Questioned $12M contract canceled by Illinois procurement chief

SPRINGFIELD — An Illinois official has canceled a $12 million contract she says should have been offered to the highest bidder by Gov. Bruce Rauner’s administration.

Chief Procurement Officer Ellen Daley decreed Tuesday that the Illinois Department of Healthcare and Family Services should have bid the contract with McKinsey & Co.

McKinsey was hired as part of a $60 billion program to expand managed health care for Medicaid patients.

HFS argued that McKinsey’s services are exempt from bid because they’re necessary to prepare for an expected lawsuit. Daley told HFS Director Felicia Norwood in a letter that she is “unconvinced.”

HFS spokesman John Hoffman says agency officials are reviewing “this preliminary decision.”

The McKinsey contract was highlighted by a number of media outlets in recent weeks, including a story by The Times detailing the Rauner administration’s preference for the consulting firm to work on its projects.

No money has been paid to McKinsey under the Medicaid deal. A McKinsey spokeswoman could not immediately comment Tuesday evening.

–Associated Press with Staff reports

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