Small Business Set-Aside Subcontract Language~60.pdf

This is regulatory guidance documentation from the State of Illinois Department of Revenue (IDOR) regarding small business set-aside subcontracting requirements under Title 44 Illinois Admin. Code 1.4545(g)(2). The document applies to the FY27 IFTA International Fuel Tax Association Decals procurement opportunity with the State of Illinois. The guidance establishes parameters for how small businesses awarded contracts through set-aside procurements may utilize subcontractors to deliver the required products or services.

A small business entity awarded a contract through a small business set-aside procurement is restricted in its ability to subcontract portions of the contract work. Specifically, subcontracting to businesses not registered in the Illinois Small Business Set-Aside Program (SBSP) is limited to no more than 49 percent of the total contract value. This requirement ensures that the economic benefit of the set-aside contract remains substantially with the small business prime contractor, maintaining the intent of the small business preference program while permitting reasonable subcontracting arrangements for specialized services or capacity needs.