Highways official says $2.8 million increase covers ongoing design review; committee approves amendment

The Kentucky Transportation Cabinet asked the Contract Review Committee on May 1 to approve a $2.8 million increase to a Department of Highways third‑party contract that supports design review and quality assurance on a large, multi‑year project.

Stacy Hans, speaking virtually for the Transportation Cabinet, told the committee the contract is a cost‑plus, phased agreement tied to progressive design deliverables. The cabinet said earlier phases covered preliminary engineering and the current increase reflects more detailed design review work and an extension of the timeline; the Kentucky portion of the overall contract is capped at $6.5 million and the cabinet expects to reach that cap before moving to full construction.

Representative Bauman asked whether the increase was a balloon payment or milestone bonus; Hans said it is not a bonus but payment based on completed design tasks and deliverables. Agency testimony said the cabinet has the equivalent of three in‑house staff assigned to the project and needs additional external quality‑assurance resources (named Michael Baker) to review ongoing design submissions.

Senator Meredith commented that the committee would benefit from clearer contract descriptions at initial submission so members better understand whether increases are continuations of long‑running projects rather than stand‑alone cost growth.

The committee approved the amendment on a motion by Representative Bauman, seconded by Senator Richardson, after discussion about scope and timeline.