103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3737 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/50-95 new30 ILCS 500/50-100 new Amends the Illinois Procurement Code. Requires State agencies to create an annual report detailing their procurement practices. Provides that, if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, then the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bidders, which must include a line item for the ability of the bidder to meet the agency's DBE/BEP goals. Effective immediately. LRB103 26826 HLH 53190 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3737 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/50-95 new30 ILCS 500/50-100 new 30 ILCS 500/20-10 30 ILCS 500/50-95 new 30 ILCS 500/50-100 new Amends the Illinois Procurement Code. Requires State agencies to create an annual report detailing their procurement practices. Provides that, if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, then the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bidders, which must include a line item for the ability of the bidder to meet the agency's DBE/BEP goals. Effective immediately. LRB103 26826 HLH 53190 b LRB103 26826 HLH 53190 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3737 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/50-95 new30 ILCS 500/50-100 new 30 ILCS 500/20-10 30 ILCS 500/50-95 new 30 ILCS 500/50-100 new 30 ILCS 500/20-10 30 ILCS 500/50-95 new 30 ILCS 500/50-100 new Amends the Illinois Procurement Code. Requires State agencies to create an annual report detailing their procurement practices. Provides that, if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, then the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bidders, which must include a line item for the ability of the bidder to meet the agency's DBE/BEP goals. Effective immediately. LRB103 26826 HLH 53190 b LRB103 26826 HLH 53190 b LRB103 26826 HLH 53190 b A BILL FOR HB3737LRB103 26826 HLH 53190 b HB3737 LRB103 26826 HLH 53190 b HB3737 LRB103 26826 HLH 53190 b 1 AN ACT concerning finance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Procurement Code is amended by 5 changing Section 20-10 and by adding Sections 50-95 and 50-100 6 as follows: 7 (30 ILCS 500/20-10) 8 (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895, 9 98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29) 10 Sec. 20-10. Competitive sealed bidding; reverse auction. 11 (a) Conditions for use. All contracts shall be awarded by 12 competitive sealed bidding except as otherwise provided in 13 Section 20-5. 14 (b) Invitation for bids. An invitation for bids shall be 15 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 14 calendar days before the date set in the invitation 21 for the opening of bids. 22 (d) Bid opening. Bids shall be opened publicly or through 23 an electronic procurement system in the presence of one or 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3737 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/50-95 new30 ILCS 500/50-100 new 30 ILCS 500/20-10 30 ILCS 500/50-95 new 30 ILCS 500/50-100 new 30 ILCS 500/20-10 30 ILCS 500/50-95 new 30 ILCS 500/50-100 new Amends the Illinois Procurement Code. Requires State agencies to create an annual report detailing their procurement practices. Provides that, if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, then the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the Department of Central Management Services shall, in consultation with State agencies, develop a scorecard for the assessment of bidders, which must include a line item for the ability of the bidder to meet the agency's DBE/BEP goals. Effective immediately. LRB103 26826 HLH 53190 b LRB103 26826 HLH 53190 b LRB103 26826 HLH 53190 b A BILL FOR 30 ILCS 500/20-10 30 ILCS 500/50-95 new 30 ILCS 500/50-100 new LRB103 26826 HLH 53190 b HB3737 LRB103 26826 HLH 53190 b HB3737- 2 -LRB103 26826 HLH 53190 b HB3737 - 2 - LRB103 26826 HLH 53190 b HB3737 - 2 - LRB103 26826 HLH 53190 b 1 more witnesses at the time and place designated in the 2 invitation for bids. The name of each bidder, including earned 3 and applied bid credit from the Illinois Works Jobs Program 4 Act, the amount of each bid, and other relevant information as 5 may be specified by rule shall be recorded. After the award of 6 the contract, the winning bid and the record of each 7 unsuccessful bid shall be open to public inspection. 