Alabama battle over no-bid contract having impact

MONTGOMERY, Ala. (AP) - The battle over an unbid $13 million computer contract is beginning to have an impact on how other state contracts are awarded.

The Legislature’s Contract Review Committee either held up or had state agencies withdraw $1.4 million dollars in contracts that were on its agenda for approval Thursday. Committee Chairman Alvin Holmes, a Democrat from Montgomery, said the contracts did not fit a new directive from Republican Gov. Bob Riley’s administration that purchases be competitively bid.

The Riley administration issued the directive last month after questions were raised about its approval of a $13 million computer contract without bids being sought. The company that got the contract, Paragon Source, had no business phone listing or Web site, but had done work for the state previously.