Report: Katrina contracts wasteful

? The government wasted millions of dollars in its award of post-Hurricane Katrina contracts for disaster relief, including at least $3 million for 4,000 beds that were never used, congressional auditors said Thursday.

The Government Accountability Office’s review of 13 major contracts – many of them awarded with limited or no competition after the Aug. 29 hurricane – offers the first preliminary overview of their soundness.

Waste and mismanagement were widespread due to poor planning and miscommunication, according to the five-page briefing paper released Thursday. That led to money being paid for services, such as housing or ice, that were never used.

“The government’s response to Hurricanes Katrina and Rita depended heavily on contractors to deliver ice, water and food supplies; patch rooftops; and provide housing to displaced residents,” said the report by the GAO, Congress’ auditing arm. “FEMA did not adequately anticipate needs.”

Nicol Andrews, a spokeswoman for the Federal Emergency Management Agency, said the agency was working to improve its awarding of billions of dollars of government contracts as it prepares for the next hurricane season.

“We have been working with (Homeland) Secretary (Michael) Chertoff to incorporate unprecedented levels of oversight in FEMA contracting,” she said. “However, in the event of a disaster when minutes count, we have the authority to do what it takes to move quickly.”

By and large, the initial criticism of FEMA from members of Congress and others was that the agency moved too slowly to assist hurricane victims.

Of more than 700 contracts valued at $500,000 or greater, more than half were awarded without full competition or with open-ended terms, including politically connected companies such as Halliburton subsidiary Kellogg, Brown & Root, Bechtel Corp. and AshBritt Inc.

In recent weeks, Democrats in particular have called for limits on no-bid agreements, which they say have been awarded to politically influential companies at the expense of a slow Gulf Coast rebuilding effort.

“Previous reports of waste in the aftermath of Katrina have been bad, but this one is worse,” said Rep. Henry Waxman of California, the top Democrat on the House Government Reform Committee.