Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 2000 - SECRETARY OF STATE STANDARD PROCUREMENT › Subpart O - PREFERENCES › Section 2000.4545 - Small Business

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Set-Aside
The CPO for DCMS may determine categories of supplies or
				  service procurements that will be set aside for small business located in
				  Illinois. The SPO may contact DCMS to determine whether a particular
				  procurement has been set aside for small business, and, if so, the SOS may
				  honor the set aside to the extent practicable.
b) Small Business List
The SOS may refer to the list 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				  small business set-aside is withdrawn, notification shall be published in the
				  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) $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, 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 a 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 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.