Federal Contracting: Lessons Learned from Hurricane Katrina
August 28, 2006
1. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery: A 90-Day Progress Report to Congress,” December 30, 2005, p. 3. Available at http://www.ignet.gov/pande/hsr/hk90dayrpt.pdf.
2. DHS, “National Response Plan.” Available at http://www.dhs.gov/dhspublic/interapp/editorial/editorial_0566.xml.
3. Paul Singer, National Journal, “Uneasy Money,” August 11, 2006, p. 7. Available at http://nationaljournal.com/scripts/printpage.cgi?/about/njweekly/stories/2006/0811nj3.htm (Subscription-only).
4. Ibid.
5. DHS Press Release, “By the Numbers - One Year Later, FEMA Recovery Update for Hurricanes Katrina,” August 22, 2006. Available at http://www.fema.gov/news/newsrelease.fema?id=29109.
6. White House Report, “The Federal Response to Hurricane Katrina: Lessons Learned,” February 2006, p. 1. Available at http://www.whitehouse.gov/reports/katrina-lessons-learned.pdf.
7. Ibid.
8. Ibid., p. 5.
9. On May 4, 2006, GAO (GAO-06-714T) estimated that over “over $87 billion of federal funding has been appropriated in response to the recent hurricanes,” p. 2. Available at http://www.gao.gov/new.items/d06714t.pdf. On June 15, 2006, President Bush signed legislation to provide an additional $19.8 billion to families and communities rebuild from 2005 hurricanes. Available at http://www.whitehouse.gov/news/releases/2006/06/20060615-15.html.
10. FEMA was placed inside the newly created Department of Homeland Security after 9/11. 6 U.S.C. § 317 (Role of Federal Emergency Management Agency). See Public Law 107-296 (the “Homeland Security Act of 2002”).
11. 42 U.S.C. § 5121 et seq. The Stafford Act also requires the President (more specifically FEMA, by executive order) “to provide technical assistance to the States in developing comprehensive plans and practicable programs for preparation against disasters.” 42 U.S.C. § 5131. The President is also authorized to annually review disaster preparedness programs. See also Congressional Research Service Report (RL 33053), “Federal Stafford Act Disaster Assistance: Presidential Declarations, Eligible Activities, and Funding,” August 29, 2005. Available at http://www.fas.org/sgp/crs/homesec/RL33053.pdf#search=%22stafford%20act%20CRS%22.
12.CRS Report (RL 33053), “Federal Stafford Act Disaster Assistance: Presidential Declarations, Eligible Activities, and Funding,” August 29, 2005, Summary. Available at http://www.fas.org/sgp/crs/homesec/RL33053.pdf#search=%22stafford%20act%20CRS%22.
13. Ibid., p. 2, 9.
14. Federal responsibilities, as outlined in the National Response Plan (NRP), include: meeting ice and water requirements for mass care; providing emergency health care services; locating and securing supplies of food; and providing temporary housing support. DHS, “National Response Plan.” Available at http://www.dhs.gov/dhspublic/interapp/editorial/editorial_0566.xml.
15. U.S. House of Representatives Select Bipartisan Committee to Investigate the Preparation for and Response to Hurricane Katrina report, “A Failure of Initiative,” February 15, 2006, p. 81. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22.
16. National Weather Service, National Hurricane Center, Tropical Prediction Center, “Costliest U.S. Hurricanes 1900-2004 (unadjusted).” Available at http://www.nhc.noaa.gov/pastcost.shtml.
17. DHS IG (OIG-06-32), “A Performance Review of FEMA’s Disaster Management Activities in Response to Hurricane Katrina,” March 2006, p. 1. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_06-32_Mar06.pdf.
18. FEMA Report (1642-033), “Disaster Recovery Experts Advise: Be Careful When Hiring Contractors for Repairs,” July 28, 2006. Available at http://www.fema.gov/news/newsrelease.fema?id=28344.
