09:14 PM CST on Thursday, March 1, 2007
Associated Press
WASHINGTON – Large businesses awarded million-dollar government contracts for Hurricane Katrina cleanup are bending or exploiting rules aimed at helping small companies share the work, congressional investigators said Thursday.
The report by the Government Accountability Office focused on small Gulf Coast businesses that lost opportunities as limited-bid contracts were awarded to politically connected companies after the storm hit on Aug. 29, 2005.
Large contractors routinely did not file reports explaining their efforts to find subcontractors, as required under federal rules, according to investigators. At other times, large companies provided figures that complied with the rules but were misleading as to how much work they were sharing.
Because of the widespread problems, investigators could not offer any assurance the large companies were making "good-faith efforts to meet their small business subcontracting goals," the report said ...
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