Section 1400.4015  Remedies

a)         In all of the following cases the Chief Procurement Officer may, with the approval of the Treasurer and subject to the determination of the Chief Legal Counsel under subsection (b), terminate or rescind any contract entered into under this Part in the event:

1)         The successful bidder or proposer fails to furnish a satisfactory performance or performance bond within the time specified.

2)         The vendor fails to make delivery at the place or within the time specified in the contract or as ordered.

3)         Any goods or services provided under the contract are:

A)        rejected (for not meeting the specification, not conforming to sample, or not being in good condition when delivered) and are not promptly replaced or corrected by the vendor; or

B)        repeatedly rejected, even though the vendor offers to replace or correct the goods or services promptly.

4)         There is sufficient evidence to show that the contract was obtained by fraud, collusion, conspiracy or other unlawful means.

5)         The vendor is guilty of misrepresentation in connection with another contract for the sale of goods or services to the State.

6)         The vendor is insolvent, is the subject of a bankruptcy filing, is adjudged bankrupt, or enters into a general assignment for the benefit of his or her creditors or receivership due to insolvency.

7)         The vendor disregards laws and ordinances, rules or instructions of a contracting officer or acts in violation of any provision of the contract or this Part, or the contract conflicts with any statutory or constitutional provision of the State of Illinois or of the United States.

8)         Any other material breach of contract or other unlawful act by the vendor occurs.

b)         Determination of Right to Terminate or Rescind Contract

The Chief Legal Counsel shall determine in writing that a violation listed in subsection (a) has occurred prior to the termination or rescission of a contract under this Section.

c)         Contracts that are terminated under this Section will be terminated at no cost to the State.

d)         Withholding Money to Compensate State for Damages

If a contract is terminated or rescinded under this Section, the State may deduct from whatever is owed the vendor on that or any other contract an amount sufficient to compensate the State of Illinois for any damages suffered by it because of the vendor's breach of contract or other unlawful act on his or her part on which the cancellation is based.

e)         Damages

The damages for which the State shall, if requested by the State, be compensated as provided in this Section or by a suit on the vendor's performance bond or by other legal remedy include, but are not limited to, the following:

1)         the additional cost of goods or services bought elsewhere;

2)         cost of repeating the procurement procedure;

3)         any expenses incurred because of delay in receipt of goods or services; and

4)         any other damages caused by the vendor's breach of contract or unlawful act.

f)         Effect of Declaring a Contract Null and Void

In all cases where a contract is voided, the Treasurer's office will endeavor to return those supplies delivered under the contract that have not been used or distributed.  No further payments will be made under the contract.

g)         In lieu of terminating or rescinding the contract, when appropriate the Chief Procurement Officer may seek to negotiate an alternative resolution that is at least as beneficial to the State as termination or rescission, but the Chief Procurement Officer must not waive the right to terminate or rescind the contract if the situation does not improve.

(Source:  Amended at 48 Ill. Reg. 2924, effective February 7, 2024)