Public Act 096-0588
 		





HB0379 Enrolled
LRB096 05843 JAM 15923 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:



 
    Section 1. Short title.   This Act may be cited as the Local 
Government Electronic Reverse Auction Act.
 
    Section 5. Unit of local government defined.   As used in 
this Act, "unit" and "unit of local government" mean a unit of 
local government as defined in Section 1 of Article VII of the 
Illinois Constitution.
 
    Section 10. Reverse auction.  Notwithstanding any other 
provision



of law and in accordance with rules adopted by the




unit, a unit of local government, whether or not it is a home 
rule unit as defined in Section 6 of Article VII of the 
Illinois Constitution, may procure supplies or











       services 
through a competitive electronic auction bidding

       process after 
the unit's purchasing officer explains in writing to the unit's 
governing body his or her determination that the use

       of such a 
process will be in the best interest of the unit.
    The purchasing officer shall publish that determination

       in 
the same manner required by law for the unit's invitations for 
bids.
    An invitation for bids shall be issued and shall include

       
(i) a procurement description, (ii) all contractual terms,

       
whenever practical, and (iii) conditions applicable to the

       
procurement, including a notice that bids will be received in

       
an electronic auction manner.
    Public notice of the invitation for bids shall be given in

       
the same manner as required by law for the unit's other 
invitations for bids.
    Bids shall be accepted electronically at the time and in

       
the manner designated in the invitation for bids. During the

       
auction, a bidder's price shall be disclosed to other bidders.

       
Bidders shall have the opportunity to reduce their bid prices

       
during the auction. At the conclusion of the auction, the

       
record of the bid prices received and the name of each bidder

       
shall be open to public inspection.
    After the auction period has terminated, withdrawal of bids

       
shall be permitted as otherwise provided by law.
    The contract shall be awarded within 60 days after the

       
auction by written notice to the lowest responsible bidder, or

       
all bids shall be rejected except as otherwise provided by law.
    Extensions of the date for the award may be made by





















 mutual 
written consent of the purchasing officer and the



 lowest 
responsible bidder.
 
    Section 15. Application. This Act does not apply to (i) 
procurements of



 professional and artistic services, including 
but not limited to telecommunications services, communications 
services, Internet services, and information services, and 
(ii) contracts for construction projects.
 
    Section 95. The Illinois Procurement Code is amended  by 
changing Section 20-10 as follows:
 



    (30 ILCS 500/20-10)



    Sec. 20-10. Competitive sealed bidding; reverse auction. 

    (a) Conditions for use.  All contracts shall be awarded by

competitive sealed bidding
except as otherwise provided in 
Section 20-5.

    (b) Invitation for bids.  An invitation for bids shall be

issued and shall include a
purchase description and the 
material contractual terms and
conditions applicable to the

procurement.

    (c) Public notice.  Public notice of the invitation for bids 
shall be
published in the Illinois Procurement Bulletin at 
least 14 days before the date
set in the invitation for the 
opening of bids.

    (d) Bid opening.  Bids shall be opened publicly in the

presence of one or more witnesses
at the time and place 
designated in the invitation for bids.  The
name of each bidder, 
the amount
of each bid, and other relevant information as may 
be specified by
rule shall be
recorded.  After the award of the 
contract, the winning bid and the
record of each unsuccessful 
bid shall be open to
public inspection.

    (e) Bid acceptance and bid evaluation.  Bids shall be

unconditionally accepted without
alteration or correction, 
except as authorized in this Code.  Bids
shall be evaluated 
based on the
requirements set forth in the invitation for bids, 
which may
include criteria to determine
acceptability such as 
inspection, testing, quality, workmanship,
delivery, and 
suitability for a
particular purpose.  Those criteria that will 
affect the bid price
and be considered in evaluation
for award, 
such as discounts, transportation costs, and total or
life 
cycle costs, shall be
objectively measurable. The invitation 
for bids shall set forth
the evaluation criteria to be used.

    (f) Correction or withdrawal of bids. Correction or

withdrawal of inadvertently
erroneous bids before or after 
award, or cancellation of awards of
contracts based on bid

mistakes, shall be permitted in accordance with rules.
 After 
bid opening, no
changes in bid prices or other provisions of 
bids prejudicial to
the interest of the State or fair

competition shall be permitted.  All decisions to permit the

correction or withdrawal of bids
based on bid mistakes shall be 
supported by written determination
made by a State purchasing 
officer.

    (g) Award.  The contract shall be awarded with reasonable

promptness by written notice
to the lowest responsible and 
responsive bidder whose bid meets
the requirements and criteria

set forth in the invitation for bids, except when a State 
purchasing officer
determines it is not in the best interest of 
the State and by written
explanation determines another bidder 
shall receive the award.  The explanation
shall appear in the 
appropriate volume of the Illinois Procurement Bulletin.

    (h) Multi-step sealed bidding.  When it is considered

impracticable to initially prepare
a purchase description to 
support an award based on price, an
invitation for bids may be 
issued
requesting the submission of unpriced offers to be 
followed by an
invitation for bids limited to
those bidders 
whose offers have been qualified under the criteria
set forth 
in the first solicitation.

    (i) Alternative procedures. Notwithstanding any other 
provision of this Act to the contrary, the Director of the 
Illinois Power Agency may create alternative bidding 
procedures to be used in procuring professional services under 
Section 1-75(a) of the Illinois Power Agency Act and Section 
16-111.5(c) of the Public Utilities Act.  These alternative 
procedures shall be set forth together with the other criteria 
contained in the invitation for bids, and shall appear in the 
appropriate volume of the Illinois Procurement Bulletin.

    (j) Reverse auction.  Notwithstanding any other provision 
of this Section and in accordance with rules adopted by the 
Director of Central Management Services as chief procurement 
officer, a State purchasing officer under that chief 
procurement officer's jurisdiction may procure supplies or 
services through a competitive electronic auction bidding 
process after the purchasing officer explains in writing to the 
chief procurement officer his or her determination that the use 
of such a process will be in the best interest of the State. 
The chief procurement officer shall publish that determination 
in his or her next volume of the Illinois Procurement Bulletin.
    An invitation for bids shall be issued and shall include 
(i) a procurement description, (ii) all contractual terms, 
whenever practical, and (iii) conditions applicable to the 
procurement, including a notice that bids will be received in 
an electronic auction manner.
    Public notice of the invitation for bids shall be given in 
the same manner as provided in subsection (c).
    Bids shall be accepted electronically at the time and in 
the manner designated in the invitation for bids. During the 
auction, a bidder's price shall be disclosed to other bidders. 
Bidders shall have the opportunity to reduce their bid prices 
during the auction. At the conclusion of the auction, the 
record of the bid prices received and the name of each bidder 
shall be open to public inspection.
    After the auction period has terminated, withdrawal of bids 
shall be permitted as provided in subsection (f).
    The contract shall be awarded within 60 days after the 
auction by written notice to the  lowest responsible bidder, or 
all bids shall be rejected except as otherwise provided in this 
Code. Extensions of the date for the award may be made by 
mutual written consent of the State purchasing officer and the 
lowest responsible bidder.
    This subsection does not apply to (i) procurements of 
professional and artistic services, including but not limited 
to telecommunications services, communications services, 
Internet services, and information services, and (ii) 
contracts for construction projects. 
(Source: P.A. 95-481, eff. 8-28-07.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.