Illinois General Assembly - Full Text of SB2480
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Full Text of SB2480  102nd General Assembly

SB2480 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2480

 

Introduced 2/26/2021, 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.


LRB102 16614 RJF 22014 b

 

 

A BILL FOR

 

SB2480LRB102 16614 RJF 22014 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing 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,
898-1076, 99-906, 100-43, and 101-31)
9    Sec. 20-10. Competitive sealed bidding; reverse auction.
10    (a) Conditions for use. All contracts shall be awarded by
11competitive sealed bidding except as otherwise provided in
12Section 20-5.
13    (b) Invitation for bids. An invitation for bids shall be
14issued and shall include a purchase description and the
15material contractual terms and conditions applicable to the
16procurement.
17    (c) Public notice. Public notice of the invitation for
18bids shall be published in the Illinois Procurement Bulletin
19at least 14 calendar days before the date set in the invitation
20for the opening of bids.
21    (d) Bid opening. Bids shall be opened publicly or through
22an electronic procurement system in the presence of one or
23more witnesses at the time and place designated in the

 

 

SB2480- 2 -LRB102 16614 RJF 22014 b

1invitation for bids. The name of each bidder, including earned
2and applied bid credit from the Illinois Works Jobs Program
3Act, the amount of each bid, and other relevant information as
4may be specified by rule shall be recorded. After the award of
5the contract, the winning bid and the record of each
6unsuccessful bid shall be open to public inspection.
7    (e) Bid acceptance and bid evaluation. Bids shall be
8unconditionally accepted without alteration or correction,
9except as authorized in this Code. Bids shall be evaluated
10based on the requirements set forth in the invitation for
11bids, which may include criteria to determine acceptability
12such as inspection, testing, quality, workmanship, delivery,
13and suitability for a particular purpose. Those criteria that
14will affect the bid price and be considered in evaluation for
15award, such as discounts, transportation costs, and total or
16life cycle costs, shall be objectively measurable. The
17invitation for bids shall set forth the evaluation criteria to
18be used.
19    (f) Correction or withdrawal of bids. Correction or
20withdrawal of inadvertently erroneous bids before or after
21award, or cancellation of awards of contracts based on bid
22mistakes, shall be permitted in accordance with rules. After
23bid opening, no changes in bid prices or other provisions of
24bids prejudicial to the interest of the State or fair
25competition shall be permitted. All decisions to permit the
26correction or withdrawal of bids based on bid mistakes shall

 

 

SB2480- 3 -LRB102 16614 RJF 22014 b

1be supported by written determination made by a State
2purchasing officer.
3    (g) Award. The contract shall be awarded with reasonable
4promptness by written notice to the lowest responsible and
5responsive bidder whose bid meets the requirements and
6criteria set forth in the invitation for bids, except when a
7State purchasing officer determines it is not in the best
8interest of the State and by written explanation determines
9another bidder shall receive the award. The explanation shall
10appear in the appropriate volume of the Illinois Procurement
11Bulletin. 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
20implement the requirements of this subsection (g).
21    The written explanation shall be filed with the
22Legislative Audit Commission and the Procurement Policy Board,
23and be made available for inspection by the public, within 30
24calendar days after the agency's decision to award the
25contract.
26    (g-5) Failed bid notice. In addition to the requirements

 

 

SB2480- 4 -LRB102 16614 RJF 22014 b

1of subsection (g), if a bidder has failed to be awarded a
2contract after 4 consecutive bids to provide the same services
3to a single agency, the applicable chief procurement officer
4for that agency shall in writing detail why all 4 bids were
5rejected. The chief procurement officer shall submit by
6certified copy to the bidder the reasoning for the rejection
7of the bid within the same quarter in which the 4th bid was
8rejected and prior to 15 days before the next Illinois
9Procurement Bulletin for that type of bid.
10    (h) Multi-step sealed bidding. When it is considered
11impracticable to initially prepare a purchase description to
12support an award based on price, an invitation for bids may be
13issued requesting the submission of unpriced offers to be
14followed by an invitation for bids limited to those bidders
15whose offers have been qualified under the criteria set forth
16in the first solicitation.
17    (i) Alternative procedures. Notwithstanding any other
18provision of this Act to the contrary, the Director of the
19Illinois Power Agency may create alternative bidding
20procedures to be used in procuring professional services under
21Section 1-56, subsections (a) and (c) of Section 1-75 and
22subsection (d) of Section 1-78 of the Illinois Power Agency
23Act and Section 16-111.5(c) of the Public Utilities Act and to
24procure renewable energy resources under Section 1-56 of the
25Illinois Power Agency Act. These alternative procedures shall
26be set forth together with the other criteria contained in the

