MANUAL
FOR
SMALL AND EMERGENCY
PURCHASES
FEBRUARY 2017
INDEX
SMALL PURCHASES
1.0Definition4
1.1Architect/Engineer Services4
2.0Design 4
3.0Project Funding 4
4.0Prequalification4
5.0Competition4
6.0Quote Solicitation and Submittal5
6.1Quote Solicitation5
6.2Quote Submittal5
7.0Quote Opening6
8.0FEP Requirements6
9.0Bid Bonds6
10.0CAF – Contract Administration Fee6
11.0Standard Documents for Construction6
12.0Pre-Award Requirements7
12.1Insurance7
12.2Bonds Required7
13.0Electronic Submittals7
14.0Financial Disclosure Forms7
15.0Standard Certifications7
16.0Contract Execution8
16.1Contracts Not Exceeding $20,000.008
16.2Contracts Over $20,000.008
17.0Authorization to Proceed8
18.0Payment8
EMERGENCY PURCHASES
1.0Definition9
1.1Response Action One Asbestos Projects9
2.0Architect/Engineer Services9
3.0Project Funding9
4.0User Preparation of the Emergency Request Memorandum9
5.0Level of emergencies9
5.1Level 1 Emergency10
5.2Level l Contractors10
6.0Emergency Affidavit10
6.1Time of Filing10
7.0Prequalification10
8.0Competition10
9.0Quote Solicitation11
10.0Quote Submittal11
11.0Opening of Quotes12
12.0FEP Requirements12
13.0Bid Bonds12
14.0 CAF – Contract Administration Fee12
15.0Standard Documents for Construction13
16.0Pre-Award Requirements13
16.1Insurance13
16.2Bonds Required13
17.0Electronic Submittals13
18.0Financial Disclosure Forms13
19.0Standard Certifications14
20.0Quote Processing 14
20.1Review of Quote 14
20.2Notice of Award/Authorization to Proceed14
20.3Emergency Contracts14
21.0Payment15
22.0Duration of Emergency Procurements15
APPENDIX16
- Quote Package Checklist17
SMALL PURCHASES
1.0Definition
By statute (30 ILCS 500/20-20), some construction contracts are considered small purchases that are exempt from the usual competitive bidding requirements. As of October 10, 2016 and in accordance with Chief Procurement Officer (“CPO”) Notice 2017.02 and 44 Ill Admin Code 8.2020, the small purchase threshold for construction and construction-related services is $100,000.00 (with no annual inflation adjustment). Although purchases of less than $10,000.00 will not require review by the State Purchasing officer (“SPO”) and are delegated to the Capital Development Board (“CDB”) by the CPO, CDB must still follow all administrative rules and the above Notice which requires an attempt by CDB to obtain a minimum of three quotes from vendors that can provide the work, with emphasis on consideration of certified Minority Business Enterprises, Female Business Enterprises, Veteran Business Enterprises (“MBE/FBE/VBE”) and Illinois Small Businesses.
1.1Architect/Engineer Services
Architect/Engineer Services costs are not included as a component of the small purchase cost threshold.
2.0Design
Design services for small purchases may be provided by CDB in-house designers or by contract with a private firm, depending on the situation. In some instances, design services may not be needed.
3.0Project Funding
Funding shall be secured by the Capital Programs Unit prior to architect/engineer selection or quote submittal.
4.0Prequalification
Submitters providing on-site installation must be prequalified with CDB unless prequalification is waived by CDB in the solicitation document.
5.0Competition
Multiple quotes (minimum of three if possible) will be taken to ensure competitive pricing.
The Project Manager shall prepare a list of potential contractors, including the reasons for recommendation, on CDB’s form entitled “CDB Contractor Invitation/Selection Recommendation Form” and submit to the Regional Manager for review and approval. The Regional Manager will send the list to the Emergency Procurement Coordinator for review and approval prior to contacting the firms. If less than three vendors are selected for invitation to provide a quote, the Project Manager shall provide a written explanation on the CDB Contractor Invitation/Selection Recommendation Form to support such selection.
Per CPO Rule 8.2020 (c)(1)(C), CDB shall consider certified MBE/FBE/VBE firms and Illinois Small Businesses when scope of work permits. The Project Manager shall provide a written explanation on the CDB Contractor Invitation/Selection Recommendation Form should the form not include an MBE/FBE/VBE or Illinois Small Business.
The following are example reasons for inviting a particular contractor to provide a quote:
- The contractor has completed numerous projects at the site and is familiar with doing work at the facility.
