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. Bechtel CEO Riley Bechtel served on Bush's Export Council from 2003-2004, and the Shaw Group's lobbyist, Joe Allbaugh, is a former FEMA director and friend of Bush. 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. FEMA promised to boost the number of contracts given to minority-owned businesses but in the last month the percentage has increased only slightly, from 1.5 percent to 1.8 percent. That's still well below the 5 percent of federal contracts normally set aside for minority-owned firms.
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