How to sell to Illinois state agencies

Know who you are selling to

The State of Illinois does not buy through one central desk. Several Chief Procurement Officers each handle their own area, and each one publishes its own volume of the Illinois Procurement Bulletin. You can browse the bulletin without an account, but most volumes ask you to register before you can download solicitations or receive email alerts.

Two other points are worth knowing early. Construction and transportation work through the Capital Development Board or IDOT requires you to prequalify before you bid, so start that early if it is your field. And the City of Chicago, the counties and most school districts run their own purchasing systems, separate from the State's.

Step 1: Be in good standing with the Secretary of State

If you are a legal entity such as an LLC or a corporation, you must be in good standing with the Illinois Secretary of State before you submit a bid, offer or proposal. This applies to out-of-state companies too. Sole proprietors are treated differently, so check with the State if that is you.

Step 2: Register with the State Board of Elections, if you will pass $50,000

If your bids, proposals and contracts with the State add up to more than $50,000 in a year, counting the solicitations you have open, you must register with the Illinois State Board of Elections and obtain a certificate that confirms it. Many first-time bidders skip this because they are only thinking about one small bid, then find out the total counts.

Step 3: Get your IDHR eligibility number

The Illinois Department of Human Rights issues a public contracts eligibility number. You get it by filing an Employer Report Form (the PC-1) with the IDHR Public Contracts Unit. You will need this number again when you register in the Illinois Procurement Gateway.

Step 4: Register in BidBuy

BidBuy is where the State posts many of its solicitations and where you submit your response. Registering gets you bid notifications. During registration you choose your commodity codes (NIGP codes), and BidBuy uses them to send you the bids that match. Choose every code that honestly describes what you sell. If you pick too few, you will miss bids you could have won.

Step 5: Complete the Illinois Procurement Gateway

The Illinois Procurement Gateway (IPG) is where you file the vendor disclosures that go with your solicitation responses, so you do not have to submit the paper forms each time. It also creates your basic vendor profile in BidBuy, and it is the route to certification for the Small Business Set-Aside Program.

Have these ready before you start:

• Your FEIN (or SSN, for a sole proprietor)
• Your IDHR public contract number
• Your State Board of Elections registration number, if you needed one
• Your Secretary of State authorization to do business in Illinois
• An approval letter, if you are enrolled in the Business Enterprise, Veteran Small Business or Small Business Set-Aside program
• The names of the company owners and your company financial information

Small business and diversity programs

Illinois runs three programs that can open doors. They set goals, not guarantees, so you still have to win on price and quality.

• Business Enterprise Program (BEP): for businesses owned by minorities, women and persons with disabilities, run by the Commission on Equity and Inclusion. The State's goal is to award 30% of State contracts to qualified BEP businesses.
• Veterans Business Program (VBP): run by the same commission, for businesses owned by qualified veterans and service-disabled veterans.
• Small Business Set-Aside Program: run through the Chief Procurement Officer's office, it shelters Illinois small businesses from competing against large ones. The State's goal is to award 10% of State contracts to qualified small businesses in Illinois.

Certification takes paperwork and time, so apply for the program that fits you before you need it, not the week a bid is due.

Two rules that catch new bidders

Political contributions. Section 50-37 of the Illinois Procurement Code generally prohibits contributions to the Governor, the Lieutenant Governor and declared candidates for those offices, and the prohibition reaches affiliated entities and persons. A violation can make your State contract voidable, and repeated violations can make it void. Read the rule before anyone in your company donates.

Contact during a bid. State employees must report certain communications with potential vendors. In practice, send your questions in writing to the contact named in the solicitation and keep a copy.

Watch out for fake award letters

The Department of Commerce and Economic Opportunity has warned about fraudulent “notice of award” letters that falsely claim to come from the department. If a letter promises a contract you never bid on, do not respond. You can report it to the FTC or to the FBI's Internet Crime Complaint Center.

Where to get help

The Illinois APEX Accelerator (formerly known as the PTAC) helps businesses sell to local, state and federal governments. It offers one-on-one counseling, help with registrations and bid packages, market research and bid matching. Ask your local center what is covered and whether any fees apply.

A sensible first 90 days

1. Weeks 1 to 3: finish the registrations above, in order.
2. Weeks 3 to 4: set your commodity codes and turn on bid notifications.
3. Month 2: read five past solicitations in your category. Note the forms, insurance and payment terms they ask for.
4. Month 3: bid on one or two small opportunities that fit you, or offer to subcontract to a company that already holds a contract.

The first bid is mostly practice. Treat it that way and the second one will be much stronger.