(The Center Square) – Senate President Cameron Henry pressed state education officials over Louisiana’s contract with Odyssey to manage the LA GATOR scholarship program, even though current law does not require the state to seek competitive bids for the work.
The statute allows the Louisiana Department of Education to contract with a program manager for LA GATOR with approval from the Board of Elementary and Secondary Education and the Joint Legislative Committee on the Budget. It does not require a request for proposals. The law also exempts those contracts from the normal state procurement process.
Still, the Metairie Republican urged Superintendent Cade Brumley to begin seeking competitive bids, questioning why Odyssey is being paid the same per-student rate even though the startup work and platform buildout are complete.
Brumley and the department’s chief financial adviser appeared before lawmakers seeking another one-year amendment to continue Odyssey’s management of the program, which handles enrollment and account administration for LA GATOR.
Brumley said the contract uses a negotiated rate of $143.50 per account, with the total cost depending on how many students the state ultimately funds. According to the Department of Education, the proposed contract amount is an “up to” figure. The roughly $1.7 million total would apply only if lawmakers approve the governor’s full funding request and the number of seats in the program roughly doubles.
The department said those contract dollars are for administration only and are separate from the money lawmakers approve to fund student seats in the program. The department also said LA GATOR serves 5,546 students.
“In the original contract, you had to do the build out,” Henry said, saying that the first year should have been the most expensive and that later years should cost less once the system was already in place.
He repeatedly pressed officials on what work Odyssey is doing now to justify charging the same amount in years two and three.
Education officials said the original contract included separate costs for startup items such as platform buildout, marketing and communications. Those costs are no longer included, they said, and what remains is the $143.50 per-student project management fee.
Henry suggested the state may be overpaying and said Louisiana should move toward a competitive bid process rather than continue extending the same arrangement.
“If we’re going to continue the program in some form or fashion, we might get a better price moving forward,” Henry said.
He also pointed to reports that Odyssey administers a similar program in Missouri at a lower per-student rate, raising more questions about whether Louisiana is getting the best deal.
Brumley acknowledged the state could pursue request for proposals now and said the 2024 law allowed for an abbreviated process to get the program up and running quickly. He said a standard procurement process could take time, but Henry made clear he wants it started.
