FEMA has awarded $400 million in local Katrina Contracts for Mississippi small and small disadvantaged businesses to out of state companies. Beginning, Oct.11, 2005, FEMA announced its Hurricane Recovery Contracting Strategy placing additional focus on local small and small disadvantaged business for regional work. In several press releases since October FEMA has stated repeatedly how important having local small businesses involved would be to the economic recovery of the damaged region.
FEMA: Release Date: December 1, 2005-Release Number: HQ-05-383 “Local, small and minority-owned businesses are playing a critical role in rebuilding the Gulf Coast,” said Acting FEMA Director David Paulison. “Getting local businesses more heavily involved in the long-term recovery efforts will also contribute to the overall economic recovery of the region.”…These indefinite delivery/indefinite quantity (IDIQ) contracts will be awarded to local, small and small disadvantaged businesses in order to increase their contribution to the recovery efforts following the Gulf Coast hurricanes.
FEMA: Release Date: March 3, 2006- Release Number: 1604-265 “contracts will soon be awarded in the Gulf Coast region with a value up to $100 million each. These five-year contracts will be awarded to local, small and small disadvantaged businesses.”
FEMA, Small Business Administration Work Together to Award Hurricane Katrina Recovery Contracts to Small and Minority-Owned Businesses- Release Date: March 31, 2006-Release Number: HQ-06-049 “FEMA is committed to the recovery of the Gulf Coast region, and we understand the critical role small and minority-owned businesses must play in these efforts,” said Acting FEMA Director David Paulison.

State Solicitation Number Number of Contracts
Mississippi HSFEHQ-06-R-SBMS 5 Small Businesses
Mississippi HSFEHQ-06-R-8AMS 5 Small/Disadvantaged Businesses 8(a) certified
These contracts were awarded March 31, 2006, $400 million of the money allocated left the state of Mississippi. Two of the contracts were awarded to the same company in California.
March 31, 2006 (Washington) – Today, Rep. Bennie G. Thompson (D-MS), Ranking Member of the Committee on Homeland Security, issued the following statement: “Cleaning up and rebuilding the Gulf Coast in the wake of Hurricanes Katrina and Rita will take several more years and billions more dollars. It requires the vested interest and passion found in area businesses with an interest in recovery,” said Rep. Thompson. “Over the last several months, many qualified small, minority, and disadvantaged businesses weren’t given the chance to compete for recovery contracts that would allow them to revive their communities. “I am glad to see that FEMA is finally doing the right thing, or is at least on the right track to doing the right thing, by increasing the total for small business recovery contracts to $3.6 billion…Obviously, Rep. Thompson was unaware that $400 million in contracts promoted to small and small disadvantaged businesses in his own state of Mississippi, were given to businesses in states as far away as California and North Carolina.
Once again, FEMA falls short on its promises, and local small and small disadvantaged businesses in Mississippi are expected to do without the economic benefit of contracts being awarded in their state.