MONTGOMERY, Ala. – Alabama state agencies saw several of their contracts held Thursday by the Contract Review Committee as lawmakers have become increasingly wary of non-competitive contracts that don’t go through the standard request for proposal process.
Among the first contracts to be held came from the Alabama State Department of Education, with all four of its submitted contracts being sole sourced, meaning they were not placed out for bid through the RFP process.
“It’s the sole source that is the sole source of heartburn,” said Sen. Dan Roberts, R-Mountain Brook, when reviewing the Education Department’s contracts submitted for approval.
Roberts later said that the use of sole source contracts, while not prohibited, was something lawmakers generally discouraged as it lacked the competitive nature of the RFP process, which in theory allows for the state to secure a contract for service at the lowest possible cost.
“It is an ongoing issue, and it’s not just with (Education), it’s with the whole system,” Roberts said. “We’re trying to make it so that it’s truly competitive.”
Tina Hammonds, director of government relations for the Alabama State Department of Education, presented the committee with four contracts, all of them sole sourced.
The first, a $478,405 one-year contract with the Southern Regional Education Board for training, was explained by Hammonds as being sole sourced due to her department’s history with the contractor.
“They’ve created a simulated workplace and they have worked with our department to customize training for the core academics so that it can be integrated into our specific (career and technical education) courses,” Hammonds said.
“So there is a certification requirement for our CTE teachers, and they’re the only provider for that certification.”
Roberts, who said the continued use of sole source contracts had “just invoked more questions,” told Hammonds that the committee would be holding all four of its contracts.
Other entities had their contracts held as well for being sole sourced, including contracts from the Electronic Security Board and the Alabama Department of Tourism.
The contract review committee can’t kill a contract, but can delay it for up to 45 days.
Sen. Chris Elliott, R-Josephine, was equally frustrated with the continued use of sole source contracts, and told ADN that he’d like to see some changes to further disincentivize their use.
“The whole point of request for proposals is competition and getting the best deal for the taxpayer, and any time we’re using a sole source, we’re getting away from that,” Elliott told ADN.
“Certainly there are instances where there is one widget, one product, one whatever, but all too often we see a service that is clearly not sole source, it is just a preference of an agency, they like using who they’re using, and they don’t want to change.”
As to what lawmakers could do to deter state entities from pursuing sole source contracts, Elliott said continuing to hold said contracts was a start.
“They are feeling some pressure right now,” he said. “A lot of contracts get held today, more than usual, and so you’re going to see some additional meetings with the chief procurement officer over this issue to figure out how we can get away from this.”