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Contractor to Pay for EEO Violations

Monday, November 9, 2015

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A Massachusetts construction firm accused of misusing equal opportunity programs has reached a settlement in its court case.

D’Allessandro Corp., of Avon, has agreed to pay $190,000 and conduct training to resolve allegations it failed to comply with equal opportunity requirements on more than a dozen public construction contracts over a two-year period, authorities have announced.

The company, which performs a variety of services including paving and site preparation throughout the greater Boston area, was accused of violating the state’s consumer protection laws and False Claims Act by failing to subcontract a certain percentage of work to businesses known as Minority/Women Business Enterprises (M/WBE), according to Attorney General Maura Healey.

According to the settlement document filed Monday (Nov. 2) in Suffolk Superior Court, the company will pay the Commonwealth $165,000 in penalties and $25,000 for costs and fees associated with the investigation, the AG’s Office said Tuesday (Nov. 3).

© / zimmytws

D'Allessandro Corp., of Avon, MA, has agreed to pay $190,000 to resolve the case.

Jon D'Allesandro shared the following statement by email Wednesday (Nov. 4):

D'Allessandro Corp is very pleased to reach this settlement as it allows us to move forward and focus on serving our customers as we have for twenty seven years. We fully cooperated with the Attorney General’s inquiry and answered all of their questions.

During this process I learned that there is no panel of contractors representing non W\MBEs or W\MBEs; therefore, I volunteered to help the AG develop and build a committee. All parties could benefit from working together to resolve the issues contractors and subcontractors struggle with.

D'Allessandro Corp has in place a strong compliance program that will help us to compete at the highest levels, with integrity.

Equal Opportunities

“Construction companies that take advantage of programs aimed at boosting opportunities for women and minority-owned businesses will be held accountable by our office,” Healey said.

“Equal opportunity requirements in public contracts are meant to ensure that all businesses have the chance to engage in government work and we will do all we can to protect that right.”

In addition to the penalties, the contractor will also conduct annual trainings for all current employees in Massachusetts concerning compliance with M/WBE contract provisions and applicable laws.

Investigation Results

The case against D’Allessandro was referred to the AG’s Office by the Environmental Protection Agency’s Office of the Inspector General.

The investigation found that between January 2008 and January 2010, the contractor procured and performed 15 public projects. The company was said to have listed a minority-owned business called Luxor Equipment, now known as Margen Inc., as a M/WBE on the contracts.

at the jobsite
© / Prebranac

Generally, public construction contracts contain provisions requiring that not less than a certain percentage of the contract be performed by minority or women-owned businesses.

In general, public construction contracts contain provisions requiring that not less than a certain percentage of the contract be performed by M/WBEs, and bidders must agree to meet these percentages as a pre-condition of receiving a contract. Failure to comply with the provisions can result in a loss of the contract or damages, according to the AG’s Office.

Instead of performing the work itself, Luxor, however, contracted out work to non-minority/women businesses, while D’Allessandro improperly claimed full minority/women business enterprise credit for the work, according to Healey.

The case follows a $1.4 million settlement with three construction companies, including Margen/Luxor, to resolve allegations that they falsely certified their compliance.


Tagged categories: Bidding; Business management; Business matters; Contractors; Government; Government contracts; North America; Program/Project Management

Comment from Gail Alario, (11/9/2015, 10:05 AM)

Why are we not all just citizens? Why do we need to be in all different classifications? Why isn't the best person gets the job? Government likes to divide...makes it so much easier to conquer

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