Statutes > Illinois Statutes > CHAPTER 30 FINANCE > 30 ILCS 500/ Illinois Procurement Code. > Article 45 - Preferences

Article 45 - Preferences


      (30 ILCS 500/Art. 45 heading)
ARTICLE 45
PREFERENCES

    (30 ILCS 500/45‑5)
    Sec. 45‑5. Procurement preferences. To promote business and employment opportunities in Illinois, procurement preferences are established and shall be applicable to any procurement made under this Code.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

    (30 ILCS 500/45‑10)
    Sec. 45‑10. Resident bidders.
    (a) Amount of preference. When a contract is to be awarded to the lowest responsible bidder, a resident bidder shall be allowed a preference as against a non‑resident bidder from any state that gives or requires a preference to bidders from that state. The preference shall be equal to the preference given or required by the state of the non‑resident bidder. Further, if only non‑resident bidders are bidding, the purchasing agency is within its right to specify that Illinois labor and manufacturing locations be used as a part of the manufacturing process, if applicable. This specification may be negotiated as part of the solicitation process.
    (b) Residency. A resident bidder is a person authorized to transact business in this State and having a bona fide establishment for transacting business within this State where it was actually transacting business on the date when any bid for a public contract is first advertised or announced. A resident bidder includes a foreign corporation duly authorized to transact business in this State that has a bona fide establishment for transacting business within this State where it was actually transacting business on the date when any bid for a public contract is first advertised or announced.
    (c) Federal funds. This Section does not apply to any contract for any project as to which federal funds are available for expenditure when its provisions may be in conflict with federal law or federal regulation.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

    (30 ILCS 500/45‑15)
    Sec. 45‑15. Soybean oil‑based ink. Contracts requiring the procurement of printing services shall specify the use of soybean oil‑based ink unless a State purchasing officer determines that another type of ink is required to assure high quality and reasonable pricing of the printed product.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

    (30 ILCS 500/45‑20)
    Sec. 45‑20. Recycled supplies. When a public contract is to be awarded to the lowest responsible bidder, an otherwise qualified bidder who will fulfill the contract through the use of products made of recycled supplies may be given preference over other bidders unable to do so, provided that the cost included in the bid of supplies made of recycled materials does not constitute an undue economic or practical hardship.
(Source: P.A. 96‑197, eff. 1‑1‑10.)

    (30 ILCS 500/45‑25)
    Sec. 45‑25. Recyclable supplies. All supplies purchased for use by State agencies must be recyclable paper unless a recyclable substitute cannot be used to meet the requirements of the State agencies or would constitute an undue economic or practical hardship.
(Source: P.A. 96‑197, eff. 1‑1‑10.)

    (30 ILCS 500/45‑26)
    Sec. 45‑26. Environmentally preferable procurement.
    (a) Definitions. For the purposes of this Section:
        (1) "Supplies" means all personal property, including
     but not limited to equipment, materials, printing, and insurance, and the financing of those supplies.
        (2) "Services" means the furnishing of labor, time,
     or effort by a contractor, not involving the delivery of a specific end product other than reports or supplies that are incidental to the required performance.
        (3) "Environmentally preferable supplies" means
     supplies that are less harmful to the natural environment and human health than substantially similar supplies for the same purpose. Attributes of environmentally preferable supplies include, but are not limited to, the following:
                (i) made of recycled materials, to the
             maximum extent feasible;
                (ii) not containing, emitting, or producing
             toxic substances;
                (iii) constituted so as to minimize the
             production of waste; and
                (iv) constituted so as to conserve energy and
             water resources over the course of production, transport, intended use, and disposal.
        (4) "Environmentally preferable services" means
     services that are less harmful to the natural environment and human health than substantially similar services for the same purpose. Attributes of "environmentally preferable services" include, but are not limited to, the following:
                (i) use of supplies made of recycled
             materials, to the maximum extent feasible;
                (ii) use of supplies that do not contain,
             emit, or produce toxic substances;
                (iii) employment of methods that minimize the
             production of waste; and
                (iv) employment of methods that conserve
             energy and water resources or use energy and water resources more efficiently than substantially similar methods.
    (b) Award of contracts for environmentally preferable
     supplies or services. Notwithstanding any rule, regulation, statute, order, or policy of any kind, with the exceptions of Sections 45‑20 and 45‑25 of this Code, State agencies shall contract for supplies and services that are environmentally preferable.
    If, however, contracting for an environmentally
     preferable supply or service would impose an undue economic or practical hardship on the contracting State agency, or if an environmentally preferable supply or service cannot be used to meet the requirements of the State agency, then the State agency need not contract for an environmentally preferable supply or service. Specifications for contracts, at the discretion of the contracting State agency, may include a price preference of up to 10% for environmentally preferable supplies or services.
(Source: P.A. 96‑197, eff. 1‑1‑10.)

