103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2192 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 Amends the Illinois Procurement Code. 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, the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the chief procurement officer shall submit by certified copy to the bidder the reasoning for the rejection of the bid within the same quarter in which the 4th bid was rejected and prior to 15 days before the next Illinois Procurement Bulletin for that type of bid. LRB103 25677 HLH 52026 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2192 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/20-10 Amends the Illinois Procurement Code. 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, the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the chief procurement officer shall submit by certified copy to the bidder the reasoning for the rejection of the bid within the same quarter in which the 4th bid was rejected and prior to 15 days before the next Illinois Procurement Bulletin for that type of bid. LRB103 25677 HLH 52026 b LRB103 25677 HLH 52026 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2192 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/20-10 30 ILCS 500/20-10 Amends the Illinois Procurement Code. 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, the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the chief procurement officer shall submit by certified copy to the bidder the reasoning for the rejection of the bid within the same quarter in which the 4th bid was rejected and prior to 15 days before the next Illinois Procurement Bulletin for that type of bid. LRB103 25677 HLH 52026 b LRB103 25677 HLH 52026 b LRB103 25677 HLH 52026 b A BILL FOR SB2192LRB103 25677 HLH 52026 b SB2192 LRB103 25677 HLH 52026 b SB2192 LRB103 25677 HLH 52026 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 as follows: 6 (30 ILCS 500/20-10) 7 (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895, 8 98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29) 9 Sec. 20-10. Competitive sealed bidding; reverse auction. 10 (a) Conditions for use. All contracts shall be awarded by 11 competitive sealed bidding except as otherwise provided in 12 Section 20-5. 13 (b) Invitation for bids. An invitation for bids shall be 14 issued and shall include a purchase description and the 15 material contractual terms and conditions applicable to the 16 procurement. 17 (c) Public notice. Public notice of the invitation for 18 bids shall be published in the Illinois Procurement Bulletin 19 at least 14 calendar days before the date set in the invitation 20 for the opening of bids. 21 (d) Bid opening. Bids shall be opened publicly or through 22 an electronic procurement system in the presence of one or 23 more witnesses at the time and place designated in the 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2192 Introduced 2/10/2023, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 30 ILCS 500/20-10 30 ILCS 500/20-10 30 ILCS 500/20-10 Amends the Illinois Procurement Code. 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, the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Provides that the chief procurement officer shall submit by certified copy to the bidder the reasoning for the rejection of the bid within the same quarter in which the 4th bid was rejected and prior to 15 days before the next Illinois Procurement Bulletin for that type of bid. LRB103 25677 HLH 52026 b LRB103 25677 HLH 52026 b LRB103 25677 HLH 52026 b A BILL FOR 30 ILCS 500/20-10 LRB103 25677 HLH 52026 b SB2192 LRB103 25677 HLH 52026 b SB2192- 2 -LRB103 25677 HLH 52026 b SB2192 - 2 - LRB103 25677 HLH 52026 b SB2192 - 2 - LRB103 25677 HLH 52026 b 1 invitation for bids. The name of each bidder, including earned 2 and applied bid credit from the Illinois Works Jobs Program 3 Act, the amount of each bid, and other relevant information as 4 may be specified by rule shall be recorded. After the award of 5 the contract, the winning bid and the record of each 6 unsuccessful bid shall be open to public inspection. 7 (e) Bid acceptance and bid evaluation. Bids shall be 8 unconditionally accepted without alteration or correction, 9 except as authorized in this Code. Bids shall be evaluated 10 based on the requirements set forth in the invitation for 11 bids, which may include criteria to determine acceptability 12 such as inspection, testing, quality, workmanship, delivery, 13 and suitability for a particular purpose. Those criteria that 14 will affect the bid price and be considered in evaluation for 15 award, such as discounts, transportation costs, and total or 16 life cycle costs, shall be objectively measurable. The 17 invitation for bids shall set forth the evaluation criteria to 18 be used. 19 (f) Correction or withdrawal of bids. Correction or 20 withdrawal of inadvertently erroneous bids before or after 21 award, or cancellation of awards of contracts based on bid 22 mistakes, shall be permitted in accordance with rules. After 23 bid opening, no changes in bid prices or other provisions of 24 bids prejudicial to the interest of the State or fair 25 competition shall be permitted. All decisions to permit the 26 correction or withdrawal of bids based on bid mistakes shall SB2192 - 2 - LRB103 25677 HLH 52026 b SB2192- 3 -LRB103 25677 HLH 52026 b SB2192 - 3 - LRB103 25677 HLH 52026 b SB2192 - 3 - LRB103 25677 HLH 52026 b 1 be supported by written determination made by a State 2 purchasing officer. 