$400M No-Bid FEMA Contracts Now Total $3.4 Billion

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Four no-bid contracts awarded by the Federal Emergency Management Agency to house Hurricane Katrina evacuees have ballooned in value from $400 million to about $3.4 billion, prompting renewed scrutiny from Congress and federal auditors.

The Department of Homeland Security's inspector general is, for at least a second time, reviewing the contracts with construction and engineering firms Bechtel Corp., CH2M Hill Inc., Fluor Corp. and the Shaw Group Inc. FEMA Director R. David Paulison and Homeland Security Secretary Michael Chertoff promised Congress last October to rebid the contracts and spun off $3.6 billion in maintenance and future dismantling of the trailers to 36 small and minority-owned firms in March. But the agency's critics say that has not addressed the entire problem, reports The Washington Post.

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