Sharing in state government contracts and procurement opportunities has proven to be difficult for small businesses. We are calling on Illinois policymakers to enact legislation that will increase the number of government contracts available to small businesses and ensure they can handle those contracts through prompt payment!
House Bill 878 Will Expand Opportunity and Drive Innovation
Last week, the Illinois House of Representatives passed legislation to improve small business participation in the state’s procurement system. HB0878 introduces a set of practical reforms designed to improve transparency and consistency in state contracting.
Securing a state contract can be a game-changer for a small business. This legislation builds a more accessible pathway for small businesses to compete for and win state contracts, ensuring Illinois taps into its most dynamic economic engine.
Knowledge is Power
Small businesses cannot apply for a government contract unless they know it exists. This legislation will improve communication by broadly and uniformly notifying the small business community of available set-aside contracts. By standardizing how these opportunities are communicated, qualified businesses will be better able to find and pursue relevant contracts.
Standardized Scorecard Evaluation
This legislation will create a transparent scorecard system to evaluate bids from small businesses, incorporating factors such as relevant experience, location, and staff credentials. Scorecards will create a predictable and fair framework for competition.
Together, these reforms will help streamline what has historically been a fragmented and complex process, opening the door for more businesses to participate and succeed.
House Bill 4859 Will Ensure Prompt Payment
Cash flow and timely payments are crucial for small businesses. The House of Representatives has also passed HB4859, which will require state agencies to review bills and invoices within 30 days. If there is an issue with the invoice, the state agency will notify the vendor within 30 days after that and approve the remainder of the invoice. Proper bills will be approved and transmitted to the Comptroller’s office for prompt payment.
Small businesses make up the overwhelming majority of firms in Illinois and are a critical source of both innovation and local investment. By expanding access to state contracts and advancing prompt payment, these bills can support the small businesses that support local communities.
With the passage of this bill, Illinois will join a growing group of states pioneering modern procurement practices. States like Minnesota, Georgia, and Virginia have implemented similar strategies to improve transparency and foster a more competitive contracting environment.