Ill. Admin. Code tit. 44, § 2600.1110 – Resolution of Contract Controversies

a) The Procurement Officer shall have authority to resolve controversies and may accept delivery in accordance with contract requirements as resolution of a complaint.
b) Subject to the approval of the Procurement Officer, the vendor may adjust a contract by substituting an alternative specification or reducing the contract amount to compensate for a failure to provide full performance.
c) In any of the following cases, the Procurement Officer shall have the right to terminate or rescind any contract entered into under this Part:
1. 1) The successful bidder fails to furnish a satisfactory performance bond within the time specified.
2. 2) The vendor fails to make delivery at the place or within the time specified in the contract or as ordered by SBEL.
3. 3) Any supplies or services provided under the contract are rejected (for not meeting specification, not conforming to sample, or not being in good condition when delivered) and are not promptly replaced by the vendor. If there are repeated rejections of the vendor's supplies or services, this shall be grounds for termination or rescission, even though the vendor offers to replace the supplies or services promptly.
4. 4) The vendor is guilty of misrepresentation (for example, misbranding of food or drugs) in connection with another contract for the sale of supplies or services to SBEL such that the vendor cannot reasonably be depended upon to fulfill the vendor's obligations as a responsible vendor under any of the vendor's contracts with SBEL.
5. 5) The vendor should be adjudged bankrupt; enter into receivership or make a general assignment for the benefit of creditors due to insolvency; disregard laws, rules, or instructions of the Procurement Officer; or act in violation of any provision of the contract; or if the contract conflicts with any statutory or constitutional provision of the State of Illinois or of the United States.
6. 6) The vendor obtained the contract by fraud, collusion, conspiracy or other unlawful means.
7. 7) Any other breach of contract or other unlawful act by the vendor.
d) Withholding Money to Compensate State for Damages
If a contract is terminated or rescinded under this Section, SBEL may deduct from whatever is owed the vendor on that or any other contract an amount sufficient to compensate the State of Illinois for any damages suffered by it because of the vendor's breach of contract or other unlawful act on the vendor's part on which the cancellation is based.