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Topic: What about minority passthroughs?
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untanglingwebs
El Supremo

This Weaver administration appears to favor women owned companies as two ew contractor north of Flint were female owned and one was a Snyder campaign donor. Odd because a similar company was based in Burton.

It appears to me that often when the state steps in Flint gets contractors from the western side of the state. Same think happened in Smith Village.

Terry Bankert is a firm advocate for implementation of the new charter which would have an ethics policy and an ethics committee. Of course the Weaver administration is resisting .

A pipefitters union financed one of the organizations that produced some of the dark money ads in the recall election. Their representative stated the move was in opposition to allow unlicensed plumbers work on the pipe replacements. This would appear to me to be in violation of state licensing rules. However, the pipefitters have increased minority apprentices under the supervision of master plumbers.
Post Thu Feb 22, 2018 8:14 am 
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untanglingwebs
El Supremo

New model bolsters minority-owned firms | Crain's Detroit Business
www.crainsdetroit.com/article/20170903/.../new-model-bolsters-minority-owned-firm...
Sep 3, 2017 - Michelle Sourie Robinson, CEO of the Detroit-based Michigan Minority Supplier Development Council, which certifies minority-owned enterprises, said the organization has been working for the past several years to end pass-through organizations and is recently focusing on building larger minority ...
Post Thu Feb 22, 2018 8:15 am 
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untanglingwebs
El Supremo

September 03, 2017 12:01 a.m. UPDATED 9/8/2017
New model bolsters minority-owned firms
By DUSTIN WALSH


Larry A. Peplin for Crain's
Edward Schwartz (left), president and CEO of MPS Group, and Charlie Williams, chairman and majority owner of MPS Group.

MPS Group Inc. spent 15 years operating as a minority-owned pass-through, winning valuable automotive contracts then subcontracting the work out, often to companies that weren't minority-owned.

MPS chased contracts, expanding from waste management and industrial cleaning to warehouse management and even carpet installation. The result was MPS operated seven divisions, was expert in only a few, and struggled to turn a profit.

But in 2010, it hired a new CEO, cut product lines and reorganized under a new model bringing more work in-house and diversifying its customer base that helped the Farmington Hills-based company triple annual revenue in the past three years to $101 million, with $50 million in contracts waiting to be signed.

MPS represents a shift in how minority-owned companies are doing business a new model supported by local automakers, suppliers and trade groups to build a more sustainable, profitable minority-owned "ecosystem."


"All that time, MPS were leveraging that minority status to its own demise," said Edward Schwartz, president and CEO hired by majority owner Charlie Williams in 2010 from TriMas Corp. "We're proud of the certification, but we didn't want it to be the sole reason a customer chose us. Now we get the business because we're the most competitive bidder, and oh, we happen to be have the bonus of being minority-owned."

Michelle Sourie Robinson, CEO of the Detroit-based Michigan Minority Supplier Development Council, which certifies minority-owned enterprises, said the organization has been working for the past several years to end pass-through organizations and is recently focusing on building larger minority companies in the supply chain.

"Years ago, it was unheard of to see a $1 billion (minority-owned) business and the (automakers) tried a lot of different ways, to their credit, to move the needle for these business owners, but a symptom of slow-growth were these pass-throughs," she said. "We've gone in and audited our members and threatened to take away certification. It's gone away, and we're seeing many of them becoming more sophisticated and create the wealth that it takes to kill many ills in the minority community."

MMSDC launched in 2015 what it calls its Transformation Project to help automakers and large suppliers identify well-positioned minority-owned enterprises capable of sustainable growth in hopes they become major players in the industry.

"Buyers are using fewer suppliers, that's a reality, so we've got to focus on the minority businesses that are scalable," Robinson said. "We're working with the major automakers in the region to identify, grow and groom these companies now to create an ecosystem where MBEs are using other MBEs throughout the supply chain."

Robinson predicts in the next two years a group of up to 15 suppliers will be part of the program, building the minority-supply base below them.

"They will have their own leverage to build this community," she said. "No one will be buying products from them because they are minority status, but because they are a great company that happens to be a minority-owned."

