Bill
SB 1423
Illinois lets CPOs set aside a fair portion of state construction, supply, and service contracts for veteran-owned small businesses, with annual reporting on outcomes.
Status
- Bill number: SB 1423
- Primary sponsor: Sen. Mike Porfirio (IL); chief co‑sponsor added: Sen. Seth Lewis
- Related/companion: HB 2959, HB 1104
- Key legislative actions: Passed both chambers, signed by the Governor (June 20, 2025). Effective date: September 1, 2025.
Purpose / intent
- To increase state contracting opportunities for veteran‑owned small businesses (VOSBs) by allowing procurement officers to set aside a portion of State construction, supply, and service contracts exclusively for certified veteran‑owned small businesses and to require annual reporting on the program’s use and outcomes.
Key provisions
- New Section 45‑59 added to the Illinois Procurement Code (30 ILCS 500/45‑59 new).
- Policy statement: declares it public policy to promote veteran‑owned small businesses as prime contractors in State procurement.
- Definitions: “Veteran‑owned small business” means either a qualified veteran‑owned small business or a qualified service‑disabled veteran‑owned small business as defined in Section 45‑57(e) of the Code.
- Set‑aside authority: Each chief procurement officer (CPO) may designate a “fair proportion” of construction, supply, and service contract opportunities as veteran‑owned small business set‑asides.
- Advertisements for those contracts must specify the set‑aside.
- Only bids/offers from qualified VOSBs are considered for award when a contract is designated as a set‑aside.
- A purchasing agency may withdraw a set‑aside designation if deemed in the State’s best interest; upon withdrawal, bids/offers received under the set‑aside are rejected and the procurement proceeds under the Code’s standard award rules.
- Administration: CPOs are authorized to adopt rules and must notify affected bidders/offerors when set‑asides are designated or withdrawn.
- Reporting: By November 1 each year, each CPO must report to the General Assembly for the immediately preceding fiscal year:
1. number of VOSBs that submitted bids/offers for set‑aside contracts;
2. number of set‑aside contracts awarded to VOSBs; and
3. total dollar value of set‑aside contracts awarded to VOSBs.
- Filing may satisfy requirements of the General Assembly Organization Act (Section 3.1).
Who is affected
- Veteran‑owned small businesses in Illinois (including service‑disabled veteran firms) — potential increased access to State contracting.
- State procurement officers and purchasing agencies — discretion and administrative responsibilities to designate, manage, and report on set‑asides.
- Non‑VOSB contractors — may face reduced competition on specific procurements designated as set‑asides.
- Oversight/legislature — receives annual data on program usage and outcomes.
Practical impact and considerations
- Expected to expand prime contracting opportunities for VOSBs, supporting veteran economic development.
- Implementation depends on CPO discretion (no mandated percentage); outcomes may vary across agencies and procurement categories.
- Administrative tasks: agencies must manage set‑aside designations, communications, and annual reporting; certification processes (per Section 45‑57) remain important to verify eligibility.
- Legal framework leaves room for rulemaking and agency guidance to define operational details (e.g., what constitutes a “fair proportion,” procedures for withdrawal, and related procurement timelines).
Contact / follow‑up
- For operational details consult the Illinois Procurement Code (new 30 ILCS 500/45‑59) and Section 45‑57 (definitions/certification for veteran‑owned small businesses).
Compiled from official sources — confirm details with the bill’s official record.
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