New Orleans Pump Contract Investigated

Army Corps Copied Pump Maker's Specs In Bid, Gave $32M Contract To Politically Linked Company

(AP)  When the Army Corps of Engineers solicited bids for drainage pumps for New Orleans, it copied the specifications — typos and all — from the catalog of the manufacturer that ultimately won the $32 million contract, a review of documents by The Associated Press found.

The pumps, supplied by Moving Water Industries Corp. of Deerfield Beach, Florida, and installed at canals before the start of the 2006 hurricane season, proved to be defective, as the AP reported in March. The matter is under investigation by the Government Accountability Office, the investigative arm of Congress.

In a letter dated April 13, Sen. David Vitter of Louisiana called on the Corps to look into how the politically connected company got the post-Hurricane Katrina contract. MWI employed former Florida Gov. Jeb Bush, President Bush's brother, to market its pumps during the 1980s, and top MWI officials have been major contributors to the Republican Party.

While it may not be a violation of federal regulations to adopt a company's technical specifications, it is frowned on, especially for large jobs like the MWI contract, because it could give the impression the job was rigged for the benefit of a certain company, contractors familiar with Corps practices say.

The Corps' January 2006 call for bids for 34 pumps used the wording on how the pumps should be built and tested, with minor changes, found in MWI catalogs.

The specifications were so similar that an erroneous phrase in MWI catalogs — "the discharge tube and head assembly shall be abrasive resistance steel" — also appears in the Corps specifications. The phrase should say "abrasion resistant steel." An incorrect reference to the type of steel that would be required apparently was also lifted.

Eugene Pawlik, a Corps spokesman in Washington, said the agency is working on a response to Vitter's letter.

MWI declined to discuss how it won the contract. GAO would not talk about its probe.

Richard White, a federal contracting expert, said it is "not unheard of for a spec to be copied, in particular in cases of emergency purchases."

"It's not a good practice, but it's not anything egregious, especially if the Corps allowed other companies to negotiate to change it," White said.

After Katrina swamped about 80 percent of the city, Congress appropriated $5.7 billion to rebuild New Orleans' flood protection systems. Vitter and fellow Louisiana Sen. Mary Landrieu have excoriated the Corps over its workmanship since Katrina.

In his letter to the commander of the Corps, Vitter said the bid solicitation for the pumps "includes specifications identical to those written and marketed by Moving Water Industries." In addition, "the testing specifications are also identical to the testing specifications developed and authored by MWI."

A May 2006 memo by a Corps inspector working on the project, provided to the AP earlier this year, warned that the pumps were faulty and would not work if needed to remove water during a hurricane. GAO opened its investigation after the memo surfaced.

The Corps and MWI insist the pumps would have worked, but last year's mild hurricane season never put them to the test. The pumps have been overhauled and are being reinstalled.

The Corps withheld about 20 percent of MWI's contract price — including an incentive of about $5 million to deliver them by June 1, 2006 — until the flaws have been resolved. But the Corps also spent $4.5 million for six additional MWI pumps for use in troubleshooting the defective ones.

The Corps contract officer overseeing the January 2006 bid, Cindy Nicholas, was told about the copied specifications during a conference call with FPI Inc., a Florida company that also bid on the project, shortly after MWI was awarded the contract. A recording of the briefing was provided to the AP by FPI.

"Are you folks aware that the specifications that you folks put out was a copy of the specifications in the MWI catalog?" asked Bob Purcell, who was an FPI salesman at the time the bids were taken.

"No, I'm not aware of that," Nicholas replied.

Corps official Dan Bradley said during the briefing that consulting engineers had a hand in drawing up the specifications.

Purcell then complained: "We were forced to meet someone else's specifications in entirety." He said the consultants did not cooperate with FPI, and he charged that MWI was given "a head's up" about the job. That, he said, was evident by MWI's order for pump engines before the contract was even put out to bid.

"I don't know anything about that, sir," Nicholas responded. She said that if MWI ordered the engines ahead of time, "they took a big risk."

"Obviously it was a risk that paid off, let's put it that way. They must have had some assurance!" Purcell exclaimed.

"Not from me," Nicholas said.

MWI would not comment on the alleged order for pump engines before the award of the contract.

Purcell, a former MWI employee, is a plaintiff in a federal whistleblower lawsuit accusing MWI of fraudulently helping Nigeria obtain $74 million in taxpayer-backed loans for overpriced and unnecessary pumping equipment. The U.S. Justice Department has joined the suit as a plaintiff.

[themooniac]

More Republican corruption. I love it!!

[arthurcl1]

More of Bushes Messes, caught now by the Dems! Great! Go after them and let everyone know how they cheated us taxpayers!

[juwboy]

All administrations have been equally corrupt.

Apparently, it is standard practice to tailor the wording on bid requests for government equipment contracts (at all levels of government) so that only the desired supplier can put in a meaningful bid.

