(Washington, D.C.) – U.S. Sen. David Vitter introduced new legislation today to reduce government waste associated with debris removal and demolition contracts awarded by the Federal Emergency Management Agency during the recovery of Hurricanes Katrina and Rita. The bill would also increase the use of local subcontractors.

            “There is enormous waste and inefficiency on the federal level – and unfortunately, that money still gets counted against Louisiana,” Vitter said. “We can make the contract process more efficient by eliminating unnecessary layers of contractors. By hiring one corporation as a project manager, the work will get done more efficiently and save money.”

            Vitter’s bill, the Local Disaster Contracting Fairness Act of 2006, would reduce unnecessary tiers of subcontractors by requiring that executive agencies, including FEMA and the U.S. Army Corps of Engineers, specifically require prime contractors to employ only one tier of subcontractors and act as project managers. The prime contractor will also be required to receive an agreed-upon percentage of the overall value for its work as project manager.

            The bill will help increase the number of local businesses getting contracts by requiring the prime contractor to hire local subcontractors, except when local subcontractors are unavailable to perform the work.

            And to further increase the use of local businesses during recovery from Hurricanes Katrina and Rita, contracting agencies will be required to give preference to potential prime contractors that pledge to hire only subcontractors affected by these hurricanes. These subcontractors will be defined as businesses located in the major disaster areas on the day preceding each hurricane.

            “It makes sense to have local businesses affected by the storm help rebuild their communities. When we have able and ready local subcontractors available, they should be given special consideration,” Vitter said.

            The bill will be referred to the U.S. Senate Committee on Homeland Security and Governmental Affairs.

            In the recent hurricane relief bill, Vitter included an amendment that would help encourage more federal contracting opportunities for local small businesses by declaring areas affected by Hurricanes Katrina or Rita as a Historically Underutilized Business Zone (HUBZone).