3 (g) Award. The contract shall be awarded with reasonable 4 promptness by written notice to the lowest responsible and 5 responsive bidder whose bid meets the requirements and 6 criteria set forth in the invitation for bids, except when a 7 State purchasing officer determines it is not in the best 8 interest of the State and by written explanation determines 9 another bidder shall receive the award. The explanation shall 10 appear in the appropriate volume of the Illinois Procurement 11 Bulletin. The written explanation must include: 12 (1) a description of the agency's needs; 13 (2) a determination that the anticipated cost will be 14 fair and reasonable; 15 (3) a listing of all responsible and responsive 16 bidders; and 17 (4) the name of the bidder selected, the total 18 contract price, and the reasons for selecting that bidder. 19 Each chief procurement officer may adopt guidelines to 20 implement the requirements of this subsection (g). 21 The written explanation shall be filed with the 22 Legislative Audit Commission, and the Commission on Equity and 23 Inclusion, and the Procurement Policy Board, and be made 24 available for inspection by the public, within 14 calendar 25 days after the agency's decision to award the contract. 26 (g-5) Failed bid notice. In addition to the requirements SB2192 - 3 - LRB103 25677 HLH 52026 b SB2192- 4 -LRB103 25677 HLH 52026 b SB2192 - 4 - LRB103 25677 HLH 52026 b SB2192 - 4 - LRB103 25677 HLH 52026 b 1 of subsection (g), if a bidder has failed to be awarded a 2 contract after 4 consecutive bids to provide the same services 3 to a single agency, the applicable chief procurement officer 4 for that agency shall in writing detail why all 4 bids were 5 rejected. The chief procurement officer shall submit by 6 certified copy to the bidder the reasoning for the rejection 7 of the bid within the same calendar quarter in which the fourth 8 bid was rejected and prior to 15 days before the next Illinois 9 Procurement Bulletin for that type of bid. 10 (h) Multi-step sealed bidding. When it is considered 11 impracticable to initially prepare a purchase description to 12 support an award based on price, an invitation for bids may be 13 issued requesting the submission of unpriced offers to be 14 followed by an invitation for bids limited to those bidders 15 whose offers have been qualified under the criteria set forth 16 in the first solicitation. 17 (i) Alternative procedures. Notwithstanding any other 18 provision of this Act to the contrary, the Director of the 19 Illinois Power Agency may create alternative bidding 20 procedures to be used in procuring professional services under 21 Section 1-56, subsections (a) and (c) of Section 1-75 and 22 subsection (d) of Section 1-78 of the Illinois Power Agency 23 Act and Section 16-111.5(c) of the Public Utilities Act and to 24 procure renewable energy resources under Section 1-56 of the 25 Illinois Power Agency Act. These alternative procedures shall 26 be set forth together with the other criteria contained in the SB2192 - 4 - LRB103 25677 HLH 52026 b SB2192- 5 -LRB103 25677 HLH 52026 b SB2192 - 5 - LRB103 25677 HLH 52026 b SB2192 - 5 - LRB103 25677 HLH 52026 b 1 invitation for bids, and shall appear in the appropriate 2 volume of the Illinois Procurement Bulletin. 3 (j) Reverse auction. Notwithstanding any other provision 4 of this Section and in accordance with rules adopted by the 5 chief procurement officer, that chief procurement officer may 6 procure supplies or services through a competitive electronic 7 auction bidding process after the chief procurement officer 8 determines that the use of such a process will be in the best 9 interest of the State. The chief procurement officer shall 10 publish that determination in his or her next volume of the 11 Illinois Procurement Bulletin. 12 An invitation for bids shall be issued and shall include 13 (i) a procurement description, (ii) all contractual terms, 14 whenever practical, and (iii) conditions applicable to the 15 procurement, including a notice that bids will be received in 16 an electronic auction manner. 17 Public notice of the invitation for bids shall be given in 18 the same manner as provided in subsection (c). 