More than 30 years ago, I was shown a bid request by a California county for the provision of a mass spectrometer. Only one manufacturer, Finnigan, could have met the terms of the request.

[rharrin1]

These hoods would have Al Capone green with envy.
Just goes to show you have to eliminate any bush family member from ever getting any form of work with the government. Or any company they have been associated with.

[dmorg4]

Just wait its going to get better all
of the trash is going to come out.
BUSHGATE

[crater7]

under investigation by the GAO, Government Accountability Office;
Now thats a term you dont hear from this administration to often.
I wonder just who will be leading the charge here?
Lets See, could it be, Cheney, Gonzalas, Robert Mueler, Rice, Rove, ( my personal favorite} Rummy, Maybe even Jeb, himself?
Now thats accountability.

juwboy wrote:

"All administrations have been equally corrupt.

Apparently, it is standard practice to tailor the wording on bid requests for government equipment contracts (at all levels of government) so that only the desired supplier can put in a meaningful bid."

I disagree - not all administrations are "equally" corrupt. Some are definitely more corrupt then others - and the Bush administration is one of those.

You are correct though - there are numerous ways of "tailoring" wording and figures on bid requests until you can be certain that one "entity" will get it over another.

[jjp735i]

and yet once again no one at the top will be held respnsible.

[rohink-2009]

Forget building New Orleans. Global warming is going to wipe the place out anyway.

[houser123]

It's not the verbatim copying of MWI's specs that concerns me with this story. It's MWI's refusal to discuss how they were awarded the contract for $32MM worth of pumps that have proven to be less than reliable. There is a saying that goes, It's not what you know, it's who you know that counts." This is a textbook example of just that. If MWI was awarded the contract through typical plan and spec means, why would they not want to discuss the process? So much for openness in awarding government contracts. I am in the wrong line of work.

[booyaw_77]

How can one of the world's greatest shipping ports, and the mississippi hub clear up the central united states not have any money to build the fanciest ***** anybody's ever seen before?

[lawandorder6]

The only ones that are going to pay for this is the TAX PAYER. No one else. Some one just got rich, again.

[nonameabc]

"MWI employed former Florida Gov. Jeb Bush, President Bush's brother"... Well, the spying is working in the state. Knowing the competitors phone calls and get everything that they need... good job.

[victoriarum]

"MWI declined to discuss how it won the contract."

If those representing the body of this country was truthful about their situations, then their wouldn't be as so much illegal activity, or mistrusting of individuals in the goverment.

Pray for Peace, and God Bless You.

[asor1-2009]

Duh, this is a real mystery. A 32M contract was awarded to another of Jeb Bush buddies who just happen to be "major contributors to the Republican Party."
It is incredible that the totally dishonest Bush family have achieved so much in relatively short time with thier imbecilic son at the helm.

[gkc99]

Is there any bigger liar and hypocrit than a neocon Republiscum? They've made the phrase "principled conservative" a joke.

Let's see: conservatives like less government interference in private lives. Prez. Bushit orders the FBI to spy on citizens.

Conservatives like fiscal responsibility: Prez. Bushit finances an optional war on a credit card leaving a trillion dollar debt for our kids, while he gives the 1000 richest people in the world huge tax cuts and funnels more taxpayer money to his chums (who of course funnel some back to the U.S. Fascist Party).

Conservatives like personal responsibility: Bonzo Bushit, Darth Chickenshit, Rummy, Brownie, Wolfie, Gonzo, and the rest of the filthy crew all like to sluff off the responsibility onto underlings.

Thanks, Bushits, for making "neocon" a term of disgust. We thank you for the last election and the next election. Suck it up!

[cnjcc]

The more you stir it, the more it stinks.

How much more of this corruption, illegal activity, loss of memory, and lying before congressional committees can we take?

If somehow the Pope could declare himself a Republican candidate for 2008, he couldn't get elected.

[pepperp1]

This is more of the Republican Entitlement Program, we pay the taxes, then they let their buddies divvy it up between themselves and they can cut Social Security payouts. We have a Republican Party running this country whose platform appears to be %u201CTax and Steal%u201D. And the pumps don%u2019t even work, amazing.

[luvny-2009]

The Bush's are all a bunch of crooks and con men. They pulled the wool over a lot of Americans eyes with their Bible thumping God fearing con game to get the votes they needed. We are now the most hated country in the world, have a bill to pay that will have a balance for many years. When will all this end, we need that arrogant SOB out NOW!!!

