Questions over Katrina contracts:

[Jon8503]

NYT Mon Sep 26,12:05 PM ET

NEW YORK (Reuters) - More than 80 percent of the $1.5 billion in contracts signed by the Federal Emergency Management Agency to clean up after Hurricane Katrina were awarded without bidding or with limited competition, the New York Times reported on Monday.

The newspaper, citing government records, said some of the bids are provoking concern among auditors and government officials about the potential for favoritism or abuse.

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

Already, the Times said, questions have been raised about the political connections of two contractors -- the Shaw Group and Kellogg, Brown & Root, a subsidiary of Halliburton that have been represented by lobbyist Joe Allbaugh, President George W. Bush's ex-campaign manager and former head of FEMA.

"When you do something like this, you do increase the vulnerability for fraud, plain waste, abuse and mismanagement," the Times quoted Richard Skinner, inspector general for the Department of Homeland Security, as saying. "We are very apprehensive about what we are seeing."

Bills have come in for deals that apparently were clinched with a handshake, with no documentation to back them up, said Skinner, who declined to provide details.

http://news.yahoo.com/s/nm/20050926/us_nm/katrina_bids_dc

[Rex]

1. Cheney's overlords don't have to compete for contracts anymore.

Did away with the Davis-Bacon act and declared these areas under Federal control. Keep up NYT.

[nosmokes]

2. ain't it great?

nothing like making a few billion off of other folks suffering and dying. and ya don't even hafta compete for the windfall!(if you're connected.)