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(30 ILCS 500/45-45)
(a) Set-asides. Each chief procurement officer has authority to designate as
small business set-asides a fair
proportion of construction, supply, and service contracts for award
to small businesses in Illinois.
Advertisements for bids or offers for those contracts shall
specify designation as small business
set-asides. In awarding the contracts, only bids or offers from
qualified small businesses shall
(b) Small business. "Small business" means a business that
is independently owned and
operated and that is not dominant in its field of operation. The
chief procurement officer shall establish a detailed
definition by rule, using in addition to the foregoing criteria
other criteria, including the number
of employees and the dollar volume of business. When computing
the size status of a potential contractor,
annual sales and receipts of the potential contractor and all of its affiliates
shall be included. The maximum
number of employees and the maximum dollar volume that a small
business may have under
the rules promulgated by the chief procurement officer may vary from industry
industry to the extent necessary
to reflect differing characteristics of those industries, subject
to the following limitations:
(1) No wholesale business is a small business if its
annual sales for its most recently completed fiscal year exceed $13,000,000.
(2) No retail business or business selling services
is a small business if its annual sales and receipts exceed $8,000,000.
(3) No manufacturing business is a small business if
it employs more than 250 persons.
(4) No construction business is a small business if
its annual sales and receipts exceed $14,000,000.
(c) Fair proportion. For the purpose of subsection (a), for State agencies
of the executive branch, a
fair proportion of construction
contracts shall be no less than 25% nor more than 40% of the
annual total contracts for
(d) Withdrawal of designation. A small business set-aside
designation may be withdrawn
by the purchasing agency when deemed in the best interests of the
State. Upon withdrawal, all
bids or offers shall be rejected, and the bidders or offerors
shall be notified of the reason for
rejection. The contract shall then be awarded in accordance with
this Code without the
designation of small business set-aside.
(e) Small business specialist. The chief procurement officer shall
State purchasing officer
who will be responsible for engaging an experienced contract
negotiator to serve as its small
business specialist, whose duties shall include:
(1) Compiling and maintaining a comprehensive list
of potential small contractors. In this duty, he or she shall cooperate with the Federal Small Business Administration in locating potential sources for various products and services.
(2) Assisting small businesses in complying with the
procedures for bidding on State contracts.
(3) Examining requests from State agencies for the
purchase of property or services to help determine which invitations to bid are to be designated small business set-asides.
(4) Making recommendations to the chief procurement
officer for the simplification of specifications and terms in order to increase the opportunities for small business participation.
(5) Assisting in investigations by purchasing
agencies to determine the responsibility of bidders or offerors on small business set-asides.
(f) Small business annual report. The State purchasing
officer designated under
subsection (e) shall annually before December 1 report in writing
to the General Assembly
concerning the awarding of contracts to small businesses. The
report shall include the total
value of awards made in the preceding fiscal year under the
designation of small business set-aside.
The report shall also include the total value of awards made to
businesses owned by minorities, females, and persons with disabilities, as
defined in the Business Enterprise for Minorities, Females, and Persons with
Disabilities Act, in the preceding fiscal year under the designation of small
The requirement for reporting to the General Assembly shall
be satisfied by filing copies
of the report as required by Section 3.1 of the General Assembly
(Source: P.A. 98-1076, eff. 1-1-15