Much of the focus post-disaster is on costs and damages. But not everyone loses out.
Some companies have been awarded government contracts to supply essential products and services in the aftermath of Hurricanes Irma and Harvey.
These contracts currently total nearly $614.3 million, and are expected to continue to grow as the scope of the damage is more fully assessed. Based on an estimate from Moody's Analytics, the damage could ultimately exceed $150 billion. For perspective, Hurricane Katrina, which devastated the Gulf Coast in 2005 and to date is the costliest natural disaster in the nation, caused about $160 billion in damages in today's dollars, according to the National Oceanic and Atmospheric Administration. Contractors won about $20.4 billion in government funds to repair the devastation caused by that storm. Hurricane Sandy of 2012, another major storm famous for flooding the streets of Lower Manhattan, cost a mere $2.9 billion.
Some of these contracts predate Hurricanes Irma and Harvey, as federal agencies routinely hold open competitions for contractors well in advance as part of disaster preparedness. But others are just now being signed on. Contractors with the best bids do not necessarily win, as certain rules dictate how contracts are awarded. Preference must be given to local businesses where possible, and agencies must award a certain threshold of contracts to small, veteran-owned, or minority-owned businesses. In situations deemed urgent emergencies, FEMA regulations can relax these rules. Less than half of all contracts for Hurricane Irma have been declared exempt from such regulations, while roughly a quarter of all contracts for Hurricane Harvey have been.
Some are concerned that relaxing these rules can potentially result in abuse or favoritism. But thus far agencies seem to be meeting, or even exceeding, minimum requirements. Veteran-owned businesses comprised 19% of all contracts relating to Hurricane Harvey, while women-owned businesses won 13%. 7.7% of contracts went to small businesses, exceeding the 5% minimum of federal contracts earmarked for small and minority-owned firms, black- and Hispanic-owned firms received less than 1% of the total. 6.4% of the 84 contracts thus far issued for Hurricane Irma went to minority-owned businesses. And all of the hurricane relief aside from that provided by the U.S. Coast Guard has been provided by U.S.-owned businesses.
Given the great need for a broad array of services after a natural disaster, a diverse group of businesses from across the U.S. have received contracts to aid with relief in Texas, Alabama, Florida, and other effected areas. The contracts include both major corporations and smaller local businesses. Some of the largest contracts have been awarded to housing providers. Florida-based contractor Gibbco alone received a $74.3 million contract to build mobile homes. Berkshire Hathaway
Tech-heavy businesses have also won contracts. CSRA
Other necessities are provided by medical device maker Medtronic
Aerospace and defense company General Dynamics
- http://www.aptac-us.org/hurricane-disaster-contracting-harvey-irma-steps/
- http://www.govexec.com/contracting/2017/09/gsa-relaxes-rules-speed-contracting-hurricane-relief-efforts/140856/
- http://markets.businessinsider.com/news/stocks/FEMA-Seeks-Contractors-to-Provide-Meals-in-Wake-of-Hurricane-IrmaWill-Accept-Responses-Beginning-September-6-1002346770