[Vision2020] FEMA Reneges on Katrina Promise

[Tom Hansen]

>From today's (March 25, 2006) Spokesman Review -

And yet another warm fuzzy from the Bush administration.

Question:  Why doesn't FEMA contract firms from southern Louisiana?  This
would result in a major win-win situation.  It would rebuild that which
needs to be rebuilt.  The funds expended in these contracts would stay in
southern Louisiana.

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FEMA reneges on Katrina promise
Agency had pledged to reopen no-bid contracts

Hope Yen
Associated Press
March 25, 2006

WASHINGTON - FEMA has broken its promise to reopen four multimillion-dollar
no-bid contracts for Hurricane Katrina work, including three that federal
auditors say wasted significant amounts of money.

Officials said they awarded the four contracts last October to speed
recovery efforts that might have been slowed by competitive bidding. Some
critics, however, suggested they were rewards for politically connected
firms.

Acting FEMA Director R. David Paulison pledged last fall to rebid the
contracts, which were awarded to Shaw Group Inc., Bechtel Corp., CH2M Hill
Inc. and Fluor Corp. Later, the agency acknowledged the rebidding wouldn't
happen until February.

This week, FEMA said the contracts wouldn't be rebid after all. In fact,
they have been extended, in part because of good performance, said Michael
Widomski, a spokesman for the Federal Emergency Management Agency.

"They are continuing the work," Widomski said, and the agency is now focused
on competitive bids for disaster relief contracts for the next hurricane
season beginning June 1.

"We looked at the lessons learned from Katrina," Widomski said. "We're
painstakingly looking at what best fits the needs of disaster victims and
taking bids for future work."

An additional $1.5 billion in work promised to small businesses also has yet
to be awarded.

A review by the Government Accountability Office of 13 major contracts said
last week the government had wasted millions of dollars, due mostly to poor
planning by FEMA. Among the 13 were three of the four no-bid contracts for
temporary housing, worth up to $500 million each, that went to three major
firms with extensive government ties.

The preliminary review did not address the validity of no-bid contracts
issued right after the Aug. 29 storm. The fourth housing contractor, the
Shaw Group, was not included in the audit.

The Shaw Group's lobbyist, Joe Allbaugh, is a former FEMA director and
friend of President Bush. Bechtel CEO Riley Bechtel served on Bush's Export
Council from 2003-2004, and CH2M Hill Inc. and Fluor Corp. have done
extensive previous work for the government.

The companies have denied political connections played a factor.

The latest disclosure has brought complaints from some lawmakers, who say
the Bush administration has not done enough for small businesses. Democrats,
in particular, have urged limits on no-bid contracts, which they say are
unfairly handed to large companies with political connections.

A House panel chaired by Republican Rep. Tom Davis of Virginia plans to hold
at least one hearing next month on Katrina contracting. That was announced
after the GAO's audit results were released.

"The administration has promised to help local and small businesses get
contracts to help rebuild the Gulf Coast, but they keep letting them down,"
said Sen. John Kerry of Massachusetts, top Democrat on the Committee on
Small Business and Entrepreneurship.

On Thursday, Kerry sent a letter to Paulison that called for quicker action
in ensuring small businesses get "their fair share of reconstruction
contracts."

FEMA had promised last October to boost the number of contracts given to
small and minority businesses, partly by setting aside up to $1.5 billion
worth of work to maintain trailers housing Katrina evacuees. It said those
contracts would be awarded by Feb. 1.

Yet those 15 contracts - eight of which are designated for minority-owned
businesses - have yet to be awarded due to the high volume of applications,
according to Widomski. He said the agency hoped to announce the winners by
early next month.

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Seeya rouind town, Moscow.

Tom Hansen
Moscow, Idaho

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"In America, anybody can become president.  
That's one of the risks you take . . ."

- Adlai Stevenson

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