Bill
HB 5146
HB 5146 expands procurement options with reverse auctions and market basket analysis for catalog buys, while requiring transparent bid rationales and bid-history disclosures.
Date Filed: April 8, 2026
Sponsor: Rep. Diane Blair-Sherlock
Co-sponsors: Rep. Nicolle Grasse, Rep. Wayne A. Rosenthal, Rep. Lisa Davis, Rep. Natalie Manley
Purpose
- The bill amends the Illinois Procurement Code to modify and expand the state’s competitive bidding procedures, with specific emphasis on introducing or expanding market-based and alternative procurement approaches (including market basket analyses and reverse auctions) for certain contract types and procurement scenarios.
Key Provisions and Changes
1) General framework for competitive bidding
- Maintains that, in principle, contracts are to be awarded by competitive sealed bidding unless otherwise provided (Section 20-10).
- Requires public notice of invitations for bids (minimum 14 days before bid opening) and public bid openings with recording of bidder details, bid amounts, and other specified information.
- Bids must be unconditionally accepted and evaluated based on the criteria set forth in the invitation for bids, including price, quality, delivery, and life-cycle costs if applicable.
- Corrections or withdrawals of bids based on bid mistakes require written determinations; post-opening changes prejudicial to fair competition are not allowed.
2) Award rationale and transparency
- Awards are made to the lowest responsible and responsive bidder, unless the State purchasing officer determines another bidder is in the state's best interest, in which case a written explanation must be provided.
- Written explanations must describe needs, cost reasonableness, a listing of all responsible bidders, and the selected bidder with total contract price and reasons for selection.
- The written explanation must be filed with the Legislative Audit Commission, the Commission on Equity and Inclusion, and the Procurement Policy Board, and be publicly accessible within 14 days of the award.
3) Failed bid notice (disclosure of bid history)
- Adds a requirement that if a bidder is not awarded a contract after four consecutive bids for the same service from the Department of Transportation, the Capital Development Board, or the Illinois State Toll Highway Authority, the agency must provide a written, certified summary of why each of the four bids was not awarded and send this to the bidder within the same calendar quarter in which the fourth bid was rejected.
- Allows electronic disclosure (email or public posting) with a policy in place describing how bidders receive the information.
4) Multi-step bidding and alternative procedures
- Keeps existing provisions for multi-step sealed bidding (unpriced offers followed by a second stage for qualified bidders).
- Allows the Director of the Illinois Power Agency to create alternative bidding procedures for specific professional services and renewable energy procurements, to be included in the invitation for bids.
5) Reverse auction (competitive electronic auction)
- Authorizes, under rules adopted by the chief procurement officer, the use of a competitive electronic auction (reverse auction) after determining it is in the state's best interest.
- Bids are submitted electronically; prices may be disclosed to other bidders during the auction; bids can be reduced during the auction; post-auction records are public.
- The contract must be awarded within 60 calendar days after the auction (extensions by mutual consent allowed); exception for certain procurements (professional/arts, telecom/IT services, construction, etc.).
6) Catalog awards by market basket analysis (new or emphasized approach)
- Authorizes catalog-based contract awards using a market basket analysis to determine the lowest cost for a representative sample of catalog supplies.
- Requirements include firm line-item prices, price changes for evaluated items, substitutions, and additions of catalog supplies not evaluated or offered at bid time.
- Requires semi-annual reviews of usage, substitutions, and catalog items added/removed.
- Definitions:
- Catalog supplies: a defined list of items with verifiable prices categorized into groups.
- Line item: a separately identified supply with its own description, unit, quantity, and price.
- Market basket analysis: evaluation of the cost of the representative sample to determine the lowest bid.
- Representative sample: items making up at least 75% of the State’s previous purchases.
7) Section 95 note
- Clarifies that changes to text in a statute represented by multiple versions do not accelerate or delay the effect of changes.
Impact and Affected Parties
Timeline and procedural notes
Summary
HB 5146 modernizes and diversifies Illinois procurement methods by codifying and expanding competitive bidding options, including reverse auctions and market basket analysis for catalog purchases, while enhancing transparency through required rationale disclosures and bid history notices. It preserves core competitive bidding principles but introduces procedural flexibility and greater accountability for procurement decisions.
Compiled from official sources — confirm details with the bill’s official record.
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