- The contractor has completed several similar types of projects for CDB.
- The contractor is able to commit resources to complete the project.
- Due to the small size of the project, the contractor is geographically located close to the facility and will be able to provide a practical response.
- The contractor has the expertise necessary to complete the specialized scope for the project.
- The User Agency has project experience with the contractor and recommends them for this project.
- The contractor has the experience necessary to obtain and coordinate subcontractors for completion of the work.
- The contractor is currently working at the facility on another project and can provide a timely response.
- The contractor completed a project at the particular building and is very familiar with the specific area requiring work.
Following the review and approval of the CDB Contractor Invitation/Selection Recommendation Form by the Emergency Procurement Coordinator, the Project Manager will contact the firms to provide quotes. Review and approval of prices included within the quote will be conducted by the Regional Manager and may include a review by CDB’s Professional Services estimating staff.
For contracts in the amount of $10,000 or greater and pursuant to CPO Notice 2017.02, the above selection process is not subject to review and approval by the CPO. However, the contract is still reviewed by the CPO prior to final execution.
6.0Quote Solicitation and Submittal:
6.1Quote Solicitation
Public solicitation through the Illinois Procurement Bulletin is not required. Potential contractors may be contacted by telephone.
6.2Quote Submittal
If a formal opening of quotes is required, all quotes exceeding $20,000.00 must be submitted in writing on CDB’s Quote/Contract/Notice of Award Form. The quote form will be prepared by CDB’s Contracts Unit unless delegated by CDB’s Contracts Unit to the A/E of record. When delegated to the A/E, the A/E shall consult with CDB’s Contracts Unit for inclusion of any of the below listed documents. This quote form can be found on CDB’s website at www.illinois.gov/cdb in the Reference Library under “Small Projects.” The form will be the basis of the quote submittal package, which will include a scope statement and/or specifications; Financial Disclosure forms if required; Apprenticeship and Training Program Certification if required; Substance Abuse Prevention Certification and Certifications & Standard Business Terms and Conditions (See Appendix – Quote Package Checklist).
Any quotes submitted with alterations or qualifications shall be rejected.
All quotes shall be delivered to the authorized official at the location specified on the quote form. Any quotes submitted to another person or location other than those specified will be returned unopened to the submitter.
All quotes shall be submitted no later than the opening time and date specified on the quote form. Any quotes received by CDB after the time and date specified will be returned unopened to the submitter.
All quotes shall be signed by a person authorized to bind the business entity to a contract.
7.0Quote Openings
For contracts in the amount of $20,000.00 or less, no formal quote opening is required. The approved contractors shall submit a quote on company letterhead. A formal contract may be entered into, depending upon the complexity of the work to be performed.
For contracts exceeding $20,000.00, a formal quote opening shall be required by CDB when more than one vendor is invited. CDB will determine quote requirements with approval from CPO. If required, CDB Bid Officers will conduct the quote openings at one of the following CDB bid opening locations: Springfield, Chicago, Carbondale or Ottawa. The Project Manager will contact the CDB Bid Officer to schedule a quote opening date and time. The quote opening date and time does not need to coincide with regularly scheduled bid openings. The Project Manager will provide the CDB Bid Officer with a copy of the approved list of invited contractors for each project prior to the opening of quotes. Quotes submitted by a non-approved contractor will not be opened and will be returned to the contractor.
8.0FEP Requirements
Standard Fair Employment Practice (“FEP”) requirements do not apply unless otherwise stated in the solicitation document. However, participation is encouraged.
9.0Bid Bonds
Bid Bonds are not required for small purchases.
10.0Contract Administration Fee (CAF)
A Contract Administration Fee (CAF) may be collected on all small purchases exceeding $20,000.00. CAF will not be collected on those purchases without a formal contract (contracts in the amount of $20,000.00 or less).
11.0Standard Documents for Construction
Provisions of the March 2009 Standard Documents for Construction (SDC) and Supplement to SDC (as posted on CDB’s website under reference library at the time of quote opening) apply to small purchases unless modified by the solicitation documents.
12.0Pre-Award Requirements:
12.1Insurance
Unless stated otherwise in the solicitation document, SDC insurance provisions do not apply. If required, contractors must submit proof of current insurance coverage for commercial general liability, automobile liability, and workmen’s compensation, with the quote. Proof of coverage may be a certificate of insurance or a letter on the insurance company or agent’s letterhead. If builder’s risk insurance is required, it will be indicated on the Quote/Contract/Notice of Award form.
