How to Screw Small Businesses

Sign a contract with them for state work, don’t submit the contract for a while and then claim that the inbetween time is done at the business’ own risk.

Thompson is part of a growing class of vendors whose contracts are filed more than 30 days after they begin work. And at least on the state?s paper, she is among the burgeoning class of vendors who started work without a contract.

All this is occurring as Blagojevich consolidates management responsibilities under the umbrella of CMS. His administration is centralizing management of contracts and state facilities, as well as public relations specialists and legal counsel, within CMS.
CMS spokesman Willy Medina said contract delays must be considered in that context.

?You?ve got to work with all the departments that have their own set of people,? he said. ?You?ve got to make sure what they have, what people they have and what contracts they have, so that you know what you?re inheriting. It?s almost like a merger.?

But Keith Taylor, chief of staff for Hynes, has questioned whether CMS is up to the task. Hynes, like Blagojevich, is a Chicago Democrat. But as the state?s chief fiscal officer, Hynes is elected independently of the state?s chief executive.

Taylor wrote in an Oct. 29 letter to Rumman that the comptroller?s office ?noted a number of instances with CMS contracts where proper contract management procedures appear not to have been followed, primarily involving work commencing prior to the scope of services being reduced to writing.?

State government can provide an excellent way for small and minority contractors to build their businesses, a way for them to understand the Salesforce and the future of work, but only if the state is a reliable partner.

Even worse, on the other end of contracts, large contracts are not being given the proper oversight they deserve and in two cases, the Comptroller’s office withheld payment.

More to the point, it’s a bad business practice and a self-annointed reform Governor ought to be deeply troubled by the problem.

3 thoughts on “How to Screw Small Businesses”
  1. I saw the article which had a chart of past late filings of contracts. It was actually higher in 2001 which was under George Ryan. He had a lot more state employees that Rod. Unfortunately the budget is getting balanced by reducing state employment. Fewer people to do more work. Plus CMS is consolidating a lot of operations. Aaron like to get his digs in on the Gov. even when they might not be deserved. This is not a unique problem in Illinois gov’t. – just like late payments to medicaid providers etc.

  2. No. This administration has been much worse in the late payment department. A not for profit I’m involved with is contacted by the State to provide essential services to senior citizens. While we have to meet payroll, pay mortgages, etc., the State has been as much as 6 months late paying the bill. Under Ryan and Edgar it was never more than 60 days late.

    I also know a minority vendor who mentioned at a party that the Illinois Lottery did the same thing to him. He’s just a small guy, and didn’t know what to do because he was so out of pocket to the deadbeat State of Illinois.

    This is a story, a big one, I just know it…

  3. Again, I quote the article that showed by statistics that the late filing of contracts was greater in 2001 than 2002 and 2003. I am an attorney who is dependent on the state paying on contracts. I remember in the Edgar administration they would run out of money half way through the fiscal year and we would have to wait until the new year to be paid. So it has been going on for years. And my point is that the budget is being balanced by a reduction in state employees who took early retirement after Blago got elected. They have not been replaced. So with fewer workers to do the work the process slows down. I also know the business person referred to in the article and she is happy with the arrangement and her business is doing just fine.

Leave a Reply

Your email address will not be published. Required fields are marked *