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The D.C. Council, led by Mayor-elect Vincent C. Gray in his role as council chairman, rejected a lottery contract award in December 2008 that went to Intralot and a different local vendor deemed unacceptable by Mr. Gray and the council. In a Dec. 11, 2008, letter to Mr. Gray, Mr. Nickles warned that throwing out the first contract award “would create significant uncertainty as to the operation of the lottery until late Spring 2010, result in significant loss of savings to the city, and a continued deterioration of the operation of the lottery.”

Mr. Nickles was reacting to an Oct. 6, 2008, memo from Jay Young, who was chief operating officer of the D.C. Lottery, that anticipated council rejection of the first lottery contract award “on grounds not related to the substance of the offers, the soundness of the proposed solution, or the administration of the procurement process, but rather on the discretionary latitude provided to the council by legislative fiat.”

In concluding his memo, Mr. Young noted: “The rebid scenarios are fairly unattractive and filled with uncertainties and the prospect of inferior results.”