FEMA says it didn't approve the Whitefish contract despite the contract the saying it did it

[kpete]

Last edited Fri Oct 27, 2017, 03:48 PM - Edit history (3)

FEMA has "significant concerns," says it didn't approve the Whitefish contract—despite the contract saying it did.

"FEMA is presently engaged with PREPA and its legal counsel to obtain information about the contract and contracting process, including how the contract was procured and how PREPA determined the contract prices were reasonable."

The agency also said that the contract is between Whitefish and PREPA, and FEMA had no role in its signing.


The Whitefish deal has raised alarm among Puerto Rico's leadership, Congress and others, and two congressional committees are investigating it.

The contract was reached with no bidding. The company had two employees and little experience in utility work prior to Hurricane Maria hitting the island and is paying workers hundreds of dollars per hour.

........

http://thehill.com/policy/energy-environment/357486-fema-has-significant-concerns-with-puerto-ricos-300m-power?amp

Link to tweet

UPDATES:

https://pbs.twimg.com/media/DNKMwfbU8AAr4HW?format=jpg&name=small

Link to tweet

and this from NPR:

Wow. Gov’t gave a no-bid contract to obscure firm, and waived any right to audit the amazingly high “labor” cost.

Link to tweet

http://www.npr.org/sections/thetwo-way/2017/10/27/560422492/heres-what-s-in-that-300-million-whitefish-contract?utm_source=twitter.com&utm_campaign=politics&utm_medium=social&utm_term=nprnews

[dmosh42]

1. 'The Nazi'(Trump) and Co. are getting a share!

[MontanaMama]

2. This whole deal stinks

to high heaven. Keeping my fingers crossed that FEMA nixes it.

[Madam45for2923]

3. WTHWTF? WTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTF

WTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTFWTHWTF?

In conclusion:

WTH & WTF?

[dalton99a]

4. Typical Trumpian doublespeak

It has been signed, sealed, and delivered

[Iliyah]

5. But PR is not considered a State therefore is not including

in statistic analysis survey of how the USA's economy, therefore, PR's devastation mean nothing to the USA's economy. UGH

I can't wrap my head around it. t-rump and his cronies (administration) are milking whatever monies is allocated to PR for reconstruction.

[tanyev]

6. Fishier and fishier.

[oasis]

7. "Draining the Swamp".....to find hidden treasure. Trump really

made suckers of his Deplorable following. x 60 million.

[dumbcat]

8. Knowing a bit about the contracting process

which apparently no one else here does, I'll have to believe FEMA on this one, and suspect corruption on the part of the PREPA officials.

The article states:

"The most recent version of the contract between PREPA and Whitefish states that FEMA had "reviewed and approved" it for compliance with its disaster recovery regulations. "

First of all, a contract would not state that. That is not needed in a contract.

The contract was negotiated and awarded by PREPA, not FEMA. FEMA is going to have to pay for it, which rightfully leads to their concerns.

And about "the contract saying it did." Anyone here have a link to the text of the contract?

[Wwcd]

12. Not sure if this will help you, FEMA Website on PREPA

https://www.fema.gov/news-release/2017/10/27/updated-fema-statement-puerto-rico-electric-power-authoritys-contract

Maybe you know where to look for a contract listing.

Stinky Zincke ☠

[Pacifist Patriot]

19. Having worked on a number of government contracts, I am particularly shocked by...

"In no event shall [government bodies] have the right to audit or review the cost and profit elements."

I have never seen a contract where the vouchers weren't heavily scrutinized by a governmental agency prior to disbursal of funds.

[AtheistCrusader]

25. That part looks, at best, unenforceable, and likely outright illegal.

[dumbcat]

33. That's exactly right, and I was the one

of the people that reviewed the payment vouchers and authorized disbursal of the funds.

There were some cases where the normal contracting and finance officials were not allowed to see the vouchers and review the work performed as the contracts were classified SCI programs. That's how I initially got dragged into the business. While actually an engineer, I had some of both contracting and government financial training, and I had the TS/SCI clearances to allow me to be read on the programs. So they made me both a contracting officer's representative and an official Army Comptroller so that I could review and approve payment on highly classified and restricted access programs. It really wasn't a lot of fun.

[tammywammy]

42. That's particularly shocking

I work proposals for a defense contractor and we hand over all labor and cost data.

[dumbcat]

44. It's been a while since I retired, but

as I remember the FAR, bidders had to provide all labor and cost data on many types of Cost Reimbursement contracts, but not necessarily on simple Firm Fixed Price contracts. But, I can't see the contract in question being a simple FFP contract. Also remember, this contract was not necessarily awarded under the rules of the FAR. It appears to have been awarded by the Puerto Rico Electric Power Authority, possibly under the contract laws of Puerto Rico. I don't know what those rules are, but I do know that the State of Texas has different contracting regulations than the Federal government.