    (30 ILCS 500/45‑30)
    Sec. 45‑30. Illinois Correctional industries. Notwithstanding anything to the contrary in other law, the chief procurement officer of the Department of Central Management Services shall, in consultation with Illinois Correctional Industries, a division of the Illinois Department of Corrections (referred to as the "Illinois Correctional Industries" or "ICI") determine for all State agencies which articles, materials, industry related services, food stuffs, and finished goods that are produced or manufactured by persons confined in institutions and facilities of the Department of Corrections who are participating in Illinois Correctional Industries programs shall be purchased from Illinois Correctional Industries. The chief procurement officer of Central Management Services shall develop and distribute to the various purchasing and using agencies a listing of all Illinois Correctional Industries products and procedures for implementing this Section.
(Source: P.A. 96‑877, eff. 7‑1‑10; 96‑943, eff. 7‑1‑10.)

    (30 ILCS 500/45‑35)
    Sec. 45‑35. Facilities for persons with severe disabilities.
    (a) Qualification. Supplies and services may be procured without advertising or calling for bids from any qualified not‑for‑profit agency for persons with severe disabilities that:
        (1) complies with Illinois laws governing private
     not‑for‑profit organizations;
        (2) is certified as a sheltered workshop by the Wage
     and Hour Division of the United States Department of Labor; and
        (3) meets the applicable Illinois Department of
     Human Services just standards.
    (b) Participation. To participate, the not‑for‑profit agency must have indicated an interest in providing the supplies and services, must meet the specifications and needs of the using agency, and must set a fair market price.
    (c) Committee. There is created within the Department of Central Management Services a committee to facilitate the purchase of products and services of persons so severely disabled by a physical, developmental, or mental disability or a combination of any of those disabilities that they cannot engage in normal competitive employment. This committee is called the State Use Committee. The committee shall consist of the Director of the Department of Central Management Services or his or her designee, the Director of the Department of Human Services or his or her designee, one public member representing private business who is knowledgeable of the employment needs and concerns of persons with developmental disabilities, one public member representing private business who is knowledgeable of the needs and concerns of rehabilitation facilities, one public member who is knowledgeable of the employment needs and concerns of persons with developmental disabilities, one public member who is knowledgeable of the needs and concerns of rehabilitation facilities, and 2 public members from a statewide association that represents community‑based rehabilitation facilities, all appointed by the Governor. The public members shall serve 2 year terms, commencing upon appointment and every 2 years thereafter. A public member may be reappointed, and vacancies shall be filled by appointment for the completion of the term. In the event there is a vacancy on the Committee, the Governor must make an appointment to fill that vacancy within 30 calendar days after the notice of vacancy. The members shall serve without compensation but shall be reimbursed for expenses at a rate equal to that of State employees on a per diem basis by the Department of Central Management Services. All members shall be entitled to vote on issues before the committee.
    The committee shall have the following powers and duties:
        (1) To request from any State agency information as
     to product specification and service requirements in order to carry out its purpose.
        (2) To meet quarterly or more often as necessary to
     carry out its purposes.
        (3) To request a quarterly report from each
     participating qualified not‑for‑profit agency for persons with severe disabilities describing the volume of sales for each product or service sold under this Section.
        (4) To prepare a report for the Governor annually.
        (5) To prepare a publication that lists all supplies
     and services currently available from any qualified not‑for‑profit agency for persons with severe disabilities. This list and any revisions shall be distributed to all purchasing agencies.
        (6) To encourage diversity in supplies and services
     provided by qualified not‑for‑profit agencies for persons with severe disabilities and discourage unnecessary duplication or competition among facilities.
        (7) To develop guidelines to be followed by
     qualifying agencies for participation under the provisions of this Section. The guidelines shall be developed within 6 months after the effective date of this Code and made available on a nondiscriminatory basis to all qualifying agencies.
        (8) To review all bids submitted under the
     provisions of this Section and reject any bid for any purchase that is determined to be substantially more than the purchase would have cost had it been competitively bid.
        (9) To develop a 5‑year plan for increasing the
     number of products and services purchased from qualified not‑for‑profit agencies for persons with severe disabilities, including the feasibility of developing mandatory set‑aside contracts. This 5‑year plan must be developed no later than 180 calendar days after the effective date of this amendatory Act of the 96th General Assembly.
    (c‑5) Conditions for Use. Each chief procurement officer shall, in consultation with the State Use Committee, determine which articles, materials, services, food stuffs, and supplies that are produced, manufactured, or provided by persons with severe disabilities in qualified not‑for‑profit agencies shall be given preference by purchasing agencies procuring those items.
    (d) Former committee. The committee created under subsection (c) shall replace the committee created under Section 7‑2 of the Illinois Purchasing Act, which shall continue to operate until the appointments under subsection (c) are made.
(Source: P.A. 96‑634, eff. 8‑24‑09.)