Redford Township-based supplier Piston Group, owned by former Detroit Pistons guard Vinnie Johnson, is a recent example of a minority-owned supplier transitioning from a commodity enterprise into a full-fledged manufacturer.

With the help of Ford Motor Co., Piston closed on a $175 million acquisition of Takata Corp. subsidiary Irvin Automotive Inc. in September 2016. The deal made Piston the largest minority-owned supplier in the region with expectations to reach revenue of $2.8 billion by 2018, nearly five times the size of the business in 2012 at $570 million.

Piston has been growing with contracts from Ford and others in recent years. In 2012, Johnson's other entity, V. Johnson Enterprises LLC, announced the formation of a new joint venture with Valeo SA called Detroit Thermal Systems LLC.

Expansion with Ford is expected to continue this year with the addition of lithium-ion battery pack assembly. Piston will assemble packs from LG Chem and Panasonic for use in Ford's plug-in-electric vehicle lineup before extending to its battery-electric vehicles, Johnson told Crain's.

The supplier also planned to open two new plants in the next 12 months, supporting FCA US LLC and Toyota Motor Corp.

Dave Andrea, executive vice president of research for Ann Arbor-based nonprofit Center for Automotive Research, said more and more minority-owned suppliers are beginning to move toward true manufacturing capabilities, opposed to assembly operations, like Piston once focused on, which are more susceptible to cuts in a car sales downturn.

"For many years, automakers didn't focus on the customer-supplier relationship; the focus was on securing a prescribed number of what the minority spend should be for the purchasing group," Andrea said. "This overwhelmed a lot of minority suppliers and overextended them, dangerously. Now there's less focus on the service side of the minority spend and more concentration on the true value-added manufacturing companies. Any large supplier or automaker will be under pressure to consolidate the supply base with the ups and downs of the cycle. These minority suppliers are now beginning to hold themselves up with core qualities, and that's how you keep yourself in the supply chain with the customers."

Reducing its offerings from seven business lines to only two total waste management and industrial cleaning did just that for MPS Group. It also centralized its purchasing department, saving the company $1.4 million in 18 months.

"Our strategy became protect what we're good at and improve performance," Schwartz said. "Now we're established in automotive and now we can do more to diversify into other industries."

MPS Group is currently bidding on contracts for companies in the pharmaceutical, natural gas and oil refinery industries.

"When we started this process, we walked away from revenue," Schwartz said. "That isn't happening anymore because we're in the right businesses with the right customers."
Post Thu Feb 22, 2018 8:17 am 
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untanglingwebs
El Supremo

LARA - Plumbing - State of Michigan
www.michigan.gov/lara/0,4601,7-154-10573_68301-345586--,00.html
The initial fee for the master's license is $300.00, which is renewed every 3 years at a cost of $300.00. Each licensed journey or master plumber is required to complete an approved 5-hour code update course within one year after the adoption of a new edition of the Michigan Plumbing Code.
Number of Jobs, 2012‎: ‎386,900 2012 Median Pay‎: ‎$49,140 per year $23.62 per ...
Employment Change, 2012-22‎: ‎82,300 Job Outlook, 2012-22‎: ‎21% (Faster than average)
Post Thu Feb 22, 2018 11:00 am 
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untanglingwebs
El Supremo

Michigan Plumbing License Requirements
www.eplumbingcourses.com/plumbing-license/michigan-plumbing-license/
Get your Michigan plumbing license. Learn how to become an apprentice, journeyman or master plumber in Michigan.
Michigan Plumbing License Requirements | USA Plumbing
www.usaplumbing.info/license/mi/michigan-plumbing-license-requirements
In the state of Michigan, in order to perform licensed work a residential contractors need to be licensed. A license is also required for plumbers and electrical trades. Often, the job of enforcing and regulating these requirements falls to individual municipalities.
Post Thu Feb 22, 2018 11:01 am 
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untanglingwebs
El Supremo

THE BLACK BUSINESS NEWS BLOG
Friday, May 19, 2017
Black-Owned Construction Firm Awarded Contract to Replace Contaminated Water Lines in Flint, Michigan
Rhonda Grayer, vice president of W.T. Stevens Construction
Rhonda Grayer, vice president of W.T. Stevens Construction
W.T. Stevens Construction, a Black-owned construction firm with about 25 employees, has been awarded a multi-million dollar service contract to replace more than 18,000 lead corroded pipes across the city of Flint, Michigan. The company is one of just four companies recently contracted under a court order to complete the project.




