CHANGES IN STATE PROCUREMENT SOUGHT AFTER FAILED OMAHA-AREA CHILD WELFARE CONTRACT

LINCOLN - A state lawmaker on Thursday called for changes in the process that selected a troubled Kansas-based nonprofit to oversee the care of abused and neglected children in the Omaha area and led to other major contract failures.

St. Francis Ministries won a five-year, $197 million contract in July 2019, based on bidding 40% less than the previous contractor. But the agency’s tenure was troubled from the start, and in December, state officials announced early termination of the contract. The announcement came nearly one year after Nebraska was forced to sign a new, emergency contract with St. Francis in order to keep the agency running. The 25-month, $147.3 million contract erased the original 40% cost difference. After winning the contract, the agency often fell short on contract requirements and caseload standards. Child welfare advocates said the situation had put children at risk.

During a public legislative hearing on Thursday, February 10, State Sen. John Arch of La Vista commented that this was not the first time Nebraska's procurement process led to the selection of a low-cost bidder that ended up failing at their job. Arch went on to say a legislative investigation into the St. Francis contract illuminated a history of what he called "procurement failures." The failures have not been limited to this administration, involved multiple people in key roles, and cost the state millions of dollars.

“It became apparent we have a system issue,” said Arch, who led the investigative committee. “We did the process and checked all the boxes, and it led to a poor outcome.”

In its December report, the investigative committee suggested a thorough evaluation of the state's procurement process and practices to address and improve areas that have historically fallen short. Sen. Arch's Legislative Bill 1037 was the result. The bill would require the Department of Administrative Services to hire a consultant to do the recommended evaluation when handling procurement for the state. In order to give lawmakers ample time to craft legislation, the consultant's reports would be due by Nov. 15.

Arch said that the potential $400,000 cost of the consultant would offer an opportunity to improve state government and be a wise investment.

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