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Illinois Senate Bill SB2411

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2411 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2411 Introduced 2/7/2025, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-4530 ILCS 500/45-9530 ILCS 500/45-105 Amends the Illinois Procurement Code. In provisions concerning small businesses, HUBZone business contracts, and bid preferences, 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. LRB104 11430 HLH 21518 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2411 Introduced 2/7/2025, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 30 ILCS 500/45-4530 ILCS 500/45-9530 ILCS 500/45-105 30 ILCS 500/45-45 30 ILCS 500/45-95 30 ILCS 500/45-105 Amends the Illinois Procurement Code. In provisions concerning small businesses, HUBZone business contracts, and bid preferences, 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. LRB104 11430 HLH 21518 b LRB104 11430 HLH 21518 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2411 Introduced 2/7/2025, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
33 30 ILCS 500/45-4530 ILCS 500/45-9530 ILCS 500/45-105 30 ILCS 500/45-45 30 ILCS 500/45-95 30 ILCS 500/45-105
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77 Amends the Illinois Procurement Code. In provisions concerning small businesses, HUBZone business contracts, and bid preferences, 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.
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1313 1 AN ACT concerning finance.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Illinois Procurement Code is amended by
1717 5 changing Sections 45-45, 45-95, and 45-105 as follows:
1818 6 (30 ILCS 500/45-45)
1919 7 Sec. 45-45. Small businesses.
2020 8 (a) Set-asides. Each chief procurement officer has
2121 9 authority to designate as small business set-asides a fair
2222 10 proportion of construction, supply, and service contracts for
2323 11 award to small businesses in Illinois. Advertisements for bids
2424 12 or offers for those contracts shall specify designation as
2525 13 small business set-asides. In awarding the contracts, only
2626 14 bids or offers from qualified small businesses shall be
2727 15 considered.
2828 16 (b) Small business. "Small business" means a business that
2929 17 is independently owned and operated and that is not dominant
3030 18 in its field of operation. The chief procurement officer shall
3131 19 establish a detailed definition by rule, using in addition to
3232 20 the foregoing criteria other criteria, including the number of
3333 21 employees and the dollar volume of business. When computing
3434 22 the size status of a potential contractor, annual sales and
3535 23 receipts of the potential contractor and all of its affiliates
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4343 30 ILCS 500/45-105
4444 Amends the Illinois Procurement Code. In provisions concerning small businesses, HUBZone business contracts, and bid preferences, 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.
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7474 1 shall be included. The maximum number of employees and the
7575 2 maximum dollar volume that a small business may have under the
7676 3 rules promulgated by the chief procurement officer may vary
7777 4 from industry to industry to the extent necessary to reflect
7878 5 differing characteristics of those industries, subject to the
7979 6 following limitations:
8080 7 (1) No wholesale business is a small business if its
8181 8 annual sales for its most recently completed fiscal year
8282 9 exceed $13,000,000.
8383 10 (2) No retail business or business selling services is
8484 11 a small business if its annual sales and receipts exceed
8585 12 $8,000,000.
8686 13 (3) No manufacturing business is a small business if
8787 14 it employs more than 250 persons.
8888 15 (4) No construction business is a small business if
8989 16 its annual sales and receipts exceed $14,000,000.
9090 17 (c) Fair proportion. For the purpose of subsection (a),
9191 18 for State agencies of the executive branch, a fair proportion
9292 19 of construction contracts shall be no less than 25% nor more
9393 20 than 40% of the annual total contracts for construction.
9494 21 (c-5) Failed bid notice. If a small business bidder has
9595 22 failed to be awarded a contract after 4 consecutive bids to
9696 23 provide the same services, then the applicable agency shall,
9797 24 in writing, detail why each of the 4 bids was not awarded to
9898 25 the bidder. The applicable agency shall submit by certified
9999 26 copy to the bidder the reason or reasons why each of the 4 bids
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110110 1 was not awarded to the bidder. The agency shall submit that
111111 2 certified copy to the bidder within the same calendar quarter
112112 3 in which the fourth bid was rejected. This subsection does not
113113 4 apply if information pertaining to a failed bid was previously
114114 5 disclosed to a bidder by electronic means. If any agency
115115 6 chooses to provide information by electronic means, the agency
116116 7 shall have a written policy outlining how the agency will
117117 8 reasonably ensure the bidder receives the information. For the
118118 9 purposes of this subsection, "electronic means" means an email
119119 10 communication from the applicable agency to the bidder or a
120120 11 public posting on the applicable agency's procurement
121121 12 bulletin.