19 Bids shall be accepted electronically at the time and in 20 the manner designated in the invitation for bids. During the 21 auction, a bidder's price shall be disclosed to other bidders. 22 Bidders shall have the opportunity to reduce their bid prices 23 during the auction. At the conclusion of the auction, the 24 record of the bid prices received and the name of each bidder 25 shall be open to public inspection. 26 After the auction period has terminated, withdrawal of SB2192 - 5 - LRB103 25677 HLH 52026 b SB2192- 6 -LRB103 25677 HLH 52026 b SB2192 - 6 - LRB103 25677 HLH 52026 b SB2192 - 6 - LRB103 25677 HLH 52026 b 1 bids shall be permitted as provided in subsection (f). 2 The contract shall be awarded within 60 calendar days 3 after the auction by written notice to the lowest responsible 4 bidder, or all bids shall be rejected except as otherwise 5 provided in this Code. Extensions of the date for the award may 6 be made by mutual written consent of the State purchasing 7 officer and the lowest responsible bidder. 8 This subsection does not apply to (i) procurements of 9 professional and artistic services, (ii) telecommunications 10 services, communication services, and information services, 11 and (iii) contracts for construction projects, including 12 design professional services. 13 (Source: P.A. 100-43, eff. 8-9-17; 101-31, eff. 6-28-19; 14 101-657, eff. 1-1-22; 102-29, eff. 6-25-21.) 15 (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895, 16 98-1076, 99-906, 100-43, 101-31, 101-657, and 102-29) 17 Sec. 20-10. Competitive sealed bidding; reverse auction. 18 (a) Conditions for use. All contracts shall be awarded by 19 competitive sealed bidding except as otherwise provided in 20 Section 20-5. 21 (b) Invitation for bids. An invitation for bids shall be 22 issued and shall include a purchase description and the 23 material contractual terms and conditions applicable to the 24 procurement. 25 (c) Public notice. Public notice of the invitation for SB2192 - 6 - LRB103 25677 HLH 52026 b SB2192- 7 -LRB103 25677 HLH 52026 b SB2192 - 7 - LRB103 25677 HLH 52026 b SB2192 - 7 - LRB103 25677 HLH 52026 b 1 bids shall be published in the Illinois Procurement Bulletin 2 at least 14 calendar days before the date set in the invitation 3 for the opening of bids. 4 (d) Bid opening. Bids shall be opened publicly or through 5 an electronic procurement system in the presence of one or 6 more witnesses at the time and place designated in the 7 invitation for bids. The name of each bidder, including earned 8 and applied bid credit from the Illinois Works Jobs Program 9 Act, the amount of each bid, and other relevant information as 10 may be specified by rule shall be recorded. After the award of 11 the contract, the winning bid and the record of each 12 unsuccessful bid shall be open to public inspection. 13 (e) Bid acceptance and bid evaluation. Bids shall be 14 unconditionally accepted without alteration or correction, 15 except as authorized in this Code. Bids shall be evaluated 16 based on the requirements set forth in the invitation for 17 bids, which may include criteria to determine acceptability 18 such as inspection, testing, quality, workmanship, delivery, 19 and suitability for a particular purpose. Those criteria that 20 will affect the bid price and be considered in evaluation for 21 award, such as discounts, transportation costs, and total or 22 life cycle costs, shall be objectively measurable. The 23 invitation for bids shall set forth the evaluation criteria to 24 be used. 25 (f) Correction or withdrawal of bids. Correction or 26 withdrawal of inadvertently erroneous bids before or after SB2192 - 7 - LRB103 25677 HLH 52026 b SB2192- 8 -LRB103 25677 HLH 52026 b SB2192 - 8 - LRB103 25677 HLH 52026 b SB2192 - 8 - LRB103 25677 HLH 52026 b 1 award, or cancellation of awards of contracts based on bid 2 mistakes, shall be permitted in accordance with rules. After 3 bid opening, no changes in bid prices or other provisions of 4 bids prejudicial to the interest of the State or fair 5 competition shall be permitted. All decisions to permit the 6 correction or withdrawal of bids based on bid mistakes shall 7 be supported by written determination made by a State 8 purchasing officer. 9 (g) Award. The contract shall be awarded with reasonable 10 promptness by written notice to the lowest responsible and 11 responsive bidder whose bid meets the requirements and 12 criteria set forth in the invitation for bids, except when a 13 State purchasing officer determines it is not in the best 14 interest of the State and by written explanation determines 15 another bidder shall receive the award. The explanation shall 16 appear in the appropriate volume of the Illinois Procurement 17 Bulletin. The written explanation must include: 18 (1) a description of the agency's needs; 19 (2) a determination that the anticipated cost will be 20 fair and reasonable; 21 (3) a listing of all responsible and responsive 22 bidders; and 23 (4) the name of the bidder selected, the total 24 contract price, and the reasons for selecting that bidder. 