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Norton Marks Up Major Katrina and Contracting Reform Bills (8/1/07)

August 1, 2007

Norton Announces August Hearing in New Orleans and
Marks Up Major Katrina and Contracting Reform Bills
August 1, 2007

Washington, DC- Two major bills related to Katrina recovery and federal security officers, sponsored by Congresswoman Eleanor Holmes Norton (D-DC) today were reported out of the subcommittee chaired by Norton and are expected to also be approved by the full Committee on Transportation and Infrastructure tomorrow. Passage of the Katrina and Rita Recovery Facilities Act of 2007 comes as Norton is scheduled to hold a major Katrina anniversary hearing in New Orleans on August 27 entitled "Katrina and the Status of Recovery and Repopulation." The Katrina bill is designed to provide federal quick fixes to the continuing problems that make day-to-day life difficult for Gulf Coast residents and prevent them from returning home. Among the remedies, the bill increases the federal contribution for some projects from 75 percent to 90 percent; allows the Federal Emergency Management Agency (FEMA) to use simplified procedures for approving recovery projects; and makes retroactive changes in public assistance programs under the Stafford Act, which dictates federal natural disaster assistance for state and local governments. Norton said that she is seeking to settle repeated disputes in recovery and reconstruction projects that often determine whether people stay or give up and leave hurricane ravaged communities. "I am looking to solve some of the lingering recovery problems that have most retarded the returning to normalcy and the return of New Orleans residents to the city," she said.

Norton's Federal Protective Service Guard Contracting Reform Act of 2007 prohibits anyone convicted of a felony from receiving a contract from the Federal Protective Service (FPS) to provide private security guards for protecting federal workers and sites. The legislation is in response to two hearings Norton held that brought out dramatic examples of flaws in guard contracting in the District that appear to be systemic of FPS contracting nationwide. Earlier this month, Norton held a press conference with top officials of the Department of Homeland Security's Immigration and Customs Enforcement (ICE) who announced reforms the agency is making in contract operations and vendor payments for contract officer in response to the Congresswoman's hearings. "This reform bill will assure that contractors are capable, responsible, and ethical as required by federal regulations," Norton said, "and will shore up vital security needs as a result."

On two recent but separate occasions in this region, security guard payrolls were at risk or unmet. In the case of a FPS contract with STARTECH International Security, the owner, who has since been dismissed as a vendor, had served five years in prison for money laundering and fraud. He had received salary payments but had failed to pay security personnel for five weeks. Jenkins Security, a D.C.-based firm owned by a District resident, was forced to borrow money to meet payroll when FPS failed to forward the contracted funds. Subsequent reforms following Norton hearings and meetings with federal officials on these cases include not only the Norton bill marked up today, but also the appointment of an ombudsman for security guard contracts; outreach to vendors in the National Capital Region, where disruptions have brought particular concern; centralization of contracting operations for improved implementation, prompt payment, and monitoring of invoices from contractors; and additional training of FPS contracting staff. Norton also got ICE to agree to clear the back log of payments to all contract vendors nationwide by Friday when Congress is due to adjourn for summer recess.