Rep. William Davis

Filed: 5/28/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2365

2    AMENDMENT NO. ______. Amend Senate Bill 2365 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Procurement Code is amended by
5changing Sections 20-15 and 20-60 and by adding Section 50-80
6as follows:
 
7    (30 ILCS 500/20-15)
8    Sec. 20-15. Competitive sealed proposals.
9    (a) Conditions for use. When provided under this Code or
10under rules, or when the purchasing agency determines in
11writing that the use of competitive sealed bidding is either
12not practicable or not advantageous to the State, a contract
13may be entered into by competitive sealed proposals.
14    (b) Request for proposals. Proposals shall be solicited
15through a request for proposals.
16    (c) Public notice. Public notice of the request for

 

 

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1proposals shall be published in the Illinois Procurement
2Bulletin at least 14 calendar days before the date set in the
3invitation for the opening of proposals.
4    (d) Receipt of proposals. Proposals shall be opened
5publicly or via an electronic procurement system in the
6presence of one or more witnesses at the time and place
7designated in the request for proposals, but proposals shall be
8opened in a manner to avoid disclosure of contents to competing
9offerors during the process of negotiation. A record of
10proposals shall be prepared and shall be open for public
11inspection after contract award.
12    (e) Evaluation factors. The requests for proposals shall
13state the relative importance of price and other evaluation
14factors. Proposals shall be submitted in 2 parts: the first,
15covering items except price; and the second, covering price.
16The first part of all proposals shall be evaluated and ranked
17independently of the second part of all proposals.
18    (e-5) Method of scoring.
19        (1) All procurement scoring rubrics for contracts
20    entered into under this Code shall account for and allocate
21    20% of the total available points towards evaluation of
22    each respondent's commitment to diversity, and shall
23    require supporting documentation to that purpose.
24        (2) The scoring rubric requirements established under
25    this subsection (e-5) shall include, but not be limited to,
26    the following:

 

 

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1            (A) for publicly owned businesses, the number and
2        percentage of members of the respondent's governance
3        board who are women, minorities, or persons with
4        disabilities;
5            (B) for privately owned businesses, the respondent
6        shall identify whether it or its affiliates are managed
7        by women, minorities, or persons with disabilities.
8        For the purposes of this subparagraph (B), "managed by
9        women, minorities, or persons with disabilities" means
10        being owned or managed by a 51% or more combination of
11        women, minorities, or persons with disabilities;
12            (C) the respondent shall provide the number and
13        percentage of the respondent's owners and managers who
14        are women, minorities, or persons with disabilities;
15            (D) the number and percentage of the respondent's
16        senior executive leaders, including partner,
17        president, chief operating officer, managing director,
18        or other senior executives, who are women, minorities,
19        military veterans, or persons with disabilities;
20            (E) the number and percentage of the respondent's
21        staff, including both full-time and part-time
22        employees, who are women, minorities, or persons with
23        disabilities; and
24            (F) the respondent's intended use of
25        subcontractors for a project, if any, that are women,
26        minorities, or persons with disabilities.

 

 

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1        (3) When a solicitation for contracts with group
2    purchasing organizations is issued by any State agency or
3    public institution of higher education and falls within a
4    service or product offering that has a history of disparate
5    awards to a class of business owners that are identified
6    under the Business Enterprise Program Act, the scoring
7    rubric allocation identified under paragraph (1) shall be
8    30% of the total available points towards evaluation of
9    each respondent's commitment to diversity.
10        (4) If any State agency contract is eligible to be paid
11    for, in whole or in part, with federal-aid funds, grants,
12    or loans, and the provisions of this Section would result
13    in the loss of those federal-aid funds, grants, or loans,
14    then the contract is exempt from the provisions of this
15    Section in order to remain eligible for those federal-aid
16    funds, grants, or loans.
17        (5) When the highest ranking offeror to a solicitation,
18    which includes the allocated percentage of scoring based on
19    diversity, is found to be more than 15% higher than the
20    next lowest bidder by the offering State agency or public
21    institution of higher education, the offering State agency
22    or public institution of higher education, with the
23    approval of the Business Enterprise Council Secretary and
24    in consultation with the Business Enterprise Program
25    Council, may deem that offeror non-responsive.
26    (f) Discussion with responsible offerors and revisions of

 

 

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1offers or proposals. As provided in the request for proposals
2and under rules, discussions may be conducted with responsible
3offerors who submit offers or proposals determined to be
4reasonably susceptible of being selected for award for the
5purpose of clarifying and assuring full understanding of and
6responsiveness to the solicitation requirements. Those
7offerors shall be accorded fair and equal treatment with
8respect to any opportunity for discussion and revision of
9proposals. Revisions may be permitted after submission and
10before award for the purpose of obtaining best and final
11offers. In conducting discussions there shall be no disclosure
12of any information derived from proposals submitted by
13competing offerors. If information is disclosed to any offeror,
14it shall be provided to all competing offerors.
15    (g) Award. Awards shall be made to the responsible offeror
16whose proposal is determined in writing to be the most
17advantageous to the State, taking into consideration price and
18the evaluation factors set forth in the request for proposals.
19The contract file shall contain the basis on which the award is
20made.
21(Source: P.A. 100-43, eff. 8-9-17.)
 
