Missouri gave no-bid contract for stimulus consultant

ST. LOUIS -- Gov. Jay Nixon gave a law firm a no-bid contract to prepare Missouri's application for federal stimulus money devoted to expanding high-speed Internet access.

The St. Louis Post-Dispatch reported Monday that Nixon, a Democrat, hired the Washington-based Baller Herbst Law Group in July to help Missouri complete and submit its application to expand Internet access into rural areas. The firm was authorized to bill up to $50,000 but that was increased to $100,000 after less than two months.

The firm's Jim Baller is the founder of the U.S. Broadband Coalition and a national expert on Internet access. Baller is being paid $495 per hour -- a $100 discount from his standard rate -- to advise Missouri on its efforts to secure federal stimulus money to expand Internet access.

The arrangement has led two Republican state senators to question the contract. One wants to know why it was not competitively bid.

Sen. Scott Rupp, R-Wentzville, the chairman of the stimulus oversight committee, said not putting the consultant contract up for bid "raises questions."

State law allows no-bid contracts for expert witnesses and legal and medical services. Nixon spokesman Jack Cardetti said the state needed assistance from a consultant because of the application's tight deadline and technical complications. He said Baller Herbst Law Group was the only outside consultant that has been hired.

"We thought it was necessary to get somebody with their technical expertise," Cardetti said.

Baller said his knowledge of federal rules of the grants for Internet access would put Missouri in a good position to secure additional stimulus money. If Missouri's application is selected, the money would flow without first going through the Legislature.

"There's a lot at stake and the rules are fresh and new," Baller said.

Several states -- but none bordering Missouri -- have hired consultants to assist with getting more federal money. Democratic governors in Colorado and New Mexico have been criticized for hiring legal firms to help with the application process.

Colorado's governor hired his former law firm with a contract that includes no expense cap, and a state lawmaker there has threatened to file legislation requiring that the state use lawyers from the attorney general's office.