Purchasing and Contract Management Office

Conflicts of Interest

Policy Statement

It is the policy of the University of Illinois System to review financial information disclosed by vendors in accordance with Sections 50-13 and 50-35 of the Procurement Code to determine if a prohibited or potential conflict of interest exists.

A proposed purchase of services or supplies from a vendor with either a prohibited or a potential conflict of interest must comply with the University of Illinois System’s internal review procedures and the review process defined in the Procurement Code.

The University of Illinois System does not have the final authority to determine whether a conflict of interest exists or whether a proposed purchase that presents a conflict may proceed. The University of Illinois System will cooperate with the review process conducted by the Procurement Policy Board and the Executive Ethics Commission as defined in the Procurement Code & Rules.

Employees also must observe the State Officials and Employee Ethics Act and the Employee Gift Policy, and should consider public perception, when making a purchase.
If you have any questions about a prohibited or potential conflict of interest, contact Urbana Purchasing.

Purchases from a vendor with a prohibited or potential conflict are prohibited on university Purchasing Cards (P-Cards) and Travel Cards (T-Cards).

Prohibited conflicts of interest and Potential conflicts of interest can be identified in the following two manners:

• By completion of a Financial Disclosures and Conflicts of Interest form or registration on the Illinois Procurement Gateway, which is required for all purchases of $100,000 or more, and all competitive solicitations;
• Through common knowledge of a prohibited relationship.

PROHIBITED CONFLICTS OF INTEREST

In general, if an individual, their spouse, or their minor child:

• holds an elective office in this state,
• holds a seat in the General Assembly,
• is appointed or employed in any of the offices or agencies of State government [including appointments or employment at the University of Illinois] and receives compensation for such employment in excess of 60% of the Governor’s salary (currently $106,447),
• is an officer or employee of the Capital Development Board, or
• is an officer or employee of the Illinois Toll Highway Authority,

they are prohibited from contracting with the University of Illinois System (or having any direct pecuniary interest in any contract) if the contract will be wholly or partially paid with funds appropriated by the Illinois General Assembly. An individual has a direct pecuniary interest in a contract when the individual is owed a payment or otherwise receives a direct financial benefit in conjunction with performance of a contract, including finder’s fees and commission payments.

Business organizations may not enter into purchase transactions with the University of Illinois System if an individual identified above or their spouse or minor child has an ownership interest in, or is entitled to distributed income from, the organization in an amount that meets or exceeds a prescribed threshold.

Exceptions to the prohibited conflicts of interest include purchases for certain personal services, including contracts for teachers.

POTENTIAL CONFLICTS OF INTEREST

In general, a potential conflict of interest exists if an individual, their spouse, father, mother, son or daughter:

• is, or within the previous three* years was, a State of Illinois employee [including an employee of the University of Illinois System],
• holds, or within the previous three* years held, an elected government (federal, state or local) office,
• is, or within the previous three* years was, held an appointed government (federal, state or local) office,
• is, or within the previous three* years was, a registered State of Illinois lobbyist, or
• is, or within the past three* years was, compensated by a registered election, re-election, or political action committee,

*Two years in the case of a spouse, father, mother, son or daughter.

and has an ownership interest in, or is entitled to receive distributive income from, the potential vendor in an amount that exceeds a threshold prescribed by law.

Individuals are under a continuing obligation to disclose the existence of these relationships for three years (two years in the case of a spouse, father, mother, son or daughter) from the last date of employment, appointment, term, or registration.

CONFLICT OF INTEREST REVIEW PROCESS

All proposed procurements subject to the Illinois Procurement Code (30 ILCS 500) that present prohibited conflicts or potential conflicts of interest are thoughtfully considered by the University of Illinois System and reviewed by independent state authorities as required by the Illinois Procurement Code. (30 ILCS 500/50-35(d))

Prior to entering into a purchase contract with (or making a purchase from) a vendor with a prohibited or potential conflict of interest, the University of Illinois System must complete the following conflict of interest review process to determine whether the purchase is allowed under the Procurement Code.

Potential Conflict of Interest with Red Burst *

If the vendor you are trying to create a iBuy requisition for has been flagged in the University System as a Potential Conflict of Interest (PCOI), you will see a red burst by Supplier Details under the vendor name on the iBuy requisition once you are reviewing your cart. This does not show up until your cart is ready to be submitted.

Please see below for how it appears:

Purchasing and Contract Management Office (PCMO) Processes once the requisition is in the Potential Conflict of Interest queue:

The buyer will reach out to the department for the Financial Disclosure and Conflicts of Interest form be completed by the vendor and returned to the buyer.

• If this vendor has been PCOI vetted by the State in the last year we may have current Financial Disclosures and Conflict of Interest form We will determine that prior to reaching out to the department.
• If the vendor states they have filled out the Financial Disclosures and Conflict of Interest form within the fiscal year, they may provide that one to the department.

Please make sure the form is completed and signed in its entirety or the buyer will need to request edits or additional information, which will slow down the vetting process. Reach out to the buyer with any questions the department or vendor may have.

Once the buyer has received the completed Financial Disclosure and Conflict of Interest forms, they will start the vetting process by reviewing the form and verifying the information with HR regarding the individual(s) stated on the form. When that information is obtained, the buyer will then forward the Financial Disclosures and Conflict of Interest form, the quote, and the information obtained from HR to the appropriate person to start the process of undergoing State review and approval.

• The requisition will remain with the buyer during the PCOI vetting process.
• Please know this part of the process takes that longest and may take up to 30 days to be reviewed by the state purchasing officer (SPO), the Illinois Procurement Policy Board (PPB), and possibly the Chief Procurement Officer (CPO).
• We cannot proceed with the requisition until we receive approvals from all parties.
• We cannot guarantee there will be an approval either.

Upon the buyer receiving notification that the vendor was approved for this purchase, the buyer will move forward approving the requisition. At that time, you will see an internal note from the buyer stating the vendor has been “PCOI fully vetted (Date) – Buyer initials”.

It’s important to know that Financial Disclosure and Conflict of Interest forms are valid for one fiscal year. Once the vendor has been fully PCOI vetted the approval is good for 1 fiscal year as well, if the purchase is under $5,000. If the purchase is over $5,000 the vendor will need to be fully PCOI vetted again, no matter the time frame.

Revised UIN Potential Conflict of Interest Review Process

Purchasing and Contract Management Office (“PCMO”) has implemented a new step to help identify potential conflicts of interest during the vendor selection process.

What’s Changing?

The Unit will no longer be required to provide employment or student information when creating their requisition. 

The PCMO Buyer will review vendors with a UIN in iCard to determine if a vendor has been employed by the University.

• If current or past (within the last three years) University employment is identified, the Buyer will return the requisition with a comment noting the potential conflict of interest.
• The Department will then be responsible for sending the vendor the Financial Disclosures and Conflict of Interest Form, found here, for completion and signature.
• Once completed, the form must be attached to the Internal Notes & Attachments side on the requisition and resubmitted to PCMO for final review and determination.

Action Required by Departments:

• Monitor requisition comments/requisition returns from Buyers.
• Promptly send the disclosure form to vendors when notified.
• Attach and return completed forms to PCMO for review.

Thank you for your cooperation as we continue to enhance integrity and accountability in our procurement processes.

PCMO prefers if departments purchase items/services from vendors that do not have a Potential Conflict of Interest flagged on their profile.

Any questions pertaining to vendors with a *Red Burst, can be sent to Darce Dillavou at dldilla@illinois.edu, urbanapurchasing@uillinois.edu, or 217-333-3505.