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*** UPDATED x3 - Manar, Mendoza respond *** No-bid contract to McKinsey voided by Chief Procurement Officer

Tuesday, Dec 5, 2017

* I was waiting on her letter so I could post it, but yeah, this also happened today…



Not a banner week for the governor and it’s only Tuesday.

* Rep. Greg Harris on Facebook

Illinois’s Chief Procurement Officer has just voided the multi-million dollar no-bid Medicaid consulting contract issued by the Rauner administration that was subject of our hearings last week. This Thursday we will be having hearings on the much larger $60+ billion dollar Medicaid MCO contracts.

*** UPDATE 1 *** Here’s the pertinent part of the letter. Click the pic for a much better image

Seems pretty clear that the contract was not exempt.

*** UPDATE 2 *** From the comptroller’s office…

As Comptroller Mendoza mentioned the last time she appeared before the Human Services Committee, our office has had these matters under review for some time and we are not surprised by the Chief Procurement Officer’s decision to void the contract. We will watch the committee’s hearings with great interest.

* Also…



*** UPDATE 3 *** Press release…

The cancellation of a no-bid consulting contract inked by the Rauner administration in violation of state procurement law raises other red flags about the state’s Medicaid managed care program, Senator Andy Manar said today.

“In my mind, all this does is raise more questions about the Rauner administration’s handling of the overall $60-plus billion managed care contract. I think taxpayers are owed some explanations,” said Manar, a Bunker Hill Democrat and chairman of a Senate appropriations committee.

The state’s chief procurement officer on Tuesday voided the multi-million-dollar no-bid consulting contract between the Rauner administration and Chicago-based McKinsey & Co. The contract was for services related to the state’s Medicaid managed care program.

The process of contracting with insurance companies to be part of the state’s Medicaid managed care system has been cloaked in secrecy while costs ballooned without explanation. Manar said he and other state senators will be looking for answers from the administration during a Senate hearing at 11 a.m. Friday in Chicago.

The hearing will be streamed live at www.ilga.gov.

- Posted by Rich Miller        

66 Comments
  1. - Arsenal - Tuesday, Dec 5, 17 @ 2:40 pm:

    Oh, so the CPO, THAT’S who’s in charge. Got it.


  2. - wordslinger - Tuesday, Dec 5, 17 @ 2:42 pm:

    Who’s in charge of the executive branch?


  3. - WasAnon - Tuesday, Dec 5, 17 @ 2:47 pm:

    Bruce is going to raise holy heck about this.


  4. - Macbeth - Tuesday, Dec 5, 17 @ 2:48 pm:

    Well, I’m happy to see that someone’s in charge.


  5. - Give Me A Break - Tuesday, Dec 5, 17 @ 2:48 pm:

    Madigan and the HFS contracts he controls.


  6. - Anon221 - Tuesday, Dec 5, 17 @ 2:49 pm:

    Rauner might want to review the “Rules of the Road” if he wants to attempt to keep
    his “governor’s license”.

    https://www.illinois.gov/cpo/PathwayToProcurement/Pages/Procurement-Roadmap.aspx


  7. - Anonymous - Tuesday, Dec 5, 17 @ 2:49 pm:

    Not a good look for the world’s most prestigious consulting firm


  8. - Blue dog dem - Tuesday, Dec 5, 17 @ 2:50 pm:

    Fiscal conservatives are really keen on no-bid contracts?


  9. - Thinking - Tuesday, Dec 5, 17 @ 2:52 pm:

    Interesting development. Director Norwood testified last eeek that the Chief Procurement Officer was told about this in advance and was fine with it being exempt, and changed her tune once reported in media. Would have been nice for CPO to have done her job on first place, but she is very cozy with Governors Office…or was up til now.


  10. - 360 Degree TurnAround - Tuesday, Dec 5, 17 @ 2:52 pm:

    If this was hockey, that would be one big check into the boards on Rauner. With a missing tooth.


