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Bill

SB 4008

NITA-VETERAN CONTRACT GOAL

104th Regular Session Introduced by Mike Porfirio and 1 co-sponsor

Establishes a 3% set-aside goal for veteran-owned and service-disabled veteran-owned small businesses in Illinois transportation contracts, with certification, oversight, and enfor

Added as Chief Co-Sponsor Sen. Craig Wilcox
0
WeVote Research Nonpartisan
Bill Summary · SB 4008

Overview

SB4008, introduced in the 104th Illinois General Assembly, would create a targeted set-aside program to promote veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs) in transportation contracting. The bill applies to contracts awarded by the Northern Illinois Transit Authority (NITA) and related authorities/Service Boards (including the Chicago Transit Authority, Suburban Bus Division, and Commuter Rail Division). It also expands the role of the Commission on Equity and Inclusion in overseeing and implementing these goals, with related certification and enforcement provisions.

Main purpose and intent

  • Establish a minimum 3% contracting goal for qualified veteran-owned small businesses and qualified service-disabled veteran-owned small businesses across Authority contracts and related service boards.
  • Improve opportunities for veteran-owned firms to win bids and participate as contractors, subcontractors, or suppliers.
  • Provide ongoing reporting, oversight, certification, and enforcement to ensure compliance and transparency.
  • Integrate veteran-focused procurement goals into broader supplier diversity and equity initiatives within Illinois.

Key provisions and changes

  • Regional Transportation Authority Act amendments:

    • Create a formal goal requiring not less than 3% of the total dollar amount of all contracts with the Authority (and the Service Boards) to be awarded to qualified VOSBs and SDVOSBs.
    • Allow counting portions of contracts where the prime contractor subcontracts with a qualified VOSB or SDVOSB toward the goal.
    • Require the Authority to adopt ordinances or requirements to implement the goal.

  • Reporting requirements (by March 1 of each year):

    • Total number of qualified veteran-owned small businesses and SDVOSBs that submitted bids in the prior fiscal year.
    • Total number of such businesses that entered into contracts in the prior fiscal year.
    • Year-by-year comparison of awarded contracts to certified VOSBs and SDVOSBs.
    • Additional information deemed helpful to help veteran-owned businesses become certified.

  • Annual progress review:

    • Board must review progress toward the goal with input from statewide veterans’ organizations and the broader business community.
    • Board to make recommendations to the General Assembly regarding continuation, increases, or decreases of the 3% goal, based on data on veteran-owned businesses and need.

  • Certification and oversight framework:

    • The Illinois Department of Veterans Affairs (IDVA) and the Commission on Equity and Inclusion (CEI) to develop a certification process for SDVOSBs and VOSBs, aligned with the Vets First Verification Program (VA).
    • CEI to maintain a comprehensive list of certified veteran-owned firms, assist with compliance, provide training on bid procedures, and run an online portal for applying for certificates.
    • CEI to oversee and publish supplier diversity reports where applicable and may hold public workshops to connect diverse enterprises with procurement programs.

  • Eligibility definitions:

    • Clear definitions for “qualified service-disabled veteran,” “qualified veteran-owned small business,” and related concepts, including ownership (51%+), Illinois domicile, and annual verification.
    • Small business threshold set at <$150,000,000 in annual gross sales, with an exception allowing larger firms to apply if the contract would significantly impact qualified veteran-owned businesses.

  • Certification and enforcement:

    • Violations of specified criminal code provisions (relating to procurement and integrity) can trigger suspensions of at least 3 years for individuals or entities bidding on Authority contracts, with revocation of SDVOSB or VOSB certifications for at least 3 years (longer for subsequent violations).
    • Suspension/revocation also apply to principals and related businesses; longer penalties (not less than 5 years) for subsequent violations.
    • Board duties to report violations to the Attorney General and coordinate enforcement.

  • Timeline and compliance:

    • Board and CEI to implement processes, including an electronic certification portal, with ongoing annual reporting and periodic rulemaking as needed.
    • Annual January-driven oversight and reporting cadence for ongoing improvement.

Who is affected

  • Eligible veteran-owned small businesses and service-disabled veteran-owned small businesses in Illinois (or those intending to qualify) seeking contracts with:
    • Northern Illinois Transit Authority (NITA)
    • Chicago Transit Authority (CTA)
    • Suburban Bus Division
    • Commuter Rail Division
  • State agencies and the CEI IDVA partnership, which would administer certification, reporting, training, and outreach.
  • General contractors and subcontractors engaged on Authority contracts, who may need to utilize qualified VOSBs/SDVOSBs to meet the 3% goal.
  • Potential prime contractors and suppliers who could be affected by new compliance and certification requirements.

Procedural and timeline aspects

  • Establishment of a 3% procurement goal, with annual reporting due by March 1.
  • Annual progress reviews and potential legislative recommendations on adjustments to the goal.
  • Certification procedures to be created and maintained, with verification through VA’s Vets First program as a pathway, subject to annual review.
  • Enforcement provisions requiring suspensions and revocations for violations, with related due-process implications for businesses and their principals.
  • Ongoing oversight by the CEI of multiple diversity-related entities and reporting; potential public workshops to enhance industry participation.

Notable details

  • The bill explicitly ties the set-aside to contracts with multiple transportation authorities and service boards under the Regional Transportation Authority Act.
  • It allows partial counting of contract value when a qualified veteran-owned firm is a subcontractor, similar to other set-asides.
  • Certification relies in part on the VA’s Vets First Verification Program, with Illinois-specific verification and residency requirements.

This summary focuses on the substantive elements: purpose, mechanisms, affected parties, and procedural timelines. If you’d like, I can provide a comparison to current procurement practices or potential fiscal impact estimates based on hypothetical contracted amounts.

Compiled from official sources — confirm details with the bill’s official record.

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