CORRECTION: Investigation of $2.5M no-bid contract still with Lincoln Police Department

LINCOLN — An investigation of a $2.5 million no-bid emergency contract between the Nebraska Department of Economic Development and a contractor Gov. Jim Pillen recommended remains with the Lincoln Police Department.

Officials with the Lincoln Police Department previously told the Examiner that the investigation had moved to the Lancaster County Attorney’s Office. However, public information officer Erika Thomas said Monday that the case was still under LPD’s investigation.

State Auditor Mike Foley first flagged the 2024 contract to a bioeconomy consultant and lobbyist whom Pillen knew and had traveled with, saying the deal “smacks of favoritism.” Part of Foley’s probe also questions actions by some top staff under Pillen’s direct control, he has said.

In early February, Foley referred his audit findings to the Nebraska Attorney General’s Office and Nebraska State Patrol, the latter of which answers to Pillen. Patrol spokesman Cody Thomas said NSP sent the investigation to the Lincoln Police Department “due to a potential conflict of interest.”

Foley alleged that the state filed the no-bid emergency contract without giving justification for the emergency in order to skip the required step of sending contracts worth more than $50,000 out for competitive bids. He also claimed that state officials attempted to deceive the Auditor’s Office, which is a misdemeanor in Nebraska.

Pillen’s office has sought to justify the contract multiple times and in multiple ways. Pillen said on Omaha talk radio station KFAB in mid-February that the no-bid element was important because “time is of the essence” for federal funds.

Nebraska Examiner reporter Zach Wendling contributed to this report.