Reformers were unable this spring to sell Illinois lawmakers a wholesale revision in the way Illinois goes about buying goods and services. A comprehensive overhaul of state purchasing procedures contained in H.B. 497 cleared the House but stalled in the Senate Executive Committee. It failed in part because of the enormity of the change and lawmakers' reluctance to act without knowing all the implications. And it ran into opposition from those who want to be free to do their own purchasing.

Based upon the American Bar Association's model procurement code and recommendations from the Council of State Governments, the bill resulted from two years work and 14 public hearings conducted by a subcommittee of the Legislative Audit Commission. (For more on the legislation see Illinois Issues, February 1986, pp. 4-5.) In assembling the package, the commission brought vendors into the act and H.B. 497 enjoyed the support of groups representing architects, engineers and the construction industry.

Current purchasing requirements are contained in 17 major acts and more than 100 separate statutes that date back 70 years. The proposed revision would:

• Decentralize purchasing authority among 15 chief procurement officers (for code agencies, the five constitutional officers, the courts, the four legislative leaders, and the four public university systems). The purchasing would have to be done in accordance with rules promulgated by the Department of Central Management Services and would be uniform for all purchases.

• Require Central Management Services to publish weekly bulletins on upcoming procurement by all agencies, to maximize competition. The information would be accessible by computer.

• Establish a procedure for soliciting lease proposals for real property and require a needs evaluation before purchase or lease of buildings or land.

• Allow procurement by other than competitive sealed bids, a method suitable for purchase of paper clips and nails but more difficult for things like consulting services. Telecommunications, electronic data processing and duplicating equipment, leases of real property and award of concession contracts would be brought under state statutes. When price is not the sole criteria in awarding a bid, the specifications must so state.

• Require proposals for professional and electronic data processing services in excess of $50,000 (an increase from the $25,000 first proposed), with an exception for circumstances where specific expertise is required.

• Require that architectural, engineering and surveying services be procured under a two-step procedure, where firms are ranked based on qualifications and price is negotiated with the most qualified.

• Establish a technology review board to plan and coordinate purchases of telecommunications, electronic data processing and automated office equipment.

• Bring state agencies that are exempt from the present act under the new regulations.

The new purchasing act sailed through the House 92 to 1, then stalled in the Senate. What happened? Senate co-sponsor Vince Demuzio (D-49, Carlinville) is frank: "Sen. [Aldo A.] DeAngelis [R-40, Olympia Fields] and I didn't round up enough votes." Demuzio says neither party's leadership was enthusiastic about the bill and that if he had called it for a vote, it would have been defeated in committee.

DeAngelis says the House vote may be misleading because opponents focused their efforts in the Senate. He says he heard concerns that by setting rules for everyone the Department of Central Management Services would become purchasing czar, and that the new law left too little opportunity for accommodating unique needs in certain situations. And DeAngelis suggests the stall may have reflected dissatisfaction by Senate leadership with some of Auditor General Robert G. Cronson's activities.

The measure did not pass the House clean, however. Republicans added an amendment that they said would extend the purchasing act to Chicago. Democrats contend it would not cover the city. Rep. James F. Keane (D-28, Chicago), the House sponsor, said when the bill cleared the lower chamber he expected to have the "Chicago amendment" taken off in the Senate. It never got that far.

Opposition came from the University of Illinois and from the Illinois Toll Highway Authority. Kirk Hard, director of state relations for the University of Illinois, said they opposed state review of research and academic, but not administrative, computer acquisitions. He termed it "ludicrous" to require the scientists developing the next generation of supercomputers to submit to such planning. Hard said, however, that Keane had been willing to work with the university to resolve other differences. And, he added, "We're not big enough to hang this thing up."

Keane agreed. He said the Toll Highway Authority, not the University of Illinois, had the clout to block the purchasing act. He believes he could have passed the bill had he been willing to exempt the group, but fears one exception will open the law up to others and undermine the effort to take a comprehensive view of procurement.

The Toll Highway Authority lobbied lawmakers with the argument that it should not be included because it does not receive funds appropriated from the state treasury. Arthur Breitling, the authority's manager of materials management, says his group is limited geographically to the state's northern third. "We feel that our purchases are unique to our area," he argues. Some within state goverment strongly support the revised bill. Deputy Comptroller Thomas R. Dodegge testified on behalf of the bill. He says it clarifies bidding procedures and cleans up language. "It consolidates and puts into a better form the current statutory requirements for procurement," Dodegge says.

Businesses that provide goods and services to the state also lobbied for the bill. The Illinois Construction Industry Committee, a group of large contractors and highway builders, worked with Keane's group to devise regulations acceptable to all. Robert Swain, the organization's legislative counsel, calls the revised purchasing measure a "nuts and bolts good government bill." He said its failure in the Senate disappointed his members.

Also in support is the Illinois State Chamber of Commerce. Legislative manager Don Hughes says his organization favored the effort because it would open up the purchasing process and allow small businesses to compete: "It would simplify the bidding procedure and make it easier to do business with the state."

The purchasing act is stuck but not dead and proponents have more work ahead. Demuzio says he avoided defeat by not calling it for a vote: "It ought to pass; we've worked on it for two years. We continue to work on the thing.'' DeAngelis, too, thinks the bill will pass but says few more exceptions are needed. And he adds, "I don't think the legislation is as landmark as it may be portrayed."