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Ala. Gov. Backing Off Contract Policy

Montgomery, AL – Gov. Bob Riley is backing off an October announcement by his administration that it would no longer approve contracts that weren't bid.

Riley's legal adviser, Ken Wallis, told a legislative committee Thursday that a letter Oct. 19 announcing the policy was in error and a new letter clarifying the governor's position will go out this week.

Wallis said the governor never intended to ban all unbid contracts, but he did not communicate that to the administration official who sent the letter to all state agencies. He said the governor wanted more scrutiny and transparency, but not a total ban.

The governor's administration sent the October letter after being criticized by some Democratic legislators for an unbid computer contract with Paragon Source, a company that has no listed phone number or Web site.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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