In Storm's Ruins, a Rush to Rebuild and Reopen for Business
By JOHN M. BRODER
Published: September 10, 2005
"BATON ROUGE, La., Sept. 9 - Private contractors, guided by two former directors of the Federal Emergency Management Agency and other well-connected lobbyists and consultants, are rushing to cash in on the unprecedented sums to be spent on Hurricane Katrina relief and reconstruction.
Normal federal contracting rules are largely suspended in the rush to help people displaced by the storm and reopen New Orleans and the Gulf Coast. Hundreds of millions of dollars in no-bid contracts have already been let and billions more are to flow to the private sector in the weeks and months to come. Congress has already appropriated more than $62 billion for an effort that is projected to cost well over $100 billion.
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"They are throwing money out, they are shoveling it out the door," said James Albertine, a Washington lobbyist and past president of the American League of Lobbyists. "I'm sure every lobbyist's phone in Washington is ringing off the hook from his clients. Sixty-two billion dollars is a lot of money - and it's only a down payment."
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http://www.nytimes.com/2005/09/10/national/nationalspecial/10contracts.html?hp&ex=1126411200&en=fe141b51ca81de17&ei=5094&partner=homepage