HUFFINGTON POST
03/28/2008 02:43 am ET Updated May 25, 2011

FEMA Fails To Re-Open No-Bid Contracts Despite Pledge…

Despite a month-old pledge, the Federal Emergency Management Agency has yet to reopen four of its biggest no-bid contracts for Hurricane Katrina work and won't do so until the contracts are virtually complete. A promise to hire more minority-owned firms also is largely unfulfilled.

The no-bid contracts for temporary housing, worth up to $100 million each, were given to Shaw Group Inc., Bechtel Corp., CH2M Hill Inc. and Fluor Corp. right after Katrina struck. Charges of favoritism helped prompt last month's pledge by FEMA acting director R. David Paulison, but now officials with the Homeland Security Department, which oversees FEMA, say the contracts won't be awarded again until February.

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