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Our military uses a lot of sub-contractors. Are you going to stick with your opinion that this companies use of sub-contractors are money grabs by virtue of using them too? Using sub-contractor has become common place in many industries these days.
Giving a $300 million contract to a company with 2 employees, who then has to turn around and hire a workforce of almost 100% contractors, is a bad idea.
"A former senior official at the Energy Department and state regulatory agencies
I'd bet she worked the under the Obama admin.
Whitefish Energy happened to be the first firm "available to arrive and they were the ones that first accepted terms and conditions for PREPA," Ricardo Ramos, the executive director of PREPA, told reporters."
“The doubts that have been raised about Whitefish, from my point of view, are completely unfounded,” he added."
Whitefish Energy spokesman Chris Chiames told the newspaper that the company is taking "personal risks and business risks working in perilous physical and financial conditions.” “So the carping by others is unfounded, and we stand by our work and our commitment to the people of Puerto Rico," he said.
Zinke's office said in an email to the Post that Zinke and Whitefish Energy's chief executive know each other. "Everybody knows everybody" in the town, Zinke's office said, adding that Zinke wasn't involved in the contract."
Looks just more whining from former Obama people.
I'm sorry what? I see a bunch of PR speak here.
Think about this for a moment. How does a tiny start-up company from the middle of nowhere somehow land a third of a billion dollar job with the federal government and that company coincidentally happens to be from the Interior Chief's hometown?
I'm sorry if I'm pointing out the obvious here, but there's clearly been some backdoor dealing going on here. A no-name firm from nowhere is not going to be getting $300 million government contract because they are the most qualified or most experienced.
"While the company’s founder and CEO, Andy Techmanski, is from Montana, many of the linemen working for Whitefish Energy in Puerto Rico come from locations across the U.S.. The Jacksonville Florida Electric Authority and the New York Power Authority are providing utility workers for Whitefish Energy, Chiames said."
It is NOT uncommon for a small general contracting company to USE LOTS of sub-contrators.
It is uncommon for a small company whose earnings in 2016 were $200,000 and which only has 2 employees to win a $300 million contract. The standard cut for hiring subcontractors is 15%. From a $300 million contract, that's $45 million dollars. Whitefish Energy is planning on making a killing. The issue I have is whether they have the experience and knowledge to actually accomplish the task they are facing. Because if they don't, it simply drives up costs and delays. And those costs and delays have to be absorbed by taxpayers and utility customers.
Maybe (probably) they will sub to Bechtel or Fluor or Siemans etc that actually has proven experience in power plant and infrastructure development if this ridiculous contract is not stopped.
Paul Krugman
@paulkrugman
Puerto Rico story has echoes of early Iraq occupation: key contracts given to politically connected firms, with disastrous results
6:56 AM · Oct 24, 2017
2,294 Retweets
4,475 Likes
Giving a $300 million contract to a company with 2 employees, who then has to turn around and hire a workforce of almost 100% contractors, is a bad idea.
Why?
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