisement as hereinbefore provided.147. Contracts for insurance, fidelity and surety15bonds.168. Contracts or agreements for the completion of a17terminated or defaulted contract or agreement.18(B) The solicitation for bids shall be in conformance19with accepted business practices and the method of20solicitation shall be set out in detail in the rules and21regulations of the Authority.22(C) Proposals received pursuant to public advertisement23shall be publicly opened at the day and hour and at the place24specified in the solicitation for such bids.25(D) Successful bidders for such services and supplies26shall enter into contracts furnished and prescribed by the27Authority.28(E) All purchases, contracts or other obligations or29expenditures of funds by the Authority shall be in accordance30with rules and regulations governing the Authority's31procurement practice and procedures and32 The Authority shallpromulgate andpublish its 33 procurementsuchpractices and procedures in sufficient 34 number for distribution to persons interested in bidding on -80- LRB9008460JMsb 1 purchases or contracts to be let by the Authority. Such rules 2 and regulations shall be kept on file with the Secretary of 3 the Authority at all times and shall be available for 4 inspection by members of the public at all reasonable times 5 and hours. 6 Such rules and regulations shall be filed and become 7 effective in connection with the Illinois Administrative 8 Procedure Act. 9(F) Any contract entered into for purchase or10expenditure of funds of the Authority made in violation of11this Act or the rules and regulations in pursuance thereof is12void and of no effect.13(G) Warrant.All sellers to the Authority shall attach a 14 statement to the delivery invoice attesting that the 15 standards set forth in the contracts have been met. The 16 statement shall be substantially in the following form: 17 "The Seller,.... hereby certifies that the goods, 18 merchandise and wares shipped in accordance with the attached 19 delivery invoice have met all the required standards set 20 forth in the purchasing contract. 21 ....(Seller)." 22 Failure to attach the statement(H) Whoever violates the23provisions of this Section, or the rules and regulations24adopted in pursuance thereof,isguilty ofa Class A 25 misdemeanor. 26 (Source: P.A. 86-1164.) 27 ARTICLE 98 28 HUMAN SERVICES DELIVERY ACT 29 Section 98-1. Short title. This Article may be cited as 30 the Human Services Delivery Act. 31 Section 98-5. Legislative findings and declaration of -81- LRB9008460JMsb 1 policy. 2 (a) The purpose of this Article is to set forth a 3 program to better provide human services to needy citizens of 4 the State of Illinois. The State of Illinois contracts with 5 or provides grants to private entities for the purpose of 6 providing residential and day treatment services to the 7 mentally ill and developmentally disabled. The State of 8 Illinois enters into these contracts and provides these 9 grants in order to best provide the human services necessary 10 for the care and development of its neediest citizens. 11 (b) The legislature finds that the needs of its mentally 12 ill and developmentally disabled citizens cannot be met if 13 the services provided to them through contracts or grants 14 between the State of Illinois and private providers are 15 subject to disruption. The legislature further finds that 16 the services are most likely to be disrupted if the private 17 providers of the services have illegally interfered with the 18 rights of the private providers' employees under federal law. 19 Private providers or employers found guilty of violating the 20 National Labor Relations Act are most likely to be subject to 21 strikes and other work stoppages by their employees, which 22 strikes or work stoppages have a detrimental effect on the 23 services being provided to Illinois citizens who are mentally 24 ill or developmentally disabled. 25 (c) It is hereby declared to be the policy of the State 26 of Illinois that in order to prevent the disruption of 27 residential and day treatment services to the mentally ill 28 and developmentally disabled citizens, the State of Illinois 29 shall not contract with or provide grants to private 30 providers to provide these services if the private provider 31 has been found to have violated the National Labor Relations 32 Act by committing 3 or more unfair labor practices in any 24 33 month period in the 3 years preceding the effective date or 34 renewal date of the contract, agreement, or grant. -82- LRB9008460JMsb 1 Section 98-10. Definitions. As used in this Article, 2 unless the context otherwise requires: 3 "Contractor or grantee" means an entity other than the 4 State of Illinois, a department of the State of Illinois, or 5 political subdivision of the State of Illinois which has a 6 contractual or other relationship with the State of Illinois 7 or a department of the State of Illinois to provide 8 residential or day treatment services to the mentally ill or 9 developmentally disabled, which contract is funded in whole 10 or in part by the State of Illinois or through the Medicaid 11 Program of the State of Illinois. 