8 (e) Bid acceptance and bid evaluation. Bids shall be 9 unconditionally accepted without alteration or correction, 10 except as authorized in this Code. Bids shall be evaluated 11 based on the requirements set forth in the invitation for 12 bids, which may include criteria to determine acceptability 13 such as inspection, testing, quality, workmanship, delivery, 14 and suitability for a particular purpose. Those criteria that 15 will affect the bid price and be considered in evaluation for 16 award, such as discounts, transportation costs, and total or 17 life cycle costs, shall be objectively measurable. The 18 invitation for bids shall set forth the evaluation criteria to 19 be used. 20 (f) Correction or withdrawal of bids. Correction or 21 withdrawal of inadvertently erroneous bids before or after 22 award, or cancellation of awards of contracts based on bid 23 mistakes, shall be permitted in accordance with rules. After 24 bid opening, no changes in bid prices or other provisions of 25 bids prejudicial to the interest of the State or fair 26 competition shall be permitted. All decisions to permit the HB3737 - 2 - LRB103 26826 HLH 53190 b HB3737- 3 -LRB103 26826 HLH 53190 b HB3737 - 3 - LRB103 26826 HLH 53190 b HB3737 - 3 - LRB103 26826 HLH 53190 b 1 correction or withdrawal of bids based on bid mistakes shall 2 be supported by written determination made by a State 3 purchasing officer. 4 (g) Award. The contract shall be awarded with reasonable 5 promptness by written notice to the lowest responsible and 6 responsive bidder whose bid meets the requirements and 7 criteria set forth in the invitation for bids, except when a 8 State purchasing officer determines it is not in the best 9 interest of the State and by written explanation determines 10 another bidder shall receive the award. The explanation shall 11 appear in the appropriate volume of the Illinois Procurement 12 Bulletin. The written explanation must include: 13 (1) a description of the agency's needs; 14 (2) a determination that the anticipated cost will be 15 fair and reasonable; 16 (3) a listing of all responsible and responsive 17 bidders; and 18 (4) the name of the bidder selected, the total 19 contract price, and the reasons for selecting that bidder. 20 Each chief procurement officer may adopt guidelines to 21 implement the requirements of this subsection (g). 22 The written explanation shall be filed with the 23 Legislative Audit Commission, and the Commission on Equity and 24 Inclusion, and the Procurement Policy Board, and be made 25 available for inspection by the public, within 14 calendar 26 days after the agency's decision to award the contract. HB3737 - 3 - LRB103 26826 HLH 53190 b HB3737- 4 -LRB103 26826 HLH 53190 b HB3737 - 4 - LRB103 26826 HLH 53190 b HB3737 - 4 - LRB103 26826 HLH 53190 b 1 (g-5) Failed bid notice. In addition to the requirements 2 of subsection (g), if a bidder has failed to be awarded a 3 contract after 4 consecutive bids to provide the same services 4 to a single agency, the applicable chief procurement officer 5 for that agency shall in writing detail why all 4 bids were 6 rejected. The chief procurement officer shall submit by 7 certified copy to the bidder the reasoning for the rejection 8 of the bid within 60 days after the 4th bid is rejected. 9 (h) Multi-step sealed bidding. When it is considered 10 impracticable to initially prepare a purchase description to 11 support an award based on price, an invitation for bids may be 12 issued requesting the submission of unpriced offers to be 13 followed by an invitation for bids limited to those bidders 14 whose offers have been qualified under the criteria set forth 15 in the first solicitation. 16 (i) Alternative procedures. Notwithstanding any other 17 provision of this Act to the contrary, the Director of the 18 Illinois Power Agency may create alternative bidding 19 procedures to be used in procuring professional services under 20 Section 1-56, subsections (a) and (c) of Section 1-75 and 21 subsection (d) of Section 1-78 of the Illinois Power Agency 22 Act and Section 16-111.5(c) of the Public Utilities Act and to 23 procure renewable energy resources under Section 1-56 of the 24 Illinois Power Agency Act. These alternative procedures shall 25 be set forth together with the other criteria contained in the 26 invitation for bids, and shall appear in the appropriate HB3737 - 4 - LRB103 26826 HLH 53190 b HB3737- 5 -LRB103 26826 HLH 53190 b HB3737 - 5 - LRB103 26826 HLH 53190 b HB3737 - 5 - LRB103 26826 HLH 53190 b 1 volume of the Illinois Procurement Bulletin. 