122122 13 (d) Withdrawal of designation. A small business set-aside
123123 14 designation may be withdrawn by the purchasing agency when
124124 15 deemed in the best interests of the State. Upon withdrawal,
125125 16 all bids or offers shall be rejected, and the bidders or
126126 17 offerors shall be notified of the reason for rejection. The
127127 18 contract shall then be awarded in accordance with this Code
128128 19 without the designation of small business set-aside. Each
129129 20 chief procurement officer shall make the annual report
130130 21 available on his or her official website. Each chief
131131 22 procurement officer shall also issue a press release in
132132 23 conjunction with the small business annual report that
133133 24 includes an executive summary of the annual report and a link
134134 25 to the annual report on the chief procurement officer's
135135 26 website.
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146146 1 (e) Small business specialist. Each chief procurement
147147 2 officer shall designate one or more individuals to serve as
148148 3 its small business specialist. The small business specialists
149149 4 shall collectively work together to accomplish the following
150150 5 duties:
151151 6 (1) Compiling and maintaining a comprehensive list of
152152 7 potential small contractors. In this duty, he or she shall
153153 8 cooperate with the Federal Small Business Administration
154154 9 in locating potential sources for various products and
155155 10 services.
156156 11 (2) Assisting small businesses in complying with the
157157 12 procedures for bidding on State contracts.
158158 13 (3) Examining requests from State agencies for the
159159 14 purchase of property or services to help determine which
160160 15 invitations to bid are to be designated small business
161161 16 set-asides.
162162 17 (4) Making recommendations to the chief procurement
163163 18 officer for the simplification of specifications and terms
164164 19 in order to increase the opportunities for small business
165165 20 participation.
166166 21 (5) Assisting in investigations by purchasing agencies
167167 22 to determine the responsibility of bidders or offerors on
168168 23 small business set-asides.
169169 24 (f) Small business annual report. Each small business
170170 25 specialist designated under subsection (e) shall annually
171171 26 before November 1 report in writing to the General Assembly
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182182 1 concerning the awarding of contracts to small businesses. The
183183 2 report shall include the total value of awards made in the
184184 3 preceding fiscal year under the designation of small business
185185 4 set-aside. The report shall also include the total value of
186186 5 awards made to businesses owned by minorities, women, and
187187 6 persons with disabilities, as defined in the Business
188188 7 Enterprise for Minorities, Women, and Persons with
189189 8 Disabilities Act, in the preceding fiscal year under the
190190 9 designation of small business set-aside.
191191 10 The requirement for reporting to the General Assembly
192192 11 shall be satisfied by filing copies of the report as required
193193 12 by Section 3.1 of the General Assembly Organization Act.
194194 13 (Source: P.A. 103-570, eff. 1-1-24.)
195195 14 (30 ILCS 500/45-95)
196196 15 Sec. 45-95. HUBZone business contracts.
197197 16 (a) For the purposes of this Section:
198198 17 "HUBZone business" means a business that operates and
199199 18 employs people in Historically Underutilized Business Zones
200200 19 (HUBZone) as designated by the federal HUBZone Empowerment
201201 20 Act.
202202 21 "Qualified HUBZone small business concern" means a
203203 22 business that qualifies under the HUBZone program administered
204204 23 by the United States Small Business Administration.
205205 24 (b) Each chief procurement officer shall establish rules,
206206 25 in consultation with the procuring agency, related to the
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217217 1 eligibility of qualified HUBZone small business concerns to
218218 2 receive preference under this Section, and shall verify the
219219 3 accuracy of any information submitted by a qualified HUBZone
220220 4 small business concern with respect to a contract awarded
221221 5 under this Section.
222222 6 (c) The provisions of this Section shall not apply to: (1)
223223 7 construction procurements; (2) construction-related services
224224 8 procurements; or (3) the selection of construction-related
225225 9 professional services.
226226 10 (d) Failed bid notice. If a bidder has failed to be awarded
227227 11 a contract after 4 consecutive bids to provide the same
228228 12 services, then the applicable agency shall, in writing, detail
229229 13 why each of the 4 bids was not awarded to the bidder. The
230230 14 applicable agency shall submit by certified copy to the bidder
231231 15 the reason or reasons why each of the 4 bids was not awarded to
232232 16 the bidder. The agency shall submit that certified copy to the
233233 17 bidder within the same calendar quarter in which the fourth
234234 18 bid was rejected. This subsection does not apply if
235235 19 information pertaining to a failed bid was previously
236236 20 disclosed to a bidder by electronic means. If any agency
237237 21 chooses to provide information by electronic means, the agency
238238 22 shall have a written policy outlining how the agency will
239239 23 reasonably ensure the bidder receives the information. For the
240240 24 purposes of this subsection, "electronic means" means an email
241241 25 communication from the applicable agency to the bidder or a
242242 26 public posting on the applicable agency's procurement
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253253 1 bulletin.
