LINCOLN- On Thursday, the state of Nebraska finalized a $500,000 no-bid contract with the Omaha Philanthropic Trust to determine the feasibility of raising in excess of $900 million in private funding to help build a large sandpit lake between Omaha and Lincoln. The contract, signed in August by Sue Morris, the director of the Philanthropic Trust, utilized a rarely used "sole source" exemption that allows state agencies to forgo the state bidding process.

Tom Riley, director of the Nebraska Department of Natural Resources, said he was able to attain this exemption and bypass because of the "unparalleled connections" of Morris and the Trust to major donors. "The access to all the philanthropic dollars is not our gig," said Riley, referring to the Department of Natural Resources, whose duty it is to regulate surface water use and dam construction and safety.

Sen. Mike McDonnell, a proponent of the proposed lake, also defended the no-bid deal because of the experience of Morris. However, State Auditor Mike Foley raised concerns over the contract, questioning why the Omaha Philanthropic Trust was the "sole entity" that could weigh whether there was sufficient in the lake interest among private donors. "That just sounds odd to me," he said.

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