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Disaster Recovery: Evaluating the Role of America’S Small Business in Rebuilding Their Communities

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S. HRG. 112–722 DISASTER RECOVERY: EVALUATING THE ROLE OF AMERICA’S SMALL BUSINESS IN REBUILDING THEIR COMMUNITIES HEARING BEFORE THE COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS FIRST SESSION SEPTEMBER 15, 2011 Printed for the Committee on Small Business and Entrepreneurship ( Available via the World Wide Web: http://www.fdsys.gov U.S. GOVERNMENT PRINTING OFFICE 73–458 PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP ONE HUNDRED TWELFTH CONGRESS MARY L. LANDRIEU, Louisiana, Chair OLYMPIA J. SNOWE, Maine, Ranking Member CARL LEVIN, Michigan DAVID VITTER, Louisiana TOM HARKIN, Iowa JAMES E. RISCH, Idaho JOHN F. KERRY, Massachusetts MARCO RUBIO, Florida JOSEPH I. LIEBERMAN, Connecticut RAND PAUL, Kentucky MARIA CANTWELL, Washington KELLY AYOTTE, New Hampshire MARK L. PRYOR, Arkansas MICHAEL B. ENZI, Wyoming BENJAMIN L. CARDIN, Maryland SCOTT P. BROWN, Massachusetts JEANNE SHAHEEN, New Hampshire JERRY MORAN, Kansas KAY R. HAGAN, North Carolina DONALD R. CRAVINS, JR., Democratic Staff Director and Chief Counsel WALLACE K. HSUEH, Republican Staff Director (II) CONTENTS OPENING STATEMENTS Page Landrieu, Hon. Mary L., Chair, and a U.S. Senator from Louisiana .................. 1 Snowe, Hon. Olympia J., Ranking Member, and a U.S. Senator from Maine .... 2 Brown, Hon. Scott P., a U.S. Senator from Massachusetts .................................. 4 WITNESSES A PANEL, CONSISTING OF: Sligh, Jr., Albert B., Associate Administrator, Mission Support Bureau, Fed- eral Emergency Management Agency, U.S. Department of Homeland Secu- rity ......................................................................................................................... 7 Harrison, Brigadier General Theodore C., Director, National Contracting Or- ganization, U.S. Army Corps of Engineers, Department of the Army ............. 10 Woods, William T., Director, Acquisition and Sourcing Management, U.S. Government Accountability Office ...................................................................... 18 A PANEL, CONSISTING OF: Bennett, Terri, Program Manager, Heartland PTAC ........................................... 48 Davis, Sid, President, Big John’s Heavy Equipment, Inc. ................................... 55 Rentrop, Jr. Dale, President, Tiger Tugz, LLC ..................................................... 59 Nunez Airhart, Mindy, Marketing Director and Assistant to the President, Southern Services and Equipment, Inc. ............................................................. 66 ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED Bennett, Terri Testimony .......................................................................................................... 48 Prepared statement .......................................................................................... 51 Response to post-hearing questions from Senator Landrieu ........................ 108 Brown, Hon. Scott P. Testimony .......................................................................................................... 60 Prepared statement .......................................................................................... 30 Davis, Sid Testimony .......................................................................................................... 55 Prepared statement .......................................................................................... 57 Harrison, Brigadier General Theodore C. Testimony .......................................................................................................... 10 Prepared statement .......................................................................................... 12 Response to post-hearing questions from Senator Landrieu ........................ 94 Response to post-hearing questions from Members ....................................... 117 Landrieu, Hon. Mary L. Testimony .......................................................................................................... 1 Post-hearing questions posed to Albert B. Sligh, Jr., and subsequent responses ....................................................................................................... 82 Post-hearing questions posed to Brigadier General Theodore Harrison and subsequent responses ............................................................................ 94 Post-hearing questions posed to Bill Woods and subsequent responses ...... 103 Post-hearing questions posed to Dale Rentrop, Jr., and subsequent re- sponses ........................................................................................................... 105 Post-hearing questions posed to Terri Bennett and subsequent responses . 108 Post-hearing questions posed to Mindy Nunez Airhart and subsequent responses ....................................................................................................... 113 (III) IV Page Nunez Airhart, Mindy Testimony .......................................................................................................... 66 Prepared statement .......................................................................................... 68 Response to post-hearing questions from Senator Landrieu ........................ 113 Orr, David W. Letter ................................................................................................................. 120 Rentrop, Jr. Dale Testimony .......................................................................................................... 59 Prepared statement .......................................................................................... 62 Response to post-hearing questions from Senator Landrieu ........................ 105 Sligh, Jr., Albert B. Testimony .......................................................................................................... 7 Prepared statement .......................................................................................... 9 Response to post-hearing questions from Senator Landrieu ........................ 82 Snowe, Hon. Olympia J. Testimony .......................................................................................................... 2 Woods, William T. Testimony .......................................................................................................... 18 Prepared statement .......................................................................................... 21 Response to post-hearing questions from Senator Landrieu ........................ 103 DISASTER RECOVERY: EVALUATING THE ROLE OF AMERICA’S SMALL BUSINESS IN REBUILDING THEIR COMMUNITIES THURSDAY, SEPTEMBER 15, 2011 UNITED STATES SENATE, COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP, Washington, DC. The Committee met, pursuant to notice, at 10:07 a.m., in Room 428–A, Russell Senate Office Building, Hon. Mary L. Landrieu, Chair of the Committee, presiding. Present: Senator Landrieu, Shaheen, Hagan, Snowe, and Brown. Also Present: Senator McCaskill. OPENING STATEMENT OF HON. MARY L. LANDRIEU, CHAIR, AND A U.S. SENATOR FROM LOUISIANA Chair LANDRIEU. Good morning, and welcome to the Small Busi- ness Committee room and welcome to our hearing this morning en- titled, Disaster Recovery: Evaluating the Role of America’s Small Business in Rebuilding Their Communities. Welcome to my Rank- ing Member, Senator Snowe. Good morning, and thank you for joining us for this timely and important hearing. Today’s hearing focuses on the role that small businesses play in helping their communities following disasters, but it is also going to focus on the role of the Federal Government in making sure that small businesses are actually a part of that rebuilding, not only for the benefit of the communities they serve but for their own individual benefit, many of them ravaged by flood waters, high winds, and in some cases, the trembling earth. For example, right now small business in the states from North Carolina to Maine are trying to rebuild their communities impacted by Hurricane Irene. With that in mind, today we hope to hear about the federal disaster contracting process, more about the de- tails, how is it working to direct this work that can be done so ably, so well, and with such appreciation, I might add, by the small busi- nesses in these communities. We know there are two sides to this coin. Small businesses often get frustrated trying to navigate the federal procurement process while the Federal Government struggles sometimes to work with these small businesses unfamiliar with these system of procure- ment for goods and services. Today we are going to hear from some of our experts at the fed- eral level, and then we are going to hear from some of our experts (1) 2 from the field, actual small business owners who have had in some cases good experiences, in some cases terrible experiences, in this sphere. We want to present to you today the good, the bad, and the ugly. Senator Snowe and I are committed to help make this process bet- ter, to improve upon it. I believe we have made some improvements since Katrina and Rita, but today we will hear more about exactly how significant, if at all, if there were any improvements in the system and what remains to be done. This year marks the sixth anniversary of Katrina, the costliest disaster in
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