Executive Summary
- What’s new: Chicago Mayor Brandon Johnson signed an executive order directing the city’s chief procurement officer to issue new procurement rules by November 24, 2026.
- Why it matters: The new rules will impose on city contractors “five-year look-back certifications” covering public integrity violations, additional disclosures and subcontractor compliance obligations. Evidence of certain misconduct, even without a judicial or administrative finding, can disqualify applicants.
- What to do next: City contractors will want to assess potential compliance issues with these requirements before final rules and procedures are implemented.
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Chicago Mayor Brandon Johnson recently signed Executive Order No. 2026-6, “Establishing Ethical Procurement Standards to Protect Taxpayers and Our Communities,” directing the city’s chief procurement officer to issue new procurement rules that could affect both current and prospective city contractors. Under these rules, companies may face five-year look-back certifications regarding public integrity violations, additional disclosures, subcontractor compliance obligations and disqualification based on evidence of certain misconduct, even without a judicial or administrative finding. The city’s chief procurement officer must issue implementing rules by November 24, 2026. City contractors will want to assess potential compliance issues with these requirements now, before final rules and procedures are implemented. The executive order may also signal a broader movement toward ethics-based procurement restrictions in other jurisdictions that disqualify vendors for a much wider array of “unethical” activity than would traditionally be considered in a procurement process.
Disqualification for Public Integrity Violations
The executive order directs the city’s chief procurement officer to adopt rules barring companies from city contracts and subcontracts where evidence indicates a “Public Integrity Violation” within the last five years. A judicial or administrative determination of a violation is not required; qualifying evidence includes an indictment for a violation or a finding by a governmental oversight body of an attempted violation. Covered “Public Integrity Violations” include:
- Impermissibly supplementing a Covered Official’s salary.
- Bribery and corruption offenses under Chicago or Illinois law.
- Directly or indirectly giving, offering or promising anything of value to any Covered Official because of official action or with the intent to influence any official act.
Notably, a “Covered Official” includes federal, state and local government officials and employees, not just Chicago or Illinois officials. The executive order also provides for disqualification for certain antidiscrimination and wage-theft violations.
Certification Requirements
By November 24, 2026, the Chicago chief procurement officer must issue rules requiring entities seeking city contracts (including amended or renewed contracts) above the city’s “Small Order Limit” (which city ordinance currently lists as $250,000) to certify that they have not committed a Public Integrity Violation as described above during the prior five years and will not do so during the contract term. Prime contractors must impose corresponding requirements on subcontractors performing city work.
Disclosure and Audit Requirements
The executive order also directs a broad audit of current contractors whose individual contracts have an anticipated value exceeding the city’s Small Order Limit. By November 24, 2026, the city’s chief procurement officer must contact affected contractors and request disclosures including contributions or disbursements exceeding $1 million in a calendar year to an entity established, financed, maintained or controlled by a government official, or to an entity designated by a government official, as required under the Honest Leadership and Open Government Act of 2007 (HLOGA), which is the law governing LD-203 reports. Disclosures will be required at least annually thereafter. While this disclosure appears to be limited to donations above the $1 million threshold that already must be disclosed on an entity’s LD-203 report, the order’s broad definition of “Covered Official” leaves some ambiguity regarding whether this provision could require reporting of similar payments made at the state or local level.
An Ethical Procurement Movement
The executive order establishes an Ethical Procurement Standards Task Force to propose further changes to Chicago’s procurement rules.
Chicago adopted the executive order in cooperation with Not With Our Money (NWOM), a national initiative that promotes broader ethical criteria in public procurements. While Chicago is the first major municipality to formally adopt the initiative, NWOM is reportedly discussing similar measures with New York City; Newark, New Jersey; and Minneapolis. Other jurisdictions may consider comparable restrictions, potentially expanding the conduct relevant to contractor eligibility. We will continue to monitor for future updates.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.