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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Brumar89 who wrote (1035496)	10/28/2017 12:39:03 PM
From: Brumar89	Read Replies (1) \| Respond to of 1574122

FEMA has ‘significant concerns’ with Puerto Rico’s $300m power deal BY TIMOTHY CAMA - 10/27/17 09:58 AM EDT 262 No bid contract with a clause that says the government can't review costs or profits. With a company located in the Sec. of Interior's small hometown, that had two employees when PR was hit by a hurricane. Whitefish Energy contract bars government from auditing deal The Federal Emergency Management Agency (FEMA) is sounding an alarm over Puerto Rico’s $300 million contract with a small Montana company to restore power infrastructure, amid concerns over the firm's tiny staff and lack of competitive bidding. FEMA will be responsible for paying for the work by Whitefish Energy Holdings, but the Puerto Rico Electric Power Authority (PREPA), the island’s utility, entered into the contract. “Based on initial review and information from PREPA, FEMA has significant concerns with how PREPA procured this contract and has not confirmed whether the contract prices are reasonable,” FEMA said in its statement. “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. 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. And Puerto Rico Gov. Ricardo Rosselló saidin a Wednesday letter to the Department of Homeland Security that the contract “appeared to comply 100% with FEMA regulations.” As of Friday, 72.4 percent of electric customers in Puerto Rico had no power, more than a month after Hurricane Maria made landfall. If FEMA does not pay PREPA for the work, the Whitefish contract still stipulates that the financially-struggling utility has to pay. “It is important for all applicants for FEMA Public Assistance to understand and abide by federal requirements for grantee procurement,” FEMA said in its statement. “Applicants who fail to abide by these requirements risk not being reimbursed by FEMA for their disaster costs.” The Department of Homeland Security’s Office of Inspector General, which has jurisdiction over FEMA, has launched its own audit of the contract. Whitefish Energy contract bars government from auditing deal BY JOHN BOWDEN - 10/27/17 08:48 AM EDT A deal reached between the government and a small Montana energy company located in Interior Secretary Ryan Zinke's hometown prohibits the government from reviewing labor costs or profits related to the company's relief efforts in Puerto Rico, according to a leaked copy of the contract. A copy of the deal obtained by reporter Ken Klippenstein reveals that the government isn't allowed to "audit or review the cost and profit elements" under the agreement, allowing the company greater discretion and secrecy for how it spends the $300 million to restore power to the island. Puerto Rico is rebuilding after two major hurricanes wiped out most of the island's electrical grid. Whitefish signed the deal with the Puerto Rico Electric Power Authority (PREPA), which also prohibits the government from making "any claim against Contractor related to delayed completion of work." Whitefish has been the target of heavy criticism over questions as to why the small company, which only had two full-time employees when the storm struck, was selected for such a lucrative government contract to help clean up the island. Two House committees and a federal watchdog have all opened investigations into the deal. San Juan Mayor Carmen Yulín Cruz has called for the deal to be voided and investigated after representatives for the company feuded with her on Twitter and asked her if she wanted them to stop working. “We’ve got 44 linemen rebuilding power lines in your city & 40 more men just arrived. Do you want us to send them back or keep working?” Whitefish Energy tweeted to the mayor Wednesday. “They are threatening not to do their job which frankly is quite irregular for a company hired to the work for the public sector,” she tweeted in response. “The contract should be voided right away and a proper process which is clear, transparent, legal, moral and ethical should take place," Cruz added in comments to Yahoo News. Republicans on the House Natural Resources Committee have also raised questions about the scope of the deal. “The size and terms of the contract, as well as the circumstances surrounding the contract’s formation, raise questions regarding PREPA’s standard contract awarding procedures,” Reps. Rob Bishop (R-Utah) and Bruce Westerman (R-Ark.) wrote Thursday. Whitefish said Thursday that it welcomes the investigations. thehill.com