Small company from Trump Interior chief's hometown wins massive contract to restore PR's power

[exGOPer]

First -- let's discuss the contract -- the 300 Million is the max spending cap, not the total contract amount. This means that each contractor is paid at a particular rate, the firm takes a cut. The maximum amount that can be spend over the designated time period for contractor pay, food, lodging, etc. is $300 million. Based on only supplying a couple hundred employees the contract is not likely to hit the cap, and fall short of it - which is common. The amount left on the contract at the end of the contract period can be rolled over to a new contract or the contract cancelled if the power is back on.

That's the standard contract process, question is - does your neighbor with 3 full time employees get a 300 million dollar contract on a regular basis or even irregular basis

Let's also discuss the audit clause -- it refers to avoiding a standard auditing relationship where the power company audits each expense line item in detail. This is bypassed due to the urgency of the situation and the issue controlled by setting a max amount on hotel & food expenses each day (effectively a per diem for food). Obviously a small contracting firm does not want to hire an entire financial and legal department to go through squabbles over expense report line items which are kicked back from a power company in their standard employee auditing procedure.

This is normal business procedure for small contract firms that do crisis work. What is the big issue you have with it.

That's nonsense, what has urgency got to do with auditing. If you are so small that you don't want to hire legal expertise, why are you getting such huge contracts?

This is not normal procedure, even Republicans are saying that. This is corruption and it will be exposed like Trump University.

 

[gwb-trading]

That's the standard contract process, question is - does your neighbor with 3 full time employees get a 300 million dollar contract on a regular basis or even irregular basis




That's nonsense, what has urgency got to do with auditing. If you are so small that you don't want to hire legal expertise, why are you getting such huge contracts?

This is not normal procedure, even Republicans are saying that. This is corruption and it will be exposed like Trump University.

I agree that it will be good for the Puerto Rico Power company to provide their contracting procedures, the received bids, and other information on selection to ensure that everything was run properly.

Note that Whitefish Energy was not the only contract company that won a bid to help restore power in Puerto Rico. How come there is no focus on the other companies?

BTW -- many of the contracts I work under have a no auditing clause, but maximum daily caps. Very common.

 

[WeToddDid2]

Right, is that why they barred government from auditing the deal?????

Whitefish Energy contract bars government from auditing deal

That was most likely negotiated in response to the below language. Whitefish has a gun to their head if the below is true.

http://www.seattlepi.com/news/polit...-Puerto-Rico-power-contract-amid-12311381.php

although under the contract the utility can suspend or terminate the contract "for any or no reason"[emphasis mine] after providing written notice to Whitefish and compensating the company for actual expenses.

 

[exGOPer]

I agree that it will be good for the Puerto Rico Power company to provide their contracting procedures, the received bids, and other information on selection to ensure that everything was run properly.

Note that Whitefish Energy was not the only contract company that won a bid to help restore power in Puerto Rico. How come there is no focus on the other companies?

BTW -- many of the contracts I work under have a no auditing clause, but maximum daily caps. Very common.

The other company is a multi billion dollar company with operations in over 30 countries.

And then there is the Trump crony company.

That's why the difference in focus.

 

[exGOPer]

That was most likely negotiated in response to the below.

http://www.seattlepi.com/news/polit...-Puerto-Rico-power-contract-amid-12311381.php

although under the contract the utility can suspend or terminate the contract "for any or no reason" after providing written notice to Whitefish and compensating the company for actual expenses.

The expenses which can't be audited?

 

[WeToddDid2]

Your neighbor is not getting a 300 million contract from the government with strange clause about not getting audited under ANY EVENT

So how many full time employees does this company have? What is this small set? And why did a federal watchdog want an investigation into this company?

The reason they got the contract according to a director from PREPA is outlined below.

More from the article below:

http://www.seattlepi.com/news/polit...-Puerto-Rico-power-contract-amid-12311381.php

Puerto Rico Electric Power Authority director Ricardo Ramos has praised the work performed by Whitefish so far, saying the company's was the only offer the utility received that did not require a down payment [emphasis mine]. The power company is $9 billion in debt and was already struggling to provide service amid ongoing power outages before hurricanes Irma and Maria hit last month.

"There is nothing illegal going on here," Ramos said Thursday.

 

[WeToddDid2]

The expenses which can't be audited?

Have you ever negotiated a contract? Do you understand anything about risk?

Whitefish is taking a lot of risk.

Most companies would not take the risk that Whitefish is under the contract.

 

[gwb-trading]

The other company is a multi billion dollar company with operations in over 30 countries.

And then there is the Trump crony company.

That's why the difference in focus.

Actually the other company for power-line restoration hired by PREPA is a small Oklahoma fracking company - Mammoth Energy.

Mammoth Energy Announces that its Cobra Subsidiary has Entered into a Contract to Aid in the Rebuilding of Puerto Rico’s Energy Infrastructure
https://globenewswire.com/news-rele...g-of-Puerto-Rico-s-Energy-Infrastructure.html

More info - https://www.vox.com/policy-and-politics/2017/10/26/16533512/puerto-rico-power-contracts

 

[exGOPer]

The reason they got the contract according to a director from PREPA is outlined below.

More from the article below:

http://www.seattlepi.com/news/polit...-Puerto-Rico-power-contract-amid-12311381.php

Puerto Rico Electric Power Authority director Ricardo Ramos has praised the work performed by Whitefish so far, saying the company's was the only offer the utility received that did not require a down payment [emphasis mine]. The power company is $9 billion in debt and was already struggling to provide service amid ongoing power outages before hurricanes Irma and Maria hit last month.

"There is nothing illegal going on here," Ramos said Thursday.

That's precisely what a corrupt guy would say, he is in on the corruption.


"
But PREPA never asked for mutual aid from the association, and instead it hired Whitefish to handle the job.

"Just a matter of the timing," says Ramos. "Hurricane came, all communications went down, our servers were down."

Whitefish then subcontracted Jacksonville Electric Authority and Kissimmee Utility Authority to work with it on transmission system restoration. The firm says it now has about 300 workers on the ground. Even Whitefish CEO Andy Techmanski reportedly noted that it's unusual for electrical utilities to work under a contractor.

PREPA's decision to contract Whitefish could be a costly one.

While the Whitefish spokeswoman says it's "not possible at this time to estimate" the cost of completing the work, the hourly wages the firm is reportedly charging for its contracted workers are eye-popping.

"Under the contract, the hourly rate was set at $330 for a site supervisor, and at $227.88 for a 'journeyman lineman,' " The Washington Post reports. "The cost for subcontractors, which make up the bulk of Whitefish's workforce, is $462 per hour for a supervisor and $319.04 for a lineman. Whitefish also charges nightly accommodation fees of $332 per worker and almost $80 per day for food."

UTIER, the electrical workers' union of Puerto Rico, tweeted its consternation at those rates. "We need support and help, but under these conditions it is impossible and questionable. Who allowed this?""

http://www.npr.org/sections/thetwo-...contract-to-help-restore-power-in-puerto-rico

 

[WeToddDid2]

I know one thing for sure...I am going long tinfoil.