  11. - Oswego Willy - Tuesday, Dec 5, 17 @ 2:52 pm:

    Rauner should ask for a full investigation as to why such a contract is voided.

    I mean, emails, paperwork, down to the last text message.

    That’s “if” Rauner wants to beef… Rauner should just eat it and move on.


  12. - Anon221 - Tuesday, Dec 5, 17 @ 2:54 pm:

    FY15 Report on Sole Source Contracts from the State. No 16 or 17 posted yet. Interesting read.

    https://tinyurl.com/y798upwo


  13. - 360 Degree TurnAround - Tuesday, Dec 5, 17 @ 2:56 pm:

    Maybe the House can get the CPO to testify on why the contract was voided. Should provide some helpful quotes for campaign commercials.


  14. - Anon221 - Tuesday, Dec 5, 17 @ 3:00 pm:

    From the Update- Just because Rauner wants litigation (get rid of consent decrees, etc.) doesn’t mean he can “rig” the procurement system to try and force litigation to justify litigation. Great call-out by the CPO.


  15. - Michelle Flaherty - Tuesday, Dec 5, 17 @ 3:02 pm:

    $12.8 million contract voided.
    That might be the single largest taxpayer savings produced by the Rauner administration to date.

    Just another “up day” for Gov. Rauner.


  16. - Honeybear - Tuesday, Dec 5, 17 @ 3:04 pm:

    So what financial interests does Rauner have in McKinsey?
    Why were they offered a no bid contract?
    Who is/ or was to benefit from this?
    Is this like the DHS warehouse deal
    Insider jobs that
    Destroy the public trust
    And
    Squander public funds?
    Pinstripe patronage.
    Corruption
    And
    Perfidy
    Come on reporters
    Where there’s smoke…..


  17. - Anon221 - Tuesday, Dec 5, 17 @ 3:06 pm:

    Michelle Flaherty- If that makes it into his campaignin’, budget, or state of the state address, I think all the commenters need to kick in for a steak dinner for you :)


  18. - facts - Tuesday, Dec 5, 17 @ 3:07 pm:

    ==
    - Thinking - Tuesday, Dec 5, 17 @ 2:52 pm:

    Interesting development. Director Norwood testified last eeek that the Chief Procurement Officer was told about this in advance and was fine with it being exempt, and changed her tune once reported in media. Would have been nice for CPO to have done her job on first place, but she is very cozy with Governors Office…or was up til now.==

    The CPO testified AFTER Norwood that she never said it was ok and she wasn’t asked to review it before HFS entered into the contract. However, new changes to the Procurement Code required HFS to notify her of the contract AFTER it was entered. She reviewed it then, and told them there was a problem.


  19. - Anonymous - Tuesday, Dec 5, 17 @ 3:10 pm:

    McKinsey has contracts totaling more than $70M from the Rauner administration. This $12M contract is the tip of the iceberg.


  20. - 360 Degree TurnAround - Tuesday, Dec 5, 17 @ 3:13 pm:

    Rauner has turned springfield into a swamp.


  21. - Insider - Tuesday, Dec 5, 17 @ 3:15 pm:

    Reporters might want to review all the other no-bid contracts to McKinsey. All of them had one overlord in the Governor’s office.


  22. - Cubs in '16 - Tuesday, Dec 5, 17 @ 3:17 pm:

    ===she is very cozy with Governors Office…or was up til now.===

    Wonder what changed…


  23. - Fixer - Tuesday, Dec 5, 17 @ 3:19 pm:

    Wait, this isn’t shakin up Springfield??? I’m shocked.


  24. - Thinking - Tuesday, Dec 5, 17 @ 3:21 pm:

    I Have to say Mark Maxwell at WCIA has been all over these procurement stories.

    Facts: I understand the CPO testified different. A question of who you believe. The CPO used to be CMS’ procurement lawyer and was put in by Rauner’s people because they have been able to control her (up until now). They didn’t like the prior CPO.