22    (30 ILCS 500/20-60)
23    Sec. 20-60. Duration of contracts.
24    (a) Maximum duration. A contract may be entered into for
25any period of time deemed to be in the best interests of the

 

 

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1State but not exceeding 10 years inclusive, beginning January
21, 2010, of proposed contract renewals. The length of a lease
3for real property or capital improvements shall be in
4accordance with the provisions of Section 40-25. The length of
5energy conservation program contracts or energy savings
6contracts or leases shall be in accordance with the provisions
7of Section 25-45. A contract for bond or mortgage insurance
8awarded by the Illinois Housing Development Authority,
9however, may be entered into for any period of time less than
10or equal to the maximum period of time that the subject bond or
11mortgage may remain outstanding.
12    (b) Subject to appropriation. All contracts made or entered
13into shall recite that they are subject to termination and
14cancellation in any year for which the General Assembly fails
15to make an appropriation to make payments under the terms of
16the contract.
17    (c) The chief procurement officer shall file a proposed
18extension or renewal of a contract with the Procurement Policy
19Board prior to entering into any extension or renewal if the
20cost associated with the extension or renewal exceeds $249,999.
21The Procurement Policy Board may object to the proposed
22extension or renewal within 30 calendar days and require a
23hearing before the Board prior to entering into the extension
24or renewal. If the Procurement Policy Board does not object
25within 30 calendar days or takes affirmative action to
26recommend the extension or renewal, the chief procurement

 

 

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1officer may enter into the extension or renewal of a contract.
2This subsection does not apply to any emergency procurement,
3any procurement under Article 40, or any procurement exempted
4by Section 1-10(b) of this Code. If any State agency contract
5is paid for in whole or in part with federal-aid funds, grants,
6or loans and the provisions of this subsection would result in
7the loss of those federal-aid funds, grants, or loans, then the
8contract is exempt from the provisions of this subsection in
9order to remain eligible for those federal-aid funds, grants,
10or loans, and the State agency shall file notice of this
11exemption with the Procurement Policy Board prior to entering
12into the proposed extension or renewal. Nothing in this
13subsection permits a chief procurement officer to enter into an
14extension or renewal in violation of subsection (a). By August
151 each year, the Procurement Policy Board shall file a report
16with the General Assembly identifying for the previous fiscal
17year (i) the proposed extensions or renewals that were filed
18with the Board and whether the Board objected and (ii) the
19contracts exempt from this subsection.
20    (d) No vendor shall be eligible for renewal of a contract
21when that vendor has failed to meet the Business Enterprise
22Program spending goal specified under the contract, and that
23vendor is not otherwise excused from compliance under the
24Business Enterprise Program Act. This subsection (d) does not
25apply to the renewal of contracts for construction or
26construction-related services.

 

 

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1(Source: P.A. 100-23, eff. 7-6-17.)
 
2    (30 ILCS 500/50-80 new)
3    Sec. 50-80. Diversity training; report.
4    (a) All employees under each Chief Procurement Officer, as
5defined under Section 1-15.15, shall complete annual training
6for diversity and inclusion as prescribed by the Chief
7Procurement Officer in consultation with the Business
8Enterprise Council.
9    (b) Each Chief Procurement Officer shall submit to the
10Business Enterprise Council an annual report that summarizes
11diversity training that was completed during the previous year,
12and lays out the plan for the diversity training programs in
13the coming year. Each Chief Procurement Officer shall also
14submit to the Executive Ethics Commission an annual report
15detailing the current status of its diversity efforts, and an
16action plan to increase diversity internally within their
17respective offices.
 
18    Section 10. The Business Enterprise for Minorities, Women,
19and Persons with Disabilities Act is amended by changing
20Sections 4f and 6 as follows:
 
21    (30 ILCS 575/4f)
22    (Section scheduled to be repealed on June 30, 2020)
23    Sec. 4f. Award of State contracts.

