Ill. Admin. Code tit. 44 § 1.5560

Current through Register Vol. 48, No. 49, December 6, 2024

Section 1.5560 - Suspension and Debarment

a) This Subpart applies to all suspensions or debarments of vendors from consideration for award of contracts and being a subcontractor under the Code. For the purposes of this Subpart, all references to "vendors" includes subcontractors.

b) Causes for Suspension or Debarment. A vendor may be suspended or debarred from participation due to acts or omissions that indicate that the vendor lacks integrity and honesty in the conduct of business or the performance of contracts. Acts or omissions that indicate the lack of business integrity and honesty include, but are not limited to:

1) Fraud, bribery, embezzlement, theft, collusion, conspiracy, anti-competitive activity, or other misconduct and offenses prohibited by law, whether or not any such misconduct or offense is in connection with a State contract;

2) Making any false statement, including in a registration in a vendor portal and the e-Procurement system;

3) Violating any rule or procurement procedure or making a false statement in connection with this Part or procurement procedures;

4) Making a false statement, representation, claim or report regarding the character, quality, quantity, or cost of any work performed or supplies or materials furnished in connection with a contract or subcontract administered or supervised by a State agency; and

5) Being debarred or suspended by another State agency; the United States; a department or agency as defined by 18 USC 6; any of the 50 states of the United States; any State agency of the 50 states of the United States; any public authority in one of the 50 states of the United States that has the power to tax; or any other public entity created by the statutes of one of the 50 states of the United States.

c) Suspension Process

1) Any vendor the CPO-GS proposes to suspend pursuant to this Subpart will be furnished written notice by certified or registered mail. Proof that notice was dispatched by means reasonably calculated to be received by the prescribed date shall be prima facie proof that the notice was timely received.

2) The notice of proposed suspension will include the following:

A) The basis for the proposed suspension;

B) A clear and concise statement of the facts and circumstances on which the proposed suspension is based;

C) The legal authority and jurisdiction under which the action is taken;

D) The consequences of failure to respond to the notice;

E) The right to request a hearing.

3) A notice of proposed suspension may be amended at any time.

4) A copy of the written notice of proposed suspension will be provided to the Procurement Policy Board within 7 days after vendor notification.

5) Vendor Response and Request for Hearing

A) Any vendor who receives a notice of proposed suspension may, within 30 days after receipt of the notice, request a hearing. A vendor that does not request a hearing within 30 days after receipt shall be deemed to have waived any right to a hearing and will be subject to immediate suspension.

B) The vendor may file a written answer to a notice of proposed suspension not later than 20 days prior to the hearing date, but shall not be required to file an answer. The answer may include affirmative defenses.

C) Form of Documents

i) Documents filed by the vendor shall clearly show the file hearing number and the title of the proceeding in connection with which they are filed, on every page of the document.

ii) Each document filed shall be signed by the vendor or his or her authorized representative or attorney.

6) Hearing Procedures. The Hearing Officer has the authority to conduct and preside over the hearing, to take all necessary action to avoid delay, to maintain order, to ensure compliance with all notice requirements, and to ensure the development of a clear and complete record. The Hearing Officer shall have all powers necessary to conduct a fair and impartial hearing, including, but not limited to, the power to:

A) Regulate the course of hearings, set the time and place for continued hearings, fix times for filing of documents and, in general, conduct the proceedings according to the provisions of this Subpart;

B) Interview parties and direct parties to provide responses, limit the number of times any party may testify, limit repetitious or cumulative testimony, and set reasonable limits on the amount of time each witness may testify;

C) Dispose of procedural requests or similar matters;

D) Make a recommendation to the CPO-GS regarding the matters;

E) Extend the date of any hearing, should the circumstances warrant that action;

F) Afford parties the opportunity to present witnesses;

G) Recommend the appropriate length of a suspension in cases in which it has been established by admission, conviction, or judgment of a court of competent jurisdiction that the vendor engaged in conduct warranting a suspension, or when it has been established, by findings made, in accordance with law or rule, by another public agency, that the vendor has engaged in conduct warranting a suspension; however, the Hearing Officer shall not receive evidence relating to the merits of the prior judicial or administrative decision or findings;

H) Make a report containing findings of fact and conclusions of law. The Hearing Officer shall transmit the entire record, including those findings and conclusions, to the CPO-GS for review and final decision;

I) Permit the recording of testimony at the hearing by a certified court reporter or a mechanical recording device (need not be transcribed unless requested by a party, who shall pay for the transcription of the portion requested).

