Four Plead Guilty In Fraud Scheme To Obtain $18.7 Million In DBE Subcontracts On PennDOT Projects

Still another “pass-through” fraud scheme involving the U.S. Department of Transportation’s disadvantaged business enterprise (DBE) program has been exposed, with criminal penalties for all involved.

On October 8, 2015, Dennis Weber, Dale Weber, Carl M. Weber Steel Service, Inc., and Judy Noll pleaded guilty to federal conspiracy charges related to a complex DBE fraud scheme that, incredibly, lasted for more than 16 years, totaled almost $19 million, and involved 224 bridge projects throughout Pennsylvania.

Posted on February 11, 2016 by Christopher I. McCabe, Esq. in DBE/MBE/WBE, PennDOT Comments Off

DGS Issues Preliminary List Of Exempt Steel Products For 2016

The Pennsylvania Department of General Services (DGS) has issued a preliminary and updated list of machinery and equipment steel products which will be exempt under the Pa. Steel Products Procurement Act for 2016. The list was published in the Pa. Bulletin on Saturday, February 6, 2016, and can be found here.

Posted on February 9, 2016 by Christopher I. McCabe, Esq. in DGS, Steel Products Act Comments Off

2016 Bidding Thresholds Announced For State Authorities And Municipalities

Effective January 1, 2016, the thresholds for public bidding by Pennsylvania state authorities and municipalities will remain unchanged from 2015 and are as follows:

Purchases and contracts below $10,500 require no formal bidding or written/telephonic quotations

Purchases and contracts between $10,500 and $19,400 require three written/telephonic quotations

Purchases and contracts over $19,400 require formal bidding

Bidding thresholds are adjusted annually for inflation by the Pa. Department of Labor & Industry under Act 90 of 2011. The Pa. Bulletin announcement announcing the 2016 bidding thresholds can be found here.

Posted on January 12, 2016 by Christopher I. McCabe, Esq. in General Comments Off

Intentional Violation Of Pa. Prevailing Wage Act Will Result In Debarment

Thinking of avoiding the Pa. Prevailing Wage Act? Think again! An intentional violation of the Wage Act can and will result in a debarment for three years.

Section 11(e) of the Wage Act provides:

(e) In the event that the secretary shall determine, after notice and hearing as required by this section, that any person or firm has failed to pay the prevailing wages and that such failure was intentional, he shall thereupon notify all public bodies of the name or names of such persons or firms and no contract shall be awarded to such persons or firms or to any firm, corporation or partnership in which such persons or firms have an interest until three years have elapsed from the date of the notice to the public bodies aforesaid. The secretary may in addition thereto request the Attorney General to proceed to recover the penalties for the Commonwealth of Pennsylvania which are payable under subsection (f) of this section.

Posted on December 17, 2015 by Christopher I. McCabe, Esq. in Prevailing Wage Comments Off

DGS Sends Violation Notices Concerning Non-Compliance With E-Verify

E-verify, officially known as the Pennsylvania Public Works Employment Verification, Act 127 of 2012, has now been the law of the Commonwealth of Pennsylvania for more than two years, since January 1, 2013. E-verify requires all public works contractors and subcontractors to utilize the federal government’s E-Verify system to ensure that all employees performing work on public works projects are authorized to work in the United States. My earlier post on E-Verify can be found here.