By THOMAS B. BLANCO Selling to the state: Competition, not connections Illinois consumes an extraordinary amount of good services each year. Businesses who wish
to sell to the state are well advised to direct their sales promotion to the consuming office, rather than the buying office NO MAGIC, no connections, no inside
dope is needed for an individual or a
firm to do business with the state of
Illinois. Although a sizable portion of
the business community believes a
friend in high places is mandatory,
nothing could be further from the truth.
To have a bid considered by the state
for some service or product, you need
not have an "in" with some privileged
state official. I say this from many
years of experience as an employee of
the Procurement Division of the
Department of General Services. But
this doesn't mean that personal
salesmanship doesn't count—it may,
very much. It is the job of the Procurement Division to see to it that state agencies are
supplied with the goods and services
they need quickly, efficiently and
economically. Professional buyers for
the state seek to get the most value for
every tax dollar expended. They know
that increased competition can help
bring about such a goal and they welcome the opportunity to help firms get
on the state bidding lists. The Procurement Division buys exclusively through
the medium of competitive bids as prescribed by law. Techniques and procedures may vary with the type of goods
or size of the purchase but all are designed to produce maximum competition. Purchases are usually made at
highly competitive prices and, in some
instances, retailers have difficulty in being competitive on volume purchases.
Many retailers, however, compete
successfully for a share of state
business. Locating the proper agency or
purchasing official for a particular
product or service can be difficult at
times. The problem becomes less formidable, however, when information is
secured from the business offices of
various state agencies. In general, the Procurement Division
buys materials, supplies, equipment.
printing, printing paper stock,
stationery and envelopes for all state
agencies under the jurisdiction of the
governor and other elected state officials. Other contracts are made by the
Real Estate Management Division
within the Department of General Services, which arranges for the leases of
office and storage space as well as other
facilities for departments and agencies.
The Capital Development Board is
charged with the responsibility of
handling all contracts for new construction as well as rehabilitation and
remodeling of existing facilities. Both
professional and specialized services are
usually handled by the individual state
agencies requiring such services.
Universities are permitted by statute to
make their own purchases. Sales promotion is important in selling to the state. In state government the
consumers are the engineers, architects,
doctors, chemists, scientists, artists,
educators, librarians, technicians, institution business managers and building and plant managers and various
other professional and administrative
officials. Often overlooked is the importance of directing sales promotion to
the consuming offices as distinguished
from the buying offices. In government,
as in commercial markets, it is the consumer who must be satisfied that a
product is the best and the most
economical one available. It is the consuming office, not the purchasing agent,
that ultimately pays for products. Selling to the consuming offices as
well as to the buying offices is particularly important if a completely new
type of product is being considered or if
the product has undergone major
changes or improvements. This does not
mean that businessmen should bypass 372 / Illinois Issues / December 1975
A past president of the National Association
of State Purchasing Officials, he served
10 years as purchasing agent for the state
of Illinois. Blanco is a former member of
the Springfield Board of Education and is
now a partner in his own consulting firm,
Blanco and Boyle.
the buying officials. In all instances, buying officials have the basic responsibility for obtaining needed products or services at the lowest prices and for providing both buyers and sellers with assistance in obtaining maximum bidding opportunities. On the other hand, buying officials arc not charged with promoting the sales of any firm's product. Therefore, it is frequently important that the promotional work required to establish the qualities of a product at the consuming level be done by the seller.
Business firms can sell to the state most effectively by making a personal visit to the offices of the buyers. As in the private sector, there is no substitute for the personal touch. Buyers can advise sellers as to where and to whom products should be shown. By acquainting buyers with their products, firms can be sure of receiving an opportunity to quote on future agency specifications for such products.
If a business firm wants to receive invitations to bid on items which the Department of General Services buys for the state of Illinois, it should apply to have its name placed on the mailing list or "bidders' list," for the type of items it sells. Bidders' lists are maintained for -various commodity and equipment classifications established by the purchasing division. Applications for inclusion on a bidders' list should be made in writing or in person to the Department of General Services, Procurement Division, 801 State Office Building, Springfield, Illinois 62706. The request should indicate the various items the firm can furnish. After receiving the vendor's or seller's request, the Procurement Division will provide an application form requesting information as to the type of business, bank references, sources of supply and other related information. The vendor may also be asked to submit a financial statement. If the application and financial statement (when required) give sufficient evidence of the vendor's financial and business responsibility, and no reason is known why the vendor would not be a responsible bidder, the firm is placed on the bidders' list for the items shown on the application form. Printing contractors and envelope manufacturers must generally be able to perform the work on their own premises.