  25. - Henry Francis - Tuesday, Dec 5, 17 @ 3:23 pm:

    Good ol boy Trey you say?

    Always keep an eye on the quiet ones.

    Is he last man standing from the Guv’s original team?


  26. - Steve Rogers - Tuesday, Dec 5, 17 @ 3:25 pm:

    @360Turnaround: I found a picture of the hockey check you speak of:

    https://sports.yahoo.com/news/watch-justin-bieber-crushed-into-glass-by-chris-pronger-002926162.html


  27. - 360 Degree TurnAround - Tuesday, Dec 5, 17 @ 3:31 pm:

    Thank you Steve. yes, just need missing tooth now.


  28. - Been There - Tuesday, Dec 5, 17 @ 3:32 pm:

    If I’m reading this right it looks like the chief procurement officer can only be removed for cause and only after a hearing is held.
    http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003005000HArt%2E+10&ActID=532&ChapterID=7&SeqStart=5900000&SeqEnd=6600000


  29. - Juice - Tuesday, Dec 5, 17 @ 3:33 pm:

    Thinking, she was at CMS long before Rauner came into office though, and I have no reason to believe that she is necessarily a “Rauner person”.

    But I suspect she has a view of what the CPO’s role in the process should be that differs from what Matt Brown viewed the role as being, which would likely lead to a lot less antagonism. So its not necessarily about control as much as having a similar view of how the process should go.


  30. - Been There - Tuesday, Dec 5, 17 @ 3:34 pm:

    And I think they have 5 year terms.


  31. - Hunting for the truth - Tuesday, Dec 5, 17 @ 3:35 pm:

    This CPO I hear has been in a few he said / she said situations. I wouldn’t assume anything.


  32. - Anonymous - Tuesday, Dec 5, 17 @ 3:35 pm:

    I am happy we have a Comptroller who is independent of the Governor. Mendoza is providing oversite, rather aiding and abetting Rauner, like his wingperson Munger..


  33. - The Fake Nordberg - Tuesday, Dec 5, 17 @ 3:36 pm:

    =McKinsey has contracts totaling more than $70M from the Rauner administration. This $12M contract is the tip of the iceberg.=

    =I Have to say Mark Maxwell at WCIA has been all over these procurement stories.=

    It’s unfortunate we don’t have anyone in state government who monitors these types issues before they get out of hand. Barely caught $12 of 70 million for one vendor so far.


  34. - Annonin' - Tuesday, Dec 5, 17 @ 3:40 pm:

    Another tribute to GovJunk agenda
    “College Illinois sales halted, program’s future uncertain”


  35. - Just Me - Tuesday, Dec 5, 17 @ 3:46 pm:

    Ya’ know, a whole bunch of people demanded that this contract be canceled. It has been cancelled, so where are those people saying this was a great move?

    It’s like when Raunder signed HB 40, and all anyone could do was thank the sponsors of the bill, but forgot to thank the person who signed the bill.


  36. - Oswego Willy - Tuesday, Dec 5, 17 @ 3:48 pm:

    ===It’s like when Raunder signed HB 40, and all anyone could do was thank the sponsors of the bill, but forgot to thank the person who signed the bill.===

    You mean someone like… Blase Cardinal Cupich?


  37. - Rich Miller - Tuesday, Dec 5, 17 @ 3:48 pm:

    Just Me, I’m a bit confused. Should people be thanking Rauner for this? How so? The CPO canceled a contract that his admin let and stood by.


  38. - JS Mill - Tuesday, Dec 5, 17 @ 3:59 pm:

    Just thinking out loud here but wasn’t there an issue with no bid contracts at CPS not too long ago?

    Where are those people now?

    I wonder if this situation is similar?


  39. - SouthernGirl - Tuesday, Dec 5, 17 @ 3:59 pm:

    What does this mean for the MCO contracts for Medicaid, which were also no-bid? Will they also get a similar letter or is that being left alone?


