Committee approves multiple state contract actions, defers one amid protest questions

A legislative contracts committee reviewed an agenda of 240 items totaling $5,373,228,068.25 and approved multiple contract and memorandum-of-agreement actions while deferring a single contested contract for further information.

The committee voted to move through the bulk list and then took up several pulled items for discussion. Law‑office contingency fee panels presented by the attorney general’s office, a University of Kentucky capital design contract, state facilities architectural teams, highway engineering work, juvenile justice medical staffing and several memorandum‑of‑agreement items were the principal substantive items. One Department for Community Based Services (DCBS) amendment with a protest on an RFP was referred for more detail at lawmakers’ request.

Committee members said the session was intended to provide oversight of large spending decisions, to clarify time lines and funding sources, and to ask for extra detail where bids, protests, or large increases were involved.

Attorney general contingency contracts

The committee considered seven contingency‑fee panel contracts proposed by the Office of the Attorney General. Presenters told lawmakers the contract documents show maximum contingency fees — in this cycle up to $20 million per firm — but that such figures are not guaranteed payouts and are governed by the statutory distribution “waterfall.” Chris Lewis, division chief for consumer and senior protection, said the waterfall calculation means, for example, a $20 million fee would require roughly a $355 million recovery to reach that maximum fee level.

“This is not a guaranteed amount,” Justin Clark, assistant deputy attorney general and chief of the civil division, told the committee. Clark and other office lawyers said the contracts are intended to create a panel of specialist firms the attorney general can appoint to individual cases as needed.

After questions, the committee considered items 1–7 together and approved them for placement on the routine list.

University of Kentucky capital project

Lawmakers questioned a University of Kentucky contract for architectural services tied to a new College of Agriculture, Food and Environment project. The university representative told the committee the design contract covers the design team (architects, structural and MEP engineers and other specialties) and that the goal is substantial completion by the end of 2026, with a total project cost of about $23 million and one year of warranty walk‑throughs after that.

“Substantially complete, have the College of Agriculture, Food and Environment moved into the building by the end of 2026,” the university representative said. Senators on the committee pressed for an explicit project end date and for clarity about what the $1.6 million design line item covered before the committee approved the contract.

Department for Community Based Services contract deferred

The committee deferred a DCBS contract amendment that extended and increased funding for Public Consulting Group (PCG) while the agency reissued an RFP after a protest. Misty Sammons, director of administration and financial management for DCBS, explained the prior vendor’s contract was extended to prevent service interruptions while the protest was resolved and the RFP reissued.

Senator Meredith asked for specifics the committee did not have at the hearing — the nature of the protest, who filed it, the number of respondents to the original RFP, the scoring for each proposal and the pricing of the proposals — and moved to refer the contract for the next meeting. The motion for deferral passed.

Highways engineering amendment approved

The Transportation Cabinet explained a personal‑services amendment for preliminary engineering and roadway design tied to a four‑mile interstate widening project (mile marker 14 to 18) and improvements at the Kentucky 329 interchange in Oldham County. The presenters said the work spans multiple phases and that later design phases were advertised as separate procurements. Committee members asked about schedule slippage, federal funding shares and local impacts; presenters said the work is roughly an 80/20 federal/state split and that the widening and interchange design reflect anticipated development and traffic increases in the northwest quadrant near Crestwood. The committee approved the amendment.

State facilities and juvenile justice design amendments

Finance Cabinet representatives described two substantial amendment requests: a roughly $22 million design‑team contract for a major state capital exterior renovation and a separate amendment that expands design work for three juvenile justice facilities (Fayette, McCracken and Breckitt counties). Finance staff explained the $22 million figure covers the full multidisciplinary design team — architecture, historic specialists, electrical and mechanical engineering — and said material lead times (for example, large electrical switchgear) are extending project delivery into 2028–2029.

For the juvenile justice work, the finance cabinet said final bid documents for Fayette were expected in the late spring and that construction schedules across the three sites would vary (roughly 12–20 months per site) with bidding and work anticipated to begin in late 2025. Lawmakers approved both amendments.