2 (j) Reverse auction. Notwithstanding any other provision 3 of this Section and in accordance with rules adopted by the 4 chief procurement officer, that chief procurement officer may 5 procure supplies or services through a competitive electronic 6 auction bidding process after the chief procurement officer 7 determines that the use of such a process will be in the best 8 interest of the State. The chief procurement officer shall 9 publish that determination in his or her next volume of the 10 Illinois Procurement Bulletin. 11 An invitation for bids shall be issued and shall include 12 (i) a procurement description, (ii) all contractual terms, 13 whenever practical, and (iii) conditions applicable to the 14 procurement, including a notice that bids will be received in 15 an electronic auction manner. 16 Public notice of the invitation for bids shall be given in 17 the same manner as provided in subsection (c). 18 Bids shall be accepted electronically at the time and in 19 the manner designated in the invitation for bids. During the 20 auction, a bidder's price shall be disclosed to other bidders. 21 Bidders shall have the opportunity to reduce their bid prices 22 during the auction. At the conclusion of the auction, the 23 record of the bid prices received and the name of each bidder 24 shall be open to public inspection. 25 After the auction period has terminated, withdrawal of 26 bids shall be permitted as provided in subsection (f). HB3737 - 5 - LRB103 26826 HLH 53190 b HB3737- 6 -LRB103 26826 HLH 53190 b HB3737 - 6 - LRB103 26826 HLH 53190 b HB3737 - 6 - LRB103 26826 HLH 53190 b 1 The contract shall be awarded within 60 calendar days 2 after the auction by written notice to the lowest responsible 3 bidder, or all bids shall be rejected except as otherwise 4 provided in this Code. Extensions of the date for the award may 5 be made by mutual written consent of the State purchasing 6 officer and the lowest responsible bidder. 7 This subsection does not apply to (i) procurements of 8 professional and artistic services, (ii) telecommunications 9 services, communication services, and information services, 10 and (iii) contracts for construction projects, including 11 design professional services. 12 (Source: P.A. 100-43, eff. 8-9-17; 101-31, eff. 6-28-19; 13 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.) 14 (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895, 15 98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29) 16 Sec. 20-10. Competitive sealed bidding; reverse auction. 17 (a) Conditions for use. All contracts shall be awarded by 18 competitive sealed bidding except as otherwise provided in 19 Section 20-5. 20 (b) Invitation for bids. An invitation for bids shall be 21 issued and shall include a purchase description and the 22 material contractual terms and conditions applicable to the 23 procurement. 24 (c) Public notice. Public notice of the invitation for 25 bids shall be published in the Illinois Procurement Bulletin HB3737 - 6 - LRB103 26826 HLH 53190 b HB3737- 7 -LRB103 26826 HLH 53190 b HB3737 - 7 - LRB103 26826 HLH 53190 b HB3737 - 7 - LRB103 26826 HLH 53190 b 1 at least 14 calendar days before the date set in the invitation 2 for the opening of bids. 3 (d) Bid opening. Bids shall be opened publicly or through 4 an electronic procurement system in the presence of one or 5 more witnesses at the time and place designated in the 6 invitation for bids. The name of each bidder, including earned 7 and applied bid credit from the Illinois Works Jobs Program 8 Act, the amount of each bid, and other relevant information as 9 may be specified by rule shall be recorded. After the award of 10 the contract, the winning bid and the record of each 11 unsuccessful bid shall be open to public inspection. 12 (e) Bid acceptance and bid evaluation. Bids shall be 13 unconditionally accepted without alteration or correction, 14 except as authorized in this Code. Bids shall be evaluated 15 based on the requirements set forth in the invitation for 16 bids, which may include criteria to determine acceptability 17 such as inspection, testing, quality, workmanship, delivery, 18 and suitability for a particular purpose. Those criteria that 19 will affect the bid price and be considered in evaluation for 20 award, such as discounts, transportation costs, and total or 21 life cycle costs, shall be objectively measurable. The 22 invitation for bids shall set forth the evaluation