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entitled 'Hurricane Katrina: Improving Federal Contracting Practices in 
Disaster Recovery Operations' which was released on May 4, 2006.

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United States Government Accountability Office:

GAO:

Testimony:

Before the Committee on Government Reform, House of Representatives:

Hurricane Katrina:

Improving Federal Contracting Practices in Disaster Recovery Operations:

Statement of William T. Woods: 
Director: 
Acquisition and Sourcing Management:

Hurricane Katrina Contracts:

GAO-06-714T:

GAO Highlights: 

Highlights of GAO-06-714T, a testimony before the Committee on 
Government Reform, House of Representatives.

Why GAO Did This Study: 

The devastation experienced throughout the Gulf Coast region in the 
wake of Hurricanes Katrina and Rita has called into question the 
government’s ability to effectively respond to such disasters. The 
government needs to understand what went right and what went wrong, and 
to apply these lessons to strengthen its disaster response and recovery 
operations.

The federal government relies on partnerships across the public and 
private sectors to achieve critical results in preparing for and 
responding to natural disasters, with an increasing reliance on 
contractors to carry out specific aspects of its missions. 

This testimony discusses how three agencies—the General Services 
Administration, the Federal Emergency Management Agency (FEMA), and the 
U.S. Army Corps of Engineers (the Corps)—conducted oversight of 13 key 
contracts awarded to 12 contractors for hurricane response, as well as 
public and private sector practices GAO identified that provide 
examples of how the federal government could better manage its disaster-
related procurements. 

What GAO Found: 

Agency acquisition and contractor personnel have been recognized for 
their hard work in providing the goods and services required to be 
responsive.  The response efforts nonetheless suffered from three 
primary deficiencies:

First, there was inadequate planning and preparation in anticipating 
requirements for needed goods and services. Some key agencies did not 
always have adequate plans for contracting in a major contingency 
situation. For example, FEMA did not adequately anticipate needs for 
temporary housing and public buildings.  Tensions also existed between 
selecting national contractors and the Stafford Act requirement for a 
preference for contractors from the affected area. 

Second, there was a lack of clearly communicated responsibilities for 
contracting activities across agencies and jurisdictions.  When 
disasters occur, local or state officials sometimes determine contract 
requirements and send them to FEMA, which writes and awards the 
contract or passes that responsibility on to another agency.  FEMA or 
another agency may then oversee contract performance. Although this 
process requires clear alignment of responsibilities and good 
communications, our fieldwork found examples that did not meet that 
standard.  Although the process for ordering and delivering ice depends 
on good communications between FEMA and the Corps, for example, Corps 
officials said FEMA did not fully understand the contracting approach 
they used and ordered at least double the amount of ice required, 
resulting in an oversupply of ice and a lack of distribution sites to 
handle the volume ordered. 

Third, there were insufficient numbers and inadequate deployment of 
personnel to provide for effective contractor oversight. For example, 
FEMA’s contracts to install temporary housing in four states had only 
17 of the 27 technical monitors that were needed for oversight.

GAO has identified practices in the public and private sectors that 
provide insight into how federal agencies can better manage their 
disaster-related procurements, including: 

• developing knowledge of contractor capabilities and prices by 
identifying commodities and services and establishing vendor 
relationships before they are needed; 

• establishing a scalable operations plan to adjust the level of 
capacity required to effectively respond to needs; 

• formally assigning and communicating disaster-related 
responsibilities, with joint training for government and contractor 
personnel; and 

• providing sufficient numbers of field-level contracting staff with 
the authority needed to meet mission requirements.

What GAO Recommends: 

While GAO is not making any new recommendations in this testimony, GAO 
highlights previous recommendations for improving federal procurement 
in contingency operations. 

[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-06-714T].

To view the full product, including the scope
and methodology, click on the link above. For more information, contact 
William T. Woods at (202) 512-4841 or woodsw@gao.gov. 

