Many Contracts for Storm Work Raise Questions

This is from the New York Times:

The first detailed tally of commitments from federal agencies since Hurricane Katrina hit the Gulf Coast four weeks ago shows that more than 15 contracts exceed $100 million, including 5 of $500 million or more. Most of those were for clearing away the trees, homes and cars strewn across the region; purchasing trailers and mobile homes; or providing trucks, ships, buses and planes.

More than 80 percent of the $1.5 billion in contracts signed by the Federal Emergency Management Agency alone were awarded without bidding or with limited competition, government records show, provoking concerns among auditors and government officials about the potential for favoritism or abuse.

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

"When you do something like this, you do increase the vulnerability for fraud, plain waste, abuse and mismanagement," said Richard L. Skinner, the inspector general for the Department of Homeland Security, who said 60 members of his staff were examining Hurricane Katrina contracts. "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 Mr. Skinner, who declined to provide details.

The cronyism in the Bush White House just doesn't stop. Now we have no-bid contracts being awarded to Halliburton, who was represented by Allbaugh--connected by Bush through his presidential campaign financing and as being a former leader of FEMA. What is even worst is that some of these companies are in hot water due to overcharging the government for the Iraq war costs. The Times continues saying:

Some businesses awarded large contracts have long records of performing similar work, but they also have had some problems. Kellogg, Brown & Root, which was given $60 million in contracts, was rebuked by federal auditors for unsubstantiated billing from the Iraq reconstruction and criticized for bills like $100-per-bag laundry service.

Kellogg, Brown & Root is a subsidiary of Halliburton--Dick Cheney's old company. The good-ole-boy network continues on in the Bush White House.