  40. - DuPage Bard - Tuesday, Dec 5, 17 @ 4:00 pm:

    Just Me- I’m sure candidate Ives will see this just like you described. She won’t see it as an insider deal for the partners of McKinsey, who have a direct line of contact to the Deputy Governor.
    Good catch.


  41. - Amalia - Tuesday, Dec 5, 17 @ 4:02 pm:

    can McKinsey detail any state or local pro bono work lately?


  42. - INeedASuitcase - Tuesday, Dec 5, 17 @ 4:05 pm:

    Every time I read this update (and please don’t take this the wrong way Rich - I LOVE CapitolFax!), I ask the heavens when my employer will let me work remotely so that I can relocate… I, like so many in Illinois, have gotten to the point where I just don’t care anymore. I’ve surrendered. To MJM. To the Machine. To the clout. To taxes and graft so bad they make Kwame Kilpatrick look like a benefactor. To governors in prison. To whatever is the political soup du jour. And as I’m sure many who read this will attest, I’m one of probably millions in this state that feel the same way. In a nation founded on freedom of choice and individuals elected by the people to represent their interests (both in the state and nationally), that’s not sad. It’s disgusting.


  43. - old time golfer - Tuesday, Dec 5, 17 @ 4:20 pm:

    Something tells me Rauners new COF put a halt to this. Nothing like a no bid contract to get the attention of a past federal prosecutor.


  44. - Arthur Andersen - Tuesday, Dec 5, 17 @ 4:33 pm:

    CPO goes up for a Trey and scores! Nothing but net.

    Seriously, as you say, Rich, this is clearly not a no-bid exception situation.


  45. - Michelle Flaherty - Tuesday, Dec 5, 17 @ 4:40 pm:

    Just Me, I think it’s great that the procurement watchdog caught the governor violating procurement rules and shut down this contract. It’s a fantastic development that should inspire some degree of confidence that the system of checks and balances works.

    There.

    Are you happy now?


  46. - Lester Holt’s Mustache - Tuesday, Dec 5, 17 @ 4:43 pm:

    ==Ya’ know, a whole bunch of people demanded that this contract be canceled. It has been cancelled, so where are those people saying this was a great move?==

    You know what, you’re right. Let me be the first to send a big Thank You to (I assume) Ellen H. Daley, CPO for general services, for putting a stop to this incredibly stupid and probably corrupt no-bid contract let out to the Friends of Trey Childress. GREAT MOVE


  47. - Sally - Tuesday, Dec 5, 17 @ 4:45 pm:

    Fake- “It’s unfortunate we don’t have anyone in state government who monitors these types issues before they get out of hand. Barely caught $12 of 70 million for one vendor so far.” That is supposed to be the INDEPENDENT CPO. That’s why the office was et up.

    Juice “But I suspect she has a view of what the CPO’s role in the process should be that differs from what Matt Brown viewed the role as being, which would likely lead to a lot less antagonism. So its not necessarily about control as much as having a similar view of how the process should go.” Maybe the approach by Brown which you describe as antagonistic by others would be called being independent. The CPO isn’t supposed to be BFF with HFS and the Governor; s/he is supposed to act as a watchdog.


  48. - Grandson of Man - Tuesday, Dec 5, 17 @ 4:47 pm:

    Rauner wants unfettered subcontracting with no efficiency/economy safeguards.


  49. - Moderate Condor - Tuesday, Dec 5, 17 @ 5:10 pm:

    I wonder if this has anything to do with those rumors involving the prior general counsel.


  50. - In Need of a Brain - Tuesday, Dec 5, 17 @ 5:18 pm:

    =I just don’t care anymore. I’ve surrendered. To MJM. To the Machine. To the clout. To taxes and graft so bad they make Kwame Kilpatrick look like a benefactor.=

    Ladies and Gentlemen,
    We have our first BECAUSE MADIGAN…..

    If INAS moves out of IL as promised, the collective IQ of the state will rise.


