Section 1.2036  Other Methods of Source Selection

a)         Split Award

1)         An award of a definite quantity requirement may be split between bidders or offerors.  Each portion shall be for a definite quantity and the sum of the portions shall be the total definite quantity required.  A split award may be used only when award to more than one bidder or offeror for different amounts of the same item are necessary to obtain the total quantity or the required delivery.

2)         The Procurement Officer shall make a written determination setting forth the reasons for the split award, which determination shall be made a part of the procurement file.

b)         Multiple Award

1)         General Conditions

A)        A multiple award is an award of an indefinite quantity contract to more than one bidder or offeror when the State is obligated to order all of its actual requirements from those vendors.

B)        A multiple award may be made when award to two or more bidders or offerors for similar products is necessary for adequate delivery, service, or product compatibility.  Any multiple award shall be made in accordance with the provisions of  Section 1.2010 (Competitive Sealed  Bidding), Section 1.2015  (Competitive Sealed Proposals), Section 1.2020 (Small Purchases), and Section 1.2030 (Emergency Procurements), as applicable. Awards shall not be made for the purpose of simply dividing the business or to select products or suppliers to allow for user preference unrelated to utility or economy.  Any such awards shall be limited to the least number of suppliers necessary to meet the valid requirements of State agencies.

C)        The State shall reserve the right to take bids separately if a particular quantity requirement arises that exceeds its normal requirement or an amount specified in the contract.

D)        If a multiple award is anticipated, the solicitation shall state this fact as well as the criteria for award.

E)         In a multiple award situation, one vendor may be designated as the primary recipient of orders.  The other awardees may receive orders in the event the primary vendor is unable to deliver or for other reasons as determined by the Procurement Officer.

2)         Multiple Award with Set Rate

A)        Notwithstanding anything to the contrary in this Part, the Chief Procurement Officer, but not a designee, may, on a case-by-case basis, authorize the Department of Central Management Services to issue a competitive solicitation and to enter into contracts with multiple vendors under a process that provides for prequalification, agreement to perform at a set rate, and final selection based on random and equitable distribution of work among qualified vendors.

B)        The Chief Procurement Officer may authorize use of this source selection procedure upon a determination in writing that use of the methods of source selection set forth in Article 20 of the Illinois Procurement Code is either not practicable or advantageous because, for example, the program needs of State agencies cannot reasonably be met within the normal procurement timeframes, or that the type and variety of State agency needs are such that a single award will not assure the needed availability or diversity of vendors.

C)        This authorization shall be limited to contracts for information technology services.  No other categories of supplies or services may be acquired using this method of source selection unless this subsection (b)(2) is amended.

D)        Vendors shall be prequalified once per fiscal year, or as often as necessary, through use of a competitive sealed proposal.  The minimum qualifications (including performance standards and agreement to provide services at a set rate determined by the State), any desirable additional qualifications, and the method of obtaining and setting rates shall be stated in the solicitation advertised in the Illinois Procurement Bulletin.  Those vendors meeting minimum qualifications shall be offered non-exclusive indefinite quantity master contracts against which a procuring agency may later place one or more orders on an as needed basis in accordance with the vendor selection procedure set forth in subsection (b)(2)(G).  Implementing Article 45 of the Code and subsection (b)(2)(G) of this Section, the solicitation shall contain a provision alerting vendors that the random selection process used to meet a specific using agency's needs may be limited to those master contract holders who qualify as small businesses.

E)         The Department shall establish the set rate by one of the following methods.  The lowest rate identified will not necessarily be the set rate, but will be a consideration in determining the set rate.

i)          Set in the solicitation the rate that vendors must agree to bill.  In general, this rate shall be the lowest rate at which a sufficient number of vendors are ready, willing and able to meet the State's needs.  The solicitation shall show the Department has conducted sufficient research (such as reviewing past State contract rates, reference to GSA or other governmental contract rates, or private sector rates determined by internal or industry expert surveys) that the public can have confidence the rate provides overall advantage to the State.

ii)         Require as part of the solicitation that vendors submit rates (prices), including disclosable rates, and inform them the Department will use this rate information and additional rate information received through use of the best and final process, from other contracts and from research to establish the set rate that vendors must bill.

F)         Vendors not willing to agree to bill at the set rate may be rejected or may have their contracts restricted to use in special circumstances approved by the Chief Procurement Officer.

