NHTSA Suspends Contractor and CEO for Failure to Pay Subcontractors Related to Emergency Services Contracts
On August 27, 2015, the National Highway Traffic Safety Administration (NHTSA) suspended Millennium Services 2000+ (Millennium) and the company’s chief executive Loyce I. Grigsby from doing business with the government. The suspensions were based upon the results of an OIG investigation which found Millennium failed to pay four subcontractors for work they performed on a NHTSA contract to provide research, or “white papers,” on emerging issues in emergency medical services and 911 systems.
Millennium submitted claims to NHTSA seeking payment for the work performed by the subcontractors in preparing the white papers. OIG’s investigation determined that NHTSA paid Millennium’s claims, but Millennium failed to pay the subcontractors a total of $215,457 for the services they provided. The subcontractors were told that the company was filing bankruptcy; however, OIG found no evidence of any such filing. One Millennium official stated that the NHTSA funds were used to pay employee salaries and other vendors.
Note: Exclusion actions (suspensions and debarments) are frequently for a specific period of time and the System for Award Management "Sam.gov" should be consulted to find whether a company is currently excluded.