12.2Bonds Required
Performance Bonds and Labor and Material Payment Bonds are required for small purchases that include on-site installation and are in access of $50,000.00.
13.0Electronic Submittals
Competitive Sealed Quotes:
For competitive sealed quotes, electronic submittal of quotes is not permitted. Sealed quotes must be submitted by mail or hand-delivered prior to quote opening date and time. Modifications to quotes (if submitted prior to the scheduled opening and do not disclose the quote price), proof of insurance, and the bonding company letter of intent may be submitted electronically.
Other Quotes: For quotes that are not issued as a sealed quote solicitation, pricing may be submitted electronically.
14.0Financial Disclosure Forms
CDB utilizes a financial disclosure form as required by 30 ILCS 500/50-35. Disclosure forms may be found on CDB’s website at www.illinois.gov/cdb in the Reference Library. CDB accepts participation by contractors in the Illinois Procurement Gateway program. Contractors are encouraged to pursue this option prior to notification of any quote opportunities.
For contracts over $50,000.00, disclosure forms must be submitted with the quote when a formal quote opening is required. Forms are provided in the solicitation document. Failure to submit such forms is a material deficiency and shall result in rejection of the quote. When a formal quote opening is not required, disclosure forms must be submitted as soon as possible and prior to contract award.
15.0Standard Certifications
CDB utilizes a standard certifications form. The standard certifications form may be found on CDB’s website at www.illinois.gov/cdb in the Reference Library.
The standard certifications form is not required for contracts/quotes that are $20,000.00 or less. For contracts exceeding $20,000.00, the standard certifications form must be submitted with the quote when a formal quote opening is required. Forms are provided in the solicitation document. Failure to submit such forms is a material deficiency and shall result in rejection of the quote.
16.0Contract Execution:
16.1Contracts Not Exceeding $20,000.00
When work costs do not exceed $20,000.00, the contractor shall submit quotes on company letterhead and can be paid on the basis of an invoice or contract to be issued by CDB. The quote and invoice must be approved and signed by both the Project Manager and Regional Manager.
16.2Contracts Over $20,000.00
For work costs exceeding $20,000.00, the Quote/Contract/Notice of Award form, signed by the contractor, is to be sent by CDB’s Contracts Unit to the CPO for approval and then to the Executive Director for signature and contract execution. After signing the contract, it must be distributed by the Contracts Unit to:
CDB FiscalArchitect/Engineer (if applicable)
Contractor CDB Project Manager
CDB Regional ManagerCentral Files with original documents
CDB Project TechnicianCPO
The Contracts Unit or the Emergency Procurement Coordinator will complete the Small Purchase Checklist and Approval form required by the CPO and attach it to the Contract when requesting Contract approval.
17.0Authorization to Proceed
Contractors having small purchases will not be given a formal written authorization to proceed letter. For quotes or contracts not exceeding $20,000.00, a letter or e-mail of acceptance by CDB will serve as the authorization to proceed with the work unless otherwise directed by the CPO. For contracts exceeding $20,000.00, the Quote/Contract/Notice of Award approved by the CPO and signed by the Executive Director will serve as the Authorization to Proceed.
18.0Payment
Contracts/quotes in the amount of $20,000.00 or less will be paid once, upon final completion. Contracts exceeding $20,000.00 and up to $100,000.00 may have one progress payment and one final payment, or as many payments as deemed necessary by the Project Manager.
EMERGENCY PURCHASES
1.0Definition
By statute (30 ILCS 500/20-30), an emergency purchase is exempt from the usual competitive bidding requirements and may be declared when:
A.A threat to public health exists;
B.A threat to public safety exists;
C.There is a risk of further loss of or damage to State property;
D.Immediate remediation is needed to prevent or minimize serious disruption in critical State services that affect health, safety or the collection of substantial state revenues;
E.The integrity of State records is threatened.
1.1Response Action One Asbestos Projects
Response action one asbestos episodes may be handled as an emergency purchase. All procedures for emergency purchases are to be followed including the filing of an emergency purchase request by the User Agency.
2.0Architect/Engineer Services
Design services for emergency purchases may be provided by CDB in-house designers or by contract with a private firm (30 ILCS 535/50), depending on the situation. In some instances, design services may not be needed.
3.0Project Funding
Funding shall be secured by the Capital Programs Unit prior to A/E selection and/or quote submittal.
4.0User Preparation of the Emergency Request Memorandum
The User Agency must send CDB a written request to CDB’s Capital Programs Unit to initiate an emergency purchase. The request must describe the nature of the emergency in detail.