25 Each chief procurement officer may adopt guidelines to 26 implement the requirements of this subsection (g). SB2192 - 8 - LRB103 25677 HLH 52026 b SB2192- 9 -LRB103 25677 HLH 52026 b SB2192 - 9 - LRB103 25677 HLH 52026 b SB2192 - 9 - LRB103 25677 HLH 52026 b 1 The written explanation shall be filed with the 2 Legislative Audit Commission, and the Commission on Equity and 3 Inclusion, and the Procurement Policy Board, and be made 4 available for inspection by the public, within 14 days after 5 the agency's decision to award the contract. 6 (g-5) Failed bid notice. In addition to the requirements 7 of subsection (g), if a bidder has failed to be awarded a 8 contract after 4 consecutive bids to provide the same services 9 to a single agency, the applicable chief procurement officer 10 for that agency shall in writing detail why all 4 bids were 11 rejected. The chief procurement officer shall submit by 12 certified copy to the bidder the reasoning for the rejection 13 of the bid within the same quarter in which the 4th bid was 14 rejected and prior to 15 days before the next Illinois 15 Procurement Bulletin for that type of bid. 16 (h) Multi-step sealed bidding. When it is considered 17 impracticable to initially prepare a purchase description to 18 support an award based on price, an invitation for bids may be 19 issued requesting the submission of unpriced offers to be 20 followed by an invitation for bids limited to those bidders 21 whose offers have been qualified under the criteria set forth 22 in the first solicitation. 23 (i) Alternative procedures. Notwithstanding any other 24 provision of this Act to the contrary, the Director of the 25 Illinois Power Agency may create alternative bidding 26 procedures to be used in procuring professional services under SB2192 - 9 - LRB103 25677 HLH 52026 b SB2192- 10 -LRB103 25677 HLH 52026 b SB2192 - 10 - LRB103 25677 HLH 52026 b SB2192 - 10 - LRB103 25677 HLH 52026 b 1 subsections (a) and (c) of Section 1-75 and subsection (d) of 2 Section 1-78 of the Illinois Power Agency Act and Section 3 16-111.5(c) of the Public Utilities Act and to procure 4 renewable energy resources under Section 1-56 of the Illinois 5 Power Agency Act. These alternative procedures shall be set 6 forth together with the other criteria contained in the 7 invitation for bids, and shall appear in the appropriate 8 volume of the Illinois Procurement Bulletin. 9 (j) Reverse auction. Notwithstanding any other provision 10 of this Section and in accordance with rules adopted by the 11 chief procurement officer, that chief procurement officer may 12 procure supplies or services through a competitive electronic 13 auction bidding process after the chief procurement officer 14 determines that the use of such a process will be in the best 15 interest of the State. The chief procurement officer shall 16 publish that determination in his or her next volume of the 17 Illinois Procurement Bulletin. 18 An invitation for bids shall be issued and shall include 19 (i) a procurement description, (ii) all contractual terms, 20 whenever practical, and (iii) conditions applicable to the 21 procurement, including a notice that bids will be received in 22 an electronic auction manner. 23 Public notice of the invitation for bids shall be given in 24 the same manner as provided in subsection (c). 25 Bids shall be accepted electronically at the time and in 26 the manner designated in the invitation for bids. During the SB2192 - 10 - LRB103 25677 HLH 52026 b SB2192- 11 -LRB103 25677 HLH 52026 b SB2192 - 11 - LRB103 25677 HLH 52026 b SB2192 - 11 - LRB103 25677 HLH 52026 b 1 auction, a bidder's price shall be disclosed to other bidders. 2 Bidders shall have the opportunity to reduce their bid prices 3 during the auction. At the conclusion of the auction, the 4 record of the bid prices received and the name of each bidder 5 shall be open to public inspection. 6 After the auction period has terminated, withdrawal of 7 bids shall be permitted as provided in subsection (f). 8 The contract shall be awarded within 60 calendar days 9 after the auction by written notice to the lowest responsible 10 bidder, or all bids shall be rejected except as otherwise 11 provided in this Code. Extensions of the date for the award may 12 be made by mutual written consent of the State purchasing 13 officer and the lowest responsible bidder. 14 This subsection does not apply to (i) procurements of 15 professional and artistic services, (ii) telecommunications 16 services, communication services, and information services, 17 and (iii) contracts for construction projects, including 18 design professional services. 19 (Source: P.A. 101-31, eff. 6-28-19; 101-657, eff. 1-1-22; 20 102-29, eff. 6-25-21.) SB2192 - 11 - LRB103 25677 HLH 52026 b