    (30 ILCS 500/45‑40)
    Sec. 45‑40. Gas mileage.
    (a) Specification. Contracts for the purchase or lease of new passenger automobiles, other than station wagons, vans, four‑wheel drive vehicles, emergency vehicles, and police and fire vehicles, shall specify the procurement of a model that, according to the most current mileage study published by the U.S. Environmental Protection Agency, can achieve at least the minimum average fuel economy in miles per gallon imposed upon manufacturers of vehicles under Title V of The Motor Vehicle Information and Cost Savings Act.
    (b) Exemptions. The State purchasing officer may exempt procurements from the requirement of subsection (a) when there is a demonstrated need, submitted in writing, for an automobile that does not meet the minimum average fuel economy standards. The chief procurement officer shall promulgate rules for determining need consistent with the intent of this Section.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

    (30 ILCS 500/45‑45)
    Sec. 45‑45. Small businesses.
    (a) Set‑asides. The 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 be considered.
    (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 bidder, annual sales and receipts of the bidder 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 to 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 $10,000,000.
        (2) No retail business or business selling services
     is a small business if its annual sales and receipts exceed $6,000,000.
        (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 $10,000,000.
    (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 construction.
    (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 designate a 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
     bidders list of small businesses. 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 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 business set‑aside.
    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 Organization Act.
(Source: P.A. 92‑60, eff. 7‑12‑01; 93‑769, eff. 1‑1‑05.)

    (30 ILCS 500/45‑50)
    Sec. 45‑50. Illinois agricultural products. In awarding contracts requiring the procurement of agricultural products, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of agricultural products grown in Illinois.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

    (30 ILCS 500/45‑55)
    Sec. 45‑55. Corn‑based plastics. In awarding contracts requiring the procurement of plastic products, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of plastic products made from Illinois corn by‑products.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