The company was founded by a Black entrepreneur named W.T. Stevens back in the 1990's, but he died in 2002. His daughter, however, Rhonda Grayer, now serves as vice president. She works as a team with her husband, Jeff Grayer, who serves as a project manager for the company. Both are natives of Flint, Michigan, and Jeff is also a former NBA player who played for the Golden State Warriors and Milwaukee Bucks for more than 10 years.

On getting the contract

In a recent exclusive interview with TNJ.com, Jeff said, This is home for me and my family and I wasn't going to sit back and do nothing as a person or as a businessman. He added, This is the biggest project our company has ever done and as a result of the water line contract our gross revenues have increased by about 70 percent.

He also says that they expect to have 6,000 water lines replaced in the city by the end of the year. The target is to have all 18,000 lead corroded residential pipes replaced by December 2019, he said.

In a separate interview with TheHubFlint.com, Rhonda comments, It is really exciting, and the most important part of it is the opportunity to employ people who may not have had other opportunities."

Why it really is a crisis

The Flint water crisis began in 2014 when the Flint River became the drinking water source for people who lived in the city of Flint, Michigan. Due to insufficient water treatment, over 100,000 residents were potentially exposed to high levels of lead in the drinking water. A federal state of emergency was declared in January 2016 and Flint residents were instructed to use only bottled or filtered water for drinking, cooking, cleaning, and bathing. As of early 2017, the water quality had returned to acceptable levels; however, residents were instructed to continue to use bottled or filtered water until all the lead pipes have been replaced.

In March 2017, a $97 million settlement was approved by a federal magistrate mandating that thousands of pipes be replaced. The money will come from both state and federal funds, and the state of Michigan will also reserve an additional $10 million in case the job requires it.

Not just about the money

The Grayers are not just all about the money. They really want to help rebuild the community. Jeff comments, This is a major project that will ensure public safety and start rebuilding trust between the city and the community... something that has been missing awhile.

When asked about how her father would feel if he were still alive, Rhonda comments, "Now, it is definitely a family business. We all do something. I think he would be very, very proud of where we are at this time."

For more details about their company, W.T. Stevens Construction, visit www.wtstevens.com
Post Thu Feb 22, 2018 1:32 pm 
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untanglingwebs
El Supremo

In a recent exclusive interview with TNJ.com, Jeff said, This is home for me and my family and I wasn't going to sit back and do nothing as a person or as a businessman. He added, This is the biggest project our company has ever done and as a result of the water line contract our gross revenues have increased by about 70 percent.
Post Thu Feb 22, 2018 1:32 pm 
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untanglingwebs
El Supremo

Former Detroit Water Director Sentenced In Kilpatrick Corruption Case ...
https://www.justice.gov/.../former-detroit-water-director-sentenced-kilpatrick-corrupti...
May 22, 2014 - Eastern District of Michigan ... U.S. District Judge Nancy G. Edmunds imposed sentence on Victor Mercado, 62, of Stuart, Florida. ... Mercado influenced the procurement process to Ferguson's advantage, and directed a bidder to include Ferguson on a DWSD contract if the bidder wanted to receive .Eastern District of Michigan

U.S. Attorneys Eastern District of Michigan News
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Department of Justice
U.S. Attorneys Office
Eastern District of Michigan
FOR IMMEDIATE RELEASE
Thursday, May 22, 2014
Former Detroit Water Director Sentenced In Kilpatrick Corruption Case
The former Director of the Detroit Water and Sewerage Department was sentenced to eight months in a halfway house after having pleaded guilty to conspiracy in the case of former Detroit Mayor Kwame Kilpatrick, announced U.S. Attorney Barbara L. McQuade.

Joining on the announcement were Paul M. Abbate, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Carolyn Weber, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation Division and Randall K. Ashe, Special Agent in Charge, Environmental Protection Agency, Criminal Investigation Division (EPA-CID).