criteria to 23 be used. 24 (f) Correction or withdrawal of bids. Correction or 25 withdrawal of inadvertently erroneous bids before or after 26 award, or cancellation of awards of contracts based on bid HB3737 - 7 - LRB103 26826 HLH 53190 b HB3737- 8 -LRB103 26826 HLH 53190 b HB3737 - 8 - LRB103 26826 HLH 53190 b HB3737 - 8 - LRB103 26826 HLH 53190 b 1 mistakes, shall be permitted in accordance with rules. After 2 bid opening, no changes in bid prices or other provisions of 3 bids prejudicial to the interest of the State or fair 4 competition shall be permitted. All decisions to permit the 5 correction or withdrawal of bids based on bid mistakes shall 6 be supported by written determination made by a State 7 purchasing officer. 8 (g) Award. The contract shall be awarded with reasonable 9 promptness by written notice to the lowest responsible and 10 responsive bidder whose bid meets the requirements and 11 criteria set forth in the invitation for bids, except when a 12 State purchasing officer determines it is not in the best 13 interest of the State and by written explanation determines 14 another bidder shall receive the award. The explanation shall 15 appear in the appropriate volume of the Illinois Procurement 16 Bulletin. The written explanation must include: 17 (1) a description of the agency's needs; 18 (2) a determination that the anticipated cost will be 19 fair and reasonable; 20 (3) a listing of all responsible and responsive 21 bidders; and 22 (4) the name of the bidder selected, the total 23 contract price, and the reasons for selecting that bidder. 24 Each chief procurement officer may adopt guidelines to 25 implement the requirements of this subsection (g). 26 The written explanation shall be filed with the HB3737 - 8 - LRB103 26826 HLH 53190 b HB3737- 9 -LRB103 26826 HLH 53190 b HB3737 - 9 - LRB103 26826 HLH 53190 b HB3737 - 9 - LRB103 26826 HLH 53190 b 1 Legislative Audit Commission, and the Commission on Equity and 2 Inclusion, and the Procurement Policy Board, and be made 3 available for inspection by the public, within 14 days after 4 the agency's decision to award the contract. 5 (g-5) Failed bid notice. In addition to the requirements 6 of subsection (g), if a bidder has failed to be awarded a 7 contract after 4 consecutive bids to provide the same services 8 to a single agency, the applicable chief procurement officer 9 for that agency shall in writing detail why all 4 bids were 10 rejected. The chief procurement officer shall submit by 11 certified copy to the bidder the reasoning for the rejection 12 of the bid within 60 days after the 4th bid is rejected. 13 (h) Multi-step sealed bidding. When it is considered 14 impracticable to initially prepare a purchase description to 15 support an award based on price, an invitation for bids may be 16 issued requesting the submission of unpriced offers to be 17 followed by an invitation for bids limited to those bidders 18 whose offers have been qualified under the criteria set forth 19 in the first solicitation. 20 (i) Alternative procedures. Notwithstanding any other 21 provision of this Act to the contrary, the Director of the 22 Illinois Power Agency may create alternative bidding 23 procedures to be used in procuring professional services under 24 subsections (a) and (c) of Section 1-75 and subsection (d) of 25 Section 1-78 of the Illinois Power Agency Act and Section 26 16-111.5(c) of the Public Utilities Act and to procure HB3737 - 9 - LRB103 26826 HLH 53190 b HB3737- 10 -LRB103 26826 HLH 53190 b HB3737 - 10 - LRB103 26826 HLH 53190 b HB3737 - 10 - LRB103 26826 HLH 53190 b 1 renewable energy resources under Section 1-56 of the Illinois 2 Power Agency Act. These alternative procedures shall be set 3 forth together with the other criteria contained in the 4 invitation for bids, and shall appear in the appropriate 5 volume of the Illinois Procurement Bulletin. 6 (j) Reverse auction. Notwithstanding any other provision 7 of this Section and in accordance with rules adopted by the 8 chief procurement officer, that chief procurement officer may 9 procure supplies or services through a competitive electronic 10 auction bidding process after the chief procurement officer 11 determines that the use of such a process will be in the best 12 interest of the State. The chief procurement officer shall 13 publish that determination in his or her next volume of the 14 Illinois Procurement Bulletin. 