No-bid storm contracts prompt warnings

0 Comments | USA TODAY, September, 2005 | by Jim Drinkard

WASHINGTON -- After Hurricane Katrina blew through the Gulf Coast, leaving thousands homeless, Joe Shirey at CJ's RV Town called federal disaster officials with a sales pitch for travel trailers.

He e-mailed a list of every unit on his Hobe Sound, Fla., lot. Two days later, the response came back: A few items were crossed off and "they purchased the rest," Shirey said. The total deal: 132 trailer homes for $2.3 million, as much as the dealership would normally sell in four months.

It was just part of a buying spree by the Federal Emergency Management Agency, which snapped up travel trailers and prefab houses from dealers in Florida, Indiana, Georgia, Alabama and other states. The government has bought $4 billion in temporary housing for hurricane victims and relief...