From The Associated Press, 10/20/05:
http://www.seacoastonline.com/news/10202005/biz_nati/68939.htm
Politics play part in flood contracts
By Hope Yen
Associated Press
WASHINGTON -
When Hurricane Katrina struck, Ashbritt Inc. was well-positioned to
take advantage of the torrent of government dollars that followed.
The Pompano Beach, Fla., firm had spent years cultivating its
relationship with the federal government, contributing tens of
thousands of dollars to the Republican Party and, more recently,
hiring a powerful firm to lobby the Army Corps of Engineers on
"disaster mitigation."
After Katrina hit, Ashbritt was given the largest award to date - a
deal worth up to $1.1 billion from the Corps for debris removal.
It is a story of government ties that is repeated time and again for
the winners of the 10 largest Katrina contracts, according to an
Associated Press review.
At least four of those contracts are now being reviewed for possible
waste and abuse.
All 10 companies are located outside the affected Gulf Coast region,
most are politically active and most got the work after a limited
bidding process.
"How can the government say it is serious about reconstructing the
Gulf Coast and edge out small and minority-owned businesses?" said
Rep. Bennie Thompson, D-Miss., the ranking Democrat on the House
Committee on Homeland Security.
"The only way to make sure the relief funds reach hurricane victims
and damaged areas is to be aggressive about oversight."
The Federal Emergency Management Agency and the Army Corps, which
award the bulk of Katrina contracts, say they are committed to handing
out contracts based on merit and open competition.
FEMA also has pledged to rebid four contracts worth $100 million each
to politically connected firms - Shaw Group Inc., Bechtel Corp., CH2M
Hill Inc. and Fluor Corp. - that were awarded with little or no
competition.
Priority will be given to small and minority-owned businesses.
But the winners of even larger Katrina deals - those valued at $170
million or more - will not have to rebid or renegotiate.
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Well, y'all knew *that* was gonna happen, eh?
Harry
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