|
|
||
Lucrative no-bid federal contracts for Katrina recovery that went to politically connected companies have been extended. Date published: 3/25/2006
By HOPE YEN ASSOCIATED PRESS WRITER WASHINGTON--FEMA has broken its promise to reopen four $500 million no-bid contracts for Hurricane Katrina work, including three that federal auditors say wasted millions of dollars. 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, the Federal Emergency Management Agency said the contracts wouldn't be rebid after all. In fact, they have been extended, in part because of good performance, said Michael Widomski, an agency spokesman. "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. 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. Shaw Group's lobbyist, Joe Allbaugh, is a former FEMA chief and friend of President Bush. Bechtel CEO Riley Bechtel served on Bush's Export Council from 2003 to 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. "Our work was awarded based on performance," said Brad Jones, spokesman for CH2M Hill, based in Englewood, Colo.
1. Be respectful. No personal attacks.
|
|
||||||||||||
