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SB 1294

PROCUREMENT-OUTSIDE OF U.S.

104th Regular Session Introduced by Christopher Belt and 1 co-sponsor

Illinois prohibits awarding state contracts if more than 10% of services are to be performed outside the United States.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 1294

Summary — SB 1294 (Procurement: Limits on Services Performed Outside the U.S.)

Note: The provided packet contains multiple unrelated bill texts from different states. This summary focuses on the Illinois SB 1294 titled “PROCUREMENT — OUTSIDE OF U.S.” (amending 30 ILCS 500/25-65), introduced by Sen. Christopher Belt and cosponsored by Sen. Kimberly A. Lightford.

Purpose

To restrict and increase transparency around the outsourcing of services under Illinois state contracts by prohibiting state awards when a vendor intends to perform more than 10% of contracted services (by cost) outside the United States.

Key provisions

  • Disclosure requirement: Potential contractors must disclose, prior to contracting or as part of solicitation, what services (including subcontract work) will be performed outside the United States.
  • Evaluation factor: The chief procurement officer (CPO) may consider these disclosures and the economic impact to Illinois and its residents when evaluating bids.
  • 10% prohibition: The CPO may not award a contract if more than 10% of the contracted services (measured by cost of services) are to be performed outside the United States.
  • Breach and enforcement: If a contract is awarded based on disclosure that work will be performed in the U.S., and the contractor (or subcontractor) later shifts work outside the U.S., the contractor is deemed in breach unless the CPO first issues a written determination that (a) circumstances require the shift or (b) terminating the contract would not be in the State’s best interest.
  • Non-preemption clause: The section explicitly states it is not intended to contravene any existing U.S. treaty, law, agreement, or regulation.
  • Legacy reporting language: The text retains historical language requiring CPO reporting on outsourcing impacts (including a 2015 reporting reference); the bill otherwise modernizes the procurement review/controls.

Who is affected

  • Chief Procurement Officer and state procurement offices/agencies subject to the Illinois Procurement Code
  • Vendors and contractors seeking state service contracts and their subcontractors
  • Industries providing outsourced services to the State (IT, call centers, professional services, etc.)
  • Potential indirect effects on Illinois workers and local service providers if outsourcing is reduced

Potential impacts

  • Reduced outsourcing of state-contracted services abroad; greater portion of work retained within the U.S.
  • Increased compliance and administrative requirements for bidders (disclosure, monitoring of subcontract performance locations)
  • Possible narrowing of the vendor pool for certain services, potentially increasing costs or changing procurement strategy
  • Creates a contractual enforcement mechanism to deter post-award offshoring of work
  • Could prompt contractors to restructure delivery (e.g., onshore more work) or seek written CPO approvals for necessary offshore shifts

Procedural status (selected)

  • Introduced: 01/28/2025 by Sen. Christopher Belt
  • Referred to Assignments; then to Procurement
  • Co-sponsor added: Sen. Kimberly A. Lightford (04/08/2025)
  • Status noted as Rule 3-9(a) / Re‑referred to Assignments (04/11/2025)

If you want, I can:
- Draft a one-page explainer for procurement officers on compliance steps; or
- Identify likely categories of state contracts most affected (e.g., IT, call centers, BPO).

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

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