7) Determination

A) Based on the record as a whole, the CPO-GS will determine any suspension action to be taken.

B) In assessing the record, consideration will be given to the reasonableness in view of surrounding circumstances, corroboration or lack thereof as to important allegations, and inferences that may be drawn from the existence or absence of affirmative facts. This assessment may include a review of documents such as contracts, deliverables, invoices, inspection reports, and correspondence.

C) Upon reaching a final decision, the CPO-GS will notify the vendor of the determination and will set forth the period during which the vendor shall be suspended from bidding or submitting an offer on State contracts, or holding a State contract. Any interim suspension shall be deducted from the period of final suspension.

D) Parties will be sent a copy of the final decision by mail, postage prepaid, certified or registered, addressed to the last known address of the person, affiliated person, or affiliated entity involved. A copy of the final decision will be mailed to each party and to all attorneys of record.

8) Suspension Coverage. A suspension applies to the vendor set forth in the notice of suspension.

A) If the vendor named in the notice of suspension is an individual, the suspension may also apply to any other vendor:

i) In which the suspended individual is an officer or director, or holds any other substantial leadership position, until such time as the individual is severed from the vendor; or

ii) In which the suspended individual has controlling legal or beneficial financial interest, until the suspended individual's interests are divested.

B) In addition to all covered entities and affiliates, the suspension also applies to any entity or affiliate that is formed or organized by a suspended vendor after the date a suspension action was entered.

C) Any suspended vendor, for the term of the suspension, is ineligible to participate as a vendor, material supplier, or lessor of equipment on or in connection with contracts awarded by the State or subcontracts of contracts awarded by the State.

D) a suspension will also be deemed a finding of lack of responsibility.

E) Exception. A suspension action is final, except that the period of time during which a contractor or subcontractor is suspended may be decreased, delayed or rescinded at any time, if the CPO-GS determines it is in the best interest of the State.

F) The CPO-GS may suspend a vendor for a period of time commensurate with the seriousness of the offense, but for no more than 10 years. The suspension will be effective 7 calendar days after receipt of the final notice.

d) Debarment Process

1) The CPO-GS may debar a vendor. Debarment is the permanent suspension of a vendor from doing business with the State. A debarment may only take place in those instances involving bribery or attempted bribery of a State of Illinois officer or employee, or as otherwise allowed or required by law. Bids, proposals or responses received from the debarred vendor or proposing the use of a debarred subcontractor will not be considered as responsive. The debarment will be effective 7 calendar days after receipt of notice, unless an objection is filed. If an objection is filed, the debarment shall not become effective until the evaluation of the objection is completed.

2) Any vendor the CPO-GS proposes to debar pursuant to this Subpart will be furnished written notice by certified or registered mail. Proof that notice was dispatched by means reasonably calculated to be received by the prescribed date shall be prima facie proof that the notice was timely received.

3) The notice of proposed debarment will include the following:

A) The basis for the proposed debarment;

B) A clear and concise statement of the facts and circumstances on which the proposed debarment is based;

C) The legal authority and jurisdiction under which the action is taken;

D) The consequences of failure to respond to the notice; and

E) The right to request a hearing.

4) A notice of proposed debarment may be amended at any time.

5) A copy of the written notice of proposed debarment will be provided to the Procurement Policy Board within 7 days after vendor notification.

6) Vendor Response and Request for Hearing

A) Any vendor who receives a notice of proposed debarment may, within 30 days after receipt of the notice, request a hearing. A vendor that does not request a hearing within 30 days after receipt shall be deemed to have waived any right to a hearing and will be subject to immediate debarment.

