Current through Register Vol. 48, No. 38, September 20, 2024
a)
Set-Aside
The CPO for DCMS may determine categories of goods or service
procurements that will be set-aside for small business. The Procurement Officer
may contact DCMS to determine whether a particular procurement has been
set-aside for small business, and if so, the OAG may honor the set-aside to the
extent practicable.
b) Small
Business List
The OAG may avail itself of the list of responsible vendors
that meet the criteria of small business maintained by DCMS. A business that
fits the definition of small on the day of bid or proposal opening will be
considered small for the duration of the contract.
c) Required Use
If the Procurement Officer wishes to make a procurement
covered by a set-aside designation, the solicitation must note responses are
limited to those from responsible small businesses. Bids or proposals received
from large businesses will be rejected as nonresponsive.
d) Withdrawal of Set-Aside
If the Procurement Officer determines that acceptance of the
best bid or proposal will result in the payment of an unreasonable price, the
Procurement Officer shall reject all bids or proposals and withdraw the
designation of small business set-aside for the procurement in question. When a
small business set-aside is withdrawn, notification shall be published in the
Illinois Procurement Bulletin with an explanation. After withdrawal of the
small business set-aside, the procurement shall be conducted in accordance with
the limitations of the Code and this Part.
e) Criteria for Small Business
Unless the CPO provides a definition for a particular
procurement that reflects industrial characteristics, a small business is
one:
1) Independently owned and
operated.
2) Not dominant in its
field of operations. This means the business does not exercise a controlling or
major influence in a kind of business activity in which a number of business
concerns are primarily engaged. In determining dominance, consideration shall
be given to all appropriate factors, including volume of business, number of
employees, financial resources, competitive status or position, ownership or
control of materials, processes, patents, license agreements, facilities, sales
territory, and nature of business activity.
3) With annual sales for most recently ended
fiscal year no greater than:
A) $13,000,000
for wholesale business;
B)
$14,000,000 for construction business; or
C) $8,000,000 for retail business.
4) With no more than 250 employees
if a manufacturing business.
A) A
manufacturing business shall calculate how many people it employs by
determining its average full-time equivalent employment, based on the number of
persons employed on a full-time, part-time, temporary or other basis for its
most recently ended fiscal year.
B)
If a manufacturing business has been in existence for less than a full fiscal
year, its average employment should be calculated for the period through one
month prior to the bid or proposal due date.
5) If the business is any combination of
retailer, wholesaler or construction business, then the annual sales for each
component may not exceed the amounts shown in subsection (e)(3). For example, a
business that is both a retailer and a wholesaler may not have total sales
exceeding $16,000,000, the retail component may not exceed $6,000,000 and the
wholesale component may not exceed $10,000,000. If the business is also a
manufacturer, in addition to meeting the annual sales requirement, the number
of manufacturing employees may not exceed the number shown in subsection
(e)(4).
6) When computing the size
status of a vendor, the number of employees and annual sales and receipts, as
applicable, of the vendor and all affiliates shall be included. Concerns are
affiliates when either one directly or indirectly controls or has the power to
control the other, or when a third party or parties control or have the power
to control both. In determining whether concerns are independently owned and
operated and whether affiliation exists, consideration shall be given to all
appropriate factors, including use of common facilities, common ownership and
management and contractual arrangements. However, a franchise relationship
shall not affect small business status if the franchise has the right to profit
commensurate with ownership and bears the risk of loss or failure.
