Current through Register Vol. 48, No. 38, September 20, 2024
a) In any
of the following cases, the State agency, in consultation with the SPO, shall
have the right to terminate or rescind any contract entered into under this
Part without penalty:
1) The successful vendor
inexcusably fails to furnish a satisfactory performance bond within the time
specified.
2) The vendor
inexcusably fails to make delivery at the place or within the time specified in
the contract or as ordered by the purchasing agency.
3) Any supplies or services provided under
the contract are rejected (for not meeting specification, not conforming to
sample, or not being in good condition when delivered) and are not promptly
replaced by the vendor. If there are repeated rejections of the vendor's
supplies or services, this shall be grounds for termination or rescission, even
though the vendor offers to replace the supplies or services
promptly.
4) The vendor is guilty
of misrepresentation (e.g., misbranding of food or drugs) in connection with
another contract for the sale of supplies or services to the State such that
the vendor cannot reasonably be depended upon to fulfill obligations as a
responsible vendor under other contracts with the State.
5) The vendor should be adjudged bankrupt;
enter into receivership or make a general assignment for the benefit of
creditors due to insolvency; disregard laws, rules, or instructions of the SPO;
or act in violation of any provision of the contract; or if the contract
conflicts with any statutory or constitutional provision of the State of
Illinois or of the United States.
6) Any other breach of contract or other
unlawful act by the vendor.
7) The
contract was obtained by fraud, collusion, conspiracy or other unlawful means;
or
8) The contract conflicts with
any statutory provision of the State of Illinois or of the United
States.
b) Damages
The damages for which the State may be compensated as
provided in this Section or by a suit on the vendor's performance bond or by
other legal remedy shall include, but are not limited to, the following:
1) the additional cost of supplies or
services bought elsewhere;
2) cost
of repeating the procurement procedure;
3) any expenses incurred because of delay in
receipt of supplies or services; and
4) any other damages caused by the vendor's
breach of contract or unlawful act.
c) Withholding Money to Compensate State for
Damages
If a contract is terminated or rescinded under this Section,
the State agency may deduct from whatever is owed the vendor on that or any
other contract an amount sufficient to compensate the State agency for any
damage resulting from termination or rescission.