19. Available at http://hsgac.senate.gov/_files/Katrina/FullReport.pdf.
20. Available at http://www.democrats.reform.house.gov/Documents/20060824110705-30132.pdf.
21. Those recommendations are grouped into 17 areas: national preparedness; integrated use of military capabilities; communications; logistics and evacuation; search and rescue; public safety and security; public health and medical support; human services; mass care and housing; public communications; critical infrastructure and impact assessment; environmental hazards and debris removal; foreign assistance; non-governmental aid; training, exercises, and lessons learned; homeland security professional development and education; and citizen and community preparedness. Available at http://www.whitehouse.gov/reports/katrina-lessons-learned.pdf.
22. 10th PCIE Hurricane Katrina Report, to date as of 06-30-06, p. 2. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_PCIE_063006.pdf.
23. DHS, “Hurricane Katrina Press Releases,” Accessed August 22, 2006. Available at http://www.dhs.gov/dhspublic/interapp/editorial/editorial_0741.xml.
24. GAO Report (GAO-06-844T), “Hurricane Katrina and Rita Disaster Relief: Improper and Potentially Fraudulent Individual Assistance Payments Estimated to Be Between $600 Million and $1.4 Billion,” June 14, 2006, p. 8. Available at http://coburn.senate.gov/ffm/index.cfm?FuseAction=Files.View&FileStore_id=b28a931a-88b9-46ec-ac3b-7a3360c53541#search=%22GAO-06-844T%22.
25. Ibid., p. 1.
26. GAO Report (GAO-06-442T), “Hurricane Katrina: GAO’s Preliminary Observations Regarding Preparedness, Response, and Recovery,” March 8, 2006, p. 2. Available at http://www.gao.gov/new.items/d06442t.pdf.
27. NOAA, “Hurricane Andrew.” Available at http://www.noaa.gov/hurricaneandrew.html. See http://www.nhc.noaa.gov/pastcost2.shtml?.
28. National Weather Service, National Hurricane Center, Tropical Prediction Center, “Costliest U.S. Hurricanes 1900-2004 (unadjusted).” Available at http://www.nhc.noaa.gov/pastcost.shtml.
29. GAO Letter (GAO/RCED-94-293R), “GAO Work on Disaster Assistance,” August 31, 1994, p. 17. Available at http://archive.gao.gov/t2pbat2/152456.pdf; “A Failure of Initiative,” February 15, 2006, p. 1, 5. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22a%20failure%20of%20initiative%22.
30. GAO Report (GAO/T-RCED-93-46), “Disaster Management: Recent Disasters Demonstrate the Need to Improve the Nation’s Response Strategy,” May 25, 1993, p. 26. Available at http://archive.gao.gov/d43t14/149256.pdf.
31. GAO Report (GAO-06-442T), “Hurricane Katrina: GAO’s Preliminary Observations Regarding Preparedness, Response, and Recovery,” March 8, 2006, p. 1. Available at http://www.gao.gov/new.items/d06442t.pdf.
32. Jonathan Marino, GovExec.com, “FEMA acquisitions chief pushes recruiting program,” April 21, 2006. Available at http://www.govexec.com/dailyfed/0406/042106j1.htm.
33. Ibid.
34. FEMA Report (HQ-06-121), “FEMA Awards New Contracts for Temporary Housing and Disaster Recovery Center Support,” August 9, 2006, p. 1. Available at http://www.fema.gov/news/newsrelease.fema?id=28685.
35. Ibid.
36. FEMA Report (HQ-06-114), “FEMA Launches Debris Contractor Registry to Assist Communities,” July 24, 2006. Available at http://www.fema.gov/news/newsrelease.fema?id=28179.
37. “Press briefing with FEMA Director David Paulison,” August 18, 2006. Available at rtsp://video.c-span.org/project/hur/hur081806_katrina.rm.
38. Letter available at http://www.pogo.org/m/cp/cp-2004-AFGE4060-FEMA.pdf.
39. White House, Michael Brown Biography. Available at http://www.whitehouse.gov/government/brown-bio.html. IAHA, “Former International Arabian Horse Association Judges & Stewards Commissioner, Michael Brown,” September 7, 2005. Available at http://secure.arabianhorses.org/apps/index.cgi?page=pressrel&prid=41.
40. Congressional Record, December 8, 2005, p. E2492. Available at http://frwebgate.access.gpo.gov/cgibin/getpage.cgi?dbname=2005_record&page=E2492&position=all.
