Minority firms getting few Katrina pacts
Minority-owned businesses say they're paying the price for the decision by Congress and the Bush administration to ignore certain rules for Hurricane Katrina recovery contracts. About 1.5 percent of the $1.6 billion awarded by the Federal Emergency Management Agency has gone to minority businesses, less than a third of the 5 percent normally required. The govenment said to speed aid, many requirements normally attached to government contracting were set aside by Congress. My question is this the best way to rebuild the economy in New Orleans? Is it fair?
1 comment:
I have never been a fan of the government's policy on handing contracts in emergency situations, offering these "No-bid" types of contracts to the first business that comes along and offers their services. Historically, these contracts don't end up going to minority companies because the companies are not as aggressive in seeking those types of contracts - and, as a result, do not get the emergency contracts. These companies need to be more ambitious, as there is no time to create racial equality in contracting in a situation such as the Katrina disaster. Minority businesses are the only ones who can be accountable for their imbalance in getting government contracts.
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