Amendment of Municipal Code Chapter 2-92 by adding new Section 2-92-338 allowing Chief Procurement Officer to require best customer pricing from retailer or seller seeking to enter contract with City of Chicago
Legislation tracker › Contracting Oversight and Equity › 36th Ward: Gilbert Villegas
- Record number: O2025-0017502
- Type: Ordinance; category: Municipal Code Amendments
- Status: In Committee (Referred)
- Sponsor: Gilbert Villegas (36th Ward)
- Committee: Committee on Contracting Oversight and Equity
- Submitted Date: May 20, 2025
- Introduction Date: May 21, 2025
- Official record: Office of the City Clerk
Impact report
Written by AI from the official document. AI can make mistakes; the official document always wins.
The City could require companies selling goods to Chicago to promise that the City is getting the best price they offer any customer, and could refuse to award a contract if the price does not seem competitive.
Who it affects
- Resellers (registered City vendors that sell but do not make goods): They may have to swear their price to the City is their best customer price and include a manufacturer's letter of supply confirming the same pricing.
- Suppliers (registered City vendors that make and sell goods): They may have to swear their price to the City is their best customer price and could lose a contract if the City thinks the bid is not competitive.
- Manufacturers whose goods the City buys through others: Their letter of supply may need to state that the reseller or supplier can get the goods and that the same best pricing was extended, but they do not have to share proprietary information.
- City Chief Procurement Officer and department commissioners: They would gain the option to require best customer pricing before letting a contract for goods and to decline contracts with prices they do not believe are the best.
What changes
- The City may require sellers to attest that they are giving the City their best customer price on goods.
- Sellers may need a manufacturer's letter of supply stating the goods can be secured and the same best pricing was extended.
- The City may decline to award a goods contract if it believes the bid price is not competitive or not the best price.
- The rule does not apply to delegate agency contracts, real property leases, collective bargaining agreements, or construction contracts.
- The rule does not affect business deals between companies for goods the City is not buying, and does not require sharing proprietary information.
Money
- City funds used to buy goods under contracts may be subject to a best customer pricing requirement, which includes discounts, commissions, rebates, and other incentives affecting what the City pays.
Where: 36th Ward
When: January 1, 2026
Timeline
- May 21, 2025: Referred, City Council. The matter was Referred to Committee.
Documents
- Best Pricing Procurement Ordinance.pdf (Legislation)
Related legislation
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