Contractor Disqualification and Suspension Actions Resolved Favorably

BB&D attorney Tom Rynard represented a construction company which was:  disqualified from bidding and participating on Missouri Department of Transportation projects; non-renewed in the MoDOT Disadvantaged Business Enterprise program; and suspended by the U.S. Department of Transportation Federal Highway Administration from participating in FHWA projects and all projects involving federal funds.  A minority owner/worksite manager was accused of making unauthorized deviations from contract specifications and filing false information on contract compliance in relation to a contract on which the company was performing subcontract work. The minority owner was indicted in criminal court for his actions.  Rynard provided assistance to the minority owner’s attorneys in the criminal case on technical contracting aspects, which ultimately led to the case being dismissed. MoDOT and FHWA sought to impute the actions of the minority owner to the company and its majority owner as the grounds for taking action against them under MoDOT and federal regulations.  MoDOT and FHWA reversed their actions against the company and the majority owner and formally reinstated them after the two were shown to have taken substantial voluntary actions in ownership and management to address the conduct of the minority owner and to prevent recurrence of such conduct. The DBE certification was also reinstated.  BB&D attorneys Rob Brandt and Scott Smithson assisted in the ownership and management re-structuring of the company and, along with Rynard, created a corporate Code of Conduct and Compliance Program which was adopted and implemented by the company.