Business Office

Affiliated departments and school


Procurement Act
Effective July 1, 2003 - Departmental Issues

Disclosure, Conflict of Interest, and Compliance with Procurement Code

Requirements

All offers, whether solicited or unsolicited, in response to a competitive Sealed Bid, Request For Proposal, or Request For Information, must include a disclosure of specified financial information by the bidder, proposer, or contractor.

Offers that fail to provide the specified disclosure information cannot be accepted and are considered as non-responsive to the competitive sealed bid, Request for Proposal, or Request For Information.

In addition to information regarding name, ownership interest, type of ownership, and notice of potential conflict based on beneficial relationship, all disclosures must note any other current or pending contracts, proposals, leases, or other ongoing procurement relationships the bidding, proposing, or offering entity has with any other unit of State government.

In the case of a real or direct conflict of interest (Purchase from a University officers, employee, or spouse, or minor child of an employee), an exemption to authorize such purchase can be made with appropriate approval.

Approval is effective when it has been properly documented and includes the name of the individual, basis for the conflict, reason for exemption, and received the appropriate authorizing signature(s).

In the case of an identified potential conflict of interest (Purchase from entity having beneficial relationship other than a University officer, employee, or spouse, or minor child of an employee), the transaction will be reviewed by the Governor, or an ethics board or commission designated by the Governor, when it involves a competitively bid contract exceeding $250,000 or a contract for personal services or other contract in excess of $50,000.

If any contract is entered into or purchase or expenditure of funds made in violation of the Procurement Code, the contract may be declared void by the Chief Procurement Officer.

Whoever violates the Procurement Code, or rules promulgated under it, is guilty of a Class A misdemeanor, and willful violation, directly or by accessory, is subject to immediate dismissal.

Department Considerations

Department should be aware that a standard disclosure form has been developed and will be incorporated in every competitive Sealed Bid, Request For Proposal, or Request For Information issued by the Purchasing Division.

Department should be aware that suppliers that fail to provide the required disclosure information in response to any solicitation cannot be considered for award. This requirement means that the department may not be able to consider an otherwise low bidder who responds to a University solicitation.

Requests for exemption on a real or direct conflict of interest transaction can be reviewed and handled at the campus level. Department should consider that such requests will have to be submitted for approval to the President of the University. Such requests for exemption for conflict of interest purchases must include a letter from the Dean or Department Head and address why the requested purchase is essential to University operations (in the case of officers or employees), or beneficial to University operations (in the case of immediate family of officers or employees), and why the purchase can only be economically made from such source. This review process will take additional time to complete and cannot be made on an after the fact basis. Department may want to undertake a market evaluation to determine if there is any alternate source of supply in lieu of a conflict of interest supplier.

Requests for exemption on such conflict of interest transactions will have to be submitted for external review and approval in addition to receiving the necessary internal reviews and approvals. This external review process will take additional time to complete and cannot be made on an after the fact basis. Department may want to undertake a market evaluation to determine if there is any alternate source of supply in lieu of a conflict of interest supplier.

Department should consider that transactions submitted on an after the fact basis may be in violation of the Procurement Code if they were not handled in accordance with the specified method of source selection and were not properly solicited through a public advertisement.

Department faculty and staff should be advised that violations of the Procurement Code are subject to legal penalties, and in the case of deliberate violations, the penalties may include dismissal.



University of Illinois at Urbana-Champaign
Business Office
School of Chemical Sciences
340 Noyes Lab
MC-712 Box D-3
600 South Mathews Ave.
Urbana, IL 61801
Hours:
Monday thru Friday
8:00 a.m. to 4:30 p.m.
Please send comments and suggestions to:
scs-procreimb [at] scs [dot] illinois [dot] edu


For accounting and grants questions, contact
scsgrants [at] scs [dot] illinois [dot] edu