 

 

SB2480- 5 -LRB102 16614 RJF 22014 b

1invitation for bids, and shall appear in the appropriate
2volume of the Illinois Procurement Bulletin.
3    (j) Reverse auction. Notwithstanding any other provision
4of this Section and in accordance with rules adopted by the
5chief procurement officer, that chief procurement officer may
6procure supplies or services through a competitive electronic
7auction bidding process after the chief procurement officer
8determines that the use of such a process will be in the best
9interest of the State. The chief procurement officer shall
10publish that determination in his or her next volume of the
11Illinois Procurement Bulletin.
12    An invitation for bids shall be issued and shall include
13(i) a procurement description, (ii) all contractual terms,
14whenever practical, and (iii) conditions applicable to the
15procurement, including a notice that bids will be received in
16an electronic auction manner.
17    Public notice of the invitation for bids shall be given in
18the same manner as provided in subsection (c).
19    Bids shall be accepted electronically at the time and in
20the manner designated in the invitation for bids. During the
21auction, a bidder's price shall be disclosed to other bidders.
22Bidders shall have the opportunity to reduce their bid prices
23during the auction. At the conclusion of the auction, the
24record of the bid prices received and the name of each bidder
25shall be open to public inspection.
26    After the auction period has terminated, withdrawal of

 

 

SB2480- 6 -LRB102 16614 RJF 22014 b

1bids shall be permitted as provided in subsection (f).
2    The contract shall be awarded within 60 calendar days
3after the auction by written notice to the lowest responsible
4bidder, or all bids shall be rejected except as otherwise
5provided in this Code. Extensions of the date for the award may
6be made by mutual written consent of the State purchasing
7officer and the lowest responsible bidder.
8    This subsection does not apply to (i) procurements of
9professional and artistic services, (ii) telecommunications
10services, communication services, and information services,
11and (iii) contracts for construction projects, including
12design professional services.
13(Source: P.A. 100-43, eff. 8-9-17; 101-31, eff. 6-28-19.)
 
14    (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
1598-1076, 99-906, 100-43, and 101-31)
16    Sec. 20-10. Competitive sealed bidding; reverse auction.
17    (a) Conditions for use. All contracts shall be awarded by
18competitive sealed bidding except as otherwise provided in
19Section 20-5.
20    (b) Invitation for bids. An invitation for bids shall be
21issued and shall include a purchase description and the
22material contractual terms and conditions applicable to the
23procurement.
24    (c) Public notice. Public notice of the invitation for
25bids shall be published in the Illinois Procurement Bulletin

 

 

SB2480- 7 -LRB102 16614 RJF 22014 b

1at least 14 calendar days before the date set in the invitation
2for the opening of bids.
3    (d) Bid opening. Bids shall be opened publicly or through
4an electronic procurement system in the presence of one or
5more witnesses at the time and place designated in the
6invitation for bids. The name of each bidder, including earned
7and applied bid credit from the Illinois Works Jobs Program
8Act, the amount of each bid, and other relevant information as
9may be specified by rule shall be recorded. After the award of
10the contract, the winning bid and the record of each
11unsuccessful bid shall be open to public inspection.
12    (e) Bid acceptance and bid evaluation. Bids shall be
13unconditionally accepted without alteration or correction,
14except as authorized in this Code. Bids shall be evaluated
15based on the requirements set forth in the invitation for
16bids, which may include criteria to determine acceptability
17such as inspection, testing, quality, workmanship, delivery,
18and suitability for a particular purpose. Those criteria that
19will affect the bid price and be considered in evaluation for
20award, such as discounts, transportation costs, and total or
21life cycle costs, shall be objectively measurable. The
22invitation for bids shall set forth the evaluation criteria to
23be used.
24    (f) Correction or withdrawal of bids. Correction or
25withdrawal of inadvertently erroneous bids before or after
26award, or cancellation of awards of contracts based on bid

 

 

