Causes.com
| 10.24.17

Puerto Rican Power Authority Awards $300 Million Contract To Tiny Montana Power Company

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What’s the story?

The Puerto Rico Electric Power Authority (PREPA) awarded a $300 million contract to Whitefish Energy, a small business from Montana, raising concerns about the process by which the contract was offered and whether or not Whitefish is qualified to accomplish a project of this scale.

Questions have also been raised about the company’s ties to the GOP through Interior Secretary Ryan Zinke, as well as a major Trump donor who is one of the company’s primary financiers.

Why does it matter?

When Hurricane Maria hit the island of Puerto Rico on September 20 it wiped out the entirety of the island’s power grid, which was already in shambles to begin with.

Whitefish Energy had been in contact with PREPA between the arrival of Hurricane Maria and the prior arrival of Hurricane Irma. After Irma, 60 companies had responded to RFPs to make repairs. As Maria’s threat developed, PREPA reached out to two non-local companies to do the work that might be necessary following a much larger disaster. Only Whitefish was willing to start work without a deposit, PREPA Director Ricardo Ramos told Caribbean Business.

According to the Washington Post, there is a network of mutual aid that exists between utility companies in the continental U.S. that gets activated after disasters like Hurricane Maria, but PREPA’s negotiations with Whitefish sidestepped that network. The Weather Channel also noted that the usual coordination between FEMA and the Army Corps of Engineers has not been followed in this case.

However, Whitefish CEO Andrew Techmanski argues that his company’s particular specialty — repairing grid infrastructure in perilous, mountainous areas, was a perfect fit for the needs in Puerto Rico and is not in the usual skill set of U.S. power companies:

"Our company specializes in projects that are difficult to reach, with many in the mountains, projects in which helicopters are used. That experience is an asset to the work that needs to be done in Puerto Rico, where most of the transmission infrastructure is between mountains and there is limited access."

Still, the company’s structure — they had two full-time employees on the day Maria hit the island and rely on temporary, independent contract workers to do most of their work — has caused concerns about whether or not Whitefish will be able to mobilize enough workers for the amount of time necessary to do the contracted work.

Also, the contract, as quoted by the Post, does not reflect wage rates that most Americans are familiar with, though they may be commensurate with the level of risk employees are taking in treacherous conditions:

"Under the contract, the hourly rate was set at $330 for a site supervisor, and at $227.88 for a “journeyman lineman." 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.”

Questions have also been raised about the company’s ties to the administration and GOP donors. Techmanski acknowledged that after the contract was awarded he reached out to the Interior Secretary’s office to request assistance moving personnel and equipment to the island since they know each other, but the Secretary’s office maintains they have taken no action on behalf of the company.

The Daily Beast uncovered records showing that the primary financier of the company is Joe Colonnetta, who was a significant contributor to the Trump campaign and is a prominent figure in Texas Republican politics.

The House Committee on Natural Resources is looking into the details of the Whitefish contract, but for now PREPA stands by the company’s work.

What do you think?

Does this contract raise concerns for you? Do you think something nefarious is going on or does it just read as a chaotic situation with good intentions but poor communication? Does it make you wonder what the details are of other government contracts and where all the money is going?

Tell us in the comments what you think, then use the Take Action button to tell your reps!

—Asha Sanaker

(Photo Credit: Defense.gov / Creative Commons)

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Workers are dangling from helicopters to fix Puerto Rico's power lines — CNN