Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 6 - CHIEF PROCUREMENT OFFICER FOR THE DEPARTMENT OF TRANSPORTATION - CONTRACT PROCUREMENT › Subpart K - PREFERENCES › Section 6.801 - Small Business Set-Asides

Current through Register Vol. 48, No. 28, July 12, 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 When a small business set-aside is withdrawn,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.)