[kevboom]

It's pretty obvious why the lower ninth ward is still lying in shambles. The millions of tax dollars funneled into "recovery" are now in some Florida millionaire's offshore bank account. Bush said he would not give the poor people in New Orleans a "hand out," but he would give them a "hand up." Well, they haven't even gotten a "hand up" yet, but the "hand outs" seem to be plentiful to big campaign contributors. And they wonder why we're skeptical of the $800 billion or so they've blown in Iraq with no-bid military contracts. Man is someone ever getting rich on the American taxpayers' backs. Politics have always been a dirty business, but these folks are the masters of their craft. I can only pray God is watching and waiting. Their time will come.

[nothappyatall]

"MWI employed former Florida Gov. Jeb Bush, President Bush's brother, to market its pumps during the 1980s, and top MWI officials have been major contributors to the Republican Party. "


Oh WELL that explains everything eh? just like another brother of Bush just happened to be head of security for the World Trade Towers when it was attacked! The Bush crime family has so many amazing coincidences like that!

[inventagod]

Yer doin a heckova job down there, Jeb...

[briannorwood]

Associated Press... Great job of investigative reporting. Please keep digging!

[nolalou]

I think it was Woody Guthrie who once said "Some will rob you with a six-gun, but you can steal more with a fountain pen". The terminology is a bit dated, but you get the idea! New Orleans does have a crime problem, but the real thieves are in Washington, or working for government agencies.

[dallison7]

The Bush's are all a bunch of crooks and con men. They pulled the wool over a lot of Americans eyes with their Bible thumping God fearing con game to get the votes they needed.
Posted by luvNY


Falwell, Swaggart, Robertson, Bush Family, all the same.

My Grandpa was a rural Baptist preacher, a good man. He told me whenever I meet someone proclaiming his piety, reach around and button my back pocket. He was normally right.

[frankly6]

Jeb Bush and the owner of MWI are long-time friends and old business partners. Halliburton was on the ground in New Orleans with a no-bid contract before the National Gaurd got there. These Republicans have taken every oportunity possible to enrich themselves at the expence of taxpayers. Their corruption is surpassed only by their incompetence.

[dreif221]

i think the bush family is the most up standing people on this planet.i think we should make him are king,for ever.god bless the bush family.we should kneel in front of any bush family member that you see.if you think am wrong then watch the video on william cooper on[ utub ].you will see why i say this.we are all screwed and there is not a thing we can do about.we are all sheep!!!!!!!!

[dreif221]

do you realy want to know whats going on in this world?watch the video on william cooper on utub.com,believe it it all checks out ,take the red pill ,and see what is realy going on people!!

[frankly6]

Why did Bush's friends at MWI start buying the engines for the pumps before a call for bids was even put out by the government? Why were other contractors forced to bid on specs taken directly from MWI's catalog? Is it a coincidence that this contract went to a company with such close ties to the Bush family?

[marcodele]

Yes, but George and Jeb wouldn't have installed those defective pumps their friends built if Clinton hadn't had that affair with Monica.

[marcodele]

ainttaken: Another significant fact about the Silverado scandal is that everyone else on the board of directors was indicted. Neil Bush was only "cited." It helps to be a member of the lucky sperm club, doesn't it? And how does one go from Tulane Business School to sitting on the board of a major savings and loan? Hmmmm. Wonder.

Of course, all the neocons knew this stuff when they voted for the idiot and his corrupt family.
Many have paid with their lives, the rest of us will be paying the bills for decades to come.

[macusweil]

The foul stench of the Bush family and their avarice is all over this deal. Yet again we see GOP, Greed Over Principle tactics first hand.

The Republican party has become an criminal insiders paradise. Very much like organized crime in Italy the corrupt side of GOP has embedded operators at all levels of government.

[pepperp1]

I don%u2019t buy the incompetence claims; I believe this is calculated fraud. They have been quite successful in always awarding our tax revenues to their States, their churches, their friends, their girlfriends, their families, their operatives, their donors, their academic institutions, their pork projects and their favored corporations regardless of capability or public opinion and they have been doing it for 6 years draining our treasury and our social security trust fund.

[annabanana-1]

It isn't an "Administration" . . It's a Crime Syndicate. There is no end to the venality of this bunch of crooks.

If the Republicans don't pull themselves together and kick this crowd out.. the stink will be on them for generations.

[mrschassis]

This is why Thomas Jefferson wanted the government overthrown every 20 years. Because absolute power corrupts absolutely. And don't be fooled. It ain't just Bush. It is every single long time politician and quadrupled if any ancestor of theirs was also in office. They ended up owing their souls to those with the bucks and they sell out our public safety and national well being every single time. It is a disgusting display of greed and cronyism and it won't stop until we break the chain. We have got to elect a fresh group of people, no one with political ties or family debts of gratitude. No one who has been a politician for more than half of his or her life. Certainly no one whose father, mother, sister, brother, uncle or aunt was anything in the goverment. And then, we have to vote for someone new the next time, so no one has a chance to get their hooks into the people who are supposed to be looking out for us. Until we as a nation say enough, they are just going to keep right on ripping us off and laughing all the way to the bank.