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Yesterday, House Small Business Committee Ranking Member Nydia M. Velázquez (D-NY) sent a letter which emphasizes the importance of awarding federal contracts to small firms within disaster areas. The letter was sent to the administrators of the Federal Emergency Management Agency (FEMA) and U.S. Army Corps of Engineers (USACE). Unfortunately, hurricanes cause enormous economic damage, often in the hundreds of billions of dollars. As past disasters have shown, putting local small firms to work is one of the best tools for regrowth. When small firms win federal contracts, they are able to grow and create jobs, taxpayers get a good return on their dollar and communities get the repairs they need.  

Under the Stafford Act passed by Congress, federal contracts for projects related to disaster assistance must be awarded to local firms, whenever feasible. In the letter, Velázquez requests the name, amount and location for every federal contract awarded to assist in recovery efforts from recent hurricanes. Additionally, the letter demands to know the steps both FEMA and USACE are taking to comply with the Stafford Act by prioritizing local small firms when it comes to procurement.  

“From Texas and Florida to Puerto Rico, this year marked one of the most devastating hurricane seasons in recent history,” said Velázquez. “Tragically, too many small businesses will be forced to close as a result of destruction to their storefront or lost revenue. We simply cannot afford to let this happen. As federal agencies seek to fill billions of dollars in rebuilding contracts, they must invest in impacted communities by putting local business back to work.”

The full text of the letter is below, for a PDF, click here. 

October 31, 2017

The Honorable William B. “Brock” Long

Administrator

Federal Emergency Management Agency (FEMA)

500 C St. S.W.

Washington, DC 20472

The Honorable Jo-Ellen Darcy

Assistant Secretary of the Army (Civil Works)

U.S. Army Corps of Engineers (USACE)

108 Army Pentagon

Washington, DC 20310

Dear Administrator Long and Assistant Secretary Darcy:

This hurricane season stands to be one of the most destructive in the past decade. Together, hurricanes Harvey, Irma, and Maria resulted in nearly $500 billion in damages across the United States. Your agencies are and will continue to play an essential role in the rebuilding and recovery efforts for these areas. In this regard, it is critical that both FEMA and USACE prioritize local small businesses in the recovery process. Doing so can deliver the twin benefits of increasing local economic activity, while also providing taxpayers with quality, cost-effective goods and services. 

In the Stafford Act, Congress recognized the importance of local business participation in disaster response and recovery by requiring that federal contracts for disaster assistance activities to be given, whenever feasible, to those residing or doing business primarily in the area affected. Local firms often have the greatest knowledge of – and stake in – their communities, thereby positioning them to be efficient and effective vendors. FEMA and USACE are in distinct positions to assist small businesses by supporting their participation in cleanup and recovery contracts. 

In order to better assess local small business participation in response to recent hurricanes, I am requesting regular reports from both FEMA and USACE. For Hurricanes Harvey, Irma, and Maria, please provide a list of all contracting actions taken for each hurricane, including the dollar amount, contractor name and location, and any certification or designation that the successful contractor possesses at the time of award.

Additionally, please provide information as to what steps your agencies are taking to ensure that the contracting actions related to these hurricanes follow the Stafford Act locality preference contained in 42 U.S.C. 5150, which states that agencies should advocate for increased small business presence in disaster contracting programs.  

I look forward to your reply and thank you for your attention to this important matter. Please do not hesitate to contact me.

Sincerely,

Nydia M. Velázquez

Ranking Member

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