FEMA breaks promise on Katrina contracts

Agency will extend, not rebid, deals with politically connected firms

The Associated Press

Updated: 6:56 p.m. ET March 24, 2006

WASHINGTON - FEMA has broken its promise to reopen four multimillion-dollar no-bid contracts for Hurricane Katrina work, including three that federal auditors say wasted significant amounts of money.

Officials said they awarded the four contracts last October to speed recovery efforts that might have been slowed by competitive bidding. Some critics, however, suggested they were rewards for politically connected firms.

Acting FEMA Director R. David Paulison pledged last fall to rebid the contracts, which were awarded to Shaw Group Inc., Bechtel Corp., CH2M Hill Inc. and Fluor Corp. Later, the agency acknowledged the rebidding wouldn’t happen until February.