[End of section]

Mr. Chairman and Members of the Committee:

Thank you for inviting me here today to discuss the practices for 
managing federal disaster recovery contracts related to Hurricanes 
Katrina and Rita and how these practices can be improved. The size and 
strength of Hurricane Katrina resulted in one of the largest natural 
disasters in our nation's history, and in its aftermath major questions 
have been raised about our nation's readiness and ability to respond to 
catastrophic disasters. Hurricane Rita increased demands on an already 
stressed response and recovery effort at all levels of government.

GAO has a large body of ongoing work on a range of issues relating to 
all phases of the preparation, response, recovery, and rebuilding 
efforts related to Hurricanes Katrina and Rita. GAO's work has been 
coordinated with the rest of the accountability community at the 
federal, state, and local levels to ensure that all significant issues 
associated with relief and recovery, including contracting, are 
addressed while avoiding unnecessary duplication of efforts.

Comptroller General Walker recently testified on GAO's preliminary 
observations on the challenges encountered in the response to Hurricane 
Katrina, and he identified four themes that are similar to lessons 
learned from past catastrophic disasters.[Footnote 1] These include the 
central importance of (1) clearly defining and communicating leadership 
roles, responsibilities, and lines of authority for response in advance 
of a catastrophic disaster; (2) clarifying the procedures for 
activating the National Response Plan and applying them to emerging 
catastrophic disasters; (3) conducting strong advance planning and 
robust training and exercise programs; and (4) strengthening response 
and recovery capabilities for a catastrophic disaster.

These themes directly relate to what I will discuss today, namely how 
three agencies planned for and conducted oversight of several key 
contracts in support of Katrina and Rita response and recovery efforts: 
the General Services Administration (GSA), the Federal Emergency 
Management Agency (FEMA), and the U.S. Army Corps of Engineers (the 
Corps).[Footnote 2] For those areas where we identified deficiencies, I 
will also discuss public and private sector practices that provide 
examples of how the federal government could better manage its disaster-
related procurements. In doing our review, we selected 13 mission-
critical contracts, each with a dollar value in excess of $5 million, 
that were awarded to 12 contractors performing work for the three 
agencies. We analyzed how monitoring policies and processes were put 
into practice. We also reviewed the practices of selected federal 
agencies, state emergency management agencies, commercial businesses, 
and a major utility that responded to Hurricane Katrina, analyzing 
their policies and procedures to identify successful practices and 
alternative approaches for managing disaster-related procurements. We 
conducted our work from October 2005 through March 2006 in accordance 
with generally accepted government auditing standards.

Summary:

Given the environment in which they were operating, agency acquisition 
and contractor personnel have been recognized for their hard work in 
providing the goods and services required to be responsive. The 
response efforts nonetheless suffered from three primary deficiencies:

* inadequate planning and preparation in anticipating requirements for 
needed goods and services,

* lack of clearly communicated responsibilities across agencies and 
jurisdictions to ensure effective acquisition outcomes, and:

* insufficient numbers and inadequate deployment of personnel to 
provide for effective contractor oversight.

A number of efforts are under way by these agencies to address the 
issues we and others have identified.

In reviewing contracts awarded in another contingency situation, 
rebuilding Iraq, GAO found that without effective acquisition planning, 
management processes, and sufficient numbers of capable people, poor 
acquisition outcomes resulted. GAO made recommendations for improving 
procurements in contingency operations, including the need for 
sufficient numbers of trained staff who have clear responsibilities and 
guidance for overseeing contractor performance. In more recent work, we 
identified a number of practices in the public and private sectors that 
provide insight into how the federal government can better manage its 
disaster-related procurements. These practices include:

* developing knowledge of contractor capabilities and prices by 
identifying available commodities and services and establishing vendor 
relationships before they are needed,

* establishing a scalable operations plan to adjust the level of 
capacity required to effectively respond to the need,

* formally assigning and communicating disaster-related 
responsibilities, with joint training for government and contractor 
personnel, and:

* providing sufficient numbers of field-level contracting staff with 
the authority needed to meet mission requirements.

