Small Business State Contract Act

Illinois spends more than $10 billion each year on state procurement. How those dollars are awarded affects economic growth, job creation, and the state’s long-term competitiveness. Getting more procurement dollars in the hands of small businesses will strengthen local economies across the state.

Securing a state contract can be a game-changer for a small business. However, the current procurement process suffers from high barriers to entry for new vendors, uneven contract visibility, and inconsistent evaluation standards.

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.

This legislation introduces two key reforms:

  • Clearer Contract Advertising: Illinois will broadly and uniformly notify small businesses of available set-aside contracts. By improving communication for these opportunities, the state aims to make it easier for qualified businesses to pursue relevant contracts.
  • Standardized Scorecard Evaluation: The state will implement 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.

These reforms will streamline what has historically been a fragmented and complex process, opening the door for more businesses to participate and succeed.

By expanding access to state contracts, this legislation will:

  • Encourage new market entrants, bringing fresh solutions to public projects.
  • Strengthen local economies, circulating more state dollars within Illinois communities.
  • Support job creation, helping small businesses scale and hire.

This legislation marks an important step toward building a procurement system that reflects the full strength of the Illinois business community. By making the procurement process clearer and more consistent, the state will expand opportunity while incentivizing innovation and competition.