Department of Juvenile Justice 24/7 medical and mental health contract

The committee debated and approved a significant amendment to a Department of Juvenile Justice (DJJ) contract that consolidates and expands medical and behavioral‑health coverage across DJJ facilities. DJJ officials said the agency shifted in FY25 to a single, consolidated contract model intended to provide continuous medical and mental‑health coverage (24/7) and that the amendment primarily funds the higher staffing and provider costs realized under that model. Committee members focused on staffing mix, whether the amendment represents an “availability” payment versus an immediate increase in head count, vacancy rates, the proportion of temporary (contract) staff vs. state hires and the long‑term competitiveness effects on rural health providers.

Senator Meredith explained a no vote by saying the expanded temporary staffing model disadvantages rural providers and urged the agency to develop alternatives that reduce reliance on temporary staffing. Senator Meredith said, “Temporary staffing is always the most costly staffing model,” and asked for historical vacancy and staffing‑mix data. DJJ officials agreed to supply the committee with further breakdowns of staffing levels, vacancy trends and the legislative authority cited for the FY25 coverage mandate.

After debate, the committee approved the DJJ amendment.

Behavioral health naloxone distribution

The Department for Behavioral Health, Developmental and Intellectual Disabilities (DBHDID) presented a memorandum‑of‑agreement amendment to expand distribution of opioid antagonists (primarily naloxone/Narcan) through a statewide program that coordinates with the Department for Public Health and other partners. Caitlin Hood, assistant director in the division of substance use disorder, and Director Sarah Johnson described the program’s role in distributing naloxone while also supporting prevention, treatment and recovery services through the federal State Opioid Response grant.

Hood said Kentucky has seen reductions in reported overdose deaths in recent years (a 5 percent drop followed by a 9.8 percent drop in the most recent year), and that naloxone distribution statewide increased roughly 110 percent over the past two years. She and other agency staff said naloxone is one of several tools used to reduce overdose mortality, and committee members asked about contingency planning if federal grant funds were reduced.

Medicaid connectors program amendment

The committee also approved an amendment increasing funds for the Medicaid connectors program, which places outreach and enrollment staff in communities to help residents complete Medicaid and related benefit applications, find providers and access other supports (SNAP, childcare, emergency response after disasters). Medicaid officials said roughly 65 percent of the amendment is federal funds and that where connectors perform non‑Medicaid duties (for example SNAP assistance), those activities are cost‑allocated to the appropriate state agencies. Committee members asked whether the connectors’ scope would shrink if federal funding levels fell; Medicaid staff said the agency would re‑prioritize activities to keep core Medicaid functions and outreach operational.

Votes at a glance

- Agenda and bulk consent: approved (committee moved the routine lists forward). - Attorney General contingency panel contracts (items 1–7): approved as considered together. - University of Kentucky design contract (College of Agriculture): approved (design fee cited ~ $1.6 million; total project ~$23 million; target substantial completion end of 2026). - DCBS amendment (Public Consulting Group RFP/protest): deferred for referral (committee requested protest details, bidder prices and scoring sheets). - Transportation Cabinet preliminary engineering amendment (Oldham County/I‑64 widening, KY‑329 interchange): approved (presenters cited ~80/20 federal/state funding split). - Finance Cabinet — State Capitol exterior design team ($22 million) and juvenile justice facility design amendments (Fayette, McCracken, Breckitt): approved. - DJJ consolidated medical/behavioral health staffing amendment (24/7 coverage): approved after debate; committee requested follow‑up data on staffing mix, vacancy rates and the statutory mandate. - DBHDID naloxone distribution (opioid antagonist MOA): approved (federal State Opioid Response funds are primary funding source). - Medicaid connectors program amendment: approved (approximately 65 percent federal funding; multiple agencies cost‑share non‑Medicaid activities).

What members asked for next

Committee members requested more follow‑up material on several items before the next meeting, including the DCBS RFP protest details and scoring, DJJ staffing patterns and vacancy history, the statutory citation tied to DJJ’s 24/7 mandate, and documentation on how federal grant reliance would be handled if federal funding were reduced. Several members stressed they want clearer procurement descriptions and definitive contract end dates on future presentations.

The committee scheduled its next meeting for March 11 and adjourned after the roll calls.

Ending

Committee members and agency staff said they would provide the requested documents to the committee clerk ahead of the next meeting so lawmakers can review vendor pricing, protest records and staffing data. The committee’s action advances the bulk of the contracts and memoranda considered while flagging a single amendment for additional review.