Contractor Roles in Emergency Response Operations Are Increasing:

The private sector is an important partner with the government in 
responding to and recovering from natural disasters such as Hurricanes 
Katrina and Rita. As we recently noted,[Footnote 3] such partnerships 
increasingly underlie critical government operations. With hundreds of 
billions of tax dollars spent each year on goods and services, it is 
essential that federal agency acquisitions be handled in an efficient, 
effective, and accountable manner.

Over $87 billion of federal funding has been appropriated in response 
to the recent hurricanes. In responding to Hurricanes Katrina and Rita, 
the government depended heavily on contractors to deliver ice, water, 
and food supplies; patch rooftops; and provide housing to displaced 
residents and temporary facilities to local government agencies. 
Overall, the circumstances caused by the hurricanes created a difficult 
environment in which agencies had to balance the need to deliver goods 
and services quickly with the need for appropriate controls. Although 
achieving that balance is sometimes hard to accomplish, that fact must 
not be allowed to serve as an excuse for poor contracting practices.

There Was Inadequate Planning and Preparation in Anticipating 
Requirements for Needed Goods and Services:

The need for strong planning is one of the themes identified by the 
Comptroller General in regard to the government's overall response to 
the hurricanes. Planning also must explicitly address the need for and 
management of the contractor community. In previous work we said that 
for federal agencies to be effective they need to develop the knowledge 
necessary to identify, select, and manage contractors, including having 
competitively awarded contracts in place prior to a disaster. We found 
that some key agencies did not always have adequate plans for 
contracting in a major contingency situation. We also noted the 
competing tensions between the selection of national contractors and 
the requirement under the Stafford Act for a preference for contractors 
from the affected area. Better planning could have alleviated those 
tensions.

For example:

* While contracts for some items were in place prior to the storm, FEMA 
did not adequately anticipate needs for such services as providing 
temporary housing and public buildings.

* The practice of the Corps is to establish Planning and Response Teams 
for various missions assigned to it by FEMA prior to an event, with 
specific responsibilities assigned to team members. However, the Corps 
indicated it did not know prior to the hurricane that it would be 
tasked by FEMA with some of the mission assignments it received. In one 
case, faced with a compressed time frame for acquiring portable 
classrooms and with no prior knowledge about the classroom mission they 
were assigned, Corps contracting officials placed an order, under an 
existing agreement, with a subsidiary of an Alaska Native Corporation 
under the Small Business Administration's section 8(a) Business 
Development Program. The Corps accepted the contractor's proposed price 
of $39.5 million even though it had information that the cost for the 
classrooms was significantly less than that. Based on our analysis of a 
quote obtained by the contractor from a local Mississippi business, the 
price the contractor actually paid for the classrooms, and prices for 
similar units from GSA schedule contracts, our conclusion[Footnote 4] 
is that the Corps could have, but failed to, negotiate a lower price.

* Similarly, better management of requirements development could have 
avoided costs to house workers and victims. Based on information 
provided by local officials, FEMA spent $3 million for 4,000 base camp 
beds that were never used.

* Preparation was also lacking in implementation of the Stafford Act 
preference for contractors residing or doing business in the affected 
area.[Footnote 5] The Corps staff expressed uncertainty regarding how 
to apply preferences or determine if a company was in an affected 
area.[Footnote 6] Several GSA and FEMA officials indicated they were 
aware of the Stafford Act, but stated it is difficult to immediately 
factor in local businesses in such a catastrophic event. GSA officials 
stated they plan to review the Federal Acquisition Regulation (FAR) to 
see if additional Stafford Act guidance is necessary.[Footnote 7]

In discussing our findings and observations with FEMA officials, they 
said they are taking steps to improve in areas such as staffing and 
premobilization capabilities. However, they also stated that such pre- 
planning and preparedness has a cost. The Corps commented that 
contracting staff need to have defined requirements in order to get the 
right type of contracts put in place, and the contracting staff did not 
always get defined requirements in a timely manner. Additionally, a 
Corps official commented that until funding for a particular mission is 
secured, preparation for it cannot go forward and this also delayed 
contracting efforts. Finally, both GSA and the Corps noted that they 
tried to reach out to local and small businesses through forums and 
other means to make them aware of opportunities to contract with the 
federal government.

