Minority-owned businesses say they're paying the price for a decision by Congress and the Bush administration to waive certain rules for Hurricane Katrina recovery contracts.
The result has been far more no-bid contracts going to businesses that have an existing relationship with the government. For example, instead of receiving the 5 percent normally required of federal contract work, minority-owned businesses have received about 1.5 percent of the $1.6 billion awarded by FEMA.
The Department of Labor and FEMA each have said that they suspended affirmative action rules for first-time government contractors doing Katrina work to reduce paperwork and to speed emergency aid.
But the Army Corps of Engineers gave 16 percent of its $637 million in Katrina contracts to minority-owned companies, according to agency records. Hmmm.
Isn't it possible that the Republican-led Congress, Labor Department and FEMA are buying into the spin that you can't have a fair and fast bidding for Katrina contracts?
That may be decided by the Government Accountability Office. On Oct. 4, Sen. Olympia Snowe (R-ME) and Rep. Donald Manzullo (R-IL) asked the GAO to investigate whether small and minority-owned businesses have been given a fair opportunity to compete for Katrina contracts.
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The waiver on affirmative action rules coincided with a suspension of a "prevailing wage" law that black lawmakers and business people believe will hurt the disproportionately large number of black hourly workers.
Harry Alford, the president of the National Black Chamber of Commerce, told the Associated Press that the waivers are sending are a bad message. "What they're basically saying to the minority in New Orleans is: 'We'll make it harder for you to find a job. And if you do, we'll make sure you get paid less.'"
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This item first appeared at Journalists Against Bush's B.S.
Article comments
1 - Phillip Winn
I don't think this article explains the difference between the approaches of FEMA and the Army Corps of Engineers. Am I supposed to guess, or should I already know before reading the article?
2 - Dave Nalle
>>"What they're basically saying to the minority in New Orleans is: 'We'll make it harder for you to find a job. And if you do, we'll make sure you get paid less.'"<<
No, what they're saying is "we'll do what needs to be done to get your city rebuilt with all possible speed, and cut some of the red tape to do it."
A truly laudable decision.
Dave
3 - Silas Kain
Getting people back to work on rebuilding NOLA is what's important. If that means cutting through some red tape, go for it in the initial run. There's plenty of work to go around before its over. They need to prioritize, strategize and minimize (thank you Jesse Jackson). I'd be more concerned about where all this money is going down there. Congress is signing promissory notes left and right to rebuld the Gulf but nobody is providing the source for the funding. They've laid off 3,000 employees. You mean to tell me that there's no FEMA money to pay these people? There's nothing for them to do? I don't care if they take secretaries out of the typing pool and assign them as caseworkers to the displaced. At least they'd be working!
4 - Dave Nalle
Silas, the key thing is that FEMA doesn't DO anything. It's a big bureaucracy which coordinates other people doing things. I bet they can cut 3000 people and be more effective at their job than they were before.
Dave
5 - Silas Kain
I understand that Dave, but to take 3,000 people and place them on the streets doesn't help get NOLA cleaned up. There could have been reassignments to other departments. There are a lot of frightened politicians right now. The best source for uncovering the corruption in City Hall is the employee base. One has to wonder if those who remain on the job are the keepers of the keys. Are they protecting New Orleans or are they protecting themselves?
6 - Dave Nalle
I imagine they're feeling pressure to clean house and look like they're doing something, and if the bureaucracy is bloated then booting some people out might be meaningful. If only the TSA would follow their lead.
Dave