HB 3186 (Ford) – Small Business Contract Act
Creates a small business set aside program for all state contracts. Program provides that at least 10% of the total dollar amount of State contracts will be set as a goal to be awarded to small businesses.

The legislation also includes guidelines for the creation of plans to reach that goal and annually reporting of implementation. Bill is supported by the Federation of Women Contractors (FWC) and the Hispanic American Construction Industry Association (HACIA).

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HB3186-Small Business Contracts Grants

Section 1. Short title.
This Act may be cited as the Small Business Contracts Act.

Section 5. Definitions.
For the purposes of this Act, the following terms shall have the following definitions:
"Small business" means a small business as defined in the Illinois Procurement Code.
"State contract" means a State contract, as defined in the Illinois Procurement Code, funded with State or federal funds,whether competitively bid or negotiated.
"State official or agency" means a department, officer, board, commission, institution, or body politic or corporate of the State.

Section 10. Award of State contracts.
(a) Not less than 10% of the total dollar amount of State contracts shall be established as a goal to be awarded to small businesses.
(b) The percentage in subsection (a) relates to the total dollar amount of State contracts during each State fiscal year, calculated by examining independently each type of contract for each State official or agency which lets such contracts.

Section 15. Compliance plans.
(a) Each State official or agency shall file with its respective chief procurement officer an annual compliance plan which shall outline the goals of the State official or agency for contracting with small businesses for the then current fiscal year, the manner in which the official or agency intends to reach these goals, and a timetable for reaching these goals. The chief procurement officer shall review and approve the plan of the State official or agency and may reject any plan that does not comply with this Act or any rules promulgated pursuant to this Act.
(b) Each State official or agency shall file with its respective chief procurement officer an annual report of its utilization of small businesses during the preceding fiscal year including lapse period spending and a mid-fiscal year report of its utilization to date for the then current fiscal year. The reports shall include a self-evaluation of the efforts of the State official or agency to meet its goals under the Act.

Section 20. Annual report.
Each chief procurement officer shall file no later than March 1 of each year, an annual report that shall detail the level of achievement toward the goals specified in this Act over the 3 most recent fiscal years. The annual report shall include, but need not be limited to, the following:
(1) a summary detailing State appropriations subject to the goals, the actual goals specified, and the goals attained by each State official or agency;
(2) a summary of the number of contracts awarded and the average contract amount by each State official or agency; and
(3) an analysis of the level of overall goal achievement concerning purchases from small businesses.

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