254254 2 (Source: P.A. 100-881, eff. 1-1-19.)
255255 3 (30 ILCS 500/45-105)
256256 4 Sec. 45-105. Bid preference for Illinois businesses.
257257 5 (a) (Blank).
258258 6 (b) It is hereby declared to be the public policy of the
259259 7 State of Illinois to promote the economy of Illinois through
260260 8 the use of Illinois businesses for all State construction
261261 9 contracts.
262262 10 (c) A construction agency, as defined in Section 1-15.25,
263263 11 procuring construction services shall make reasonable efforts
264264 12 to contract with Illinois businesses.
265265 13 (d) Each construction agency shall submit a report to the
266266 14 Governor and the General Assembly by December 1 of each year
267267 15 that identifies the Illinois businesses procured by the
268268 16 construction agency, the primary location of the construction
269269 17 project, the percentage of the construction agency's
270270 18 utilization of Illinois businesses on the project as a whole,
271271 19 and the actions that the construction agency has undertaken to
272272 20 increase the use of Illinois businesses.
273273 21 (e) In procuring construction services for projects with a
274274 22 total value that exceeds the small purchase maximum
275275 23 established by Section 20-20 of this Code, construction
276276 24 agencies shall provide a bid preference to a responsive and
277277 25 responsible bidder that is an Illinois business as defined in
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288288 1 this Section. The construction agency shall allocate to the
289289 2 lowest bid by an Illinois business that is responsible and
290290 3 responsive a bid preference of 4% of the contract base bid.
291291 4 This subsection applies only to projects where a business that
292292 5 is not an Illinois business submits a bid.
293293 6 (e-5) The chief procurement officer shall require at the
294294 7 time of submission of a bid, and may require at the chief
295295 8 procurement officer's option at any time during the term of
296296 9 the contract, that the bidder or contractor submit an
297297 10 affidavit and other supporting documents demonstrating that
298298 11 the bidder or contractor is an Illinois business and, if
299299 12 applicable, submit an affidavit and other supporting documents
300300 13 demonstrating that the bidder or contractor is eligible for a
301301 14 4% bid preference under this Section.
302302 15 (e-10) If a contractor who is awarded a contract through
303303 16 the use of a preference for Illinois businesses provided false
304304 17 information in order to obtain that preference, then the
305305 18 contractor is subject to disciplinary procedures as identified
306306 19 in Section 50-65 of this Act.
307307 20 (e-15) Failed bid notice. If a bidder has failed to be
308308 21 awarded a contract after 4 consecutive bids to provide the
309309 22 same services, then the applicable agency shall, in writing,
310310 23 detail why each of the 4 bids was not awarded to the bidder.
311311 24 The applicable agency shall submit by certified copy to the
312312 25 bidder the reason or reasons why each of the 4 bids was not
313313 26 awarded to the bidder. The agency shall submit that certified
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324324 1 copy to the bidder within the same calendar quarter in which
325325 2 the fourth bid was rejected. This subsection does not apply if
326326 3 information pertaining to a failed bid was previously
327327 4 disclosed to a bidder by electronic means. If any agency
328328 5 chooses to provide information by electronic means, the agency
329329 6 shall have a written policy outlining how the agency will
330330 7 reasonably ensure the bidder receives the information. For the
331331 8 purposes of this subsection, "electronic means" means an email
332332 9 communication from the applicable agency to the bidder or a
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334334 11 bulletin.
335335 12 (f) This Section does not apply to any contract for any
336336 13 project for which federal funds are available for expenditure
337337 14 when its provisions may be in conflict with federal law or
338338 15 federal regulation.
339339 16 (g) As used in this Section, "Illinois business" means a
340340 17 contractor that is, for at least one year prior, operating and
341341 18 headquartered in Illinois, subject to applicable State taxes,
342342 19 and providing, at the time that an invitation for a bid or
343343 20 notice of contract opportunity is first advertised,
344344 21 construction services. "Illinois business" includes a foreign
345345 22 corporation duly authorized to transact business in this State
346346 23 that has a bona fide establishment for transacting business
347347 24 within this State where it is operating, headquartered, and
348348 25 performing construction or construction-related professional
349349 26 services at least one year before an invitation for a bid or
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