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Re: SeriousMoney post# 1568

Friday, 05/01/2009 10:09:34 AM

Friday, May 01, 2009 10:09:34 AM

Post# of 1642
La. signs $30 million Road Home contract -
9 minutes ago

(AP:BATON ROUGE, La.) Louisiana will pay up to $30 million
to the new contractor running the Road Home program
that doles out grants to homeowners with damage
from hurricanes Katrina and Rita, under a two-year
contract released Thursday by the Louisiana Recovery Authority.

The state announced in February that Hammerman and Gainer Inc.,
based in Lutcher, will manage the program, taking over
from heavily criticized ICF International Inc.

Hammerman and Gainer, one of ICF's largest subcontractors
working on the Road Home, took control of the program
April 20, the state recovery authority said in a statement.

The contract with the company includes 19 performance standards,
and the company faces fines for errors in files and for
not meeting certain benchmarks.
For example, Hammerman and Gainer must have a final error
rate of less than 5 percent or face a $10,000 fine for
each percentage point above that, according to the contract.

The Road Home has handed out $7.9 billion in grants to
more than 124,000 homeowners, from federal aid given
to Louisiana after Katrina and Rita struck in 2005.

ICF, the Fairfax, Va.-based company hired by former Gov. Kathleen Blanco's administration,
has been paid more than $867 million for its work so far,
but critics said homeowners were treated poorly and often
given less money than they should have received.

Rather than renew a contract with ICF, Gov. Bobby Jindal's
administration broke up the components of the Road Home
and solicited bids for new companies. Contractors other
than Hammerman and Gainer will collect and store Road Home
data and run a separate Road Home program to help
repair small rental property.

Virginia-based CGI Technologies and Solutions Inc.
will receive up to $40 million for providing Road Home data
storage and technology services for other hurricane recovery programs.
ACS State & Local Solutions Inc., based in Dallas, will
be paid up to $37.5 million to run the slow-moving program
to help small landlords rebuild rental property.


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