41. “A Failure of Initiative,” February 15, 2006, p. 68. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22a%20failure%20of%20initiative%22.
42. “Oversight of Gulf Coast Hurricane Recovery: A 90-Day Progress Report to Congress,” p. 8. Available at http://www.ignet.gov/pande/hsr/hk90dayrpt.pdf.
43. Ibid., p. 330.
44. Ibid., p. 289.
45. GAO Report (GAO-04-160), “Continuity of Operations: Improved Planning Needed to Ensure Delivery of Essential Government Services,” February 2004, p. 12. Available at http://www.gao.gov/new.items/d04160.pdf.
46. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p. 124-125. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf.
47. U.S. House of Representatives Committee on Government Reform, “Waste, Abuse, and Mismanagement in Department of Homeland Security Contracts,” July 2006, p. 16. Available at http://www.democrats.reform.house.gov/Documents/20060727092939-29369.pdf#search=%22richard%20l.%20skinner%20katrina%20trailers%20site%3A.gov%22.
48. “Press briefing with FEMA Director David Paulison,” August 18, 2006. Available at rtsp://video.c-span.org/project/hur/hur081806_katrina.rm.
49. GAO Report (GAO-06-714T) Report, “Hurricane Katrina: Improving Federal Contracting Practices In Disaster Recovery Operations,” May 4, 2006, p. 4, 6. Available at http://www.gao.gov/new.items/d06714t.pdf.
50. “A Failure of Initiative,” February 15, 2006, p. 330. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22.
51. Ibid.
52. White House Report, “The Federal Response to Hurricane Katrina: Lessons Learned,” February, 2006, p. 48. Available at http://www.whitehouse.gov/reports/katrina-lessons-learned.pdf.
53. Keith Naughton and Mark Hosenball, Newsweek, “Cash and ‘Cat 5’ Chaos -- The gold rush: Contractors and prospectors are flooding the Gulf Coast to grab their piece of the biggest reconstruction ever. If only FEMA could stop fumbling,” September, 2005. Available at http://www.msnbc.msn.com/id/9379239/.
54. GSA, “GSA Schedule e-Library Schedule Details.” Available at http://www.gsaelibrary.gsa.gov/ElibMain/SinDetails;jsessionid=www.gsaelibrary.gsa.gov-50c9%3A43f09ea8%3A34ac18eed43496?executeQuery=YES&scheduleNumber=751&flag=&filter=&specialItemNumber=751+1.
55. Chris Joyner, Clarion Ledger, “FEMA car rentals draw criticism,” February 10, 2006. Available at http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20060210/NEWS0110/602100340&SearchID=73235472421454.
56. POGO’s Federal Contractor Misconduct Database. Available at http://www.pogo.org.
57. Yochi J. Dreazen, The Wall Street Journal, “Some Firms Hired in Katrina’s Wake Have Checkered Pasts,” September 20, 2005, p. B1.
58. “Hurricane Katrina: Improving Federal Contracting Practices in Disaster Recovery Operations,” May 4, 2006, p. 4. Available at http://www.gao.gov/new.items/d06714t.pdf.
59. GAO Letter Report (GAO/RCED-94-293R), “GAO Work on Disaster Assistance,” August 31, 1994, p. 17. Available at http://archive.gao.gov/t2pbat2/152456.pdf.
60. “A Failure of Initiative,” February 15, 2006, p. 5, 17. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22
61. A policy debate continues pitting “low price” against “best value” as the preferred method for buying goods and services. Buying goods and services at the “lowest practical cost” would allow for some buying flexibility and provide a more objective criteria that would prevent the unjustified steering of contracts to non-responsible, questionable, or politically-connected companies.
62. “A Failure of Initiative,” February 15, 2006, p. 330. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22.
63. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p. 13. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf.
64. 10th PCIE Hurricane Katrina Report, to date as of 06-30-06, p. 2. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_PCIE_063006.pdf.
65. FEMA, “Individual Assistance – Technical Assistance Contracts (IA-TACs) Contracts Awarded for the 2005 Hurricane Season,” last updated on August 9, 2006. Available at http://www.fema.gov/media/backgrounders/ia-tacs.shtm.