 

 

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1    (1) It is hereby declared to be the public policy of the
2State of Illinois to promote and encourage each State agency
3and public institution of higher education to use businesses
4owned by minorities, women, and persons with disabilities in
5the area of goods and services, including, but not limited to,
6insurance services, investment management services,
7information technology services, accounting services,
8architectural and engineering services, and legal services.
9Furthermore, each State agency and public institution of higher
10education shall utilize such firms to the greatest extent
11feasible within the bounds of financial and fiduciary prudence,
12and take affirmative steps to remove any barriers to the full
13participation of such firms in the procurement and contracting
14opportunities afforded.
15        (a) When a State agency or public institution of higher
16    education, other than a community college, awards a
17    contract for insurance services, for each State agency or
18    public institution of higher education, it shall be the
19    aspirational goal to use insurance brokers owned by
20    minorities, women, and persons with disabilities as
21    defined by this Act, for not less than 20% of the total
22    annual premiums or fees.
23        (b) When a State agency or public institution of higher
24    education, other than a community college, awards a
25    contract for investment services, for each State agency or
26    public institution of higher education, it shall be the

 

 

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1    aspirational goal to use emerging investment managers
2    owned by minorities, women, and persons with disabilities
3    as defined by this Act, for not less than 20% of the total
4    funds under management. Furthermore, it is the
5    aspirational goal that not less than 20% of the direct
6    asset managers of the State funds be minorities, women, and
7    persons with disabilities.
8        (c) When a State agency or public institution of higher
9    education, other than a community college, awards
10    contracts for information technology services, accounting
11    services, architectural and engineering services, and
12    legal services, for each State agency and public
13    institution of higher education, it shall be the
14    aspirational goal to use such firms owned by minorities,
15    women, and persons with disabilities as defined by this Act
16    and lawyers who are minorities, women, and persons with
17    disabilities as defined by this Act, for not less than 20%
18    of the total dollar amount of State contracts. In the case
19    of State contracts for architectural and engineering
20    services, the provisions of this subsection (c) requiring a
21    portion of State contracts to be awarded to businesses
22    owned and controlled by persons with disabilities do not
23    apply.
24        (d) When a community college awards a contract for
25    insurance services, investment services, information
26    technology services, accounting services, architectural

 

 

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1    and engineering services, and legal services, it shall be
2    the aspirational goal of each community college to use
3    businesses owned by minorities, women, and persons with
4    disabilities as defined in this Act for not less than 20%
5    of the total amount spent on contracts for these services
6    collectively. When a community college awards contracts
7    for investment services, contracts awarded to investment
8    managers who are not emerging investment managers as
9    defined in this Act shall not be considered businesses
10    owned by minorities, women, or persons with disabilities
11    for the purposes of this Section.
12        (e) When a State agency or public institution of higher
13    education issues requests for proposals or solicitations,
14    including requests and solicitations for contracts with
15    group purchasing organizations, that fall within a service
16    or product offering that has a history of disparate awards
17    to a class of business owners that are underrepresented in
18    contract awards, it shall be the aspirational goal to use
19    service or product providers owned by minorities, women,
20    and persons with disabilities as defined by this Act for
21    not less than 20% of the total dollar amount of State
22    contracts. If the State agency or public institution of
23    higher education believes that it may be difficult to
24    properly assess the minimum 20% aspirational goal, then it
25    may appear before the Council to seek a modification of the
26    goal requirement provided under this paragraph (e).

 

 

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1        If any State agency contract is eligible to be paid
2    for, in whole or in part, with federal-aid funds, grants,
3    or loans, and the provisions of this paragraph (e) would
4    result in the loss of those federal-aid funds, grants, or
5    loans, then the contract is exempt from the provisions of
6    this paragraph (e) in order to remain eligible for those
7    federal-aid funds, grants, or loans.
8    (2) As used in this Section:
9        "Accounting services" means the measurement,
10    processing and communication of financial information
11    about economic entities including, but is not limited to,
12    financial accounting, management accounting, auditing,
13    cost containment and auditing services, taxation and
14    accounting information systems.
15        "Architectural and engineering services" means
16    professional services of an architectural or engineering
17    nature, or incidental services, that members of the
18    architectural and engineering professions, and individuals
19    in their employ, may logically or justifiably perform,
20    including studies, investigations, surveying and mapping,
21    tests, evaluations, consultations, comprehensive planning,
22    program management, conceptual designs, plans and
23    specifications, value engineering, construction phase
24    services, soils engineering, drawing reviews, preparation
25    of operating and maintenance manuals, and other related
26    services.