Examples of Federal, State, and Private Sector Practices for Improving 
Planning and Preparation:

Officials that we talked to in the public and private sectors 
considered pre-identification of commodities, scalable operations, and 
pre-established vendor relationships to be essential for ensuring 
adequate planning and preparation for providing needed goods and 
services following a disaster. For example:

* Florida's Division of Emergency Management developed a database that 
pre-identifies over 200 supplies and services that may be needed to 
respond to a disaster. Florida also pre-qualifies vendors, recording 
quantities and locations of vendor supplies, and establishes rates 
before each hurricane season, giving it the knowledge it needs to 
quickly procure supplies and services at a reasonable price. Similarly, 
Wal-Mart uses a database to review historical buying trends to identify 
what goods will be in demand both before and after a hurricane, and to 
stock the merchandise in its stores accordingly.

* The Corps awards Advanced Contracting Initiative (ACI) contracts to 
fulfill its anticipated disaster response missions. ACI contracts are 
used to jump start the missions following a disaster, with the Corps 
bringing in other contracts as necessary to complete the work.

* Part of Mississippi Power's operations plan is to identify multiple 
potential staging areas, and multiple housing and food supply options 
for its own and outside workers, which enables the company to expand or 
reduce its operations depending on the size of the disaster. After 
Hurricane Katrina, Mississippi Power's scalable operations plan enabled 
it to shelter and manage more than twice the number of outside 
personnel it had planned for, but that were needed to restore service 
as quickly as possible to all customers able to receive power.

There Was a Lack of Clearly Communicated Responsibilities across 
Agencies and Jurisdictions:

We also found that processes for executing contracts were hindered by 
poor communication of responsibilities. As envisioned under the 
National Response Plan (NRP), federal agencies responding to a disaster 
carry out their acquisition functions through a network of federal, 
state, and local agencies. In some instances, the local or state 
officials determine the requirements and communicate them to FEMA; FEMA 
may write and award the contract or communicate the requirements to 
another agency that writes and awards the contract; and then FEMA or 
another agency oversees contract performance. This approach puts a 
premium on aligning roles and responsibilities clearly and maintaining 
good communications to ensure effective execution of the contract.

Our fieldwork identified examples where unclear responsibilities and 
poor communications resulted in poor acquisition outcomes. For example:

* FEMA officials stated that a contractor spent approximately $10 
million to renovate 160 rooms and furnish another 80 rooms in military 
barracks in Alabama that a FEMA survey team identified for use as 
temporary housing. To renovate the facility, FEMA headquarters awarded 
a contract without consulting local FEMA officials in Alabama. 
According to FEMA officials in Alabama, however, the facility was not 
needed and they tried to stop the renovation. These same FEMA officials 
stated that few evacuees agreed to live at the facility, and when 
officials decided to close the facility, it had only six occupants.

* The process for ordering and delivering ice heavily depends on 
effective communications between FEMA and the Corps. However, according 
to Corps officials, FEMA did not fully understand the contracting 
approach used by the Corps and ordered at least double the amount of 
ice required, resulting in an oversupply of ice and a lack of 
distribution sites available to handle the volume ordered. 
Additionally, the local Corps personnel were not always aware of where 
ice might be delivered and did not have the authority to redirect ice 
as shipments arrived, resulting in inefficient distribution and receipt 
at the state level.

* FEMA tasked GSA to write three contracts in Louisiana for base camps, 
hotel rooms, and ambulances, with a total value of over $120 million. 
GSA contracting officers awarded the contracts, but could not tell us 
which FEMA officials would be responsible for overseeing contractor 
performance. The FEMA official identified as the main point of contact 
by GSA did not have any knowledge of these contracts or who was 
responsible for oversight. Only after contacting multiple FEMA 
officials over a 3-week period were we able to determine the agency 
officials responsible for contract oversight.

