Senate ethics hears witnesses on Senator Ellsworth’s Agile Analytics contracts; auditor finds waste and abuse

A Montana Senate Ethics Committee hearing on the contracts Senator Jason Ellsworth submitted for Agile Analytics centered on whether procurement rules and disclosure duties were followed and on a legislative auditor finding of waste and abuse.

Director Diane Giles, director of the Department of Administration, told the committee that two contracts and matching invoices for a combined $170,100 were presented to legislative staff as fully executed on Dec. 26, 2024, and that the department treated the documents as binding when they appeared. “When we had our conversation, he did note there were two different contracts...in the documentation that came across, my staff alerted me that the two contracts were already fully executed,” Giles testified.

The Legislative Audit Division, which opened a hotline investigation after a complaint in mid‑January, concluded the procurement process had been short‑circuited and published a memo dated Jan. 24 finding both “abuse” and “waste.” Angus MacKeever, the legislature’s auditor, summarized the office’s conclusions for the committee, saying the contract sequence and payment terms deprived the state “of the financial benefits of open competition.” Ken Barnes, legal counsel for the legislative auditor’s office, described the office’s review of public records and a federal court filing that indicated longer‑term business connections between the vendor’s president and Mr. Ellsworth.

Witnesses described the timeline in detail. Diane Giles said she first learned of the arrangements during a Dec. 27 phone call from Ellsworth and that the vendor name — Agile Analytics — then appeared on a sole‑source justification form that stated the expected cost as $170,100 and a contract length of 23 months. Ken Barnes told the committee that Idaho/secretary‑of‑state records show a related business (AgileXO) was formed July 8, 2024, and that an Agile Analytics filing was dated Dec. 12, 2024; audit staff also documented that the two invoices submitted Dec. 26 were labeled “due on receipt.”

Department of Administration testimony emphasized limits on exigency contracts. Giles said sole‑source and exigency procurement lanes exist but are narrow: in 2024 her office processed roughly 300 contracting actions and only seven sole‑source actions. “We don’t love them as a matter of principle,” she said, adding that when exigent contracts occur they normally involve an existing vendor or a true emergency such as life‑safety work.

Audit testimony focused on what the auditors described as an identifiable pattern: (1) a public committee conversation in November and December in which hiring outside help was discussed and not approved by the committee; (2) the creation of a new vendor entity and a Dec. 26 submission of two signed agreements and two invoices; and (3) efforts thereafter — led by legislative services and the Department of Administration — to add state standard terms and adjust payment provisions so the state could preserve termination and payment protections. “We concluded that the state was deprived of the financial benefits of open competition,” Legislative Auditor Angus MacKeever told the committee.

Committee counsel and Ellsworth’s counsel disputed some audit characterizations during the hearing. Counsel for the respondent, Joan Mel, repeatedly objected to questions she said were leading and also pressed the auditors on why their investigation did not reach a conclusion about whether a disclosable private or financial interest existed; auditors replied they had limited subpoena authority and had prioritized procurement issues for the hotline investigation.

The committee discussed next steps at the hearing. Members agreed to seek testimony from additional witnesses; the committee stated it has issued a subpoena for Bryce Eggleston, identified in testimony as the principal associated with Agile Analytics (or AgileXO), and staff reported that service of that subpoena was to be coordinated with local law enforcement. The committee also directed staff to prepare an internal summary of the committee’s work and said it would reconvene to continue testimony.

What the committee heard (key facts confirmed in testimony and public filings) - Two contracts and two invoices for a combined $170,100 were presented to legislative staff and submitted to the Department of Administration on Dec. 26, 2024; the invoices were described as “due on receipt.” (Testimony: Diane Giles; records reviewed by the Legislative Audit Division.) - Secretary of state filings show a consulting entity (AgileXO) registered July 8, 2024, and an “Agile Analytics” filing dated Dec. 12, 2024. (Ken Barnes / audit records.) - The Legislative Audit Division published a Jan. 24 memorandum finding instances of “abuse” and “waste” in the procurement and payment process for these contracts. (Angus MacKeever; audit memo.) - Department of Administration staff said they viewed the December documents as binding when received and worked to insert Montana standard contract terms (for example, termination‑for‑convenience and payment terms) after the documents were presented. (Diane Giles testimony.)

What remained unresolved at the hearing - Whether the presentation of the two signed agreements was intended to avoid procurement review or reflected confusion about delegation limits; auditors described an “artificial division” of work but said their authority and tools limited their ability to answer certain questions about personal or financial relationships definitively. - Direct testimony from Bryce Eggleston (Agile Analytics) and a fuller accounting of communications among Ellsworth, legislative staff and the vendor; the committee issued a subpoena and planned follow‑up testimony.

The committee paused the session to reconvene at a date set by members for additional testimony and follow‑up. The public record from the hearing includes the Department of Administration and Legislative Audit Division testimony and the exhibits and public filings the auditors cited; the committee will receive further witness testimony and documentary evidence before drafting any final report.