[CPEO-BIF] Gulf Firms Losing Cleanup Contracts

[Lenny Siegel <lsiegel@cpeo.org>]

Gulf Firms Losing Cleanup Contracts
Most Money Going Outside Storm's Path

By Griff Witte, Renae Merle and Derek Willis
Washington Post
October 4, 2005

Companies outside the three states most affected by Hurricane Katrina 
have received more than 90 percent of the money from prime federal 
contracts for recovery and reconstruction of the Gulf Coast, according 
to an analysis of available government data.

The analysis by The Washington Post takes into account only the first 
wave of federal contracts, those that had been entered in detail into 
government databases as of yesterday. Together they are valued at more 
than $2 billion. Congress has allocated more than $60 billion for the 
recovery effort, and the ultimate total is expected to rise far higher.

But already the trend toward out-of-state firms is clear, despite 
pledges by administration officials that federal funds for Katrina 
relief will become an engine of local economic redevelopment. Among the 
contracts analyzed, 3.8 percent of the money went to companies that 
listed an Alabama address, 2.8 percent to firms in Louisiana and just 
1.8 percent went for Mississippi contractors. Taken together, that 
amounts to less than $200 million.

...

For the entire article, see
http://www.washingtonpost.com/wp-dyn/content/article/2005/10/03/AR2005100301691.html

--
Lenny Siegel
Director, Center for Public Environmental Oversight
c/o PSC, 278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
http://www.cpeo.org
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