  51. - Juice - Tuesday, Dec 5, 17 @ 5:31 pm:

    Sally, no, it’s not. It is the Chief Procurement Officer for the State. That means they are actively purchasing goods and services for State agencies under the Governor. That means that the agencies and the CPO should find ways to be able to work with one another.

    With that being said, it is set up so that it is appointed by the executive ethics commission instead of by the Governor or Director of CMS so as to try to protect taxpayers from pay-to-play style procurements that have happened in the past. Having some level of independence and being a watchdog are not exactly the same thing. I didn’t mean to say that Brown’s view of the role was better or worse, but I don’t think he would necessarily say that the CPO’s primary function is to act as a watchdog over purchasing since the CPO is tasked with doing the purchasing.

    If you are looking for a watchdog, that is much more in line with the role of the Procurement Policy Board, which is filled with GOP appointees who seem more than willing to overlook some of the more interesting decisions of the administration.


  52. - Sally - Tuesday, Dec 5, 17 @ 5:51 pm:

    Juice-of the 9 ethics commissioners, how many of them were Rauner appointees?

    I thought agencies were ones making purchases and that CPO made sure they did it right. To me, that means the CPO is a watchdog (or supposed to be).


  53. - Person 8 - Tuesday, Dec 5, 17 @ 6:03 pm:

    I guess this will lessen the chance of Munger getting her job back at McKinsey & Co. a year from now.


  54. - wordslinger - Tuesday, Dec 5, 17 @ 6:06 pm:

    So Trey is tres sweet on McKinsey? Perhaps he could explain why he’s so hot on no-bid contracts. Not the best of business practices.

    Who’s in charge of Trey, by the way?

    I guess we should keep an eye peeled as to where Trey lands when he bounces.


  55. - Moderate Condor - Tuesday, Dec 5, 17 @ 6:22 pm:

    Having read more, these seem completely unrelated.


  56. - VanillaMan - Tuesday, Dec 5, 17 @ 6:54 pm:

    Going around the legislative branch spending money that was never appropriated…who does Rauner think he is, Obama?


  57. - Skeptic - Tuesday, Dec 5, 17 @ 7:20 pm:

    “Rauner wants unfettered subcontracting with no efficiency/economy safeguards.” Yup, just look at his contract offer to AFSCME.


  58. - old time golfer - Tuesday, Dec 5, 17 @ 7:27 pm:

    The 70 million looks to be mostly sole source contracts which in itself is very very suspicious. So not one of the other consulting companies can do any of these projects? This is not going to end well for a number of people you can bet on that.


  59. - wordslinger - Tuesday, Dec 5, 17 @ 7:30 pm:

    –The 70 million looks to be mostly sole source contracts which in itself is very very suspicious. –

    I’m sure the Rauner administration would welcome the opportunity to offer the goo-goo, taxpayer-value reasons in a public GA hearing.

    If they ever figure out who’s in charge.

    But someone pushed those no-bid contracts.


  60. - Anonymous - Tuesday, Dec 5, 17 @ 8:03 pm:

    Time for the feds to follow the money.


  61. - Rabid - Wednesday, Dec 6, 17 @ 4:01 am:

    shaking Illinois from its status quo, breaking new ground with new ideas


  62. - Rabid - Wednesday, Dec 6, 17 @ 4:03 am:

    a note from the bank robber


  63. - Rabid - Wednesday, Dec 6, 17 @ 4:10 am:

    I’am not in charge is plausible deniability when the Feds come


  64. - Rabid - Wednesday, Dec 6, 17 @ 4:58 am:

    This must be one of those Rauner reforms I here so much about


  65. - Rabid - Wednesday, Dec 6, 17 @ 8:35 am:

    is this some of that completed office work that is all the rage now


  66. - Punlius - Wednesday, Dec 6, 17 @ 8:48 am:

    Senator Manar, I am sure testimony will be its madigan’s fault


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