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Obama, Coburn Amendment to Stop Abuse of No-bid Contracting Included in DHS Appropriations Bill

Friday, July 14, 2006

FOR IMMEDIATE RELEASE
Obama Contact: Robert Gibbs or Tommy Vietor, (202) 228-5511
Coburn Contact: John Hart, (202) 228-5357
Date: July 14, 2006

Obama, Coburn Amendment to Stop Abuse of No-bid Contracting Included in DHS Appropriations Bill
Senators Vow to Offer Amendment Until it Becomes Law

WASHINGTON - U.S. Senators Barack Obama (D-IL) and Tom Coburn, M.D. (R-OK) Friday announced that their amendment to stop the abuse of no-bid contracting in the aftermath of a disaster passed the Senate as part of the Department of Homeland Security (DHS) Appropriations bill. This is the fourth time legislation offered by Obama and Coburn to stop no-bid contracts for Gulf Coast reconstruction has passed the Senate.

"The American people are sick and tired of their government wasting emergency response and reconstruction money on sweetheart deals for politically-connected contractors," said Senator Obama. "This legislation will help restore the American people's faith in this reconstruction process by making sure FEMA contracts are bid competitively so that every dollar is used to help those in need. It will also give local businesses the chance to compete for contracts to rebuild their own hometowns."

After Hurricane Katrina, the Federal Emergency Management Agency used emergency authority to enter into open-ended, no-bid contracts. What was meant to be temporary stop-gap authority ballooned into wasteful contracts that lasted many months and wasted significant federal resources.

"It seems as if everyone in America, except for Congress, recognizes the need for more aggressive oversight of Federal emergency spending. Passing this common sense legislation will not only help those in need but help restore the American people's confidence in their government," Dr. Coburn said.

The effort comes not long after the release of a Government Accountability Office report which estimates that up to $1.4 billion in Hurricane relief funds has been wasted through improper and potentially fraudulent payments. Other reports have identified significant contract abuses for debris removal and other emergency services.

Previously, Senators Obama and Coburn have introduced legislation to create a Chief Financial Officer to be in charge of reconstruction dollars before they are spent. The Senators have also proposed requiring the Office of Management and Budget to establish and maintain a single public Web site that lists all entities receiving federal funds, including the name of each entity, the amount of federal funds the entity has received annually by program, and the location of the entity.

"This is the fourth time Senator Coburn and I have offered legislation to stop no-bid contracting on the Gulf Coast, and we're going to continue to do so until Congress realizes how important this is to the American people," Obama said.

An amendment introduced by Senator Obama and Senator Joe Lieberman (D-CT) that would require DHS to develop a system to help people locate family members after a disaster was also included in the DHS Appropriations bill.