U.S. District Judge Nancy G. Edmunds imposed sentence on Victor Mercado, 62, of Stuart, Florida.

According to the superseding information, from June 2002 to June 2008, Mercado served as Director of the Detroit Water and Sewerage Department (DWSD), reporting directly to Kilpatrick. In this capacity, Mercado was responsible for administering more than $2 billion in contracts with private companies.

The plea documents stated that Mercado, acting at the direction of Kilpatrick, unlawfully steered contracts and payments to Kilpatrick co-conspirator Bobby Ferguson. Mercado influenced the procurement process to Ferguson's advantage, and directed a bidder to include Ferguson on a DWSD contract if the bidder wanted to receive favorable consideration on the bid. Mercado took these steps as a result of regular and consistent pressure from Kilpatrick and his staff to help Ferguson obtain DWSD business regardless of procurement policies, rules and regulations.

Although Mr. Mercado was acting under pressure from the mayor, he must be held accountable for abusing his position of trust and causing harm to the city, McQuade said.

While Director of the Detroit Water and Sewerage Department, Mr. Mercado violated the law by unlawfully steering business contracts at the direction of the former mayor, stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. This criminal conduct inflicted economic harm upon the city, and Mr. Mercado must be held accountable for his actions.

Illegally influencing the bidding process for managing wastewater and sewage can significantly endanger public health and safety, said Randall K. Ashe, Special Agent in Charge of EPAs criminal enforcement program in Michigan. As a public servant charged with protecting Detroits residents, these actions are particularly egregious. Todays sentence sends a clear message that EPA and its partners will prosecute municipal officials that skirt their responsibility to protect those they serve.

Public corruption remains a top priority for IRS-Criminal Investigation and this case represents the value of the collaborate efforts of law enforcement to hold those in positions of public trust accountable, said IRS Acting Special Agent in Charge Carolyn Weber.

From January 2002 to January 2006, Kilpatrick served as Special Administrator over the DWSD. That designation, arising from a federal consent decree resolving a lawsuit alleging federal environmental violations, gave Kilpatrick authority to award DWSD contracts directly with outside parties, bypassing city procurement procedures, and also gave Kilpatrick responsibility over the operation of DWSD's wastewater treatment plant to ensure compliance with environmental standards.

As stated in the plea documents, Kilpatrick used his position as Mayor of Detroit and Special Administrator of DWSD to pressure city contractors to give subcontracts or payments obtained under those contracts to Ferguson, or risk having the contracts delayed, awarded to competitors, or canceled, resulting in economic harm. Invoking and otherwise exploiting his well-known affiliation with former Mayor Kilpatrick, Ferguson pressured city contractors to hire or pay him for DWSD contracts.

This case was investigation by special agents of the FBI, IRS and EPA-CID and was prosecuted by Assistant United States Attorney Mark Chutkow, Michael Bullotta and Eric Doeh.

Component(s):
USAO - Michigan, Eastern
Updated March 19, 2015
Post Thu Feb 22, 2018 1:50 pm 
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untanglingwebs
El Supremo

Contracts were delayed by the Flint administration. Goyette had their low bid rejected because it was said the company bid incorrectly. This was not Goyette's first time submitting a bid for this program. Goyette was correct and at least one company, W T Stevens ,used the same fid figures as Goyette.

Was the Flint administration using fraudulent tactics in order to steer the contracts,


There are other oddities in the Flint bidding process as RTAB noted, such as the grass cutting contracts. Also, the trash RFP was said to use a "boiler plate" base that was out of date and had mistakes. One such error was a contradictory statement that was in violation of the Flint purchasing ordinance.
Post Thu Feb 22, 2018 2:03 pm 
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untanglingwebs
El Supremo

Contracts were delayed by the Flint administration. Goyette had their low bid rejected because it was said the company bid incorrectly. This was not Goyette's first time submitting a bid for this program. Goyette was correct and at least one company, W T Stevens ,used the same fid figures as Goyette.

