Shaw Group, Bechtel, CH2M and Fluor each received no-bid contracts for temporary housing worth up to $100 million each.

Prime contractors hired by the Army Corps of Engineers are receiving $28 per cubic yard for debris removal. After the primes and two or three layers of sub contractors get paid the companies actually doing the work are receiving $6-10 per cubic yard.

Shortly after his appointment, R. David Paulison, acting FEMA director pledged to reopen the no bid contracts for cleanup and restoration. A month later, FEMA now reports they will not rebid until February which is just about when the contracts are set to expire anyway. Talk about pointless.

In March FEMA announced they would not reopen the no bid contracts but would complete them instead. To their credit they have asked for bids for storm related services in the future and expect to have that process fully in place by December 2006.

In May the AP broke the story that the above margins just weren't enough. Fraudulent activities included misstating mileage, mixing loads, double billing and misstating quantities hauled.