State procurement officer cancels $12 million contract

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.”

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