SPRINGFIELD — Easier and more efficient ways for Illinois businesses and diverse contractors to do business with the state are coming soon, thanks to a new law sponsored by State Senator Cristina Castro.
“Navigating the procurement process can be a daunting task for small firms. These are the businesses we should be lifting up – not making their jobs more difficult,” said Castro (D-Elgin). “Improving efficiency in government contracting not only helps minority-owned businesses get their foot in the door, but also promotes competition and allows state dollars to go further in supporting these projects.”
To eliminate long-standing obstacles and increase diversity in state contracting, the law – previously House Bill 5511 – takes steps to modernize the procurement process, improve transparency, encourage responsible competition and safeguard taxpayer dollars in infrastructure projects.
Supplier diversity improves access to government contracting for businesses owned by minorities, women, veterans and people with disabilities. The new law drives Illinois’ supplier diversity goals forward by requiring benchmarks to be set for minority business development programs and tasking the Commission on Equity and Inclusion with oversight to ensure the programs are implemented effectively.
To address the slow pace of the procurement process, the measure enables contractors to fix procurement violations while the procurement process moves forward, and allows bids to be posted or accepted online.
Further, the law prioritizes local competition and control by ensuring counties follow competitive bidding requirements that apply to other units of local government. It also eases the joint purchasing process to make it easier for towns, villages and counties to utilize existing state contracts – reducing the need for duplicative contracts for similar needs. Under the law, more businesses can qualify as small businesses so they can more easily access contracting opportunities with the Illinois Tollway.
A priority of Castro’s, one provision aims to move the state toward contracting with more Illinois companies on construction projects by expanding the definition of an Illinois business. Under the law, a business operating and headquartered in Illinois for at least one year is eligible to receive a 4% bid preference on state projects.
House Bill 5511 was signed into law Friday and goes into effect immediately.