Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 1400 - PROCUREMENT › Subpart I - PREFERENCES › Section 1400.4560 - Small Businesses

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Set-Aside
The Chief Procurement Officer may designate as small business
				  set-asides a fair proportion of contracts for the provision of goods and
				  services for award to small businesses in Illinois. A set-aside designation may
				  last indefinitely or for a stated period of time.
b) Required Use
If the Treasurer's office wishes to make a procurement
				  covered by a set-aside designation, the solicitation must note that responses
				  are limited to those from responsible small businesses. Bids, proposals or
				  responses received from large businesses will be rejected as
				  nonresponsive.
c)
				Withdrawal of Set-Aside
If the Chief Procurement Officer determines that acceptance
				  of the best bid, proposal or response will result in the payment of an
				  unreasonable price, the Chief Procurement Officer will reject all bids,
				  proposals or responses and withdraw the designation of small business set-aside
				  for the procurement in question. When a small business set-aside is withdrawn,
				  notification must be published as provided in Section
				  1400.1505 with an explanation.
				  After withdrawal of the small business set-aside, the procurement will be
				  conducted in accordance with the requirements of this Part.
d) Criteria for Small Business
Unless the Chief Procurement Officer 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 must 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) $8,000,000 for retail
				business or businesses selling services; or
C) $14,000,000 for construction
				business.
4) With no
				more than 250 employees if a manufacturing business.
A) A manufacturing business must 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 that it has been in existence.
5) If both a wholesaler and a retailer, the
				combined wholesale and retail annual sales for its most recently completed
				fiscal year may not exceed $16,000,000. The retail component may not exceed
				$6,000,000 and the wholesale component may not exceed $10,000,000.
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 must be included. Concerns are affiliates when
				either one directly or indirectly control or have the power to control the
				other, or when a third party or parties control or have the power to control
				both. In determining whether concerns are independently owned and operated and
				whether or not affiliation exists, consideration must be given to all
				appropriate factors, including use of common facilities, common ownership and
				management and contractual arrangements. However, a franchise relationship does
				not affect small business status if the franchise has the right to profit
				commensurate with ownership and bears the risk of loss or failure.