70% of Post-Katrina Contracts Awarded Without Full Bidding
Hundreds of millions of taxpayer dollars were wasted by FEMA in the awarding of Katrina recovery contracts, according to a...
Hundreds of millions of taxpayer dollars were wasted by FEMA in the awarding of Katrina recovery contracts, according to a U.S. House of Representatives study released today by House Democrats. Audits show that of $10.6 billion worth of contracts awarded, more than $7.4 billion were given with either no bidding or limited bidding. In addition, nineteen contracts worth $8.75 billion wasted taxpayer money in part through double-billing or non-use of purchased items.
While acknowledging that some of the contracts needed to be awarded on an emergency, no-bid basis, Democrats pointed out that, as time passed, the number of no-bid or limited-bid contracts actually increased. Bechtel, CH2M Hill Inc. and Fluor--companies with strong political connections--were found by auditors to have wasted post-Katrina recovery money. These same companies were just awarded millions of dollars worth of temporary housing contracts by FEMA.