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October 03, 2005

Federal government awards $39.5 million no-bid contract to build temporary classrooms

The federal government awarded a $39.5 million no-bid contract to a politically connected Alaskan company to build temporary classrooms in Long Beach, Mississippi. The company, Akima, is based in North Carolina, and is a subsidiary of Nana Regional, an Alaskan-based company.

The company's managers and employees have donated thousands of dollars to Alaska's powerful Republican congressmen including Senator Ted Stevens, Senator Lisa Murkowski, and Rep. Don Young, as reported in USA Today. In addition, Nana Regional is represented by Blank Rome Government Relations, a lobbying firm with ties to former Homeland Security Secretary Tom Ridge.

According to USA Today, those employed at the lobbying firm include Mark Holman, a former deputy presidential assistant and Ashley Davis, Ridge's former assistant at Homeland Security.

Akima officials have dismissed charges that they used their political influence to obtain the lucrative federal contract to provide temporary classrooms. John Wood, CEO of Akima Management Services said, "I can guarantee you that had no relevance. We operate as an independent company. We have not called on them for any such support, and they have not offered any."

Congressman Bennie Thompson disputes Wood's statements and believes the company's contract was unusually high. "I don't buy that", he said. "It seems obvious that somebody had an inside track, because I have hundreds of companies from Mississippi who say they have not been able to get a contract. They can't even get a call or a letter back."

Akima depends heavily on federal contracts for its business. As of now the firm holds 26 federal contracts, a mix of no-bid and competitive awards, as reported in USA Today.

Posted by at October 3, 2005 02:45 PM

Reader Comments:

http://www.washtimes.com/

IMPORTANT NOTICE< FLORIDA EMINENT DOMAIN KICK PEOPLE OUT. TERRIBLE, displace 6000,00 resident.
I am sick of this.

Posted by: FOR FREEDOM at October 3, 2005 04:55 PM

NO BID??

What happened to Free Enterprise? What happened to equal opportunity? What if there was a private company that could of done the job cheaper and for cheaper? Doesn't seem fair.

Posted by: Dan at October 3, 2005 05:19 PM

Just to play devil's advocate. Doesn't private industry themselves award no bid contracts to other companies plenty of the time? Sure, usually they shop around but when they know exactly what they want and know a company can give it to them and it sounds like a good deal, they award the contract without continuing to waste their time shopping around.

Taking Halliburton for instance, for what they were contracted to do in Iraq, they are the only company I know of that is big enough and qualified to do that work. They got a no bid contract, but they really are the best at what they do.

If the government sees a pretty good deal, should they waste time looking for a better one, especially in a time sensitive project?

Posted by: Paul P. at October 3, 2005 05:43 PM

DO I HAVE permission from the Libertarian Party to make a sticker to sell.
TIRED OF BENDING OVER! VOTE LIBERTARIAN.

We really neet to start getting political here and have votes and people to be ready for election and put the word out. I am dead serious.
Are you?

Posted by: FOR FREEDOM at October 3, 2005 05:44 PM

WELCOME TO BEGINING OF NAZISM. The taken of eminent domain in Florida. Who does Bush owe to ruin our lives.

Posted by: fedup at October 3, 2005 06:15 PM

The editorial appears to be standard fare for media reporting and nothing seems out of line just a little sensationalized. For unfamiliar with contracting to the Federal Government, be advised the following general conditions exist in no bid government contracting:

The term, "No bid contract", sounds like wasteful spending because it was not awarded after competition. This would be incorrect. While such contracts, allow the government to avoid the long competitive bidding process, it can order a company to start work immediately. Where time is of the essence, the contractor, if previously qualified by other work in process, the cost of a new work may be negotiated by the estimators of the government and the contractor. Under these conditions they agree on cost and maximum fee on that cost. During the execution of the contract the government inspectors oversees the purchasing, logistics, and production of the work to keep the quality and costs in line and audit every application for payment for accuracy. The company applies for and collects billings based on percentage of work accepted by the government and at the cost and fee approved by the government. Every contract is subject to a final audit on completion and if excessive profits are discovered it is reclaimed while any losses are not reimbursed by the government. KBR is under such an agreement for the U.S. military in Iraq!

Wish I could build a house under a no bid contract! Maybe finally I could get the quality I want.

Posted by: Stockman at October 3, 2005 06:59 PM

Let's be honest here. No bid means patronage. This is nothing more than the Republicans rewarding their supporters under the old adage, "to the victor goes the spoils." It's as old as Tammany Hall and as "honest" as Daley's Chicago.

Don't be surprised if we start hearing about entire cemeteries voting Republican in the mid-term elections in 2006.

Posted by: Libertarian TV at October 3, 2005 07:22 PM

Sure cemetaries would vote for Republicans, remember, they're against the death tax.

Posted by: Paul P. at October 3, 2005 07:47 PM

We'll we Libertarians are also against the death tax. So maybe we can get some dead people to vote for us as well.

Posted by: Jason Stumpner at October 4, 2005 04:15 AM

Can someone name a legitimate action of the Federal government that would require such speed of execution as to forego any bidding process? The keyword being "legitimate".

