Lessons Learned from Prior Reports on Disaster-Related Procurement and Contracting   [open pdf - 667KB]

"FEMA is currently responding to some of the most catastrophic disasters in U.S. history -- Hurricanes Harvey, Irma, Maria, and the October 2017, California wildfires. Because of the massive scale of damage and the large number and high-dollar contracts that will likely be awarded, there is a significant risk that billions of taxpayer dollars may be exposed to waste, fraud, and abuse. The issues and observations we have described in our previous reports clearly point to FEMA's ongoing failures to oversee its grant recipients (grantees). FEMA is responsible for monitoring recipients to ensure they are performing proper grant administration. Grant recipients, in turn, must manage subrecipients to ensure grant fund expenditures comply with Federal procurement requirements. Noncompliance can result in high-risk contracts that may lead to excessive and ineligible costs. In addition, failure to follow these requirements can hinder many of the socioeconomic goals Congress intended. During the initial recovery phase of these disasters, it is imperative that FEMA ensures that grant recipients (states and tribal governments) effectively manage their disaster relief grants. In doing so, the states must also ensure that their subrecipients have adequate procurement policies and procedures and fully comply with Federal procurement requirements. These measures should provide reasonable, but not absolute, assurance that the grant funds are spent properly and mitigate the risk of taxpayers bearing ineligible and excessive costs."

Report Number:
Department of Homeland Security, Office of Inspector General, Report No. OIG-18-29
Public Domain
Retrieved From:
U.S. Department of Homeland Security Office of Inspector General: https://www.oig.dhs.gov/
Media Type:
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