 

 

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1        "Emerging investment manager" means an investment
2    manager or claims consultant having assets under
3    management below $10 billion or otherwise adjudicating
4    claims.
5        "Information technology services" means, but is not
6    limited to, specialized technology-oriented solutions by
7    combining the processes and functions of software,
8    hardware, networks, telecommunications, web designers,
9    cloud developing resellers, and electronics.
10        "Insurance broker" means an insurance brokerage firm,
11    claims administrator, or both, that procures, places all
12    lines of insurance, or administers claims with annual
13    premiums or fees of at least $5,000,000 but not more than
14    $10,000,000.
15        "Legal services" means work performed by a lawyer
16    including, but not limited to, contracts in anticipation of
17    litigation, enforcement actions, or investigations.
18    (3) Each State agency and public institution of higher
19education shall adopt policies that identify its plan and
20implementation procedures for increasing the use of service
21firms owned by minorities, women, and persons with
22disabilities.
23    (4) Except as provided in subsection (5), the Council shall
24file no later than March 1 of each year an annual report to the
25Governor and the General Assembly. The report to the General
26Assembly shall be filed with the Clerk of the House of

 

 

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1Representatives and the Secretary of the Senate in electronic
2form only, in the manner that the Clerk and the Secretary shall
3direct The report filed with the General Assembly shall be
4filed as required in Section 3.1 of the General Assembly
5Organization Act. This report shall: (i) identify the service
6firms used by each State agency and public institution of
7higher education, (ii) identify the actions it has undertaken
8to increase the use of service firms owned by minorities,
9women, and persons with disabilities, including encouraging
10non-minority-owned firms to use other service firms owned by
11minorities, women, and persons with disabilities as
12subcontractors when the opportunities arise, (iii) state any
13recommendations made by the Council to each State agency and
14public institution of higher education to increase
15participation by the use of service firms owned by minorities,
16women, and persons with disabilities, and (iv) include the
17following:
18        (A) For insurance services: the names of the insurance
19    brokers or claims consultants used, the total of risk
20    managed by each State agency and public institution of
21    higher education by insurance brokers, the total
22    commissions, fees paid, or both, the lines or insurance
23    policies placed, and the amount of premiums placed; and the
24    percentage of the risk managed by insurance brokers, the
25    percentage of total commission, fees paid, or both, the
26    lines or insurance policies placed, and the amount of

 

 

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1    premiums placed with each by the insurance brokers owned by
2    minorities, women, and persons with disabilities by each
3    State agency and public institution of higher education.
4        (B) For investment management services: the names of
5    the investment managers used, the total funds under
6    management of investment managers; the total commissions,
7    fees paid, or both; the total and percentage of funds under
8    management of emerging investment managers owned by
9    minorities, women, and persons with disabilities,
10    including the total and percentage of total commissions,
11    fees paid, or both by each State agency and public
12    institution of higher education.
13        (C) The names of service firms, the percentage and
14    total dollar amount paid for professional services by
15    category by each State agency and public institution of
16    higher education.
17        (D) The names of service firms, the percentage and
18    total dollar amount paid for services by category to firms
19    owned by minorities, women, and persons with disabilities
20    by each State agency and public institution of higher
21    education.
22        (E) The total number of contracts awarded for services
23    by category and the total number of contracts awarded to
24    firms owned by minorities, women, and persons with
25    disabilities by each State agency and public institution of
26    higher education.

 

 

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1    (5) For community college districts, the Business
2Enterprise Council shall only report the following information
3for each community college district: (i) the name of the
4community colleges in the district, (ii) the name and contact
5information of a person at each community college appointed to
6be the single point of contact for vendors owned by minorities,
7women, or persons with disabilities, (iii) the policy of the
8community college district concerning certified vendors, (iv)
9the certifications recognized by the community college
10district for determining whether a business is owned or
11controlled by a minority, woman, or person with a disability,
12(v) outreach efforts conducted by the community college
13district to increase the use of certified vendors, (vi) the
14total expenditures by the community college district in the
15prior fiscal year in the divisions of work specified in
16paragraphs (a), (b), and (c) of subsection (1) of this Section
17and the amount paid to certified vendors in those divisions of
18work, and (vii) the total number of contracts entered into for
19the divisions of work specified in paragraphs (a), (b), and (c)
20of subsection (1) of this Section and the total number of
21contracts awarded to certified vendors providing these
22services to the community college district. The Business
23Enterprise Council shall not make any utilization reports under
24this Act for community college districts for Fiscal Year 2015
25and Fiscal Year 2016, but shall make the report required by
26this subsection for Fiscal Year 2017 and for each fiscal year

 

 