66. FEMA Press Release (HQ-06-049), “Small Business Administration Work Together to Award Hurricane Katrina Recovery Contracts to Small and Minority-Owned Businesses,” March 31, 2006. Available at http://www.fema.gov/news/newsrelease.fema?id=24682.
67. DHS IG Report (GC-MS-06-29), “Review of FEMA Contracts Awarded by Contracting Officers at the Jackson, Mississippi Joint Field Office,” March 28, 2006, p. 1-2. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_GC_MS_06-29.pdf.
68. FAR Subpart 6.3 outlines situations that permit less than full and open competition – the exceptions are: “only one responsible source,” “unusual and compelling urgency,” “expert services,” “international agreement,” “authorized or required by statute,” “national security,” and “public interest.”
69. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p. 11. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf.
70. DHS IG Report (GC-HQ-06-17), “Management Advisory Report on Armed Services provided by Blackwater Security Consulting, LLC under Contract HSCEFC-05-J-F00002,” March 1, 2006, p. 2. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_GC_HQ_06-17.pdf.
71. Department of the Navy Memorandum (N2006-0015), “Chartered Cruise Ships,” February 16, 2006, p. 4. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_NAV_N06-0015.pdf#search=%22n2006-0015%22.
72. Federal Bar Association, Briefing by Hugo Teufel III, DHS Associate General Counsel, January 19, 2006.
73. “A Failure of Initiative,” February 15, 2006, p. 332. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22.
74. Federal Bar Association, Briefing by Hugo Teufel III, DHS Associate General Counsel, January 19, 2006.
75. “Press briefing with FEMA Director David Paulison,” August 18, 2006. Available at rtsp://video.c-span.org/project/hur/hur081806_katrina.rm.
76. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p. 20. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf.
77. Committee on Government Reform Hearing, “Sifting Through Katrina’s Legal Debris: Contracting in the Eye of the Storm,” May 4, 2006. Available at http://reform.house.gov/GovReform/Hearings/EventSingle.aspx?EventID=42668.
78. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p. 113. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf.
79. Ibid., p. 3.
80. The current dramatic increases in government spending, large jumps in contract actions, and leveling off of the size of the acquisition workforce offer huge concerns for how well the federal government spends taxpayer dollars.
81. “Hurricane Katrina: Improving Federal Contracting Practices In Disaster Recovery Operations,” May 4, 2006, p. 7. Available at http://www.gao.gov/new.items/d06714t.pdf.
82. DHS IG Report (GC-LA-06-07), “Clearbrook, LLC Billing Errors Under Contract,” November 10, 2005, p. 1. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_GC_LA_06-07.pdf#search=%22%20%22gc%20la%2006%2007%22%20site%3A.gov%22.
83 Ibid. “Time and materials” contracts provide few incentives to get work done quickly because contractors make more money the longer they take to perform. See FAR Subpart 16.6.
84. Ibid.
85. Office of the Secretary of Transportation (AV-2006-051), “Internal Controls Over Payments for Emergency Disaster Relief Transportation Services,”June 30, 2006, p. 2-3. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_GC_DOT_AV-2006-051.pdf. Although documentation existed, it was not sent to regional offices and therefore was not used to verify contractor invoices.
86. Memorandum from Assistant IG for Aviation and Special Program Audits David A. Dobbs (AV-2006-032), “Report on Internal Controls Over the Emergency Disaster Relief Transportation Services Contract,” January 20, 2006, p. 3. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_AV-2006-032DOT.pdf.
87. Department of Homeland Security OIG Report (OIG-06-32), “A Performance Review of FEMA’s Disaster Management Activities in Response to Hurricane Katrina,” March 2006, p. 70. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_06-32_Mar06.pdf.
88. U.S. House of Representatives Committee on Government Reform Minority Staff, “Dollars, Not Sense: Government Contracting Under the Bush Administration,” June 2006, p. 15. Available at http://democrats.reform.house.gov/Documents/20060620140127- 02294.pdf#search=%22blue%20tarps%20did%20not%20compete%20cost%20hurricane%20katrina%20site%3A.gov%22. and Memorandum from Rep. Henry A. Waxman to the Democratic Members of the House Government Reform Committee, “Re: New Information About Katrina Contracts,” May 8, 2006, p. 8. Available at http://democrats.reform.house.gov/Documents/20060508161101-77956.pdf.
