Small company wins MASSIVE contract restore power Puerto Rico.

[Paranoid Android]

Drain that Swamp!

Small company from Trump Interior chief's hometown wins massive contract to restore Puerto Rico's power

Small company from Trump Interior chief's hometown wins massive contract to restore Puerto Rico's power
TheHill.com


Autoplay: On | Off
A small Montana company located in Interior Secretary Ryan Zinke's hometown has signed a $300 million contract to help get the power back on in Puerto Rico, The Washington Post reported.

Whitefish Energy had only two full-time employees on the day Hurricane Maria hit Puerto Rico, according to the Post. The company signed the contract — the largest yet issued to help restore Puerto Rico — with the Puerto Rico Electric Power Authority (PREPA) to fix the island's electrical infrastructure.

The company now has 280 workers on the island, the Post reported, a majority of whom are subcontractors.

Hmmm? I mean just a massive coincidence that a firm of the same hometown as our Interior Secretary lands the largest contract.

Now you can cheer I guess that maybe it was not awarded to some massive company (crony capitalism) like they basically did in Iraq War. Yes, construction companies will subcontract but again a 2 person company this seems way over their heads to delve into this project. See Hailiburton. This seems very shady and since this guy like flying around in private jets and leasing our public land to companies I have doubts.

[Cyberowl]

At least Hillary was pay to play, she knew how to make a deal. Trump is pay AND play, SAD!

[cubby]

(please remember my thoroughly documented posting history being against everything Trump)

I read most of the entire article. It is a little odd, but given the issues, I hate to say it, the whole thing could just be a merger of relationships and needs. The issue of PR being able to pay their bills was a big concern for other companies bidding. It could be that PR was having trouble finding contractors, and SecInt knew this one company, small but willing to take a risk, etc.

The bill rates might seem extreme, as well as the per diems, but they really aren't. Especially for lineman.

[Milchshake]

(please remember my thoroughly documented posting history being against everything Trump)

I read most of the entire article. It is a little odd, but given the issues, I hate to say it, the whole thing could just be a merger of relationships and needs. The issue of PR being able to pay their bills was a big concern for other companies bidding. It could be that PR was having trouble finding contractors, and SecInt knew this one company, small but willing to take a risk, etc.

The bill rates might seem extreme, as well as the per diems, but they really aren't. Especially for lineman.

The billing rates are very inflated. This has kickbacks written all over it. Whether its cash or political favors, time will tell.

The executive director of Puerto Rico’s power authority said Whitefish was hired because it was the first company “available to arrive” and the first to accept the power authority’s terms and conditions. According to the Post, however, the deal—reached through private discussions rather than a formal bidding process—was agreed upon six days after Maria. In contrast, when Hurricane Irma threatened Florida in September, the state’s power authority took advantage of a type of procedure normally used in emergencies requiring utility companies to help restore services, and it requested that aid before the hurricane even hit. As a result, nearly 20,000 restoration workers deployed immediately after the storm.

[Rasulis]

It’s a pass-through contract. The company is basically charging for admin to manage the contract and probably 7% - 10% of the ODC.

This is what really bothers me.

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.

Also, the word WIN is not quite correct since we never had an advertised bid.

[cubby]

The billing rates are very inflated. This has kickbacks written all over it. Whether its cash or political favors, time will tell.

The executive director of Puerto Rico’s power authority said Whitefish was hired because it was the first company “available to arrive” and the first to accept the power authority’s terms and conditions. According to the Post, however, the deal—reached through private discussions rather than a formal bidding process—was agreed upon six days after Maria. In contrast, when Hurricane Irma threatened Florida in September, the state’s power authority took advantage of a type of procedure normally used in emergencies requiring utility companies to help restore services, and it requested that aid before the hurricane even hit. As a result, nearly 20,000 restoration workers deployed immediately after the storm.

