Illinois Administrative Code › Title 77 - PUBLIC HEALTH › Part 2030 - AWARD AND MONITORING OF FUNDS › Subpart M - GENERAL PROVISIONS REGARDING AWARD PERFORMANCE › Section 2030.1230 - Procurement Standards

Current through Register Vol. 48, No. 28, July 12, 2024
a) This
				Section provides standards for use by the Department in establishing procedures
				for the procurement with award funds of supplies, equipment, construction, and
				other services.
b) The standards
				contained in this Section do not relieve the provider of the contractual
				responsibilities arising under its contracts and/or subawards. The recipient is
				the responsible authority, without recourse to the Department, regarding the
				settlement and satisfaction of all contractual and administrative issues
				arising out of procurements entered into in support of an award. This includes
				but is not limited to: disputes, claims, protests of award, source evaluation
				or other matters of a contractual nature. Matters concerning violation of law
				are to be referred to such local, state or Federal authorities as may have
				proper jurisdiction.
c) Recipients
				may use their own procurement regulations which reflect applicable state and
				local law, rules and regulations provided that procurements made with
				Department award funds adhere to the standards set forth as follows:
1) The recipient shall maintain a code of
				standards of conduct which shall govern the performance of its officers,
				employees, or agents, in contracting with the Department and expending
				Department award funds. Provider's officers, employees or agents shall neither
				solicit nor accept gratuities, favors or anything of monetary value from
				contractors and subproviders or potential contractors and subproviders. To the
				extent permissible by state or local law, rules or regulations, such standards
				shall provide the penalties, sanctions, or other disciplinary actions to be
				applied for violations of such standards by either the provider officers,
				employees, or agents, or by contractors, subproviders or their
				agents.
2) All procurement
				transactions shall be conducted in a manner that provides, to the maximum
				extent practical, open and free competition. The recipient shall establish
				procedures to avoid organizational conflicts of interest as defined in Section
				2030.1215(a)
				or noncompetitive practices among contractors and subproviders which may
				restrict or eliminate competition or otherwise restrain trade.
3) The recipient shall establish procurement
				procedures which provide for, at a minimum, the following procedural
				requirements:
A) Proposed procurement actions
				shall be reviewed by provider officials to avoid purchasing items which are
				unnecessary, duplicative or inconsistent with the purposes of the award.
				Cost/benefit consideration shall be made of lease and purchase alternatives to
				determine the most economical and practical procurement.
B) Invitations for bids or requests for
				proposals shall be based upon a clear and accurate description of the technical
				requirements for the material, product, or service to be procured. Such
				description shall not, in competitive procurement, contain features which
				unduly restrict competition. "Brand name or equal" description may be used as a
				means to define the performance or other salient requirements of a procurement,
				and when so used, the specific features of the named brand which must be met by
				offers should be clearly specified.
C) Positive efforts shall be made to utilize
				small business and minority-owned business sources of supplies and services.
				The efforts should allow these sources the maximum feasible opportunity to
				compete for contracts to be performed utilizing Department funds, without
				creating non-competition or restraining trade.
D) The type of procuring instruments used
				(i.e., fixed price contracts, cost reimbursable contracts, purchase orders,
				incentive contracts, etc.) shall be based on a cost benefit consideration for
				the particular procurement and shall be consistent with the objectives of the
				award. The "cost-plus-a-percentage-of-cost" method of contracting shall not be
				used.
E) Formal advertising, with
				adequate purchase description, sealed bids, and public openings, shall be the
				required method of procurement unless negotiation pursuant to subsection (F)
				below is necessary to accomplish sound procurement. However, procurements of
				$5,000 or less need not be so advertised unless otherwise required by state or
				local law or regulations. Where such advertised bids are obtained, the awards
				shall be made to the responsible bidder whose bid is responsive to the
				invitation and is most advantageous to the provider, price and other factors
				considered. Factors such as discounts, transportation costs and taxes may be
				considered in determining the best bid. Invitations for bids shall clearly set
				forth all requirements which the bidder must fulfill in order for his bid to be
				evaluated by the provider. Any or all bids may be rejected when it is in the
				provider's interest to do so, and such rejections are in accordance with
				applicable state and local law, rules, and regulations.
F) Procurements may be negotiated if:
i) The exigency will not permit the delay
				incident to advertising;
ii) The
				material or service to be procured is available from only one person or firm
				(All contemplated sole source procurements in which the aggregate expenditure
				is expected to exceed $7,500 shall be referred to the Department for prior
				approval.);
iii) The aggregate
				amount involved does not exceed $5,000;
iv) The contract or subaward is for personal
				or professional services, or for any service to be rendered by a university,
				college, or other educational institutions;
v) No acceptable bids have been received
				after formal advertising;
vi) The
				purchases are for highly perishable materials or medical supplies or for
				materials or services for which prices are established by law and for technical
				items or equipment requiring standardization and interchangeability of parts
				with existing equipment;
vii)
				otherwise authorized by law, rules, or regulations.
G) Contracts and subawards shall be made only
				with responsible contractors and subproviders who possess the potential ability
				to perform successfully under the terms and conditions of a proposed
				procurement. Consideration shall be given to such matters as contractor or
				subprovider integrity, record of past performance, financial and technical
				resources, or accessibility to other necessary resources.
H) Procurement records or files for purchases
				in amounts in excess of $5,000 shall provide the following pertinent
				information: justification for the use of negotiation in lieu of advertising,
				contractor and/or subprovider selection, and the basis for the cost or price
				negotiated.
I) A system for
				contract and/or subprovider conformance with terms, conditions, and
				specifications for the contract or order.
J) The provider shall include provisions
				addressing the following matters:
i) Contracts
				and subawards shall contain such contractual provisions or conditions which
				will allow for administrative, contractual, or legal remedies in instances in
				which contractors and/or subproviders violate or breach contract terms, and
				provide for such sanctions and penalties as may be appropriate.
ii) Contracts in excess of $5,000 shall
				contain suitable provisions for termination by the provider including the
				manner by which it will be effected and the basis for settlement. In addition,
				such contracts and/or subawards shall describe conditions under which the
				contract and/or subaward may be terminated for default as well as conditions in
				which the contract and/or subaward may be terminated because of circumstances
				beyond the control of the contractor and/or subprovider.
iii) All negotiated contracts and/or
				subawards (except those of $5,000 or less) awarded by providers shall include a
				provision to the effect that the duly authorized representatives of the
				provider and Department shall have access to any books, documents, papers, and
				records of the contractor and/or subprovider which are directly pertinent to a
				specific award funded program or services for the purpose of making audits,
				examinations, excerpts, and transcriptions.