In commenting on our findings, GSA officials stated that their role is 
to provide resource support in the response phase of a disaster, 
meaning they are responsible for executing contracts under the NRP, and 
FEMA is responsible for monitoring the contracts. FEMA officials 
commented that there needs to be more clarity regarding procurement 
roles and indicated one of their goals is to work with GSA to clarify 
procurement responsibilities for the future. GSA officials indicated 
that the current memorandum of understanding between GSA and FEMA is 
being updated to reflect the standards of the new NRP as well.

Examples of State and Private Sector Practices for Establishing and 
Communicating Responsibilities:

To clearly establish and communicate disaster-related responsibilities, 
public and private sector officials told us they use such practices as 
conducting joint disaster response training for agency employees and 
contractors and formally assigning their employees specific disaster-
related responsibilities. For example:

* The employees at CSX Transportation Railroad and their suppliers 
participate jointly in both disaster planning and training exercises. 
This allows each supplier to know its responsibilities and the 
railroad's expectations in the event of a natural disaster. As a part 
of its preparation for disaster response, the Florida Division of 
Emergency Management holds joint state-wide training exercises every 
year with suppliers.

* Management-level personnel at Mississippi Power are assigned disaster 
director roles aligned to their day-to-day functions, which they assume 
during the company's storm preparation phase. Each disaster director 
has a designated backup and directs all disaster-related activities 
within his or her functional areas. Each functional area has a specific 
disaster plan that is integral to the overall corporate disaster 
recovery plan. Each Mississippi Power employee also has a storm 
assignment and receives annual training on that assignment.

There Were Insufficient Numbers and Inadequate Deployment of Personnel 
to Provide for Effective Contractor Oversight:

The purpose of agencies' monitoring processes is to ensure that 
contracted goods and services are delivered in accordance with the 
agreed-upon schedule, cost, quality, and quantity provisions stated in 
the contract. Without sufficient numbers of trained people properly 
deployed, however, effective monitoring is hampered and agencies may 
not be able to identify and correct poor contractor performance in a 
timely manner. Furthermore, agencies can be at risk of paying 
contractors more than the value of the services performed.

Our work indicated that while monitoring was occurring on the contracts 
we reviewed, the number of monitoring staff available was not always 
sufficient, and staff were not always effectively deployed. For example:

* FEMA's contracts for installing temporary housing in four states had 
only 17 of the 27 technical monitors that had been determined necessary 
to oversee contractor performance.[Footnote 8]

* Corps officials responsible for overseeing the "blue roof" program's 
field operations told us it was slowed down due to the lack of 
sufficient monitors.[Footnote 9]

Deployment practices did not always provide for appropriate 
notification of responsibilities or overlap of rotating contracting 
officers and oversight personnel, thus making knowledge transfer and 
continuity of contract management operations difficult. For example:

* For four of the contracts we reviewed, officials were either unaware 
or not notified by FEMA of their oversight responsibilities.

* The lack of overlap between oversight personnel for a large temporary 
housing contract left the most recent contract administrator with no 
knowledge or documentation of who had authorized the contractor to 
perform certain activities or why the activities were being performed.

While discussing our findings and observations with FEMA officials, 
they emphasized that they lacked adequate staffing, but said they have 
made efforts to fill staffing gaps. Additionally, FEMA officials stated 
they recognize the need for continuity in contract oversight and 
indicated they are implementing a process to ensure workload and 
knowledge sharing among rotating personnel. However, they also believe 
that fewer transition difficulties exist now as a result of hiring more 
people and having more oversight officials staying in the affected 
areas. GSA officials indicated there may also be other alternatives for 
ensuring adequate contract oversight, such as designating GSA employees 
to conduct oversight on some contracts. Corps officials stated their 
policy is to rotate certain personnel every 29 days to keep personnel 
costs to a minimum because of regulations under the Fair Labor 
Standards Act.[Footnote 10]