I don't know enough about the industry to know if that's awful or not. Plus, and I hate being on the side of Trump here, but isn't PR a little different if only because they are an island. It would be tough to do the same thing as FL/TX, because, well, boats/planes, etc.

I'm very open to being wrong here, just fyi.

[Saladbar]

And a few other tidbits:
Zinke's son apparently worked for Whitefish over the summer.
Whitefish is financed by a group run by Joe and Kimberly Colonnetta who donated close to $100k to Trump and the RNC over the last few years.

Drain the swamp...

[cubby]

It’s a pass-through contract. The company is basically charging for admin to manage the contract and probably 7% - 10% of the ODC.

This is what really bothers me.

The pay rates won't be that far off - I work in staffing and the inflation is phenomenal even for admin work. The per diems are right on as well - I was blown away at my company's per diem meals - $100.

Let me also say that yes, this whole thing smells awful - in a number of ways. As usual with Trump and his deplorables. This one, though, could be mildly legit.

Also, the word WIN is not quite correct since we never had an advertised bid.

Good point - something to keep in mind.

- - - Updated - - -

And a few other tidbits:
Zinke's son apparently worked for Whitefish over the summer.
Whitefish is financed by a group run by Joe and Kimberly Colonnetta who donated close to $100k to Trump and the RNC over the last few years.

Drain the swamp...

So I saw that, and honestly, that's not much of a connection. More like, oh yeah, those guys might be interested. And business usually works by the people you know. Again, hate Trump and everything he stands for. But this might be . . . ok. Maybe. Probably not. I am more than ready to be wrong.

[Rasulis]

I don't know enough about the industry to know if that's awful or not. Plus, and I hate being on the side of Trump here, but isn't PR a little different if only because they are an island. It would be tough to do the same thing as FL/TX, because, well, boats/planes, etc.

I'm very open to being wrong here, just fyi.

When we need equipment like boats, barges, helicopters & skycranes, we don't roll them into hourly rate. We charge them to the client at cost + 7 - 10% (this is part of the negotiation). On emergency/humanitarian projects, we normally charge them at cost.

The rate is really high. Even at 100k base salary for the lineman, you are looking at almost 700% overhead multiplier. At least in Afghanistan, Haliburton can claim hazard pay.

[Breccia]

As I suggested in another thread, the company in question is nowhere near ready for this task. The delay it would create to have a company with two full-time workers, to repair an island with 4 million people and thousands of miles of wiring, would leave Puerto Rico in the dark for an excessive span.

But, their power company -- you know, the bankrupt one -- went with this lucrative offer which almost assuredly has a non-refundable signing bonus.

[Rasulis]

As I suggested in another thread, the company in question is nowhere near ready for this task. The delay it would create to have a company with two full-time workers, to repair an island with 4 million people and thousands of miles of wiring, would leave Puerto Rico in the dark for an excessive span.

But, their power company -- you know, the bankrupt one -- went with this lucrative offer which almost assuredly has a non-refundable signing bonus.

That's actually not unheard off. You just have to hire a lot of good people and subs quickly. The big companies have a massive advantage since they can just shift people around and they likely have subs on as-need contracts already. All they have to do is send out task orders.

[Breccia]

You just have to hire a lot of good people and subs quickly.

...is that all? Just hire a lot of good people and subs, quickly?

[Edge-]

...is that all? Just hire a lot of good people and subs, quickly?

It's so easy, you wouldn't believe.

[cubby]

When we need equipment like boats, barges, helicopters & skycranes, we don't roll them into hourly rate. We charge them to the client at cost + 7 - 10% (this is part of the negotiation). On emergency/humanitarian projects, we normally charge them at cost.

The rate is really high. Even at 100k base salary for the lineman, you are looking at almost 700% overhead multiplier. At least in Afghanistan, Haliburton can claim hazard pay.

The pay rates are a bit high - people (not you) forget that hourly rates convert to annual salary by just multiplying it by 2,000. We typically see 50%-120% overheard/payroll cost adds to our pay rates. 700% seems . . . excessive.

