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November 20, 2010 - Wayne County Airport Authority
(WCAA), operator of Detroit Metropolitan Airport (DTW)
and
The DOT DBE program is implemented by recipients of DOT
Federal Financial Assistance. Recipients are primarily
state highway, transit and airport agencies that receive
funds subject to Title 49 Code of Federal Regulations
parts 26 (49 CFR 26).
A similar program for airport concessions (ACDBE)
program mandated by 49 U.S.C. 47107(e), originally
enacted in 1987 and amended in 1992, is implemented
under (49 CFR 23) |
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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.
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