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

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

The Chief Procurement Officer just voided the $12.8 million no-bid consulting contract @GovRauner's administration gave out to McKinsey. HFS Director Norwood said the consultation was exempt from bidding process according to state law.

— Mark Maxwell (@WCIA3Mark) December 5, 2017

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…

REMINDER: Per @wcia3mark, a McKinsey partner “maintains a direct line of communication” with the highest levels of Rauner’s office #twill pic.twitter.com/aPZ9gvdhVl

— Illinois Working Together (@IllinoisWorking) December 5, 2017

*** 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
Tuesday, Dec 5, 17 @ 2:36 pm

Comments

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

Comment by Arsenal Tuesday, Dec 5, 17 @ 2:40 pm
Who’s in charge of the executive branch?

Comment by wordslinger Tuesday, Dec 5, 17 @ 2:42 pm
Bruce is going to raise holy heck about this.

Comment by WasAnon Tuesday, Dec 5, 17 @ 2:47 pm
Well, I’m happy to see that someone’s in charge.

Comment by Macbeth Tuesday, Dec 5, 17 @ 2:48 pm
Madigan and the HFS contracts he controls.

Comment by Give Me A Break Tuesday, Dec 5, 17 @ 2:48 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

Comment by Anon221 Tuesday, Dec 5, 17 @ 2:49 pm
Not a good look for the world’s most prestigious consulting firm

Comment by Anonymous Tuesday, Dec 5, 17 @ 2:49 pm
Fiscal conservatives are really keen on no-bid contracts?

Comment by Blue dog dem Tuesday, Dec 5, 17 @ 2:50 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.

Comment by Thinking 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.

Comment by 360 Degree TurnAround 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.

Comment by Oswego Willy Tuesday, Dec 5, 17 @ 2:52 pm
FY15 Report on Sole Source Contracts from the State. No 16 or 17 posted yet. Interesting read.

https://tinyurl.com/y798upwo

Comment by Anon221 Tuesday, Dec 5, 17 @ 2:54 pm
Maybe the House can get the CPO to testify on why the contract was voided. Should provide some helpful quotes for campaign commercials.

Comment by 360 Degree TurnAround Tuesday, Dec 5, 17 @ 2:56 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.

Comment by Anon221 Tuesday, Dec 5, 17 @ 3:00 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.

Comment by Michelle Flaherty Tuesday, Dec 5, 17 @ 3:02 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…..

Comment by Honeybear Tuesday, Dec 5, 17 @ 3:04 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

Comment by Anon221 Tuesday, Dec 5, 17 @ 3:06 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.

Comment by facts Tuesday, Dec 5, 17 @ 3:07 pm
McKinsey has contracts totaling more than $70M from the Rauner administration. This $12M contract is the tip of the iceberg.

Comment by Anonymous Tuesday, Dec 5, 17 @ 3:10 pm
Rauner has turned springfield into a swamp.

Comment by 360 Degree TurnAround Tuesday, Dec 5, 17 @ 3:13 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.

Comment by Insider Tuesday, Dec 5, 17 @ 3:15 pm
===she is very cozy with Governors Office…or was up til now.===

Wonder what changed…

Comment by Cubs in '16 Tuesday, Dec 5, 17 @ 3:17 pm
Wait, this isn’t shakin up Springfield??? I’m shocked.

Comment by Fixer Tuesday, Dec 5, 17 @ 3:19 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.

Comment by Thinking Tuesday, Dec 5, 17 @ 3:21 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?

Comment by Henry Francis Tuesday, Dec 5, 17 @ 3:23 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

Comment by Steve Rogers Tuesday, Dec 5, 17 @ 3:25 pm
Thank you Steve. yes, just need missing tooth now.

Comment by 360 Degree TurnAround Tuesday, Dec 5, 17 @ 3:31 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

Comment by Been There Tuesday, Dec 5, 17 @ 3:32 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.

Comment by Juice Tuesday, Dec 5, 17 @ 3:33 pm
And I think they have 5 year terms.