- - - Updated - - -

As I suggested in another thread, the company in question is nowhere near ready for this task. The delay it would create to have a company with two full-time workers, to repair an island with 4 million people and thousands of miles of wiring, would leave Puerto Rico in the dark for an excessive span.

But, their power company -- you know, the bankrupt one -- went with this lucrative offer which almost assuredly has a non-refundable signing bonus.

Be interesting to see the articles of incorporation for White Fish.

[Rasulis]

...is that all? Just hire a lot of good people and subs, quickly?

I know it sounds silly, but yes. I you can't do the job, you hire a lot of good firms to do the job for you.

Since the biggest project Whitefish has done is 1.3 M, they would probably hire a CPM and accounting firm to do the scheduling, payroll and billing. If they are smart, they would also hire a Construction Management firm. Need bonding and liability insurance. I would hire a law firm that specialized in construction to do the agreements/contracts. All the actual design and field work will be performed by other companies acting as subs. Each many times larger than Whitefish. For the most part Whitefish will be passing on the invoices and putting a surcharge on each invoice. It doesn’t get any better than that.

[Bullettime]

I know it sounds silly, but yes. I you can't do the job, you hire a lot of good firms to do the job for you.

Since the biggest project Whitefish has done is 1.3 M, they would probably hire a CPM and accounting firm to do the scheduling, payroll and billing. If they are smart, they would also hire a Construction Management firm. Need bonding and liability insurance. I would hire a law firm that specialized in construction to do the agreements/contracts. All the actual design and field work will be performed by other companies acting as subs. Each many times larger than Whitefish. For the most part Whitefish will be passing on the invoices and putting a surcharge on each invoice. It doesn’t get any better than that.

The concern is still mostly over how they got the contract. A company like Whitefish wouldn't have won a bid against other giants who would have been in the race. And speaking of bids, the contract reportedly didn't even come up for bid and was handled as a rushed and hush hush close door meeting.

Whitefish is also the company Zinke's son worked "for" temporarily, from Zinke's hometown, and the company itself is financed by Trump donors.

So not only are they seemingly not equipped for the task on short notice and pay issues being scrutinized, it has corruption and favors written all over it.

[Paranoid Android]

...is that all? Just hire a lot of good people and subs, quickly?

Shoot then I should have received this contract.

[Rasulis]

The concern is still mostly over how they got the contract. A company like Whitefish wouldn't have won a bid against other giants who would have been in the race. And speaking of bids, the contract reportedly didn't even come up for bid and was handled as a rushed and hush hush close door meeting.

Whitefish is also the company Zinke's son worked "for" temporarily, from Zinke's hometown, and the company itself is financed by Trump donors.

So not only are they seemingly not equipped for the task on short notice and pay issues being scrutinized, it has corruption and favors written all over it.

I agree with you there. It is one thing to give a big no-bid project to Haliburton which is a big firm with worldwide resources. Giving a contract to rebuild PR electrical grid to a 2-man firm located in a small town in Montana is just strange.

[JohnBrown1917]

...is that all? Just hire a lot of good people and subs, quickly?

the best people truly amazing lying fake media won't even tell you. SAD

[Breccia]

I know it sounds silly, but yes. I you can't do the job, you hire a lot of good firms to do the job for you.

Since the biggest project Whitefish has done is 1.3 M, they would probably hire a CPM and accounting firm to do the scheduling, payroll and billing. If they are smart, they would also hire a Construction Management firm. Need bonding and liability insurance. I would hire a law firm that specialized in construction to do the agreements/contracts. All the actual design and field work will be performed by other companies acting as subs. Each many times larger than Whitefish. For the most part Whitefish will be passing on the invoices and putting a surcharge on each invoice. It doesn’t get any better than that.

Ah.

That sounds exactly like the kind of thing the people of Puerto Rico will find a good reason to sit and wait without power. As opposed to, say, hiring a larger company capable of doing the job in the first place.