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HB 5501

PROCUREMENT-UNIVERSITIES

104th Regular Session Introduced by Sharon Chung and 3 co-sponsors

Allows separate bidding for five subsystems and defines when single-prime procurement may be used for public university projects, with reporting and caps.

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Bill Summary · HB 5501

Bill Summary: HB 5501 (104th Illinois General Assembly)

Purpose and Intent

  • The bill amends the Illinois Procurement Code to modify how university and public construction projects are procured, with a focus on allowing separate bidding for major subsystems and explaining when single-prime procurement (awarding a project to one prime contractor) may be used.
  • Specifically targets public institutions of higher education (and Illinois public construction agencies) to clarify and expand options for design-bid-build delivery and the use of single-prime procurement.

Key Provisions and Changes

Design-Build/Design-Bid-Build Framework

  • Expands or clarifies the design-bid-build approach for building construction contracts over certain thresholds.
  • Creates a framework for separate specifications (bidding) for five subdivisions of work:
    1. Plumbing
    2. Heating, piping, refrigeration, and automatic temperature control systems (including testing and balancing)
    3. Ventilating and distribution systems for conditioned air (including testing and balancing)
    4. Electric wiring
    5. General contract work

Separate Subcontractor Bidding

  • For contracts over $250,000, allows separate and independent bidding on each of the five subdivisions of work.
  • Contracts may be awarded to separate contractors for subdivisions, with the overall project potentially awarded to the bidder for the designated prime subdivision, if payments to each subdivision are made directly to the respective contractors upon satisfying contract conditions.

Single-Prime Contracts (Delivery Method)

  • Establishes rules for when single-prime procurement can be used, including required determinations and reporting.
  • For single-prime projects, the bid must identify subcontractors (if any) and costs by subdivision; the contract must prevent termination of identified subcontractors without written consent of the agency; and the contract must comply with Minority, Women, and Persons with Disabilities (M/W/DPD) business enterprise requirements and equal employment practices. The Capital Development Board (CDB) must report annually on bidding, awards, and performance of single-prime projects.

Transitional Provisions (Past and Future)

  • Transitional language (a-5) applies from the effective date through 2032 for higher education projects, allowing:
    • Higher education institutions to prepare separate specifications for the five subdivisions.
    • Flexibility to award two or more subdivisions to different contractors, with specific prequalification and subcontractor identification requirements.
    • A cap on annual single-prime project totals for certain institutions (historically, per Public Act 102-...): e.g., per-entity aggregate limits and reporting requirements.

Higher Education-Specific Provisions (Post-2025)

  • Beginning December 31, 2032, the general rules become operative for public universities on a broader basis, with a continuous design-bid-build framework and prohibit retroactive changes in reliance on earlier extensions.
  • Public institutions of higher education must specify compliance with M/W/DPD and equal employment practices and report publicly on single-prime projects.

Aggregate Totals (Per-Year Dollar Thresholds)

  • Public institutions of higher education may have annual limits:
    • General cap: individual institutions can conduct single-prime contracts up to certain aggregate values per fiscal year (e.g., UI Board up to $300,000,000; other public universities up to $100,000,000, subject to later adjustments or approvals).

Oversight and Accountability

  • Requires annual reporting to the Governor, General Assembly, Procurement Policy Board, and Auditor General on bidding, awards, and performance of single-prime projects.
  • Chief procurement officer reviews and must approve (or not unreasonably withhold approval) the CDB’s single-prime determinations.
  • Notably, the bill validates earlier actions taken under prior extensions (Public Act 104-434) to avoid invalidating ongoing projects.

Who is Affected

  • Public institutions of higher education (universities and state colleges) and the Capital Development Board.
  • Contractors and subcontractors engaged in construction projects exceeding $250,000.
  • Minority-owned, women-owned, veteran-owned, and persons with disabilities–owned business enterprises (M/W/DPD) as well as equal employment opportunities compliance bodies.

Procedural and Timeline Highlights

  • Effective date: The act takes effect upon becoming law.
  • Transitional period through December 31, 2032 (for certain a-5 provisions), with a shift to continuous application of the framework from 12/31/2025 through 12/31/2032 as specified.
  • Annual reporting and prequalification requirements to be maintained for single-prime projects.
  • Specific per-institution annual dollar caps for single-prime aggregates.

Additional Notes

  • The amendment references prior acts and provisions (e.g., Business Enterprise for Minorities, Women, and Persons with Disabilities Act; Illinois Human Rights Act) and embeds compliance and reporting mechanisms to promote equity and transparency.
  • The bill has undergone sponsor changes and various readings, with near-term movement through committees and the Senate in 2026.

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

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