Was the Flint administration using fraudulent tactics in order to steer the contracts,


There are other oddities in the Flint bidding process as RTAB noted, such as the grass cutting contracts. Also, the trash RFP was said to use a "boiler plate" base that was out of date and had mistakes. One such error was a contradictory statement that was in violation of the Flint purchasing ordinance.
Post Thu Feb 22, 2018 2:03 pm 
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untanglingwebs
El Supremo

http://www.flinttalk.com/viewtopic.php?t=12582
Post Thu Mar 01, 2018 9:13 am 
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untanglingwebs
El Supremo

FlintTalk.com Forum Index > Political Talk

Topic: racial preferences or frauds


untanglingwebs
El Supremo


Abusers of minority programs beware - Hartford Business Journal
www.hartfordbusiness.com/article/20140428/.../abusers-of-minority-programs-beware
Apr 28, 2014 - This is one of the oldest games in town, and one of the most common abuses of DBE and Minority Business Enterprise (MBE) programs inside and outside of federal contracting. A pass-through occurs when a subcontractor, usually a DBE, a MBE or a Women Business Enterprise, is used by a prime ...


Abusers of minority programs beware


DR. FRED MCKINNEY
Vindictiveness is not a characteristic that is appealing to most, nor is kicking someone while they are down. But at the risk of sullying perceptions of my character, there was an important decision announced by the U.S. Attorney's office recently that deserves additional exposure, not for the sake of further embarrassing the company that suffered this public and financial humiliation, but because it should provide a strong teaching lesson to other companies that have also committed or contemplated similar acts. The incident I am speaking about is the $2.4 million fine imposed on the Plainville-based construction company Manafort Brothers.

Manafort Brothers agreed to the fine and changes in its management team and structure in response to their admission of fraud related to a federally funded construction project in Connecticut. The details of this incident have not been totally revealed in the press release issued by the Federal Bureau of Investigation, but it is known that Manafort Brothers' behavior involved the misuse of the Disadvantaged Business Enterprise (DBE) program.

The DBE is a program that certifies businesses based on economic disadvantage for contracts funded by the U.S. Department of Transportation and managed by state departments of transportation. The purpose of the DBE program is to increase economic opportunity and participation by disadvantaged businesses on federal contracts.

In 2007, Manafort Brothers was the lowest responsible bidder on a $40 million contract to improve some roads in Connecticut. Part of their contract submission included the use of a specific DBE. This DBE was a subcontractor on the job. However, the investigation by the FBI, the DOT and several other agencies indicated that the DBE was simply a "pass-through" that allowed Manafort Brothers to continue using subcontractors other than the DBE of record.

This is one of the oldest games in town, and one of the most common abuses of DBE and Minority Business Enterprise (MBE) programs inside and outside of federal contracting. A pass-through occurs when a subcontractor, usually a DBE, a MBE or a Women Business Enterprise, is used by a prime contractor whereby the prime agrees to pay the pass-through firm as a subcontractor, but the subcontractor agrees to subcontract the work to non-diverse firms.

The "benefit" to the prime contractor is that they get to continue working with companies they want to work with while appearing to be in compliance with the goals of the diverse program, in this case the DBE program of the U.S. Department of Transportation. But make no mistake this is an abuse that takes place in the private and public sector, and not just in the DBE program. In pass-through contracts, very little employment or wealth is created in minority firms or minority communities.

The purpose of these fines and other resolutions is to send a strong and unequivocal message to the offending company, but also to send a shot across the bow of other companies contemplating similar abuses of the law. One aspect of the settlement that Manafort Brothers agreed to was to implement changes in their procurement practices and to bring in independent outside experts to educate senior management on DBE compliance.

For other federal contractors, this fine and settlement should serve as an important reminder that laws intended to promote economic inclusion of DBEs, MBEs, WBEs and others are there for a reason and attempts to avoid, skirt, and abuse such laws occasionally have significant financial and criminal consequences.

As the president and CEO of the Greater New England Minority Supplier Development Council, I think this is the most important legal action taken in support of minority business in the history of our organization here in Connecticut. Laws and policies without consequences and enforcement are soon ignored. It is about time and long overdue that the legitimate diverse business community has had the support of the federal government in this regard. For the abusers of the law who have not been caught, now is the time to review your own actions. The authorities are watching.

