Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 1600 - OFFICE OF THE LT. GOVERNOR'S PROCUREMENT RULES › Subpart M - PREFERENCES › Section 1600.4540 - Small Business

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Set-Aside
The CPO may determine categories of supplies or service
				  procurements that will be set aside for small business located in Illinois. The
				  set-aside designation may be made for current and future procurements of a
				  specific supply, service or construction, or for a class of like supplies,
				  services or construction. A set-aside designation may last indefinitely or for
				  a stated period of time.
b)
				Small Business List
The CPO may use the list, maintained by CMS or other
				  appropriate State agency, of responsible vendors that meet the criteria of
				  small business. 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 a 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				  small business set-aside is withdrawn, notification shall be published in the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) $7,500,000 for
				wholesale business;
B) $3,000,000
				for construction business; or
C)
				$1,500,000 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 wholesaler may not have total sales
				exceeding $9,000,000 and the retail component may not exceed $1,500,000 and the
				wholesale component may not exceed $7,500,000. 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 controls or has 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.