B) The vendor may file a written answer to a notice of proposed debarment not later than 20 days prior to the hearing date, but shall not be required to file an answer. The answer may include affirmative defenses.

C) Form of Documents

i) Documents filed by the vendor shall clearly show the file hearing number and the title of the proceeding in connection with which they are filed on every page of the document.

ii) Each document filed shall be signed by the vendor or by his or her authorized representative or attorney.

7) Hearing Procedures. The Hearing Officer has the authority to conduct and preside over the hearing, to take all necessary action to avoid delay, to maintain order, to ensure compliance with all notice requirements, and to ensure the development of a clear and complete record. The Hearing Officer shall have all powers necessary to conduct a fair and impartial hearing, including, but not limited to, the power to:

C) Direct parties to appear and confer for the simplification of issues or presentation of evidence that may be received in written form without prejudice to the parties;

D) Dispose of procedural requests or similar matters;

E) Make a recommendation to the CPO-GS regarding the matters;

F) Extend the date of any hearing, provided that the Hearing Officer may condition the granting of a vendor's request for an extension on the imposition or extension of an interim suspension, should the circumstances warrant that action;

G) Afford parties the opportunity to present witnesses;

H) Recommend the appropriate length of a debarment in cases in which it has been established by admission, conviction, or judgment of a court of competent jurisdiction that the vendor engaged in conduct warranting a debarment, or when the vendor has been established by findings made in accordance with law or rule by another public agency that the vendor has engaged in conduct warranting a debarment; however, the Hearing Officer shall not receive evidence relating to the merits of the prior judicial or administrative decision or findings;

I) Make a report containing findings of fact and conclusions of law. The Hearing Officer shall transmit the entire record, including those findings and conclusions, to the CPO-GS for review and final decision; and

J) Permit the recording of testimony at the hearing by a certified court reporter or a mechanical recording device (need not be transcribed unless requested by a party, who shall pay for the transcription of the portion requested).

8) Determination

A) Based on the record as a whole, the CPO-GS will determine whether the debarment action will be taken.

B) In assessing the record, consideration will be given to the reasonableness in view of surrounding circumstances, corroboration, or lack thereof, as to important allegations, and inferences that may be drawn from the existence or absence of affirmative facts. This assessment may include a review of documents, such as contracts, deliverables, invoices, inspection reports, and correspondence.

C) Upon reaching a final decision, the CPO-GS will notify the vendor of the determination and will set forth the period during which the vendor shall be debarred from bidding, submitting an offer on State contracts, or holding a State contract.

9) Debarment Coverage. A debarment applies to the vendor set forth in the notice of proposed debarment.

A) If the vendor named in the notice of proposed debarment is an individual, the debarment may also apply to any other vendor:

i) In which the debarred individual is an officer or director, or holds any other substantial leadership position, until such time as the individual is severed from the vendor; or

ii) In which the debarred individual has controlling legal or beneficial financial interest, until the debarred individual's interests are divested.

C) Any debarred vendor, for the term of the debarment, is ineligible to participate as a vendor, material supplier, or lessor of equipment on, or in connection with, contracts awarded by the State or subcontracts of contracts awarded by the State.

E) Aa debarment will also be deemed a finding of lack of responsibility.

F) Exception. A debarment action is final, except that the period of time during which a contractor or subcontractor is debarred may be decreased, delayed or rescinded at any time, if the CPO-GS determines it is in the best interest of the State.

e) The CPO-GS shall post the public record of suspensions and debarments that are currently in effect on his or her web page and on the Bulletin.

f) The CPO-GS shall maintain a master list of all suspensions and debarments. The master list shall retain information concerning suspensions and debarments as public records. This public information may be considered in determining responsibility.

g) Nothing in this Section shall prohibit the BEP Council from taking its own separate action under Section 8 of the BEP Act.

Ill. Admin. Code tit. 44, § 1.5560

Added at 36 Ill. Reg. 10729, effective August 6, 2012

Amended at 38 Ill. Reg. 20884, effective 10/31/2014

Amended at 46 Ill. Reg. 10208, effective 6/2/2022