At the end of the day, the DBE and diverse business programs are in place to spread the wealth to people, businesses and communities who for reasons of history have not been included in the creation of wealth, particularly when it comes to public dollars. These programs are needed today at least as much as when they were first created.

And part of the reason why they are needed today is that there has not been the enforcement behind the intent of these laws. There is now an optimism and an opportunity for us to reach the goals of this program so that at some point in the future we can wind down these programs.

But now is not even close to the time when we can contemplate this eventuality. However, because of the recent actions of the Federal government we are closer to that day.

Dr. Fred McKinney is president and CEO of the Greater New England Minority
Post Sat Feb 03, 2018 8:49 am


When the media reported vandalism against the black female minority company W. T. Stevens, it soon became obvious that in order to perform the contract that two white sub contractors were performing a great deal of the work.

Since W. T. Stevens got the largest share of that round of the pipeline work, the vandalism raises the spectre of a reaction against a perceived fraud. Comments on M-Live and even in city council meeting about the company not being able to meet the benchmarks and yet avoiding fines in prior rounds increased dissent in some portions of the community.

Kudos to the white sub contractors for using minority trainees, however the preference given to a minority company is nullified when two-thirds of the work is performed by a non-minority company but billed by a minority company it smells of political corruption.
Post Sat Feb 03, 2018 9:09 am

Next City
Inspiring Better Cities



Sham Minority Contractors Have Been Hired in Your City, Probably
BY PATRICK KERKSTRA | MAY 13, 2013


Contractors at work on an environmental restoration project in Philadelphia. Credit: U.S. Army Corps of Engineers

Philadelphia Inspector General Amy Kurland announced last week that local contractors have used sham minority subcontractors on 19 projects to skirt antidiscrimination requirements.

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In New York, investigations into fraudulent hiring of minority- and women-owned subcontractors are so common that they have become something of a specialty for local prosecutors. The most recent instance was a $10 million settlement reached with Siemens Electrical.

The story is the same in Chicago, Seattle and Dallas. And thats just in the last few years. Go back further, and its the rare city or state that hasnt endured a scandal or four tied to well-intentioned minority contracting regulations.

The particulars of the rules vary from city to city and state to state, but the objective is always the same: Foster economic development in minority communities by requiring (or strongly encouraging) companies awarded public contracts to hire subcontractors owned by minorities or women.

Its a laudable goal, as business ownership in America remains largely the domain of white men. Of the 4.65 million privately held firms in the nation with more than one paid employee, 89 percent are run by white principals and 62 percent are owned by men, according to U.S. Census data. (Women own 18 percent on their own, while another 20 percent of firms are owned jointly by men and women.)

Government contracting requirements are designed to reduce that imbalance, and they can work. The federal governments version of the program, called the 8(a) Business Development Program, is designed to help minority-owned businesses build their competitive and institutional know-how.

This is how its supposed to work. Minority-owned companies register with local agencies that certify both their capability and the makeup of their ownership. In some cases, contracts are set aside for minority-owned businesses. In others, companies with large contracts are expected to subcontract out some percentage of the work to minority-owned subcontractors.

But thats where things can get sticky. In a large number of cases across the country, contractors have taken to using sham minority subcontractors shell companies owned by minorities that dont have the actual capacity to perform the work in question. These faux contracting operations can make it look as though real work and real cash is flowing to minority-owned businesses, when in fact the money is really being passed through.

Another version of the same scandal features politically connected minority business owners, who use their juice to ensure their companies receive a big slice of the set-aside contracts, as was the case in Philadelphia in past years.

What is it about minority contracting programs that makes them such persistent sources of fraud and corruption?

The answer depends on whom you ask. Some non-minority contractors suggest privately that the root of the problem is a genuine lack of capable minority-owned firms in their industry or city, a state of affairs that can lead less scrupulous contractors to look for shortcuts to satisfy municipal requirements.

Others suggest that affirmative action in contracting is vulnerable to fraud because all parties are eager to welcome good news. Politicians sometimes embrace stats that reflect climbing rates of minority participation in contracting, even when the firms driving those spikes are shams.

