$2 billion next year because half of lucrative government contracts
valued at $500,000 or greater for cleanup work being awarded
with little or no competition. (sounds like Iraq)
Federal investigators have already determined the Bush Admin.
squandered $1 billion on fraudulent disaster aid to individuals
after the 2005 storm. Now they are shifting their attention to the
multi-million dollar contracts to politically connected firms that
critics have long said are a prime area for abuse.
In January, investigators will release the first of several audits
examining more than $12 billion in Katrina contracts (PDF). The
charges range from political favoritism to limited opportunities
for small and minority-owned firms, which initially got only 1.5
percent of the total work."
"Based on their track record, it wouldn.t surprise me if we saw
another billion more in waste," said Clark Kent Ervin, the
Homeland Security Department.s inspector general from 2003-
2004. "I don.t think sufficient progress has been made."
"He called it inexcusable that the Bush administration would still
have so many no-bid contracts. Under pressure last year, Federal
Emergency Management Agency director David Paulison pledged to
rebid many of the agreements, only to backtrack months later and
reopen only a portion.
.Laziness, ineptitude ... nefarious. Investigators are now
examining whether some of the agreements -- which in some
cases were extended without warning rather than rebid -- are
still unfairly benefiting large firms."
"It.s a combination of laziness, ineptitude and it may well be
nefarious," Ervin said.
FEMA spokesman James McIntyre said the agency was working
to fix its mistakes by awarding contracts for future disasters
through competitive bidding. Paulison has said he welcomes
additional oversight but cautioned against investigations that aren.t
based on "new evidence and allegations."
"As always, FEMA will work with Congress in all aspects to ensure that
we are carrying out the agency.s responsibilities," McIntyre said.
"The Aug. 29, 2005, hurricane swept ashore in southern Louisiana,
Mississippi and Alabama, leveling homes and businesses along the Gulf
Coast. Its storm surge breached levees in New Orleans, unleashing a
flood that left more than 1,300 people dead, hundreds of
thousands homeless and tens of billions of dollars worth of
damage.
A series of government investigations in the storm.s wake
faulted the Bush administration for underestimating the threat
and failing to prepare by pre-negotiating contracts for basic
supplies in what has become the nation.s costliest disaster.
$1B estimate .likely understated. Earlier this month, the Government
Accountability Office said its initial estimate of $1 billion in disaster aid
waste was "likely understated," citing continuing problems in which
FEMA doled out tens of millions of dollars in fraudulent housing
assistance.
Democrats in Congress called for more accountability. When
they take over in January, at least seven committees plan
hearings or other oversight -- from housing to disaster loans --
on how the $88 billion approved for Katrina relief is being spent.
Among the current investigations: The propriety of four no-bid contracts
together worth $400 million to Shaw Group Inc., Bechtel Group Inc.,
CH2M Hill Companies Ltd., and Fluor Corp. that were awarded
without competition. Then there were the Private Mercenary
Forces like Blackwater, Dynacorp, Intercon, American Security
Group and Instinctive Shooting Intl (Israeli ISI) with their M-16's
in hand and ready for the kill! These Private Mercenary Forces
like Blackwater were there under Bush Government Contracts
while others were hired by the private "wealthy elite" to protect
their multi-million dollar estates and businesses!
The contracts drew immediate criticism because of the companies.
extensive political and government ties, prompting a promise last year
from Paulison to rebid them. Instead, FEMA rebid only a portion and
then extended their contracts once, if not twice -- to $3.4 billion total --
so the firms could finish their remaining Katrina work.
The four companies, which have denied that connections played a
factor, were among six that also won new contracts after open bidding
in August. The latest contracts are worth up to $250 million each for
future disaster work.
The propriety of 36 trailer contract awards designated for small and
local businesses as part of Paulison.s promise to rebid large contracts.
Homeland Security Inspector General Richard Skinner is
reviewing whether some small and local businesses were
unfairly shut out in favor of winners such as joint venture PRI-
DJI. DJI stands for Del-Jen Inc., a subsidiary of Fluor, which has
donated more than $930,000 to mostly Republican candidates
since 2000."
.It.s who you know. " It.s not what you know, what your
expertise is. I don.t even believe it.s got much to do with price. It.s who
you know," contends Ken Edmonds, owner of River Parish RV Inc. in
Louisiana, a company of 9 people whose application was rejected.
PRI, a minority-owned firm based in San Diego, said it is the "majority
partner" with Del-Jen as part of a federal mentoring program offered by
the Small Business Administration. The joint venture received four
Katrina contracts worth up to $100 million each based on price and
"knowledge of work with the federal government," president Frank
Loscavio said.
Whether small and minority-owned businesses were unfairly hurt after
the Bush administration initially waived competition requirements.
For many weeks after the storm, minority firms received 1.5
percent of the total work -- less than one-third of the 5 percent
normally required -- because they weren.t allowed to bid for
many of the emergency contracts.
The National Black Chamber of Commerce called the figure
appalling because of the disproportionate number of poor,
black people in the stricken Gulf Coast, prompting Sen. Olympia
Snowe, R-Maine, and Rep. Donald Manzullo, R-Ill., to request
GAO to investigate.
FEMA has since restored many of its competition rules, and the
number of contracts given to minority firms is now about 8.8
percent, according to the agency." YES ... Restore Rules after
all the Corporate Plundering is Already Done - K-Males at work
again!
===========
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ISI has been mentioned as providing armed guards on contract to the Department of Homeland Security, and to wealthy private homeowners, for use in the Hurricane Katrina relief area.
Sources
*[1] Jeremy Scahill, Blackwater Down, The Nation, October 10, 2005.
*[2] Kevin Johnson, Mansions Spared on Uptown's High Ground, USA Today, September 11, 2005.
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