Examples of Federal and Private Sector Practices for Improving the 
Deployment of the Contracting Workforce:

Practices we identified to better ensure sufficient numbers and 
adequate deployment of personnel in a disaster situation include 
establishing response structures that employees can be "plugged" into 
and moving employees from routine service into disaster response. For 
example:

* The Corps and the Forest Service deploy pre-established trained teams 
to disaster locations to manage specific missions, such as debris 
removal and base camp support. These teams include specialists with the 
authority needed to provide on the ground procurement support to meet 
mission needs.

* In response to Katrina, Landstar, a transportation services company 
under contract to the U.S. Department of Transportation, diverted 
agents from routine customer service activities to emergency response 
activities, including staffing logistics staging areas, while 
continuing to meet the basic needs of commercial clients. Similarly, 
Wal-Mart reassigned employees from their regular duties in the 
corporate office to serve as operators in the company's call center for 
associates affected by the hurricane.

In closing, in any acquisition agencies must have in place sound 
acquisition plans, processes to make and communicate good business 
decisions, and a capable acquisition workforce to monitor contractor 
performance so that the government receives good value for the money 
spent. These components are critical to successfully managing contracts 
in any environment--even in contingency situations such as those 
presented by Hurricanes Katrina and Rita.

Mr. Chairman, this concludes my statement. I would be happy to respond 
to any questions you or other Members of the Committee may have at this 
time.

For further information regarding this testimony, please contact 
William T. Woods at (202) 512-4841 or [Hyperlink, woodsw@gao.gov]. 
Individuals making key contributions to this testimony included Penny 
Augustine, James Kim, John Needham, Kenneth Patton, Matthew Saradjian, 
David Schilling, Shannon Simpson, and Katherine Trimble.

[End of section]

Appendix I: Recent GAO Products on Hurricanes Katrina and Rita:

Hurricane Katrina: Planning for and Management of Federal Disaster 
Recovery Contracts. GAO-06-622T. (Washington, D.C.: April 10, 2006).

Hurricane Katrina: Comprehensive Policies and Procedures Are Needed to 
Ensure Appropriate Use of and Accountability for International 
Assistance. GAO-06-460. (Washington, D.C.: April 6, 2006):

Hurricane Katrina: Policies and Procedures Are Needed to Ensure 
Appropriate Use of and Accountability for International Assistance. GAO-
06-600T. (Washington, D.C.: April 6, 2006).

Hurricane Katrina: Status of the Health Care System in New Orleans and 
Difficult Decisions Related to Efforts to Rebuild It Approximately 6 
Months After Hurricane Katrina. GAO-06-576R. (Washington, D.C.: March 
28, 2006).

Agency Management of Contractors Responding to Hurricanes Katrina and 
Rita. GAO-06-461R. (Washington, D.C.: March 16, 2006).

Hurricane Katrina: GAO's Preliminary Observations Regarding 
Preparedness, Response, and Recovery. GAO-06-442T. (Washington D.C.: 
March 8, 2006).

Emergency Preparedness and Response: Some Issues and Challenges 
Associated with Major Emergency Incidents. GAO-06-467T. (Washington: 
D.C.: February 23, 2006).

Disaster Preparedness: Preliminary Observations on the Evacuation of 
Hospitals and Nursing Homes Due to Hurricanes. GAO-06-443R. 
(Washington: D.C.: February 16, 2006).

Investigation: Military Meals, Ready-To-Eat Sold on eBay. GAO-06-410R. 
(Washington: D.C.: February 13, 2006).

Expedited Assistance for Victims of Hurricanes Katrina and Rita: FEMA's 
Control Weaknesses Exposed the Government to Significant Fraud and 
Abuse. GAO-06-403T. (Washington: D.C.: February 13, 2006).

