I don't know the details of HESS selecting Osnes as a contractor, but Alaska's procurement law requires state agencies (and state grantees) to put a contract out to competitive bid. Osnes likely submitted swell bids, if at least 11 states hired her. Yes, I believe the state can, and will, sue Osnes' firm, which is/was probably insured, since the requires contractors to have at some insurance, though maybe not malpractice or directors and officers coverage. Remember that we sued the actuarial accounting firm that underestimated our retirement unfunded liability by billions. State (and municipalities with the means) regularly sue contractors who screw up. That's one of the reasons state and munis retain staff attorneys.