Montgomery, AL – A legislative oversight committee has gone to court to stop a $13 million no-bid computer contract between Gov. Bob Riley's administration and a company with no listed business phone number and no Web page.
The Legislature's Contract Review Committee and its chairman, Democratic Rep. Alvin Holmes of Montgomery, filed suit Thursday in Montgomery County Circuit Court against the governor, Acting Finance Director Bill Newton and the company, Paragon Source LLC.
The lawsuit asks a judge to immediately stop Paragon Source from doing any work or receiving payment under the contract. The lawsuit says the contract violates Alabama's law that requires that competitive bids be sought for certain state work.
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