Friday, October 07, 2005

Actual cost of Katrina 6 month cruise ship contract could be as high as $100,000 per person

From a House Subcommittee on Economic Development, Public Buildings, & Emergency Management Oct 6, 2005 backgrounder (see section on Provision of Temporary Housing):

...In an effort to begin directly housing victims, FEMA entered into contracts to provide $2 billion in housing, including more than 125,000 trailers and mobile homes. FEMA additionally contracted with the Carnival Cruise Line and Scotia Cruise Line to provide temporary housing (four total, three and one respectively). These initial efforts have faltered, as FEMA has frozen the contracts for trailers and mobile homes and the contract with Carnival has been criticized for being overly expensive ($236 million) and unwise, as two-thirds of the total rooms on the ships are empty.

Porkopolis has previously calculated the cruise ship contract results in a 6 month contract of $33,000 per person cost at full occupancy; ($236 million / 7,012 total occupancy). If only 1/3 of the total rooms are being utilized, it's reasonable to assume 1/3 of total occupancy; or 2,338 evacuees/aid workers.

The effective cost per person, unless FEMA renegotiates the contract, will be about $100,900 per person; ($236 million / 2,338).



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