[Thomas Hurt]

9. LOL, that is sweet, cuz I thought I saw where the CEO of the stinking fish in question...

said there were already linemen and other employees in PR....of course he could be lying.

[CatMor]

10. There is no way a 300 million dollar job with.....

a company consisting of two people would get a job like that without hanky panky going on. I know from experience the government or big business have many requirements when it comes to big jobs. Many times a bid bond was needed of 10% of the bid which on a 300 million job is more than a small company can handle. Workers have to be paid at the prevailing rate. I could go on and on about requirements. There is no way my 2 person company would ever get a job like that.

[Pacifist Patriot]

11. As someone who works for a government contractor...

Everything about this is fishy!

[JI7]

13. FEMA doesn't want the blame

[world wide wally]

14. Who signed the contract on behalf of the U.S. government?

[dumbcat]

17. I see no evidence that it was signed

by anyone on behalf of the US government.

It appears to have been awarded by the Puerto Rico Electric Power Authority (PREPA), which is a government agency under the government of PR, and was signed by one of their officials. They expect to be reimbursed by FEMA.

Having previously been a federal gov contracting official, certified comptroller responsible for certifying funds to be applied to federal contracts, and having investigated several such "sweetheart" deals, I'd bet my money on corruption within PREPA and the PR government.

[B2G]

22. The number of posters willing to throw Fema under the bus here

with no proof at all is mind blowing.

Seems we've reached the point where anything Fed related is evil...as we scream that we need more Fed involvement.

Alrighty then.

[AtheistCrusader]

26. It is extremely unfortunate.

Will likely lead to good people who are still in FEMA from pre-trump, departing.

[B2G]

29. Yep. That's what happens

when you go all scorched earth.

[world wide wally]

23. That sounds about right

[Not Ruth]

28. Isnt the government of PR the same as the US government?

[dumbcat]

34. No, it is not

Civics 101. (Used to be taught in grade school. I guess not to much anymore.)

[Not Ruth]

36. Apparently the US government is not involved, does that mean it does not cost us anything?

[keithbvadu2]

15. This has gotten sleazy very quickly.

[snort]

16. Does it contain the line:

"may not be audited concerning profits"?

If so then i think Zinke just gave a couple of his buddies 300 million dollars.

[dumbcat]

18. If it does

good luck to anyone trying to enforce it.

No contract law court in any jurisdiction would allow that.

[Pacifist Patriot]

20. That's the clause that blows my mind.

I cannot imagine there are not federal contracting regulations that this would run afoul.

[dumbcat]

35. If I was assigned to review

or audit that contract, I would just ignore that clause. Let them try to get that past a judge. It would get laughed out of court.

I actually had a large govt contractor (General Dynamics) try to pull that on me once. I was reviewing a contract at the request of a Deputy Under Secretary of the Army and their lawyer told the Contracting Officer's Rep that I wasn't allowed to see any of the contract documents. That didn't last very long. One phone call to the pentagon and about an hour and I was asked what I would like to see.

[Pacifist Patriot]

37. Exactly!

[malaise]

21. let's see who joins Ray Nagin in prison

Don't hold your breath - rules are different for RETHUGs

[world wide wally]

24. Hell,

I would have done it for $299 million!

[mobeau69]

27. FEMA says it didn't approve the Whitefish contract despite the contract the saying it did.

So, isn't that a clear case of fraud?

[marylandblue]

31. No, that happens a lot

Some low level FEMA official says go hire somebody, abd the contractor calls that approval. But the contract can't supercede federal law which allows FEMA to audit everything so that part is unenforceable.

[Not Ruth]

41. How is FEMA able to audit, PREPA should be the auditor

[marylandblue]

43. If FEMA reimburses PREPA, they can audit

[B2G]

32. Where are you seeing that FEMA approved it?

Did they sign it? Did they even review it?

All I see is verbiage referencing the fact that they can't look at or question salaries and disbursements. That doesn't mean they approved anything.

[mobeau69]

38. I'm not - That's the fraud. n/t

[B2G]

39. Fraud committed by who? Nt

[mobeau69]

45. "FEMA says it didn't approve the Whitefish contract despite the contract the saying it did it"

Assuming the title of the OP is correct, the entity that prepared the contract? After last night, I haven't read any more about Whitewaterfish. So many abuses of power they're had to keep up with.

[B2G]

46. I believe the title is incorrect. Nt

[FSogol]

30. Must have been Hillary! Lock her up!

, but when the wh says it, remember, you heard it here first

[MattBaggins]

40. Tomorrow on Fox and the right-wing bs media

SOOOOOLLYYNNDDDDRRRAAAAAA

ERHMAGERD SOLYNDRA