Federal Court Issues Decision Critical of the Corps of Engineers While Granting the Corps Immunity Related to Hurricane Katrina

A decision has been issued in the United States District Court for the Eastern District of Louisiana, by Judge Stanwood R. Duval, Jr., dismissing the consolidated class action lawsuit against the United States Army Corps of Engineers for the failure of the Orleans Parish outfall canals and, in particular, the 17th Street Canal that allegedly accounted for approximately 80% of the flooding of downtown New Orleans in the wake of Hurricane Katrina (“In Re: Katrina Canal Breaches Consolidated Litigation, No. 05-4182 E.D. La.).  The only remaining defendants are the Orleans Parish Levee Board and the New Orleans Sewerage and Water Board.

Judge Duval ruled that the 17th Street, London and Orleans Avenue outfall canals were federal flood control projects and therefore statutorily immune from suit under the Flood Control Act of 1928.  In an opinion that was very critical of the Corps of Engineers, Judge Duval stated the following:

“While the United States government is immune for legal liability for the defalcations alleged herein, it is not free, nor should it be, from posterity’s judgment concerning its failure to accomplish what was its task. The citizens of each and every city in this great nation have come to depend on their government and its agencies to perform certain tasks which have been assigned to federal agencies by laws passed by Congress and overseen by the Executive Branch.

It should not be unreasonable for those citizens to rely on their agents, whom they pay through their taxes, to perform the tasks assigned in a timely and competent way. However, because of § 702c, there is neither incentive, nor punishment to insure that our own government performs these tasks correctly. There is no provision in the law which allows this Court to avoid the immunity provided by § 702c; gross incompetence receives the same treatment as simple mistake.

This story–fifty years in the making–is heart-wrenching. Millions of dollars were squandered in building a levee system with respect to these outfall canals which was known to be inadequate by the Corps’ own calculations. The byzantine funding and appropriation methods for this undertaking were in large part a cause of this failure. In addition, the failure of Congress to oversee the building of the LPV and the failure to recognize that it was flawed from practically the outset–using the wrong calculations for storm surge, failing to take into account subsidence, failing to take into account issues of the strength of canal walls at the 17th Street Canal while allowing the scouring out of the canal–rest with those who are charged with oversight.

The cruel irony here is that the Corps cast a blind eye, either as a result of executive directives or bureaucratic parsimony, to flooding caused by drainage needs and until otherwise directed by Congress, solely focused on flooding caused by storm surge. Nonetheless, damage caused by either type of flooding is ultimately borne by the same public fisc. Such egregious myopia is a caricature of bureaucratic inefficiency.

It is not within this Court’s power to address the wrongs committed. It is hopefully within the citizens of the United States’ power to address the failures of our laws and agencies. If not, it is certain that another tragedy such as this will occur again.”

GSA Streamlines Local Small Business Contracting on the Gulf Coast

As recently reported by Elise Castelli in the Federal Times, "The long slog to rebuild the Gulf Coast devastated by Hurricane Katrina might be gaining some speed."  A new order signed by GSA Administrator Lurita Doan will make it simpler and faster for the U.S. General Services Administration to award millions of dollars in recovery contracts to local small business in the Gulf Region supporting Hurricane Katrina recovery efforts.  Contracts for debris clearance, supply distribution, reconstruction and other disaster relief will be set aside for local businesses under the order.  "The order gives blanket justification for the set-aside awards, which will limit competition to local firms."

 "Local small businesses are the backbone of every community," said Administrator Doan. "Revitalizing the small businesses is one of the most significant ways we can aid in the recovery of the Gulf Coast region."

    Over the past year, Administrator Doan has met with GSA contracting officers, small business owners, and local officials in the region. Each group has asked for help in streamlining the process to get recovery work awarded to local firms. The new GSA Order, ADM 2851.5, does just that, promoting maximum participation of local small business in the impacted area for acquisitions supporting Hurricane Katrina recovery efforts.

    Additionally, GSA has taken a number of other steps to help small businesses along the Gulf Coast, including the following:

    -- Conducted over 9 small business partnering events to connect  local businesses with subcontracting opportunities.

    -- Awarded over $29 million to local businesses for renovation  of the U.S. Customs House in New Orleans.

    -- Planned a series of monthly meetings throughout the region to enroll local small businesses in the HubZone and GSA Schedules program.

After Hurricane Katrina, the President declared the Gulf Coast a Major Disaster area under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. This allows GSA's contracting officers to give a preference to local firms in the affected area. Instead of writing separate justifications, GSA Order ADM 2851.5 provides a blanket justification for all local preference awards under the authority of the Stafford Act.  The Order will remain in effect until the Presidential declaration of a Major Disaster is lifted.