Money Going Outside the Storms Path

As government is pouring money into hurricane relief, it has become clear that only a small amount of the contracts have been given to the local companies. The article points out that only about 10% of the contracts have been given to companies in the the states affected by Katrina. Local officials are fearing this will lead to the local companies not being able to do their share in the rebuilding and they could possibly close. They feel the idea of this relief should be to help the overall economy in those areas. The administration had also pledged that "federal funds for Katrina relief will become an engine of local economic redevelopment". The money does not seem to be reaching the small firms that desperately need the work. Large corporations seem to be benifiting by receiving the contracts.
My question is: if this is fair? Should the companies in the areas be given the contracts, or is it ok to give outside companies the contracts? Is this aid designed to help only that area or should the whole U.S. benefit from this?