Easy money

Imagine you run a major ad agency and the account for McDonald's is suddenly on the table.

The fast-food giant is annually among the biggest advertisers in the world, spending as much as $1 billion each year. Winning over the company could ensure your company stays in the black for years to come.

McDonald's executives ask for proposals and finally whittle the list of potential agencies to a half-dozen finalists. You've made it. But when you make your final pitch, it's clear you've come up short. The account goes to a competitor. Would you then expect executives at the Golden Arches to send you a six-figure check as appreciation for your bid?

Probably not -- but, then, you weren't operating in the public sector, where money obviously grows on trees.

On Wednesday, Las Vegas Paving won a $250 million state contract for improvements on and near Interstate 15 south of town. Great. The area is a traffic nightmare. But after awarding the contract, the board of directors for the Nevada Department of Transportation turned around and handed out $300,000 checks to the three failed bidders.

This is not the first time NDOT has been so generous. Losing bidders for I-15 improvements north of the Spaghetti Bowl walked off with $100,000 of taxpayer money.

State transportation officials argue that the "stipends" -- approved six years ago by the Legislature -- encourage more companies to bid, thus fostering competition.

Well, gee, so would buying company executives expensive watches and sports cars. If NDOT is going to hand out cash at the door, of course you might see more bidders. But there's absolutely no indication that this has driven down costs in the long run -- or even that certain projects went wanting bidders before lawmakers approved this giveaway.

Preparing bids is a normal cost of doing business. Contractors throughout the private sector do this all the time without expecting a fat check should a potential client turn elsewhere.

This state faces unprecedented fiscal challenges. We're constantly told that Nevada's budget has been cut to the bone and there's barely enough in the treasury to keep the lights on in Carson City.

Down at NDOT, however, the bulbs must be burning pretty brightly.