Contract amended to show $500 million in budget reduction - KNOE 8 News; KNOE-TV; KNOE.com |

Contract amended to show $500 million in budget reduction

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BATON ROUGE, La. (KNOE 8 News/AP) - A company getting $4.2 million from Gov. Bobby Jindal's administration for an efficiency study has agreed to amend its contract to require the firm to find $500 million in savings ideas for the state.

The contract amendment with consulting firm Alvarez & Marsal was released late Tuesday.

Commissioner of Administration Kristy Nichols initially had said the savings expectations were included in the bid request and that it was legally binding. But the $500 million figure was not in that request. Nichols' spokesman said she misspoke.

The savings figure also wasn't included in the initial contract with Alvarez & Marsal. It was included in a cover letter the company submitted with its bid.

The contract addition comes after lawmakers raised concerns about whether the review was a waste of time.

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