Latourette and Lobiondo Introduce Legislation that Will Force the White House to Provide Copies of Katrina Contracts Awarded by FEMA

Latourette and Lobiondo Introduce Legislation that Will Force the White House to Provide Copies of Katrina Contracts Awarded by FEMA
October 7, 2005

Say measure will provide transparency and accountability

(Washington, DC) -- U.S. Reps. Steven C. LaTourette (R-OH) and Frank LoBiondo (R-NJ) today introduced a resolution to compel the White House to provide the House with copies of any contracts related to Hurricane Katrina recovery or rebuilding, including pre-awarded contracts.

"The American people deserve transparency when the federal government is rushing to award contracts of $100 million or more. There's virtually no record keeping, no accountability and the potential for shoddy workmanship by unskilled workers," LaTourette said. "Congress has already approved more than $60 billion in funding for Katrina efforts, and there are few controls as to how the money is spent or misspent."

LaTourette said he was troubled by a report in a September 29, 2005, Washington Post article about a congressional hearing where the Inspector General for the Department of Homeland Security said he has assigned 60 auditors to review contracts, but he will need more money to complete the task. The Inspector General further predicted that it would be "early next year" before a review of pre-Katrina contracts is done.

"Katrina contracts are being awarded as we speak, and Congress is being told we'll need to cough up more money just to review the pre-Katrina contracts," LaTourette said. "We can wait on the Inspector General or we can dig into this mess now. My guess is that all 435 House members would be happy to review the contracts at no additional cost to the taxpayers."

"Hurricanes Katrina and Rita caused unimaginable destruction to communities in the Gulf Coast region. As the area recovers, we must ensure that all federal resources allocated be used appropriately and to the greatest benefit of the communities they are intended to help. As guardians of the taxpayer's interests, it is critical that the Congress have an accurate account of how all money is being spent," said Representative LoBiondo. "Additionally, I am deeply concerned that those who are working tirelessly to rebuild communities across the Gulf Coast region are not being justly compensated. The indefinite suspension of the Davis-Bacon Act threatens the ongoing reconstruction of public services, transportation infrastructure, and city buildings by not fairly reimbursing skilled professionals for their hard work."

According to the LaTourette-LoBiondo resolution, copies of contracts must be provided to the House within 14 days after adoption of the resolution. The contracts cover "services or building or other construction (including pre-awarded contracts or contracts that were modified or extended) related to Hurricane Katrina recovery and rebuilding" as outlined in a Presidential Proclamation issued on September 8, 2005. The resolution pertains to contracts awarded by FEMA or any other agency, and includes any that address wages and benefits paid to workers pursuant to the Davis-Bacon Act.

LaTourette said the resolution further stipulates that the White House provide any communications (made or received) regarding contracts in the geographic areas specified when the President suspended Davis-Bacon indefinitely on September 8, 2005, via Proclamation 7924.

LaTourette said the 1931 Davis-Bacon Act sets wages for union and non-union workers on federal contracts, and also requires meticulous record-keeping about the number of employees working, the number of hours worked, employee Social Security numbers as well as wages and benefits. The White House contends that suspension of the prevailing wage law will reduce rebuilding costs and provide opportunities to minority-owned companies, but LaTourette said he doesn't buy that argument.

He said taxpayers don't want to be gouged, they expect their money to be spent wisely and efficiently, and they want to prevent rampant profiteering. He said suspension of Davis-Bacon hinders these goals and makes the awarding of post-Katrina contracts less transparent.

"We can spend billions of dollars to rebuild roads, bridges and levies and hope that they are properly constructed by skilled laborers so they withstand the next hurricane, or we can skimp and try to save a few bucks an hour on wages," LaTourette said.

LaTourette said this is just the fourth time Davis-Bacon has been suspended by a President, and in the other instances it was suspended briefly for a specified period. On this occasion, the President suspended it indefinitely for federal contracts in all of Louisiana and Mississippi, six counties in Alabama and three counties in Florida.

LaTourette and LoBiondo, co-chairs of the Republican Working Group on Labor, also spearheaded a letter to the President this week asking that the suspension of Davis-Bacon be lifted by November 8, 2005. It was signed by 37 House Republicans.

http://www.house.gov/apps/list/press/oh14_latourette/db.html