Procurement controversies -- Chicago, Ill.,

City probes big no-bid deal
$26 MIL. | Firm tied to ex-official got contract extension

The Daley administration is conducting an internal investigation to determine why a technology consulting firm that employs a former city budget director got a $26 million contract expansion from the Health Department without competitive bidding or sign-off from the Sole Source Advisory Board.

The $26 million expansion was the second modification of EKI’s no-bid contract. An increase of that magnitude should have sparked a new round of competition. At the very least, it should have been authorized by the Sole Source Advisory Board.

As for the $26 million expansion of EKI’s contract, Johnson said, “As far as I know, it was within the authority of the chief procurement officer to do that. He looked at it. He talked it over with the Health Department and that’s what they decided to do.”