89. DHS IG (OIG-06-32) Report, “A Performance Review of FEMA's Disaster Activities,” March 2006, p. 96. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_06-32_Mar06.pdf#search=%22dhs%20FEMA%20disaster%20management%20march%202006%22.
90. “A Failure of Initiative,” February 15, 2006 , p. 331. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22.
91. “Oversight of Gulf Coast Hurricane Recovery: A 90-Day Progress Report to Congress,” p. 8. Available at http://www.ignet.gov/pande/hsr/hk90dayrpt.pdf.
92. DHS IG Report (GC-HQ-06-09), “Management Advisory Report on Invoices submitted under Order HSFEHQ-06-F-0047 by Corporate Lodging Consultants, Inc.,” February 13, 2006, p. 1. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_GC_HQ_06-09.pdf.
93. bid., p. 2.
94. GAO Report (GAO-060454), “Hurricane Katrina: Army Corps of Engineers Contract for Mississippi Classrooms,” May 2006, p. 6. Available at http://www.gao.gov/new.items/d06454.pdf.
95. GAO Report (GAO-06-264T), “Hurricanes Katrina and Rita: Preliminary Observations on Contracting for Response and Recovery Efforts,” November 8, 2005, p. 5. Available at http://www.gao.gov/new.items/d06246t.pdf.
96. DHS IG (OIG-06-32) Report, “A Performance Review of FEMA's Disaster Activities,” March, 2006, p. 33. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_06-32_Mar06.pdf#search=%22dhs%20FEMA%20disaster%20management%20march%202006%22.
97. See FAR Subpart 6.3.
98. Public Law 109-62 (“Second Emergency Supplemental Appropriations Act to Meet Immediate Needs Arising from the Consequences Of Hurricane Katrina, 2005”), September 8, 2005.
99. Office of Management and Budget Memorandum (2005-24) , “Implementing Management Controls to Support Increased Micro-purchase Threshold for Hurricane Katrina Rescue and Relief Operations,” September 13, 2005, p. 1. Available at http://www.whitehouse.gov/omb/procurement/publications/katrina_guidance2005.pdf.
100. See http://pogo.org/p/contracts/PurchaseCards.html.
101. Office of Management and Budget Press Release (2005-26), “OMB Guidance Requires Exceptional Circumstances for use of Increased Credit Card Purchases Limit,” September 13, 2005, p. 1. http://www.whitehouse.gov/omb/pubpress/2005/2005-26.pdf.
102. GAO Report (GAO-06-957T), “Purchase Cards: Control Weaknesses Leave DHS Highly Vulnerable to Fraudulent, Improper, and Abusive Activity,” July 19, 2006, p. 5. Available at http://www.gao.gov/new.items/d06957t.pdf.
103. Ibid., Summary.
104. Ibid., p. 26.
105. Ibid., p. 35.
106. Ibid., p. 10.
107. Ibid., p. 4.
108. Ibid., p. 8.
109. Ibid.
110. Ibid.
111. Including agency name, contract number, level of competition, and reason not competed, as well as contractor name, contractor dollars obligated, contract type, a description of the good or service, place of performance, and special classifications (i.e., small business, woman owned, minority owned, or veteran owned classifications, if any).
112. Available at http://www.mvn.usace.army.mil/hps/Temporary_Roofing_Repairs.htm.
113. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p.18. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf. “Source selection” is the procedure of selecting a contractor in competitive negotiated acquisitions. See FAR Subpart 15.3.
114. “A Failure of Initiative,” February 15, 2006 , p. 61. Available at http://www.gpoaccess.gov/katrinareport/mainreport.pdf#search=%22katrina%20a%20failure%20of%20initiative%22.
115. President’s Council on Integrity and Efficiency, “Oversight of Gulf Coast Hurricane Recovery, a Semiannual Report to Congress,” April 30, 2006, p. 18. Available at http://www.dhs.gov/interweb/assetlibrary/OIG_pcie_april06.pdf.