FEMA has 'significant concerns' with Puerto Rico's $300m power deal [View all]

[mahatmakanejeeves]

Source: The Hill

FEMA has significant concerns with Puerto Ricos $300m power deal

BY TIMOTHY CAMA - 10/27/17 09:58 AM EDT

The Federal Emergency Management Agency (FEMA) is sounding an alarm over Puerto Ricos $300 million contract with a small Montana company to restore power infrastructure, amid concerns over the firm's tiny staff and lack of competitive bidding.

FEMA will be responsible for paying for the work by Whitefish Energy Holdings, but the Puerto Rico Electric Power Authority (PREPA), the islands utility, entered into the contract.

According to FEMA, yes: "Any language in any contract between PREPA and Whitefish that states FEMA approved that contract is inaccurate."

Link to tweet

Based on initial review and information from PREPA, FEMA has significant concerns with how PREPA procured this contract and has not confirmed whether the contract prices are reasonable, FEMA said in its statement. ... FEMA is presently engaged with PREPA and its legal counsel to obtain information about the contract and contracting process, including how the contract was procured and how PREPA determined the contract prices were reasonable.

The agency also said that the contract is between Whitefish and PREPA, and FEMA had no role in its signing.

Read more: http://thehill.com/policy/energy-environment/357486-fema-has-significant-concerns-with-puerto-ricos-300m-power

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Editing: I'm moving the Reuters article from the main box to this box and putting The Hill article as the lead story. It was earlier, and it has more information.

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https://www.reuters.com/article/us-usa-puertorico-power/fema-cites-significant-concerns-with-puerto-rico-energy-deal-idUSKBN1CW1X1

OCTOBER 27, 2017 / 9:40 AM / UPDATED 28 MINUTES AGO

FEMA cites significant concerns with Puerto Rico energy deal

Reuters Staff 1 MIN READ

WASHINGTON (Reuters) - The Federal Emergency Management Administration on Friday said it did not approve a multi-million dollar contract between Puerto Ricos power utility and a small Montana firm to repair storm damage, and has significant concerns about the deal.

In a statement, FEMA also said after its initial review it has not confirmed whether the contract prices are reasonable under the contract between Puerto Rico Electric Power Authority (PREPA) and Whitefish Energy Holdings.