Second $12M Rauner contract with firm canceled

SPRINGFIELD — The Illinois state comptroller has halted payment on a second contract that Gov. Bruce Rauner’s administration signed last year because it’s similar to one a state regulator invalidated.

Comptroller Susana Mendoza notified the Department of Healthcare and Family Services Wednesday that she would not pay a $12.5 million contract with consultant McKinsey & Co. for Medicaid-program assistance.

A day earlier, the state’s chief procurement officer ruled it violated state procurement law.

Mendoza’s letter adds that there will be no further payments on $12.9 million contract with McKinsey signed last year because of its similarities to the one canceled. Millions of dollars have been paid on the earlier deal but Mendoza spokesman Abdon Pallasch did not have a precise number.

Earlier Tuesday, the Chicago Tribune reported that a controversial Department of Children and Family Services data-mining operation was being shutdown. The operation was another no-bid contract approved by the Rauner administration, this one awarded under former DCFS head George Sheldon.

Sheldon resigned in May amidst an ethics probe into contracts he awarded business associates in Florida and as a number of children’s deaths under DCFS care became headlines.

Spokesmen for HFS and McKinsey did not immediately respond with comment.

Associated Press with Staff reports

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