-- Settlement with John Carlo, Inc. includes penalties by USDOJ
Wayne County Airport Authority (WCAA), operator of Detroit Metropolitan Airport (DTW) and Willow Run Airport, has reached a settlement agreement with former contractor John Carlo, Inc. (JCI) following the discovery by WCAA of irregularities with the contractor's compliance with the Authority's Disadvantaged Business Enterprise (DBE)program.
Under the terms of the agreement, in satisfaction of certain claims against JCI by federal authorities for DBE program irregularities, the contractor will pay to the U.S. Department of Justice (USDOJ) a significant portion of the payment withheld by the Airport Authority in 2007 for runway reconstruction work performed at DTW. While the settlement resolves litigation between WCAA and JCI, the contractor will be ineligible to participate in future business opportunities with WCAA for a period of three years.
USDOJ also pursued and reached a settlement with subcontractor Angelo Iafrate Construction Company for its role in the project's compliance irregularities.
"The Wayne County Airport Authority takes compliance with its federal obligations very seriously," said WCAA Interim CEO Genelle Allen. "WCAA holds contractors accountable for honoring their commitments to ensuring that disadvantaged business enterprises have equal access to federally-supported contracting opportunities at our airports."
In December 2007, WCAA announced that it had taken the initiative to launch an independent, wide-ranging investigation of DBE compliance practices among the Authority's contractors after it learned of apparent irregularities in the utilization of DBE subcontractors at DTW. That investigation uncovered evidence of potential wrongdoing by JCI related to its contract to complete the 2006-2007 reconstruction of Runway 3R/21L. The Authority then turned-over the results of its investigation to USDOJ and withheld payment to JCI while working with federal authorities in their investigation, which resulted in today's settlement.
"WCAA firmly believes that the overwhelming majority of our contractors conduct their businesses honorably and work hard to be important economic partners in our community," said WCAA Board Chairman Charlie Williams. "The Authority has demonstrated a track record of success with its DBE program, and by holding accountable those few who may seek to undermine it, we are helping to ensure that success will continue."
For more details regarding this settlement, view the USDOJ press release at www.justice.gov.
Contacts:
Wayne County Airport Authority
Michael Conway (734)
942-3558
or
Scott Wintner (734) 955-3745