Chicago asks all the contractors, including the contortions for construction projects, to reduce the costs of their invoices by 3% that have been sent to the city for the next 12 months.
The letter, which was sent to the contractors in March 16 in March 16, comes from Sharla D. Roberts, Chief Procurement Officer Chicago's Department of Procurement Services, and applies from the time when he received.
It asks the contractors to respond by e -mail by e -mail at the latest five days after receiving the letter by providing that they are willing to provide Chicago as part of ongoing contracts.
The letter states: “In these difficult economic times, the city of Chicago faces new challenges to reduce its costs and assign resources in a way that represents more, whereby the provision of services is less guaranteed for its citizens.”
Brian Helm, President and CEO of the Mechanical Contractor Helm Group, said his company received the letter, but did not reduce the costs of her contracts because they “offered competitive and the contract”.
“It is unusual for you to reduce the costs of the contract without changing the scope,” he said, adding that it is not “unfair that the city can ask, but it is unfair to the city to approve a contract and then reclaim after 3%.”
In addition to reducing the scope, he said that if the city wants to reduce the costs, it has another option.
“You have to pull other levers. You can cancel the contacts,” he said.
Sheila Marionneaux, director of public affairs for the city, said 1,300 letters sent and has received an answer of 30% so far. Marionneueaux said that she still had no information about the number of city entrepreneurs, including those who had either agreed to reduce costs or not.
“All answers are currently being assessed and analyzed,” she said, adding that the city would like to receive most of the answers by March 21st.
She said the reduction application had been submitted because the city was just adapting its recently adopted budget.
“The time of the letter corresponds to the introduction of the city council's approved budget change,” she said. She said there was no unknown request.
“In the past, the city has carried out cost reduction initiatives under two earlier administrations,” she said.
In December, the city passed a budget of $ 17.1 billion for 2025. It is currently considering a proposed budget change of $ 139 million to pay obligations including donationsIon payments for non-taching employees such as caretaker and cafeteria worker at the public schools in Chicago. The Mayor of Chicago, Brandon Johnson, was supported by the Chicago Teachers' Union in the last mayoral elections.
While the letter to the contractors realizes that “the city will always try to do business with providers who offer the most competitive prices,” said Helm as to whether a contractor could be excluded from work for the city, based on answering the letter “a legal question.”
The Helm Group is currently working on two projects for the city, including one in a water pump system and another at O'Hare International Airport.
Another contractor who shared a copy of the letter also described the request as “very problematic”.
“Since the professional service contracts are selected awards, the effects of the request/request of a loan post are worrying,” wrote the contractor.