Comment by Been There Tuesday, Dec 5, 17 @ 3:34 pm
This CPO I hear has been in a few he said / she said situations. I wouldn’t assume anything.

Comment by Hunting for the truth 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..

Comment by Anonymous Tuesday, Dec 5, 17 @ 3:35 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.

Comment by The Fake Nordberg Tuesday, Dec 5, 17 @ 3:36 pm
Another tribute to GovJunk agenda
“College Illinois sales halted, program’s future uncertain”

Comment by Annonin' Tuesday, Dec 5, 17 @ 3:40 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.

Comment by Just Me Tuesday, Dec 5, 17 @ 3:46 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?

Comment by Oswego Willy 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.

Comment by Rich Miller Tuesday, Dec 5, 17 @ 3:48 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?

Comment by JS Mill 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?

Comment by SouthernGirl Tuesday, Dec 5, 17 @ 3:59 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.

Comment by DuPage Bard Tuesday, Dec 5, 17 @ 4:00 pm
can McKinsey detail any state or local pro bono work lately?

Comment by Amalia Tuesday, Dec 5, 17 @ 4:02 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.

Comment by INeedASuitcase Tuesday, Dec 5, 17 @ 4:05 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.

Comment by old time golfer Tuesday, Dec 5, 17 @ 4:20 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.

Comment by Arthur Andersen Tuesday, Dec 5, 17 @ 4:33 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?

Comment by Michelle Flaherty Tuesday, Dec 5, 17 @ 4:40 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

Comment by Lester Holt’s Mustache Tuesday, Dec 5, 17 @ 4:43 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.

Comment by Sally Tuesday, Dec 5, 17 @ 4:45 pm
Rauner wants unfettered subcontracting with no efficiency/economy safeguards.

Comment by Grandson of Man Tuesday, Dec 5, 17 @ 4:47 pm
I wonder if this has anything to do with those rumors involving the prior general counsel.

Comment by Moderate Condor Tuesday, Dec 5, 17 @ 5:10 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.

Comment by In Need of a Brain Tuesday, Dec 5, 17 @ 5:18 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.

Comment by Juice Tuesday, Dec 5, 17 @ 5:31 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).

Comment by Sally Tuesday, Dec 5, 17 @ 5:51 pm
I guess this will lessen the chance of Munger getting her job back at McKinsey & Co. a year from now.

Comment by Person 8 Tuesday, Dec 5, 17 @ 6:03 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.

Comment by wordslinger Tuesday, Dec 5, 17 @ 6:06 pm
Having read more, these seem completely unrelated.

Comment by Moderate Condor Tuesday, Dec 5, 17 @ 6:22 pm
Going around the legislative branch spending money that was never appropriated…who does Rauner think he is, Obama?

Comment by VanillaMan Tuesday, Dec 5, 17 @ 6:54 pm
“Rauner wants unfettered subcontracting with no efficiency/economy safeguards.” Yup, just look at his contract offer to AFSCME.

Comment by Skeptic Tuesday, Dec 5, 17 @ 7:20 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.

Comment by 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. –

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.

Comment by wordslinger Tuesday, Dec 5, 17 @ 7:30 pm
Time for the feds to follow the money.

Comment by Anonymous Tuesday, Dec 5, 17 @ 8:03 pm
shaking Illinois from its status quo, breaking new ground with new ideas

Comment by Rabid Wednesday, Dec 6, 17 @ 4:01 am
a note from the bank robber

Comment by Rabid Wednesday, Dec 6, 17 @ 4:03 am
I’am not in charge is plausible deniability when the Feds come

Comment by Rabid Wednesday, Dec 6, 17 @ 4:10 am
This must be one of those Rauner reforms I here so much about

Comment by Rabid Wednesday, Dec 6, 17 @ 4:58 am
is this some of that completed office work that is all the rage now

Comment by Rabid Wednesday, Dec 6, 17 @ 8:35 am
Senator Manar, I am sure testimony will be its madigan’s fault

Comment by Punlius Wednesday, Dec 6, 17 @ 8:48 am