Section 8.2020  Small Purchase Limits

a)         Small Purchase Limits

1)         As authorized by law and under the jurisdiction of the CPO-CDB, individual contracts for construction, construction-related services, construction-related professional services, and construction management supplies or services not exceeding the following thresholds (hereinafter, "small purchase limit") may be made without notice or competition or use of other method of procurement as follows:

A)        Procurements for construction-related professional services with an estimated basic professional services fee of less than $25,000;

B)        Procurements for construction management contracts of less than $25,000;

C)        Procurements for construction and construction-related services of less than $100,000.

2)         The CPO-CDB shall publish any change identified by the United States Department of Labor in the Consumer Price Index for All Urban Consumers for the period ending each December 31, and for each year thereafter on its website.  That percentage change shall be used to recalculate the small purchase maximum for construction that shall be applicable for the fiscal year beginning the following July 1.  The CPO-CDB shall publish on the Procurement Bulletin the current small purchase maximum.

b)         Determination of Small Purchase Status

1)         In determining whether a contract is under the small purchase limit, the stated value of the supplies or services, plus any optional supplies and services, and the value of any renewals, determined in good faith shall be utilized.  When the value is calculated month-to-month or in a similar fashion, the amount shall be calculated for a 12 month period.

2)         If, after signing the contract, the actual cost of completing the contract is determined to exceed the small purchase amount, and the SPO determines that a supplemental procurement is not economically feasible or practicable because of the immediacy of the agency's needs or other circumstances, the SPO must follow the procedures for sole source or emergency procurement, whichever is applicable, to complete the contract.

3)         If there is a repetitive need for small procurements of the same type (which may be evidenced by a pattern of small purchases, as determined by CDB or the SPO), CDB shall consult with the SPO to consider whether issuing a competitive sealed bid or proposal for procurement of those needs is required or otherwise in the best interest of the State.  Procurements shall not be artificially divided in order to constitute a small purchase.

c)         The CPO shall establish policies and procedures to manage the use of the small purchase method of source selection.

1)         The policies shall include, but not be limited to, an informal request for quote process through which CDB shall:

A)        identify the scope of work;

B)        provide the same scope of work, cost estimates, and time for response to all contacted businesses;

C)        consider registered Illinois small businesses, Business Enterprise (female/minority/disabled), and Veteran-owned firms;

D)        attempt to obtain at least 3 quotes from businesses who can provide the work. If 3 businesses cannot be identified, CDB shall document in the procurement file why it was unable to obtain 3 quotes; and

E)        attempt to not select the same business, including branch offices, more than once in the same calendar year unless CDB can document in the procurement file why the repeated use of the business is justified.

2)         CDB prequalification of contractors is required for small purchases of construction services involving any of the 5 subdivisions of work outlined in Section 30-30(a) of the Code.

3)         Documentation of each small purchase shall be maintained in the procurement file and each small purchase will be reviewed and approved by the Chief Procurement Officer.

(Source:  Amended at 40 Ill. Reg. 14354, effective October 10, 2016)