Oversight tightened on state contracts

Wednesday, July 10, 2002 | 9:27 a.m.

CARSON CITY -- The state Board of Examiners Tuesday voted to keep closer tabs on the private companies awarded hundred of millions of dollars in state contracts.

The board unanimously agreed that state rules be changed to require a contract monitor in each agency that does business with private industry.

"We want to stay on top of this," state Budget Director Perry Comeaux said.

The new policy will require agencies to keep logs of payments and to monitor contractors' progress.

The board, however, threw a monkey wrench into the proposed contract of up to $10 million for the Northrop Grumman Information Technology to provide computer services to the state.

Secretary of State Dean Heller, a board member, said his office is embroiled in a dispute with Northrop Grumman over work performed and missed deadlines. The company has "negotiated in good faith" over the conflict, he said, but he could not endorse a contract allowing the company to work at other agencies.

Attorney General Frankie Sue Del Papa said that withholding approval might help Heller get the issue resolved.

The board agreed to give the contract to Northrop Grumman, only after it takes care of its conflict with Heller.

The state Department of Information Technology submitted 11 contracts from companies, including Northrop Grumman, to be designated by the Examiners Board as eligible to work on computer issues at state agencies. It allowed the firms to be paid up to $10 million.

The board also authorized an increase of the per diem rate by $8, to $90 a night in most cities, for state workers to get hotel rooms when traveling out of state.

In some higher priced cities, such as New York, Washington and Los Angeles, the state pays up to $150 a night for lodging.

The 2001 Legislature authorized the increase for in-state travel. The board then raised the out-of-state per diem the same amount.