Today I’m announcing legislation I’ve introduced to close the Lucas Group loophole that allowed $370,000 in payments to a company without a contract with the state—a move that angered many last summer, myself included.
To quickly refresh your memory, the Lucas Group, a Boston-based consulting firm, had been engaged in what was described as a voluntary agreement to provide guidance in the development of the Global Medicaid Waiver that was approved last January.
The Lucas Group subsequently demanded payment for their “voluntary” services. Since that time, a settlement was reached and $370,000 was paid to the Lucas group for services that were rendered without a contract and without following state purchasing procedures.
I was shocked to learn that a company that offered services voluntarily to the state, that never went through an open, public bidding process, and never had a contract from the state, was able to turn around and secure payment—and that the state had no recourse. This bill will ensure that this scenario will not happen again.
My thanks to Rep. Joy Hearn and Sen. Josh Miller for their sponsorship of the bill, which would prevent a vendor from collecting any payment for goods and services rendered outside of the state purchasing process.
At a time when our government is cutting millions from education and social service programs, we cannot afford a loophole that permits funneling money to companies that have subverted the purchasing laws. We need to build public trust in our government institutions, and transparency is critical to achieve that goal.