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1thereafter. The Business Enterprise Council shall report the
2information in items (i), (ii), (iii), and (iv) of this
3subsection beginning in September of 2016. The Business
4Enterprise Council may collect the data needed to make its
5report from the Illinois Community College Board.
6    (6) The status of the utilization of services shall be
7discussed at each of the regularly scheduled Business
8Enterprise Council meetings. Time shall be allotted for the
9Council to receive, review, and discuss the progress of the use
10of service firms owned by minorities, women, and persons with
11disabilities by each State agency and public institution of
12higher education; and any evidence regarding past or present
13racial, ethnic, or gender-based discrimination which directly
14impacts a State agency or public institution of higher
15education contracting with such firms. If after reviewing such
16evidence the Council finds that there is or has been such
17discrimination against a specific group, race or sex, the
18Council shall establish sheltered markets or adjust existing
19sheltered markets tailored to address the Council's specific
20findings for the divisions of work specified in paragraphs (a),
21(b), and (c) of subsection (1) of this Section.
22(Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16;
23100-391, eff. 8-25-17.)
 
24    (30 ILCS 575/6)  (from Ch. 127, par. 132.606)
25    (Section scheduled to be repealed on June 30, 2020)

 

 

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1    Sec. 6. Agency compliance plans. Each State agency and
2public institutions of higher education under the jurisdiction
3of this Act shall file with the Council an annual compliance
4plan which shall outline the goals of the State agency or
5public institutions of higher education for contracting with
6businesses owned by minorities, women, and persons with
7disabilities for the then current fiscal year, the manner in
8which the agency intends to reach these goals and a timetable
9for reaching these goals. The Council shall review and approve
10the plan of each State agency and public institutions of higher
11education and may reject any plan that does not comply with
12this Act or any rules or regulations promulgated pursuant to
13this Act.
14    (a) The compliance plan shall also include, but not be
15limited to, (1) a policy statement, signed by the State agency
16or public institution of higher education head, expressing a
17commitment to encourage the use of businesses owned by
18minorities, women, and persons with disabilities, (2) the
19designation of the liaison officer provided for in Section 5 of
20this Act, (3) procedures to distribute to potential contractors
21and vendors the list of all businesses legitimately classified
22as businesses owned by minorities, women, and persons with
23disabilities and so certified under this Act, (4) procedures to
24set separate contract goals on specific prime contracts and
25purchase orders with subcontracting possibilities based upon
26the type of work or services and subcontractor availability,

 

 

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1(5) procedures to assure that contractors and vendors make good
2faith efforts to meet contract goals, (6) procedures for
3contract goal exemption, modification and waiver, and (7) the
4delineation of separate contract goals for businesses owned by
5minorities, women, and persons with disabilities.
6    (b) Approval of the compliance plans shall include such
7delegation of responsibilities to the requesting State agency
8or public institution of higher education as the Council deems
9necessary and appropriate to fulfill the purpose of this Act.
10Such responsibilities may include, but need not be limited to
11those outlined in subsections (1), (2) and (3) of Section 7,
12paragraph (a) of Section 8, and Section 8a of this Act.
13    (c) Each State agency and public institution of higher
14education under the jurisdiction of this Act shall file with
15the Council an annual report of its utilization of businesses
16owned by minorities, women, and persons with disabilities
17during the preceding fiscal year including lapse period
18spending and a mid-fiscal year report of its utilization to
19date for the then current fiscal year. The reports shall
20include a self-evaluation of the efforts of the State agency or
21public institution of higher education to meet its goals under
22the Act, as well as a plan to increase the diversity of their
23vendors engaged in contracts, with a particular focus on those
24most underrepresented in contract awards.
25    (d) Notwithstanding any provisions to the contrary in this
26Act, any State agency or public institution of higher education

 

 

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1which administers a construction program, for which federal law
2or regulations establish standards and procedures for the
3utilization of minority-owned and women-owned businesses and
4disadvantaged businesses, shall implement a disadvantaged
5business enterprise program to include minority-owned and
6women-owned businesses and disadvantaged businesses, using the
7federal standards and procedures for the establishment of goals
8and utilization procedures for the State-funded, as well as the
9federally assisted, portions of the program. In such cases,
10these goals shall not exceed those established pursuant to the
11relevant federal statutes or regulations. Notwithstanding the
12provisions of Section 8b, the Illinois Department of
13Transportation is authorized to establish sheltered markets
14for the State-funded portions of the program consistent with
15federal law and regulations. Additionally, a compliance plan
16which is filed by such State agency or public institution of
17higher education pursuant to this Act, which incorporates
18equivalent terms and conditions of its federally-approved
19compliance plan, shall be deemed approved under this Act.
20(Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17.)".