Current through Register Vol. 48, No. 38, September 20, 2024
a) The
CPO, in consultation with the Department, may determine categories of
construction, supply, and service procurements that will be set aside for small
businesses. The set-aside designation may be made for current and future
procurements for a fair proportion of a specific construction, supply, or
service, or for a class of like construction, supplies or services. A fair
proportion of construction contracts means no less than 25% nor more than 40%
of the annual total contracts for construction. A set-aside designation may
last indefinitely or for a stated period of time, as determined by the
Department. (See Section 45-45(a) and (c) of the Code.)
b) A business that meets the State (under
Section 45-45(b) of the Code) or federal definition of a small business or
small business concern on the day of bid or proposal opening will be considered
a small business for the duration of the contract. The definition will be
stated in the contract proposal.
c)
If the Department wishes to make a procurement covered by a small business
set-aside designation, the solicitation will note that responses are limited to
those from responsible small businesses. Bids or proposals received from
businesses other than small businesses will be rejected as nonresponsive. (See
Section 45-45(a) of the Code.)
d)
If the Department determines that acceptance of the best bid or proposal will
result in the payment of an unreasonable price, the Department will 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 When a small business set-aside is withdrawn,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 will be published in the Bulletin with an explanation. After
withdrawal of the small business set-aside, the procurement will be conducted
in accordance with the limitations of the Code and this Part. (See Section
45-45(d) of the Code.)
e) Unless
the Department provides a definition for a particular procurement that reflects
industrial characteristics or uses a federal standard, a small business is one:
1) Independently owned and
operated.
2) Not dominant in its
field of operations, which 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 will 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, 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 wholesaler may not have total sales
exceeding $21,000,000; the retail component may not exceed $8,000,000; and the
wholesale component may not exceed $13,000,000. 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
of a business, the number of employees and annual sales and receipts, as
applicable, of the business and all affiliates will be considered. 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 controls or has the power
to control both. In determining whether concerns are independently owned and
operated and whether affiliation exists, consideration will be given to all
appropriate factors, including the use of common facilities, common ownership
and management and contractual arrangements. However, a franchise relationship
will not affect small business status if the franchise has the right to profit
commensurate with ownership and bears the risk of loss or failure. (See Section
45-45(b) of the Code.)
f)
Small Business Specialist
1) The CPO shall
designate one or more individuals to serve as its small business specialist,
who shall have the duties set forth in Sections 45-45 and 45-90 of the Code,
and who shall also act as coordinator of small business. The designated small
business specialist shall compile statistics provided by the Department needed
to make the small business annual report to the General Assembly required by
Section 45-45(f) of the Code.
2)
The small business specialist shall provide written instruction to any business
registered as a small business pursuant to Section 45-45 of the Code on how to
register for the Bulletin. Notice shall be provided within 30 days after the
small business certification as required in Section 15-25 of the
Code.
g) Small Business
Contracts
1) Goal
A) It is the goal of the State of Illinois to
award not less than 10% of the total dollar amount of State contracts to small
businesses.
B) Small businesses are
defined as those businesses meeting the criteria established in Section 45-45
of the Code and subsection (e) of this Section.
2) Goal Measurement
A) The goal shall be measured on a full
fiscal year basis.
B) The
Department's expenditures, whether against contracts established by the
Department or against contracts established on behalf of the Department, shall
be included in the Department's goal attainment statistics.
C) The Department may satisfy its goal, in
whole or in part, by counting expenditures made by State vendors to
subcontractors that are small businesses.
3) Department Compliance Plan
A) The Department shall submit an annual
compliance plan of how it intends to reach its goal, and a timetable for
reaching its goal, as required by Section 45-90(c) of the Code. The CPO will
establish the format and timetable for submission of the compliance plan. The
CPO will approve the plan if it meets the requirements of the Act and this
Part.
B) The Department shall
submit an annual utilization report of small business contracts during the
preceding fiscal year, including lapse period spending and a mid-fiscal year
utilization report. The CPO will establish the format and timetable for
submission of the utilization plan and will provide a copy of the utilization
report to the PPB.
C) The CPO or
small business specialist appointed under Section 45-45 of the Code may
recommend ways in which the Department may reach its goal. Upon a finding by
the CPO that the Department's compliance plan is insufficient to reach the
Department's goal, the CPO will recommend ways in which the Department can
reach its goal.
D) If the
compliance plans or utilization reports indicate the Department goal will not
be reached, the CPO may request the Department to explain the Department's
noncompliance. If the CPO determines the Department is not making a serious
effort to reach the goal, the CPO will prepare a report for submission to the
Governor and General Assembly with recommendations for remedial
action.
h)
Contractors desiring to submit bids or proposals or to otherwise contract for
items set aside for small businesses or small business concerns shall submit
information verifying that the contractor qualifies as a small business. The
Department may establish procedures for verifying such information.
