HARRY C. ALFORD: Doing Business and Finding Work in the Gulf

By Harry C. Alford
August 30, 2006

It has been almost a year since the Lord unleashed the most devastating hurricane to hit the coast of the United States. It seems like yesterday that the neglect, incompetence and abyss that followed were portrayed on world television. The United States was going through World War III devastation and appeared to be heading straight for a new holocaust. Two and a half million citizens were spread throughout the United States like destitute refugees. May this tragedy never repeat itself.

As the storm approached the United States, FEMA sat at the table and began cutting up the huge no-bid contracts. The recipients were mostly part of the Military Industrial Complex (MIC), the same guys milking Iraq for no-bid contracts while your children are put in harms way are now enjoying the fruits of rebuilding. Billions of dollars have been handed over to those members of the MIC or new players who have hired the right lobbying firms. An example is Ashbritt, a Florida firm rather new at the disaster recovery game. They hired the lobbying firm of Haley Barbour, the governor of Mississippi, and miraculously are now receiving contracts approaching a billion dollars.

Initially, the MIC members had the lock on what was available. If a Black business owners wanted work, they had to approach them. Basically, what MIC members did was raked their desired profit off the top of a pending project and then shop the actual work on the street for a desired reduced price. The second tier would come in and then emulate the same practice to a third tier. 

Some of these levels went on for four or five rounds. The last tier would be the ìsuckerî. This would be the firm that was removing debris for $16 a square yard while the MIC member got $40 for the same square yard. The levels in between took their reduced share and finally the ìsuckerî did the actual work for very little profit. He would be lucky if he got paid at all. Many of the lower tiers were quickly formed limited liability companies that would pile the debt up while the profit went to the actual organizers. The ìsuckerî would be scrambling around trying to get paid and the LLC organizers had left the state and never to be found.

The above happened too many times. But there are some success stories. Business owners with background in debris removal and the contracting process approached the big boys like Shaw, Bechtel, etc. on a second-tier level and performed straight up business. A nice Black couple in Mississippi has been doing very well. Perhaps the best is my guy Vern in Louisiana. Vern grew up in the debris hauling and trucking business. He worked the Hurricanes Camille, Andrew, Hugo and others. To date, Vernís company has done more than $68 million in debris removal and has hired just about his entire church and neighborhood. The Mississippi couple, Vern and others know what they are doing and can meet the demands. This is no place for perpetrators or amateurs.

The good work is around the corner. Thank God! The Gulf Coast Workforce Initiative has taken form. We will be training more than 20,000 residents in construction trades and put them in the new Gulf Rebuilding workforce. I am happy to say that the first training classes have graduated 90 percent minority in Mississippi and 60 percent in Louisiana. These classes are now known as GREAT ñ Gulf Rebuild: Education, Advancement and Training. If you have 8th grade reading and math skills and are drug free, please call 1-888-524-7328 or visit www.imgreat.org and sign up for a class in your community.

With money finally flowing, we are about to see the biggest rebuilding job in the history of America. New Orleans will see at least $60 billion in new development and Mayor Nagin has declared a 35 percent goal for minority businesses. The Housing Authority of New Orleans, HANO, has long been the model for contract diversity and they will have close to $4 billion in new affordable housing that we must get totally involved in from beginning to end. I firmly believe that 50 percent of this activity will involve Black owned businesses. We are prepared, willing and able. New Orleans is about to become the next Atlanta. Are you ready?

The US Army Corps of Engineers has changed its mindset and, locally, is now committed to working with our businesses. The New Orleans District Office is the place to contact. The Small Business contact is Randy Marchiafava. You can contact him at randy.j.marchiafava@usace.army.mil or 504-862-2627. Their website is www.mvn.usace.army.mil/ .

Hustlers, schemers, etc. beware if we are going to keep it real.

Harry C. Alford is president/CEO of the National Black Chamber of Commerce. www.nationalbcc.org. Email: info@nationalbcc.org