Back in Philadelphia, Kurland doesnt accept the premise that minority contracting programs are inherently prone to corruption. Rather, she said that for a variety of reasons, they just do not get the scrutiny they need.

These programs can be effectively policed, Kurland said. And the press were getting on this can have a huge deterrent effect.



Patrick Kerkstra has covered Philadelphia and the region for 12 years, including a decade at the Philadelphia Inquirer, where his beats ranged from City Hall to real estate development and the Iraq war. Now a freelancer, Patrick is a writer at large for Philadelphia Magazine, a special projects reporter for PlanPhilly and a guest columnist at the Inquirer, where he writes about urban affairs.
Post Sat Feb 03, 2018 9:21 am


The kwame Kilpatrick federal case in Detroit showed many instances of manipulation of fraudulent minority contractors in government contracts. Anthony Soave was very up front about giving a minority a contract although they were a novice and had noemployees or equipment.

Yet in Flint when legitimate minority contractors were used in Smith Village, they were mistreated and forced to make complaints over payment issues. For years the local Minority Contractors Association fought against restrictive impediments to their ability to bid on contracts. I have had minority contractors tell me they had to leave Genesee County in order to get jobs.
Post Sat Feb 03, 2018 9:31 am


Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, January 9, 2014
Michigan Companies to Pay $3.8 Million to Resolve Allegations of Falsely Claiming Disadvantaged Business Credits

The Justice Department announced today that two related entities, Michigan-based Cadillac Asphalt LLC (Cadillac) and Michigan Paving and Materials Co. (MPM), have agreed to pay $3.8 million to resolve allegations that they falsely claimed Disadvantaged Business Enterprise (DBE) credits on a number of federally funded transportation projects. Both Cadillac and MPM are subsidiaries of Oldcastle Materials Inc., a construction material and services provider based in Atlanta.


The Disadvantaged Business Enterprise program helps businesses owned by minorities and women to work on federally funded projects, said Assistant Attorney General for the Justice Departments Civil Division Stuart F. Delery. Those who falsely claim credits under the program to obtain federal funds victimize both the taxpayers and the businesses that the program is designed to assist.


The U.S. Attorneys Office works with the Civil Division in Washington to use civil enforcement to recover funds for taxpayers, said U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade. In this case, civil attorneys were able to recover more than $3 million that was obtained through false claims.



The settlement announced today resolves allegations that Cadillac and MPM knowingly and falsely claimed DBE credit for asphalt purportedly supplied by a DBE known as BN&M Trucking Inc. As a condition of federal funding, contractors, such as Cadillac and MPM, working on a federally funded project must make a good-faith attempt to meet DBE participation goals. For the contractors to meet their DBE participation goal, a DBE employed by the contractors must be independently responsible for performing a portion of the work with its own employees and equipment. Allegedly, BN&M Trucking was merely a pass-through company that did not supply any asphalt or perform any other commercially useful function.



We remain steadfast in our commitment to maintaining the integrity of the U.S. Department of Transportations (USDOT) Disadvantaged Business Enterprise program, said regional Special Agent-in-Charge of USDOTs Office of Inspector General Michelle T. McVicker. Working with the Secretary of Transportation, other DOT leaders and our law enforcement colleagues, we will continue to protect the taxpayers investment in our nations infrastructure from fraud, waste, abuse and violations of law.



The allegations resolved by the settlement involved numerous federally funded transportation projects in Michigan between 2006 and 2010, including a project to construct a new runway at Detroit Metropolitan Wayne County Airport in 2008 and 2009. In November 2010, two other entities, John Carlo Inc. and Angelo Iafrate Construction Co. Inc., paid more than $1 million to resolve similar allegations related to the airport runway project.



This case was handled by the Justice Departments Civil Division, Commercial Litigation Branch, the U.S. Attorneys Office for the Eastern District of Michigan and the Department of Transportation Office of Inspector General. The claims settled in this case are allegations only; there has been no determination of liability.

Component(s):
Civil Division
Press Release Number:
14-022
Updated September 15, 2014
Department of Justice Seal - Department of Justice Action Center
Post Thu Mar 01, 2018 9:19 am 
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