WASHINGTON (CBS News) — After Hurricane Maria damaged tens of thousands of homes in Puerto Rico, a newly created Florida company with an unproven record won more than $30 million in contracts from the Federal Emergency Management Agency to provide emergency tarps and plastic sheeting for repairs.
Bronze Star LLC never delivered those urgently needed supplies, which even months later remain in demand by hurricane victims on the island.
FEMA eventually terminated the contracts, without paying any money, and re-started the process this month to supply more tarps for the island. The earlier effort took nearly four weeks from the day FEMA awarded the contracts to Bronze Star and the day it canceled them.
Thousands of Puerto Ricans remain homeless, and many complain that the federal government is taking too long to install tarps. The U.S. territory has been hit by severe rainstorms in recent weeks that have caused widespread flooding.
It is not clear how thoroughly FEMA investigated Bronze Star or its ability to fulfill the contracts. Formed by two brothers in August, Bronze Star had never before won a government contract or delivered tarps or plastic sheeting. The address listed for the business is a single-family home in a residential subdivision in St. Cloud, Florida.
One of the brothers, Kayon Jones, said manufacturers he contacted before bidding on the contracts assured him they could provide the tarps but later said they could not meet the government’s requirements. Jones said supplying the materials was problematic because most of the raw materials came out of Houston, which was hit hard by Hurricane Harvey. He said he sought a waiver from FEMA to allow him to order tarps from a Chinese manufacturer and for more time, but FEMA denied the request.
FEMA canceled the contracts Nov. 6, Jones said. The government notified his brother and him a few days later that it would seek $9.3 million in damages unless they signed a waiver releasing the U.S. from any liability. The brothers agreed.
“We were trying to help; it wasn’t about making money or anything like that,” Jones said.
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