Statement by Comptroller General David M. Walker on GAO's Preliminary 
Observations Regarding Preparedness and Response to Hurricanes Katrina 
and Rita. GAO-06-365R. (Washington, D.C.: February 1, 2006).

Federal Emergency Management Agency: Challenges for the National Flood 
Insurance Program. GAO-06-335T. (Washington, D.C.: January 25, 2006).

Hurricane Protection: Statutory and Regulatory Framework for Levee 
Maintenance and Emergency Response for the Lake Pontchartrain Project. 
GAO-06-322T. (Washington, D.C.: December 15, 2005).

Hurricanes Katrina and Rita: Provision of Charitable Assistance. GAO- 
06-297T. (Washington, D.C.: December 13, 2005).

Army Corps of Engineers: History of the Lake Pontchartrain and Vicinity 
Hurricane Protection Project. GAO-06-244T. (Washington, D.C.: November 
9, 2005).

Hurricanes Katrina and Rita: Preliminary Observations on Contracting 
for Response and Recovery Efforts. GAO-06-246T. (Washington, D.C.: 
November 8, 2005).

Hurricanes Katrina and Rita: Contracting for Response and Recovery 
Efforts. GAO-06-235T. (Washington, D.C.: November 2, 2005).

Federal Emergency Management Agency: Oversight and Management of the 
National Flood Insurance Program. GAO-06-183T. (Washington, D.C.: 
October 20, 2005).

Federal Emergency Management Agency: Challenges Facing the National 
Flood Insurance Program. GAO-06-174T. (Washington, D.C.: October 18, 
2005).

Federal Emergency Management Agency: Improvements Needed to Enhance 
Oversight and Management of the National Flood Insurance Program. GAO- 
06-119. (Washington, D.C.: October 18, 2005).

Army Corps of Engineers: Lake Pontchartrain and Vicinity Hurricane 
Projection Project. GAO-05-1050T. (Washington, D.C.: September 28, 
2005).

Hurricane Katrina: Providing Oversight of the Nation's Preparedness, 
Response, and Recovery Activities. GAO-05-1053T. (Washington, D.C.: 
September 28, 2005). 

(120556): 

[End of section]

FOOTNOTES

[1] GAO, Hurricane Katrina: GAO's Preliminary Observations Regarding 
Preparedness, Response, and Recovery, GAO-06-442T, (Washington D.C.: 
Mar. 8, 2006).

[2] See GAO, Agency Management of Contractors Responding to Hurricanes 
Katrina and Rita, GAO-06-461R (Washington, D.C.: March 2006).

[3] GAO, 21st Century Challenges: Reexamining the Base of the Federal 
Government, GAO-05-325SP (Washington, D.C.: February 2005).

[4] GAO, Hurricane Katrina: Army Corps of Engineers Contract for 
Mississippi Classrooms, GAO-06-454 (Washington, D.C.: May 2006).

[5] 42 U.S.C. § 5150. 

[6] GAO recently issued a decision on a protest of the terms of a 
solicitation issued by the Corps for demolition and debris removal in 
the State of Mississippi. The protester asserted, in part, that the 
Corps decision to limit the competition for this work to Mississippi 
firms improperly exceeded the authority granted under a provision of 
the Stafford Act to provide a preference to firms residing, or 
primarily doing business, in the area affected by a major disaster. 
GAO's decision did not view the Corps decision to implement the 
Stafford Act preference with a set-aside as an abuse of the agency's 
discretion, and the Corps did not act improperly by limiting this 
competition to Mississippi firms. AshBritt, Inc. B-297889, March 20, 
2006.

[7] See FAR, Subpart 26.2-Disaster or Emergency Assistance Activities.

[8] Data provided by FEMA official were dated November 18, 2005.

[9] The Corps manages the Operation Blue Roof mission for FEMA. 
Operation Blue Roof provides assistance to storm victims in disaster 
areas through the installation of rolled plastic sheeting on damaged 
roofs, helping to protect property and allowing residents to remain in 
their homes. 

[10] 5 CFR § 551.208.

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