5.0Levels of Emergency
CDB recognizes two levels of emergency purchases, as follows:
Level 1:Immediate danger exists and an immediate physical response is required.
Level 2:An immediate response is required, yet there is sufficient time to allow for quote submittals by a short list of selected contractors, approved by the CPO, on abbreviated specifications provided by an A/E to allow as much competition as is practicable under the circumstances.
The level of the emergency will be determined by the Emergency Committee in consultation with and approval by the CPO.
5.1Level 1 Emergency
FOR ALL LEVEL 1 EMERGENCIES, time is of the essence and work must commence immediately following authorization to proceed. Formal quote documentation and contracts will follow as soon as reasonably possible.
5.2Level 1 Contractors
CDB shall consult with the CPO on the selection of a vendor to provide an emergency response. If the emergency involves a utility (gas lines, water mains, etc.) the Project Manager shall contact the utility company for assistance.
6.0Emergency Affidavit
An Emergency Affidavit for each emergency purchase must be filed with the Office of the Auditor General and the Procurement Policy Board by the CPO. The affidavit includes:
A.A description of the conditions and circumstances requiring an emergency purchase;
B.The amount spent or estimated cost, if known. If it is necessary to file an affidavit with an estimated cost, the total actual cost must be reported by the CDB to the CPO as soon as it is determined.
C.The name(s) of the vendor(s).
D.Expected completion date which cannot exceed 90-days from the expected start date.
6.1Time of Filing
CDB shall provide an emergency affidavit to the CPO no later than 5 calendar days after the contract is awarded or the date the contractor(s) and/or A/E is authorized to begin work.
7.0Prequalification
Level 1 emergency: Contractors for Level 1 emergencies may not have to be prequalified although it is encouraged.
Level 2 emergencies: Contractors providing on-site labor must be prequalified with CDB for Level 2 emergencies. However, under specialized scopes of work, prequalification may not be practical. Under these circumstances, the Project Manager shall consult with the CDB Contracts Unit regarding the need for prequalification.
8.0Competition
Level 1 emergencies do not require the receipt of competitive quotes. CDB, with approval by the CPO, shall select a vendor to provide an emergency response.
For Level 2 emergencies, multiple quotes (minimum of three if possible) should be taken to ensure competitive pricing. Exceptions may be made, including but not limited to, when a contractor who is already on-site in connection with a different project is willing to do the work, and it is determined that the quote cost is reasonable. Reasonableness will be determined by the Emergency Committee and may include a review by CDB’s Professional Services estimating staff.
The Project Manager shall prepare a list of potential contractors, including reasons for recommendation, on CDB’s form entitled “CDB Contractor Invitation/Selection Recommendation Form” and submit to the Regional Manager for review and approval. The Regional Manager shall send the list to the Emergency Procurement Coordinator for review and approval prior to contacting the firms. If less than 3 contractors are selected for invitation to provide a quote, the Project Manager shall provide a written explanation on the CDB Contractor Invitation/Selection Recommendation Form to support such selection.
CDB must consider certified MBE/FBE/VBE firms and Illinois Small Businesses when scope of work permits. The Project Manager shall provide a written explanation on the CDB Contractor Invitation/Selection Recommendation Form should the form not include an MBE/FBE/VBE firm or Illinois Small Business.
The following are some sample reasons for inviting a particular contractor to provide a quote under a Level 1 or Level 2 emergency:
- The contractor has completed numerous projects at the site, and is familiar with doing work at the facility.
- The contractor has completed several similar types of projects for CDB.
- The contractor is able to commit resources to provide immediate response to the project.
- Due to the urgency and the small size of the emergency project, the contractor is geographically located close to the facility and will be able to provide a practical response.
- The contractor has the expertise necessary to complete the specialized scope for the emergency project.
- The User Agency has project experience with the contractor and recommends them for this emergency project.
- Given the urgency of this emergency, the contractor has the experience necessary to quickly obtain and coordinate subcontractors to expedite the completion of the emergency work.
- The contractor is currently working at the facility on another project and can provide immediate response to the emergency.
- The contractor completed a project at the particular building and is very familiar with the specific area requiring emergency work.
When inviting contractors to submit a quote, all efforts should be made to receive quotes in less than 14 calendar days from solicitation. If it is not practical for quotes to be received within 14 calendar days, then the CDB Emergency Procurement Coordinator and CPO shall consider soliciting bids thru regular procurement processes.