Addition contracts totally $75 million were targeted to this category this summer, however, the thousands of demolitions projected for the fall did not materialize.  Therefore, the Corps did not require this contracting capability as our FEMA demolition mission will end in Orleans Parish by September 30, and no new contractors will be required.

We are committed to using small businesses in performing our work, both in the normal course of business, and in times of major natural disaster. We have aggressive management programs to use Small, Small-Disadvantaged, Women-Owned, HUBZone, Veteran-Owned, and Service-Disabled Veteran Owned firms to the maximum extent possible. 

ACI Contracting:  Preparing for the Storm

Katrina recovery activities were performed at a record pace for such an expansive, unprecedented disaster field.  In the first 6 months of operations in Louisiana, Corps contractors removed 19 million cubic yards, outpacing the prior record of 15 million cubic yards in 8 months that was set in the Hurricane Andrew response. The Corps' Advanced Contracting Initiative program (ACI) contributed by having competitively-awarded contracts for major missions in place before the storm hit with contractors who were not likely to be disabled by the disaster.

Small Business Steps Up to the Plate

Katrina's devastation was so great that it was recognized that the existing ACI Contracts would not be sufficient to meet recovery needs.  Almost immediately after landfall, the Corps began another round of competitive awards for four additional debris contracts.  It was recognized that small business in the disaster area, while a critical resource for extended recovery, could not muster the resources needed immediately as a Corps prime contractor due to extensive storm impacts.

However, the Corps knew that prime contractors would employ a huge number of subcontractors to meet their mission requirements.  Our research and field seminars indicated a large pool of small business ready to help with the recovery, with many more local small businesses coming back online as the recovery advanced. 

To engage these crucial small business resources, the Corps negotiated a small business subcontracting goal of 73% with three debris removal contractors and 60% with a fourth, well above the Corps standard small business subcontracting goal of 52%.

Using Louisiana Small Business

Corps contract managers and our prime contractors have done an excellent job in passing recovery work and recovery dollars to small business.  As of March 28, 2007, 88% of all Corps contractor subcontracted dollars in the Gulf Region have gone to small businesses in Louisiana.

For Louisiana contracts managed by the Louisiana Recovery Field Office, 45% of all RFO contractor subcontracted dollars have gone to Louisiana firms.

In addition, the LA-RFO has awarded 395 contracts to large and small Louisiana businesses, 286 of those going to small business.

A quick summary of Louisiana Katrina Recovery payments as of March 28, 2007
All missions, first tier contractors

(Click here for the Chief of Engineers Complete Statement and actual letters in PDF format)

Dear Mr. Park:

I would like to commend the US Army Corps of Engineers and especially one of your contractors for actively engaging in the hiring of local businesses in the city of New Orleans during the post hurricane clean-up efforts.

ECC, one of USACE's prime contractors engaged in the debris and demolition efforts, has done an outstanding job in helping the local communities and businesses. They have reached out to the local community and helped many businesses to the extent impacted by the hurricane to get back on their feet. ECC has mentored local businesses to the extent where they can pursue contracts directly with agencies such as the Corps of Engineers.

It is my understanding that currently some of the local firms subcontracting with the ECC are being considered for direct contracts with USACE. Just their mere consideration speaks to the success of the ECC in helping these businesses to grow after the impact of the hurricane.

ECC has demonstrated their commitment to the local community by actively and aggressively engaging in the hiring and using resources from the local communities that had been impacted by the storm. They hired: trained and provided opportunities for many local personnel and businesses, and provided food and lodging for displaced individuals.

1 would like lo personally commend USACE in their hiring and contractors and establishing goals that would encourage contractors to seek local participation. Your contractor, ECC, has been a role model to be used in the future, please convey our deepest appreciation to ECC and thank you for all of your efforts in the recovery of New Orleans.

Juan A. La Fonta
Louisiana State Representative
District 96

Dear General Crear:

I would like to express my appreciation for the efforts of US Army Corps' Contractor ECC Operating Services LLC. ECC has taken extensive strides to employ local individuals and businesses from Louisiana, and has provided assistance and mentoring to large numbers of Louisiana's local business community. Throughout the Hurricane Katrina reconstruction and cleanup ECC bas been accessible and eager to work with local businesses that had been impacted by the storms of 2005.

Other Louisiana State Representatives and I were obviously concerned about the impact of the storm and its effects on our businesses and our economy. ECC minimized the potential losses by actively engaging the local business community- they sought out focal businesses, searched for qualified companies with whom to subcontract, hired local residents and even provided food and lodging for many. They researched and removed, or avoided, many companies who were not from Louisiana but claimed to be, who were attempting to take work away from our local companies. Thankfully ECC did not allow this to happen.

ECC worked with local, minority owned businesses to aid them gearing up for submitting proposals directly to the Army Corps of Engineers, in order to see good companies rewarded for their efforts, and to help USACE get competition for reputable firms who are new to the government contracts field.

ECC has been an integral part of 1,ouisiana's recovery and reconstruction. It has been my pleasure to observe their efforts and impact on Louisiana and I extend my thanks to them and USACE for their efforts.

Sincerely,

Jack D. Smith
Louisiana State Representative
District 50