Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 1120 - OFFICE OF THE COMPTROLLER STANDARD PROCUREMENT › Subpart O - PREFERENCES › Section 1120.4545 - Small Business

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Set-Aside
The CPO-GS may determine categories of goods or services
				  procurements that will be set aside for small business located in Illinois. The
				  SPO may contact the CPO-GS to determine whether a particular procurement has
				  been set aside for small business, and, if so, the IOC may honor the set aside
				  to the extent practicable.
b) Small Business List
The IOC may refer to the list of responsible vendors that
				  meet the criteria of small business maintained by the CPO-GS. 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 the SPO 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 SPO determines that acceptance of the best bid or
				  proposal will result in the payment of an unreasonable price, the SPO 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				  withdrawn, notification shall be published in the Illinois Procurement Bulletin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 SPO 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) $10,000,000
				for wholesale business;
B)
				$10,000,000 for construction business; or
C) $6,000,000 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 higher of $10,000,000 for a wholesaler, $6,000,000
				for a retailer, $10,000,000 for a construction business, or the amounts shown
				in Section 45-45 of the Code. For example, a business that is both a retailer
				and wholesaler may not have total sales exceeding $16,000,000 and the retail
				component may not exceed $6,000,000 and the wholesale component may not exceed
				$10,000,000. 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 control or have 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.