Monday, September 26, 2005

Your Taxpayer Dollars at Work

Given the standard operating procedure of this administration, it comes as no surprise that up to 80% of contracts awarded in the aftermath of Katrina came via the usual 'no-bid' process that favors 'friends' of the current powers. Some familiar names and connections are listed in an article published in today's New York Times.

Topping the federal government's list of costs related to Hurricane Katrina is the $568 million in contracts for debris removal landed by a Florida company with ties to Mississippi's Republican governor. Near the bottom is an $89.95 bill for a pair of brown steel-toe shoes bought by an Environmental Protection Agency worker in Baton Rouge, La.

The first detailed tally of commitments from federal agencies since Hurricane Katrina hit the Gulf Coast four weeks ago shows that more than 15 contracts exceed $100 million, including 5 of $500 million or more. Most of those were for clearing away the trees, homes and cars strewn across the region; purchasing trailers and mobile homes; or providing trucks, ships, buses and planes.

More than 80 percent of the $1.5 billion in contracts signed by the Federal Emergency Management Agency alone were awarded without bidding or with limited competition, government records show, provoking concerns among auditors and government officials about the potential for favoritism or abuse.

Already, questions have been raised about the political connections of two major contractors - the Shaw Group and Kellogg, Brown & Root, a subsidiary of Halliburton - that have been represented by the lobbyist Joe M. Allbaugh, President Bush's former campaign manager and a former leader of FEMA.
[Emphasis added]

But wait, there's more! Even Mississippi Governor Haley Barbour gets involved:

Congressional investigators are looking into the $568 million awarded to AshBritt, a Pompano Beach, Fla., company that was a client of the former lobbying firm of Gov. Haley Barbour of Mississippi.

The investigators are asking how much money AshBritt will collect and, in turn, what it will pay subcontractors performing the work, said a House investigator who did not want her name used because she was not authorized to speak publicly about the matter.

Representative Bennie Thompson of Mississippi, the ranking Democrat on the House Homeland Security Committee, complained that FEMA and other federal agencies were delivering too much of the work to giant corporations with political connections, instead of local companies or minority-owned businesses. ...

AshBritt, which has won the biggest share of those contracts, is being paid about $15 per cubic yard to collect and process debris, federal officials said. It is also being reimbursed for costs if it has to dispose of material in landfills.

But three communities in Mississippi, which found their own contractors rather than accept the terms offered by AshBritt, have negotiated contracts of $10.64 a cubic yard to $18.25 a cubic yard, including collection, processing and disposal.

And other experts have questioned AshBritt's fees. "Let me put it to you this way: If $15 was my best price, I would rebid it," said Mike Carroll, a municipal official in Orlando, Fla., with experience in hurricane cleanup.

I don't know which is more astounding: that the current regime feels this is the best way to spend our tax dollars or that the main stream, corporate media is actually reporting on it. Unfortunately (for us) the Republican Congress is not likely to do anything about this beyond smiling and winking.


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