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Fix for New Orleans Means Big Payday For Corps Insider

Topic: Yesterday's News?
06. March 2006
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To guide its massive repair of the New Orleans flood control system,
the U.S. Army Corps of Engineers is turning to a firm headed by its
former commander who played a prominent role in perpetuating the
neglect and misplaced priorities that contributed to the disastrous
post-Katrina levee failures, according to Public Employees for
Environmental Responsibility (PEER).  Under a three-year
open-ended contract announced last week, the Corps will award hundreds
of millions of dollars to a company staffed by the same managers who
were in positions of authority when critical levee work was
short-shifted.

The company, HNTB Federal Services Corporation, is led by retired
General Robert B. Flowers, who was the Corps’ Chief of Engineers from
2000 until 2004, a period in which the Corps pursued questionable
navigation projects in New Orleans at the expense of flood and
hurricane protection.  In addition, Flowers was the commander of
Corps’ Mississippi Valley Division from 1995 to 1997 which was directly
responsible for construction, operation, inspection, and maintenance of
New Orleans flood and hurricane protection projects.

“This is like hiring Michael Brown to reform FEMA,” stated PEER
Executive Director Jeff Ruch, noting that Flowers was also the Corps
officer who personally approved the controversial series of no-bid
contracts between the Pentagon and a subsidiary of Halliburton for a
range of reconstruction work in Iraq.  “In the Corps, those who
screw up are guaranteed a tidy fortune as private consultants advising
how to remedy their past mistakes.”

Under a three-year “indefinite quantity” contract, HNTB will provide
the Corps with consulting, design and engineering services to assist in
rebuilding critical infrastructure that failed during hurricane
Katrina. In essence, its former commander’s firm will act as the Corps’
general contractor for the vast and lucrative reconstruction of the New
Orleans levee system.

Flowers is just the latest in a parade of Pentagon officials and Corps
commanders who have left the government to work for the very companies
whose eligibility for government contracts they formerly managed. The
last five former top Corps commanders have joined consulting,
engineering and transportation companies that depend on the Corps or
other federal agencies for the bulk of their business.

“The revolving door at the Corps churns so fast that it resembles a
Cuisinart,” Ruch added.  “The system’s perverse incentives turn
tragedies into profit opportunities reserved for connected insiders.”

 

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