Katrina Contracts Leaving Out Local Businesses

Tuesday's Washington Post:

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.

It appears the outrage is bi-partisan. Here's a Republican take:

"The large federal agencies know the large, national corporations -- people who have access. The smaller, local companies do not have that access," said Rep. Charles W. "Chip" Pickering Jr. (R-Miss.). "So the large corporate players are getting the contracts. And the small, local ones that need to put people back to work are at a disadvantage."

And for the Democrats:

Rep. Bennie Thompson (D-Miss.) last week asked for a federal investigation into a no-bid, mobile classrooms contract awarded to an out-of-state company that is subcontracting much of the work. He said the job could have been done directly by an in-state firm for roughly half the price.

Thompson said many small firms risk going out of business if they don't get work in the reconstruction. "All of these things being done in the name of speeding things up are going to end up having an adverse effect on the recovery," he said.