Give Small Business A Chance
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A report by the Government Accountability Office found that large businesses are exploiting rules intended to give small businesses a chance to compete for contracts to help rebuild after Hurricane Katrina. As the Associated Press reports, the GAO report has led Democrats to question the Bush administration's "commitment to small businesses after its sluggish response to Katrina."
The report by the Government Accountability Office focused on small Gulf Coast businesses that lost opportunities as limited-bid contracts were awarded to politically connected companies after the storm hit.Large contractors routinely did not file reports explaining their efforts to find subcontractors, as required under federal rules, according to investigators. At other times, large companies provided figures that complied with the rules but were misleading as to how much work they were sharing.
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For many weeks after the hurricane, small, minority companies received 1.5 percent of the total work - less than one-third of the 5 percent normally required - because they were not allowed to bid for many of the emergency contracts.
In the wake of a national tragedy such as Hurricane Katrina, it is a shame that contracts were doled out according to who was the most "politically connected," rather than who can do the best job for these families. It's way past time to support small businesses and give them a chance to join the effort to rebuild New Orleans.