G)        Using agency needs will be met by the Department selecting a master contract holder on a random basis.  If the using agency determines that it has specific programmatic needs that require additional qualifications (e.g., specialized programming knowledge or specific educational requirements) or conditions (e.g., geographic limitations) or State policy considerations (e.g., promotion of small business), such that random vendor selection from among all master contract holders would not meet its needs, the using agency may submit an alternate selection request to the Chief Procurement Officer.  This request shall set forth all reasons, including the additional qualifications or conditions, why a random vendor selection would not reasonably meet the needs of the agency, or the policy of the State.  If at least 3 of the master contract holders meet those additional qualifications or conditions, the Department shall conduct a random selection limited to that subset of the master contract holders.  If the using agency's request does not show a need for additional qualifications or if there are not 3 master contract holders with the needed qualifications, the using agency may not utilize the method of source selection set forth in this Section.

H)        In order to ensure the continued availability of the set of master contract holders, all potential orders shall be monitored by the Department to ensure the equitable distribution of work and that no single vendor has an unwarranted disproportionate share of the available work.  The Department shall, to avoid a disproportionate distribution of work, remove a vendor from consideration for a period of time sufficient to minimize dollar value discrepancies among vendors.  In addition, any vendor so removed may be reinstated for consideration to meet a particular using agency's need if only 3 or fewer otherwise eligible vendors are available to meet the using agency's need.

I)          The Department shall conduct the random selection using a drawing, mechanical device or software driven selection.  The specific process used by the Department shall ensure that final selection is influenced only by chance, after taking into consideration, as applicable and as allowed in this Part, the policy of equitable distribution, use of small businesses, and specific requests from agencies to meet special needs.

J)         It shall be the affirmative obligation of each vendor with a master contract to update information provided to the State regarding its continued ability to provide the contracted service.  Master contracts may provide that vendors who cannot perform the required services when contacted and who have not provided the updated information may be taken out of consideration for orders for a period of time, including until the next prequalification.

K)        The procurement file shall contain justification for the selection of the master contract vendors and each selection to meet the particular need of a using agency including the determination in subsection (b)(2)(B) of this Section; the research papers, reports, contract rates and internal or industry expert surveys, "additional rate information" and identification of "other contracts and research" in subsections (b)(2)(E)(i) and (ii); the alternate selection documents required by subsection (b)(2)(G), the 3 or more master contract holders for the alternate random selection in subsection (b)(2)(G) and updated information required of contractors pursuant to subsection (b)(2)(J).  The Department shall publish the names of the vendors selected to receive master contracts and the name of each vendor selected to receive an order to meet the using agency's particular need.

c)         Term and Condition Contracts

1)         A term and condition contract contains agreed contractual terms and conditions established for the convenience of the parties to be used in conjunction with a subsequent procurement and processed in accordance with the requirements of the Code and this Part.  A term and condition contract is not a procurement.  It creates no obligation on the part of the State to procure from the vendor nor does it create an authorization for a State agency to order based on that term and condition contract, except as provided in subsection (c)(2).

2)         Orders may be placed against term and condition contracts without use of any prescribed method of source selection for convenience of processing sole source, emergency or small procurements.  Agencies with reasonably defined repetitive small needs that, over the course of a fiscal year, are likely to exceed the small purchase amount set in Section 20-20 of the Code and this Part should consider a competitive method of source selection to contract for those repetitive needs.

d)         Auction

            Purchases may be made at auction in accordance with the procedural requirements applicable to the particular auction.  Notice and competition is not required and the amount payable shall be the amount bid and accepted plus any required buyer's premium.

e)         Non-governmental Joint Purchase

1)         The CPO may enter into (or authorize one or more SPOs to enter into) an agreement with a person not eligible for the Governmental Joint Purchasing Act for the joint procurement of anything covered by the Code.  Any method of source selection may be used and may be modified or adapted to meet the needs of the non-State entity.

2)         The primary use of this provision shall be to accommodate mutual relationships between the State and not-for-profit groups whose purpose is to conduct programs adjunct to those of the State agency that is party to the contract.

f)          Federal Requirements

            The Procurement Officer for any State agency receiving federal aid funds, grants or loans or otherwise subject to federal entity requirements may conduct procurements in accordance with federal requirements that are necessary to receive or maintain those federal aid funds, grants or loans or to remain in compliance with federal requirements.

g)         Foreign Country Procurement

            Procurements to meet the needs of State agency offices located in foreign countries shall comply with the Code and this Part whenever practicable.  The SPO shall maintain a record of such action.

h)         Donations

1)         When a procurement will have the majority of funding from a donation, the terms of which donation require use of particular procurement or contracting procedures, the Procurement Officer may follow those procedures, but shall follow the Code and this Part whenever practicable.

2)         Donations may be acknowledged by the donee agency in a manner appropriate to the type of donation and the program activity associated with the donation.  Acknowledgment may include, but need not be limited to, public announcement at the event or in donee agency publications, and inviting the donor to attend the program activity associated with the donation.

(Source:  Amended at 30 Ill. Reg. 13378, effective July 25, 2006)