Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 500 - PURCHASES AND CONTRACTS › Subpart L - PREFERENCES › Section 500.1180 - Small Business

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Set-Aside
The Procurement Officer may designate as small business
				  set-asides a fair proportion of construction, supply and service contracts for
				  award to small businesses in Illinois.
b) Small Business List
The Procurement Officer may develop its own list, or may use
				  the list maintained by CMS or other appropriate State agency, of responsible
				  vendors that meet the criteria of small business. Vendors desiring to submit
				  bids or proposals or to otherwise contract for items set aside for small
				  businesses shall submit information acceptable to the Procurement Officer
				  verifying that the vendor qualifies as a small business under this Part. 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				  small business set-aside is withdrawn, notification shall be published in the
				  Auditor General Bulletin with an explanation. After withdrawal of the small
				  business set-aside, the procurement shall be conducted in accordance with the
				  limitations of this Part.
e)
				Criteria for Small Business
Unless the Procurement Officer provides a definition for a
				  particular procurement that reflects industry characteristics, a small business
				  is one:
1) That is an Illinois
				business, independently owned and operated.
2) Not dominant in its field of operation.
				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 the 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 or business selling services.
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 $21,000,000 and 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
				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.