The Procurement Division will advertise each month, as required by law, in the official state newspaper for bids on various items to be bought during the next month. When the state is ready to buy such items, it will send invitations to bid to firms on the bidders' lists. The invitation will show the items to be purchased, quantities, specifications, name and location of the requisitioning agency to which delivery is to be made, the date or dates when delivery is to be made, or the period during which deliveries will be ordered and must be made. The invitation to bid will be sent out by mail, except in cases of emergency. In such cases it may be sent out by telegram or made by telephone. In all cases the date, hour and place of the public bid opening will be indicated. The bid submitted by the seller should be prepared with extreme care. The bid constitutes an offer to enter into a contract with the state, which, if accepted, is binding. If the firm's product meets the specifications, the price quoted in the bid determines the chances of the firm receiving the award.
All bids are opened publicly at a time and date designated in the bid invitation. Bidders or their representatives may attend the bid opening and listen to the reading of all bids submitted and may make a record of all prices or conditions offered by the various bidders. After bids have been opened and tabulated, they are analyzed in detail by buyers to determine which bidders meet all conditions of the bid invitation and offer the lowest prices. When a decision has been reached the successful bidder is notified through issuance of a written order or orders. Unsuccessful bidders are not notified. Bid tabulations as well as files of bids submitted are available for public inspection during regular office hours.
Billings to the state must be on a state voucher form supplied by the ordering agency. The voucher form must be in agreement with the description of items and prices shown on the purchase order. Submission of correct invoices helps speed up payment. Normally, payment is made in 30 to 45 days after receipt of invoice or delivery of goods, whichever is later.
Purchasing rules and regulations may be secured from any governmental agency that has authority to make purchases. Interested vendors should acquaint themselves with the rules and regulations prior to submitting bids. Most rules will cover in detail such items as: sealed bids, open bids, bid bonds, submission of samples, cash-trade-quality discounts, tie bids, grounds for rejection of bids, supplementary purchases, performance bonds, inspection of goods delivered, assignments by successful bidders, cancellation of contracts by the state and compensation for damages, small business set-asides, and requirements covered by the Fair Employment Practices Commission regulations.
What did the delegates say? Lousin, former parliamentarian of the
Illinois House (1973-74) contends that some
delegates to the convention used the record
to try to build their intent into the Constitution (rather than the intent of all the delegates). She suggests that "it is inevitable that the legislature will adopt the same
strategic maneuvers, including deliberately
making a record for court cases, that the
convention used." The legislature now keeps a verbatim record of debates. Lousin, a contributor to Illinois Issues. now teaches at John Marshall Law School,
Corrections:
THE GOVERNOR'S proposal to place
functions of comprehensive health planning
in the Department of Public Health was not
lost when H.B. 1593 was sent to the House
study calendar as reported in "The state of
the State" (October, p. 312). Instead, S.B.
418 (Demuzio, D., Carlinville) was amended
to accomplish this change and became law as P.A. 79-939. H.B. 2123(Getty, D., Chicago), providing for a statewide uniform probation system
should have been mentioned; it passed the. House and went to the Senate Judiciary Committee. Another bill that should have been mentioned was H.B.I 842 (Washington D., Chicago), a 60-day trial proposal, which
was sent to the House study calendar.
December 1975 / Illinois Issues / 373
The Illinois Supreme Court has "embarked on the course of looking behind the
text of the Constitution to the record of the
constitutional convention itself in four of
every five cases" involving the new Constitution. This point is made by Ann Lousin in the John Marshall Journal of Practice and Procedure, (Winter Term 1974-75) in her article, "Constitutional Intent: The Illinois
Supreme Court's Use of the Record in Interpreting the 1970 Constitution."
Governor's program