15 An invitation for bids shall be issued and shall include 16 (i) a procurement description, (ii) all contractual terms, 17 whenever practical, and (iii) conditions applicable to the 18 procurement, including a notice that bids will be received in 19 an electronic auction manner. 20 Public notice of the invitation for bids shall be given in 21 the same manner as provided in subsection (c). 22 Bids shall be accepted electronically at the time and in 23 the manner designated in the invitation for bids. During the 24 auction, a bidder's price shall be disclosed to other bidders. 25 Bidders shall have the opportunity to reduce their bid prices 26 during the auction. At the conclusion of the auction, the HB3737 - 10 - LRB103 26826 HLH 53190 b HB3737- 11 -LRB103 26826 HLH 53190 b HB3737 - 11 - LRB103 26826 HLH 53190 b HB3737 - 11 - LRB103 26826 HLH 53190 b 1 record of the bid prices received and the name of each bidder 2 shall be open to public inspection. 3 After the auction period has terminated, withdrawal of 4 bids shall be permitted as provided in subsection (f). 5 The contract shall be awarded within 60 calendar days 6 after the auction by written notice to the lowest responsible 7 bidder, or all bids shall be rejected except as otherwise 8 provided in this Code. Extensions of the date for the award may 9 be made by mutual written consent of the State purchasing 10 officer and the lowest responsible bidder. 11 This subsection does not apply to (i) procurements of 12 professional and artistic services, (ii) telecommunications 13 services, communication services, and information services, 14 and (iii) contracts for construction projects, including 15 design professional services. 16 (Source: P.A. 101-31, eff. 6-28-19; 101-657, eff. 1-1-22; 17 102-29, eff. 6-25-21.) 18 (30 ILCS 500/50-95 new) 19 Sec. 50-95. Annual report. 20 (a) Each State agency shall create an annual report 21 detailing its procurement practices. Reports shall be due no 22 later than October 1 of each calendar year and shall cover the 23 State fiscal year ending on June 30 of that calendar year. The 24 first report shall be due no later than October 1, 2023 and 25 shall cover the State fiscal year ending on June 30, 2023. The HB3737 - 11 - LRB103 26826 HLH 53190 b HB3737- 12 -LRB103 26826 HLH 53190 b HB3737 - 12 - LRB103 26826 HLH 53190 b HB3737 - 12 - LRB103 26826 HLH 53190 b 1 reports shall include the following: 2 (1) the total dollar amount awarded by the State 3 agency during the previous fiscal year for contracts that 4 are subject to this Code separated by (i) all services, 5 (ii) construction services, and (iii) professional 6 services; 7 (2) the total dollar amount actually expended by the 8 State agency under contracts that are subject to this Code 9 separated by (i) all services, (ii) construction services, 10 and (iii) professional services; 11 (3) a statement of the State agency's disadvantaged 12 business enterprise (DBE) program goal and whether or not 13 the agency met that goal; 14 (4) a statement of the State agency's small business 15 goal and whether or not the agency met that goal; 16 (5) a demographic breakdown of the State agency's 17 vendors and contractors; 18 (6) the top 5 prime contractors used by the agency and 19 the dollar amount awarded to each of those contractors; 20 and 21 (7) the top 5 DBE/BEP contractors used by the agency 22 and the dollar amount awarded to each of those 23 contractors. 24 (b) The report under this Section shall be publicly 25 accessible and shall be distributed to at least 10 television 26 news outlets in the State. HB3737 - 12 - LRB103 26826 HLH 53190 b HB3737- 13 -LRB103 26826 HLH 53190 b HB3737 - 13 - LRB103 26826 HLH 53190 b HB3737 - 13 - LRB103 26826 HLH 53190 b 1 (30 ILCS 500/50-100 new) 2 Sec. 50-100. Scorecard. The Department of Central 3 Management Services shall, in consultation with State 4 agencies, develop a scorecard for the assessment of bidders, 5 which must include a line item for the ability of the bidder to 6 meet the agency's DBE/BEP goals. 7 Section 95. No acceleration or delay. Where this Act makes 8 changes in a statute that is represented in this Act by text 9 that is not yet or no longer in effect (for example, a Section 10 represented by multiple versions), the use of that text does 11 not accelerate or delay the taking effect of (i) the changes 12 made by this Act or (ii) provisions derived from any other 13 Public Act. 14 Section 99. Effective date. This Act takes effect upon 15 becoming law. HB3737 - 13 - LRB103 26826 HLH 53190 b