Procurement reform can save Illinois $500 million per year

Gov. Rauner teamed with State Sen. Chapin Rose of Mahomet and other Republican lawmakers from across the state Feb. 2 to call for changes to Illinois’ antiquated and unnecessarily complex procurement system. They say the changes could save the state $500 million annually.

The reforms would increase flexibility and efficiency, protect and support Illinois businesses, and streamline the procurement reporting structure. Suggested reforms include:

Allowing state agencies to create a prequalified pool of vendors in different categories of supplies and services:
Reducing the burdens on universities through exemptions for certain education-related purchases;
Creating a preference for buying supplies and services from Illinois businesses.
Allowing the state to “piggyback” on the procurements of other states, governmental entities, and purchasing consortiums in order to leverage this large buying power, while at the same time speeding up the procurement process.
Allowing state agencies to create a pre-qualified pool of vendors in different categories of supplies and services, speeding up the process by which the State can receive price quotes and proposals.
Streamlining the annual certification requirements for multi-year contracts, reducing bureaucratic paperwork.

Recently, a number of Republican legislators suggested that savings from procurement reforms could be used to help fund the state’s universities, community colleges and the Monetary Award Program (MAP grants). Due to the ongoing budget impasse, higher education and the MAP grant program have gone unfunded.

Chapin Rose

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