Principled Profit: The Good Business Blog

Musings on the world-wide movement for ethical business, frugal marketing, and how honesty, integrity, and quality combine with deep relationship building to create business success. By the originator of the Ethical Business Pledge campaign and award-winning author of Principled Profit: Marketing That Puts People First and five other books

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Saturday, March 25, 2006

FEMA Still Maintains No-Bid Katrina Contracts

We all thought this was going to change in the fall. That's when a spate of stories hit the news about the no-bid contracts on Katrina reconstruction, mostly awarded to large enterprises with close ties to the Bush administration and the military establishment, such as Halliburton and Bechtel.

Here, among many examples, is a Washington Post story from September 29, in which...

The officials responsible for monitoring more than $60 billion in federal Hurricane Katrina spending promised yesterday to take a hard look at every no-bid contract awarded since the storm and to investigate the adequacy of contracts the government had in place before disaster struck.

Yet, here we are, six months later. And the government has reneged. Today's Associated Press wire story shows FEMA's dismal failure to keep its word.

And not only that, but the usual percentages set aside for small (as the government laughably defines them--far bigger than most of the businesses I deal with) and minority-owned businesses aren't even close to being achieved.

Whether it's incompetence or malfeasance, it looks might funky from here.


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