Treasurer McCord won't pay no-bid website contract

Written by The Associated Press | Jun 5, 2013 4:20 PM
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Treasurer Rob McCord

(Harrisburg) -- State Treasurer Rob McCord is refusing to pay nearly $3.5 million to a company hired by Governor Corbett's administration to run Pennsylvania's executive-branch websites.

McCord says he's withholding bills dating back to January from Pennsylvania Interactive LLC because he's concerned about legality and correctness of the contract.

The administration hired a subsidiary of Kansas-based NIC Inc. under a no-bid contract late last year to manage the state's website infrastructure and technology.

McCord says he's blocking the payments because the contract hasn't received proper approval from the state attorney general.

He also says the invoices lack important information that is customary for consulting contracts and has lingering questions about why the administration didn't solicit other bids.

UPDATE (6/5/13 at 6:55 p.m.):

The Corbett administration is rebutting state McCord's criticism and says is a good deal for taxpayers.

Nils Frederiksen of the governor's Office of General Counsel says the deal's no different than others that the treasurer's office approves every day.

He called McCord's comments ``inflammatory.'' 

Dan Egan of the governor's Office of Administration says a no-bid contract makes sense because NIC has unique expertise gained through its work with 28 other states.

He says the contract is for five years and its value is roughly $10 million a year.

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