FEMA has backed away from plans to rebid four multi-million dollar no-bid contracts that were awarded in the aftermath of Hurricane Katrina.
The AP reports that federal officials claimed the contracts, awarded last October, were for reconstruction work that was too important to wait for the competitive bid process.
A review by the Government Accountability Office of 13 major contracts said last week the government had wasted millions of dollars, due mostly to poor planning by FEMA.
Among the 13 were three of the four no-bid contracts for temporary housing, worth up to $500-million each, that went to three major firms with extensive government ties.
The preliminary review did not address the validity of no-bid contracts issued right after the Aug. 29 storm. The fourth housing contractor, the Shaw Group, was not included in the audit.
The Shaw Group's lobbyist, Joe Allbaugh, is a former FEMA director. The company's chairman and CEO, Jim Bernhard, is the former Louisiana Democratic Party chairman.
Bechtel CEO Riley Bechtel served on Bush's Export Council from 2003-2004, and CH2M Hill Inc. and Fluor Corp. have done extensive previous work for the government.
The companies have denied political connections played a factor.
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