70% of Post-Katrina Contracts Awarded Without Full Bidding

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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.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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