FEMA Under Fire Over Contract Bidding

Law360, New York (April 23, 2007, 12:00 AM EDT) -- The Federal Emergency Management Agency is facing heat from small business owners who say they were unfairly shut out of the contract bidding process in the wake Hurricane Katrina.

Senator Byron Dorgan (D-N.D.) has requested an audit of the FEMA contracts.

In a report to be released this week, investigators with the Homeland Security Department found that FEMA had not thoroughly examined 36 trailer contracts in the Gulf Coast region that had been designated for small and local businesses.

Investigators said that FEMA did not take...
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