Posted by: Mike M. at October 4, 2005 08:02 AM

Formal bid procedures take months, at least, to draw up, wait for bids, and then go through the award procedure...if there are no appeals or other snags of any knid.

In as much as this is an immediate problem, requiring near-immediate response, many of us would be complaining about the incompetently slow response if a formal process were to be used. We can't have it both ways.

"No Bid" processes were designed for just such contingencies. There are sufficent warts sticking out all over this President and Congress, we don't need to look petty and political to make our points.

Posted by: John Shuey at October 4, 2005 09:36 AM

Leginitmate function... ok.

IF building schools were a legitimate function of the government, I know, I know, just play along. But if it were, and a bunch of schools were destroyed mid school year, quickly building temporary classrooms would require the speed of execution to forego a bidding process.

Posted by: Paul P. at October 4, 2005 12:23 PM

Hmmmmnn, doesn't look to me like the Federal Government has any legitimate reason to be there at all, so they shouldn't be awarding any bidded or non bidded contracts.

Posted by: Mark B. at October 4, 2005 01:54 PM

So the Feds are building classrooms for the states?

Yes, I realize there was a hurricane, but does the state have no fiscal responsibility to rebuild if there's a disaster?

I think Federalism is dying a slow, anonymous death.

Posted by: Jayhorn at October 4, 2005 03:40 PM

To: Paul P

Even in the situation you laid out - the destruction of public schools during a school year. That is no excuse to remove the bidding process.

Instead what should have happen is: In the short term the State Board of Education rents some doublewides and places them at a location in the affected area so that the kids can go to school. Meanwhile, the school reconstruction project go out for bid just like any other government project.

Thus insuring that we, the taxpayer, don’t get ripped off by being in a rush to rebuild.

Posted by: bagpipe johnny at October 4, 2005 03:44 PM

I still can't believe that the government uses no-bid contracts. Sure, they're quicker, but they are more expensive than a contract obtained through competition of private companies. The government is in a deficit deeper than the Grand Canyon! At the best, it's stupid, and at the worst, it's insane to have no-bid contracts. Competition = Good. Government monopoly = Evil. Simple as that.

Posted by: Jason Nudelman at October 5, 2005 10:51 PM

They use no-bid contracts when a senator's company needs a little extra income. Its a way to ensure that only a select few people participate in something.

Posted by: Keith at October 6, 2005 10:20 AM

I always chuckle when I hear the "Well, in the interests of speed, we decided to curtail the process".

Do lawyers use that argument while deciding cases, ladies and gentlemen?

"Well, we kinda figured you were guilty anyway, so we cut to the chase and pronounced sentence. Evidence testing and due process of law take too much time".

How does that sound?

Posted by: Roy at October 6, 2005 08:32 PM

By the way, that's nothing.

Here:

[img]http://www.adn.com/images/images/1531248-400-x-179.jpg[/img]

Let me borrow the words of someone else ::

[quote]Yes people, $500,000 (FIVE. HUNDRED. THOUSAND. DOLLARS.) of FEDERAL GRANT MONEY was spent to paint the ****ing airplane like a goddamn fish.

My god. Did we elect monkeys to run this ****ing country? Did we elect borderline retards?

$500 grand. For a salmon-forty-salmon.

****! [/quote]

http://www.adn.com/front/story/7038924p-6942571c.html story


You tax dollars hard at work, ladies and gents!

Posted by: Roy at October 6, 2005 08:53 PM

ROY, to your question, YUP

Posted by: True American at October 6, 2005 09:35 PM

Heh! Isn't that funny though?

The other day someone was commenting that the Founders couldn't have envisioned what kind of a threat terrorism would be and thus, strictly following the Constitution isn't really a good idea!

The Founders had finished fighting a war for pete's sake! On home soil no less! Ya think they might have forgotten that already?!!! Ya think they hadn't learned a lesson or two from that classic struggle for liberty?

Hellllllllooooooooo ?

Posted by: Roy at October 6, 2005 10:01 PM

Company - a collection of capital and people, assets committed to an economic enterprises for the express purpose of earning a return for its investors. If publicly held, the stockholders.

The federal government is required by existing law to rebuild storm damaged infrastructure.

Most, appear to have limited understanding of government no bid contracts. "No bid", is a misnomer, a sensational and sexy media line, for a client managed contract executed under a cost reimbursed plus a negotiated fee agreement.

In order to deflect, criticism of FEMA no bid contracts, they will re-bid. Since the work scope is still unknown, no basis exists for a lump sum bid, expect no real differences in the results. The actual work scope and related cost is not known now and will not be known until the work is finished, but political complaints will be silenced.

Under those circumstances one might contract with a company with a excellent track record, reimburse the cost and add a small fee or maybe just hire direct employees to run a government operation. The USN Sea Bees, USAF Red Horse, NASA, come to mind.

Posted by: Stockman at October 9, 2005 04:32 PM

It's been a long time since I so enjoyed reading posts in the net. Two thumbs up! Ninety-eight percent of the adults: http://www.quotationspage.com/quotes/Lily_Tomlin , they go mad in herds , In this world nothing is certain but death and taxes

Posted by: Michael Williams at October 22, 2005 10:34 AM
 


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