12 "National Labor Relations Act" means the federal statute, 13 found at 29 U.S.C. Section 101, et seq., as amended. 14 "Violation of the National Labor Relations Act" means a 15 decision by the National Labor Relations Board that the 16 National Labor Relations Act has been violated. 17 Section 98-20. Certification. No grantee or contractor 18 shall receive a grant or be considered for the purposes of 19 being awarded a contract for providing residential or day 20 treatment services for the mentally ill or developmentally 21 disabled, unless that grantee or contractor has certified to 22 the State of Illinois or to the granting or contracting 23 agency that it has not been found to have committed 3 or more 24 unfair labor practices during a 24 month period in the 3 25 years preceding the effective date of the contract or grant. 26 Section 98-25. Suspension or termination of the contract 27 or grant. Each contract or grant awarded by the State of 28 Illinois shall be subject to suspension of payments or 29 termination or both if it is determined that: 30 (a) The contractor or grantee has made a false 31 certification under Section 98-20 of this Article; or 32 (b) The contractor or grantee, after the effective date -83- LRB9008460JMsb 1 of the contract or grant, is found to have committed 3 or 2 more unfair labor practices during a 24 month period under 3 the National Labor Relations Act. 4 Section 98-30. Debarment. Any contractor or grantee who 5 files a false certification under Section 98-20 or whose 6 contract or grant is suspended or terminated under Section 7 98-25 shall be debarred from seeking or obtaining a new 8 contract or grant covered under this Article for a period of 9 one year from the date that the contract or grant was 10 terminated or suspended. 11 Section 98-35. Suspension, termination or debarment 12 proceedings; remediation. 13 (a) In any determination proceeding for suspension of 14 payment, termination, or debarment pursuant to this Article, 15 the only question shall be whether the contractor or grantee 16 has violated the National Labor Relations Act as defined by 17 this Article. 18 (b) All proceedings for suspension of payment, 19 termination, or debarment pursuant to this Article shall be 20 conducted in accordance with the Illinois Administrative 21 Procedure Act. 22 (c) Upon notice to the Department of Human Services from 23 a labor organization that a complaint has been issued by the 24 National Labor Relations Board against a contractor or 25 grantee, the Department shall at the request of the labor 26 organization convene a remediation session between the labor 27 organization and the contractor or grantee. The Department 28 shall establish rules concerning the conduct of the sessions. 29 (d) As minor violations of a technical nature are not 30 likely to result in interference with employees' rights 31 sufficient to cause significant disruption in the provision 32 of essential services, nothing herein shall preclude the -84- LRB9008460JMsb 1 Department from making a finding that the violations were of 2 a technical nature with only de minimus impact on the rights 3 guaranteed under the National Labor Relations Act. 4 ARTICLE 99 5 EFFECTIVE DATE 6 Section 99-5. Effective date and transition. This 7 Article 99 and Article 98 take effect upon becoming law. 8 Article 95 takes effect January 1, 1999. Articles 1 through 9 90 take effect upon becoming law solely for the purposes of 10 appointment of the Procurement Policy Board and allowing the 11 Procurement Policy Board and State agencies designated under 12 Article 5 to promulgate rules to implement this Code. 13 Articles 1 through 90, for all other purposes, take effect 14 January 1, 1999. -85- LRB9008460JMsb 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 405/67.02 from Ch. 127, par. 63b13.2 12 20 ILCS 415/25 new 13 20 ILCS 1015/13 rep. 14 30 ILCS 505/Act rep. 15 30 ILCS 510/Act rep. 16 30 ILCS 515/Act rep. 17 30 ILCS 563/Act rep. 18 30 ILCS 615/Act rep. 19 605 ILCS 10/3 from Ch. 121, par. 100-3 20 605 ILCS 10/8 from Ch. 121, par. 100-8 21 605 ILCS 10/16 from Ch. 121, par. 100-16 22 605 ILCS 10/16.1 from Ch. 121, par. 100-16.1