    (30 ILCS 500/45‑57)
    Sec. 45‑57. Disabled veterans.
    (a) It is the goal of the State to promote and encourage the continued economic development of businesses owned and controlled by qualified service disabled veterans and that qualified service disabled veteran‑owned businesses (referred to as SDVOB) participate in the State's procurement process as both prime and subcontractors. A Task Force shall be established, appointed by the Directors or Secretaries of, and made up of representatives of, the Illinois Department of Veterans' Affairs, the Illinois Department of Transportation, the Department of Central Management Services, the Business Enterprise Program, and the Business Enterprise Council. The Department of Central Management Services shall provide administrative support to the Task Force. The purpose of this Task Force shall be to determine the appropriate percentage goal for award each fiscal year of the State's total expenditures for contracts awarded under this Code to SDVOB. That portion of a contract under which the contractor subcontracts with a SDVOB may be counted toward the goal of this subsection. In making that determination the Task Force shall consult with statewide veterans' service organizations and the business community, including businesses owned by qualified disabled veterans. The Task Force shall submit its report to the General Assembly concerning its recommendations regarding the appropriate percentage goal for award each fiscal year of the State's total expenditures for contracts awarded under this Code to qualified service disabled veterans no later than 90 days after the effective date of this amendatory Act of the 96th General Assembly.
    (b) Once the appropriate goal is established, then by each September 1, each chief procurement officer shall report to the Department of Central Management Services on all of the following for the immediately preceding fiscal year, and by each October 1 the Department of Central Management Services shall compile and report that information to the General Assembly:
        (1) The number of SDVOB who submitted a bid for a
     contract under this Code.
        (2) The number of SDVOB who entered into contracts
     with the State under this Code and the total value of those contracts.
    (c) Each year, each chief procurement officer shall
     review the progress of all State agencies under its jurisdiction in meeting the goal described in subsection (a), with input from statewide veterans' service organizations and from the business community, including businesses owned by qualified disabled veterans, and shall make recommendations to be included in the Department of Central Management Services' report to the General Assembly regarding continuation, increases, or decreases of the percentage goal. The recommendations shall be based upon the number of businesses that are owned by qualified disabled veterans and on the continued need to encourage and promote businesses owned by qualified disabled veterans.
    (d) To assist the State in reaching the goal described in
     subsection (a), the Governor shall recommend to the General Assembly changes in programs to assist businesses owned by qualified disabled veterans.
    (e) As used in this Section:
    "Business" means a business that has average annual gross
     sales over the 3 most recent calendar years of less than $31,000,000 as evidenced by the federal income tax returns of the business.
    "Control" means the exclusive, ultimate, majority, or
     sole control of the business, including but not limited to capital investment and all other financial matters, property, acquisitions, contract negotiations, legal matters, officer‑director‑employee selection and comprehensive hiring, operation responsibilities, cost‑control matters, income and dividend matters, financial transactions, and rights of other shareholders or joint partners. Control shall be real, substantial, and continuing, not pro forma. Control shall include the power to direct or cause the direction of the management and policies of the business and to make the day‑to‑day as well as major decisions in matters of policy, management, and operations. Control shall be exemplified by possessing the requisite knowledge and expertise to run the particular business.
    "Qualified service disabled veteran" means a
     veteran who has been found to have a service‑connected disability by the United States Department of Veterans Affairs or the United States Department of Defense.
    "Qualified disabled veteran‑owned business" means a
     business entity that is at least 51% owned by one or more qualified disabled veterans, or in the case of a corporation, at least 51% of the stock of which is owned by one or more qualified disabled veterans; and the management and daily business operations of which are controlled by one or more of the qualified disabled veterans who own it.
    "Service‑connected disability" means a disability
     incurred in the line of duty in the active military, naval, or air service as described in 38 U.S.C. 101(16).
    "Veteran" means a person who served in the active
     military, naval, or air service and who was discharged or released from his or her service under conditions other than dishonorable.
    (f) The Illinois Department of Veterans' Affairs and the
     Department of Central Management Services Business Enterprise Program shall work together to devise a certification procedure to assure that businesses taking advantage of this Act are legitimately classified as qualified service disabled veteran‑owned businesses.
(Source: P.A. 96‑96, eff. 1‑1‑10.)

    (30 ILCS 500/45‑60)
    Sec. 45‑60. Vehicles powered by agricultural commodity‑based fuel. In awarding contracts requiring the procurement of vehicles, preference may be given to an otherwise qualified bidder or offeror who will fulfill the contract through the use of vehicles powered by ethanol produced from Illinois corn or biodiesel fuels produced from Illinois soybeans.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.)

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