Officials with Lincoln's biggest public works project said they are not mismanaging public funds.

While a recent state audit of the Antelope Valley Project did not suggest fraud, it questioned practices by the project administration.

The Antelope Valley Project boasts a big price tag. It's costing nearly a quarter of a billion dollars to complete.

Part of the original cost includes $5-million of contracts for engineering and construction management with Parsons Brinckerhoff.

The state auditor said those contracts now total $45-million.

"Nobody thought that we could do the whole project for $5-million. Not by any stretch," said Mike Foley, State Auditor.

"But I don't think anybody had any idea that this thing would grow from $5-million to $45-million," Foley added.

State Auditor Mike Foley said that $40-million increase could have been less if JAVA, The Joint Antelope Valley Authority, competitively bid for contractors.
JAVA officials said "bidding" for contractors is not an option.

"Professional services is not allowed to be bid on a competitively basis," said Glenn Johnson, Chairman of JAVA.

Instead, Johnson said contractors are chosen through a qualifications based process.

Glenn Johnson said project partners expected the increase.
He said those partners, the State Department of Roads, City of Lincoln and the University of Nebraska, budget one year at a time.

"You really can't commit really beyond that fiscal year. So each year, if you look, there's an amendment to that original agreement," said Johnson.

Foley also says a conflict of interest could occur when the same firm designs a project and oversees its construction, a practice not allowed if federal funds are involved, starting in 2009.

"I don't think that was prudent management," said Foley.

"I guess it was an efficiency. We had the same team working on the same projects at the same time," said Johnson.

JAVA, which formed in 2000, said selecting different contractors would have extended the project's time line, thus extending its cost.

Johnson said JAVA is asking the Federal Highway and Department of Roads about whether it can finish the project using the same firm for construction inspection and design.

JAVA has also developed a centralized finance reporting system to track its funds.

JAVA said it is not possible to use a centralized accounting system, like Foley suggests because federal, state and local money is being used to fund the project.