Angela Jackson, assistant director of legislation and rules for the Department of Mental Health and Substance Abuse Services, told the committee that Western Mental Health Institute in Bolivar needed a temporary 400-ton chiller in early 2024 after the existing chillers began failing.

"In July 2024 under a 6 month emergency purchase request, Western Mental Health Institute was allowed to rent a temporary chiller," Jackson said, explaining the department contacted three vendors and that EZUS Hold Co. LLC was the only vendor that could promptly provide the required 400-ton unit.

The department later entered a one-year sole-source contract to continue the rental while it worked with CMT Energy Solutions on an energy-savings analysis to determine whether purchase of replacement chillers could be funded through an ESCO program.

Representative John Bricken sharply criticized the procurement timeline and cost. He said rental charges of roughly half a million dollars and cumulative payments exceeding the typical purchase price of a 400-ton chiller represented wasted taxpayer dollars and urged a review of procurement protocols.

"We're paying this contract. It's gonna be over $850,000. We could have bought two 400-ton chillers that could last the state 25 to 40 years," Bricken said.

Department and General Services representatives said the agency maintains facility equipment and reaches out to capital projects when replacements are needed; funding approval through capital appropriation or alternative mechanisms delayed immediate purchase. Brian Wilson, executive director of capital projects for the Department of General Services, said funding is the key constraint.

Representative Bricken asked the committee to request a review of interagency procedures; the director agreed to work with the committee to examine whether procurement and funding practices could be improved to avoid similar outcomes.

The committee approved the sole-source contract for continued rental and related actions; members recorded at least one formal request to review procurement and funding coordination.

Why it matters: The rental and sole-source approach drew scrutiny because state officials and lawmakers said the cumulative rental expense now approaches or exceeds the purchase price for replacement equipment, prompting concerns about procurement timeliness and long-term planning for capital maintenance.

What to watch: Committee members requested follow-up from departments and capital projects on potential process changes and comparable vendor availability for large HVAC replacements.