Before landing a $3.1 million no-bid state contract on Gov. Steve Beshear’s last day in office, the software company that counts a former Beshear cabinet secretary’s husband as a “partner” had already received $8.1 million worth of state business outside of the competitive bidding process.
SAS Institute, a Cary, N.C., technology company, was hired in 2012 to develop a fraud-detection system for Kynect, the state-owned health insurance exchange. It didn’t have to bid for a state contract of its own. Instead, according to Kentucky Finance & Administration Cabinet records, it piggybacked into the job through a “modification” of the main contract with Deloitte Consulting.
As the arrangement was taking shape, one man — Frank Lassiter of Midway, Ky. — had connections on both sides. For SAS, he had just begun serving as one of more than 1,000 technology “partners” listed on its website. For the Beshear administration, Lassiter was executive director of the Cabinet for Health and Family Services’ Office of Administrative and Technology Services until 2011. His wife, Mary Lassiter, was state budget director before being named secretary of Beshear’s Executive Cabinet in 2009. Both contributed money to Beshear’s re-election campaign in 2011.
Jessica Ditto, spokeswoman for Kentucky Gov. Matt Bevin, said the governor’s office is weighing the possibility that political — and marital — connections paved the way for SAS.