Minority firms getting few Katrina contracts

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Minority firms getting few Katrina contracts

Associated Press
October 9, 5600

WASHINGTON - The Government Accountability Office is looking into whether small and minority-owned businesses have been given a fair opportunity to compete for the contracts.

Minority-owned businesses say they're paying the price for the decision by Congress and the Bush administration to waive certain rules for Hurricane Katrina recovery contracts.

About one-point-five percent of the one-point-six (b) billion awarded by the Federal Emergency Management Agency has gone to minority businesses, less than a third of the five percent normally required.

Once Katrina's destructive waters receded, Andrew Jenkins began making calls in hopes of winning a government contract for his Mississippi construction company.

Jenkins, who is black, says he watched in frustration as the contracts went to others, many of them larger, white-owned companies with political ties to Washington.

To speed aid, many requirements normally attached to government contracting were waived by Congress and the administration. The result has been far more no-bid contracts going to businesses that have an existing relationship with the government.




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