SB2480- 8 -LRB102 16614 RJF 22014 b

1mistakes, shall be permitted in accordance with rules. After
2bid opening, no changes in bid prices or other provisions of
3bids prejudicial to the interest of the State or fair
4competition shall be permitted. All decisions to permit the
5correction or withdrawal of bids based on bid mistakes shall
6be supported by written determination made by a State
7purchasing officer.
8    (g) Award. The contract shall be awarded with reasonable
9promptness by written notice to the lowest responsible and
10responsive bidder whose bid meets the requirements and
11criteria set forth in the invitation for bids, except when a
12State purchasing officer determines it is not in the best
13interest of the State and by written explanation determines
14another bidder shall receive the award. The explanation shall
15appear in the appropriate volume of the Illinois Procurement
16Bulletin. 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
25implement the requirements of this subsection (g).
26    The written explanation shall be filed with the

 

 

SB2480- 9 -LRB102 16614 RJF 22014 b

1Legislative Audit Commission and the Procurement Policy Board,
2and be made available for inspection by the public, within 30
3days after the agency's decision to award the contract.
4    (g-5) Failed bid notice. In addition to the requirements
5of subsection (g), if a bidder has failed to be awarded a
6contract after 4 consecutive bids to provide the same services
7to a single agency, the applicable chief procurement officer
8for that agency shall in writing detail why all 4 bids were
9rejected. The chief procurement officer shall submit by
10certified copy to the bidder the reasoning for the rejection
11of the bid within the same quarter in which the 4th bid was
12rejected and prior to 15 days before the next Illinois
13Procurement Bulletin for that type of bid.
14    (h) Multi-step sealed bidding. When it is considered
15impracticable to initially prepare a purchase description to
16support an award based on price, an invitation for bids may be
17issued requesting the submission of unpriced offers to be
18followed by an invitation for bids limited to those bidders
19whose offers have been qualified under the criteria set forth
20in the first solicitation.
21    (i) Alternative procedures. Notwithstanding any other
22provision of this Act to the contrary, the Director of the
23Illinois Power Agency may create alternative bidding
24procedures to be used in procuring professional services under
25subsections (a) and (c) of Section 1-75 and subsection (d) of
26Section 1-78 of the Illinois Power Agency Act and Section

 

 

SB2480- 10 -LRB102 16614 RJF 22014 b

116-111.5(c) of the Public Utilities Act and to procure
2renewable energy resources under Section 1-56 of the Illinois
3Power Agency Act. These alternative procedures shall be set
4forth together with the other criteria contained in the
5invitation for bids, and shall appear in the appropriate
6volume of the Illinois Procurement Bulletin.
7    (j) Reverse auction. Notwithstanding any other provision
8of this Section and in accordance with rules adopted by the
9chief procurement officer, that chief procurement officer may
10procure supplies or services through a competitive electronic
11auction bidding process after the chief procurement officer
12determines that the use of such a process will be in the best
13interest of the State. The chief procurement officer shall
14publish that determination in his or her next volume of the
15Illinois Procurement Bulletin.
16    An invitation for bids shall be issued and shall include
17(i) a procurement description, (ii) all contractual terms,
18whenever practical, and (iii) conditions applicable to the
19procurement, including a notice that bids will be received in
20an electronic auction manner.
21    Public notice of the invitation for bids shall be given in
22the same manner as provided in subsection (c).
23    Bids shall be accepted electronically at the time and in
24the manner designated in the invitation for bids. During the
25auction, a bidder's price shall be disclosed to other bidders.
26Bidders shall have the opportunity to reduce their bid prices

 

 

SB2480- 11 -LRB102 16614 RJF 22014 b

1during the auction. At the conclusion of the auction, the
2record of the bid prices received and the name of each bidder
3shall be open to public inspection.
4    After the auction period has terminated, withdrawal of
5bids shall be permitted as provided in subsection (f).
6    The contract shall be awarded within 60 calendar days
7after the auction by written notice to the lowest responsible
8bidder, or all bids shall be rejected except as otherwise
9provided in this Code. Extensions of the date for the award may
10be made by mutual written consent of the State purchasing
11officer and the lowest responsible bidder.
12    This subsection does not apply to (i) procurements of
13professional and artistic services, (ii) telecommunications
14services, communication services, and information services,
15and (iii) contracts for construction projects, including
16design professional services.
17(Source: P.A. 100-43, eff. 8-9-17; 101-31, eff. 6-28-19.)