Securing a state contract can be a game-changer for a small business. Years ago, the state set a goal of awarding 10% of its contracts to small businesses. While small businesses make up a vast majority of all businesses in Illinois, the state has never come close to meeting its 10% goal. Fewer than 3% of Illinois state contracts were awarded to small businesses in 2024.

The process a small business owner faces in securing a contract is daunting and confusing, with different rules, deadlines, and qualifications for each state department and agency. The procurement process favors large businesses and repeat contractors, stymying innovation.

This legislation will require state agencies to uniformly advertise all small business set-aside contracts available for bid to the small business community. It will also require the state to create a scorecard to evaluate and award contracts to small businesses. The scorecard will include factors such as relevant experience, location, and staff credentials. The scorecard will establish a uniform system for evaluating bids from all qualified small businesses.