Lincoln Police have concluded their investigation into a $2.5 million no-bid emergency contract awarded by the Nebraska Department of Economic Development, according to a report from the Lincoln Police Department (LPD). The case will now be referred to the Nebraska Attorney General’s Office for further review. The investigation, initiated in March 2026, focused on a 2024 contract awarded to Global Sustainability Developers (GSD) to support the state’s bioeconomy industry. The contract, which GSD fulfilled, was expedited without competitive bidding, leading critics to challenge its approval process.
The state auditor’s report, released Jan. 6, described the contract as “smacks of favoritism” and highlighted concerns over its emergency designation. The report noted that the contract was awarded just a month after the Nebraska Legislature passed LB1412, a bill sponsored by Speaker John Arch on behalf of Gov. Jim Pillen. According to the audit, the contract was “already vetted through GSD’s CEO Julie Bushell and the Governor” before being sent to the legal office at the Department of Economic Development. Pillen later acknowledged his office recommended GSD but called the decision a “joint decision” with then-Nebraska Economic Development Director K.C. Belitz.
LPD Probe Finds Rare Emergency No-Bid Contract
The LPD’s Technical Investigations Unit (TIU) conducted the probe, utilizing court-authorized processes to obtain records. The TIU, described as experienced in methodical investigations, emphasized prioritizing a thorough review over speed. The audit’s timeline revealed that contract language was finalized weeks after LB1412’s passage, with no explanation provided for its emergency designation. The report noted that only 1% of over 8,400 state contracts across two fiscal years received emergency status, and none were no-bid contracts.
Auditor Questions Lack of Competitive Bidding Process
The state auditor’s report questioned why the contract bypassed standard bidding procedures, which were required by state law. It stated that the administration never provided a rationale for the emergency designation, which could have been justified only by “conserving public resources” or addressing “health and public safety” concerns—neither of which applied, the report found. The audit also pointed out that the state had three months between the bill’s passage in April 2024 and its implementation in June to pursue competitive bids. “The only remotely plausible basis for designating the Contract as an ‘emergency’ would have been to conserve ‘public resources’—in the form, presumably, of unclaimed Federal grant monies placed ‘at risk’ absent immediate action to obtain them,” the report stated.
