March 6, 2018
FHWA Suspends Transportation Contractors for False or Noncompliant Payrolls
On March 6, 2018, the Federal Highway Administration (FHWA) suspended and proposed to debar Midasco, LLC (Midasco), Actividades de Construccion y Servicios (ACS Group), and Imes API, SA (Imes). The suspension and proposed debarment was based on a civil settlement between the three entities, the United States, and the Commonwealth of Virginia to settle False Claims Act allegations.
On July 28, 2017, Midasco, ACS Group, and Imes agreed to pay $450,000 to the United States and the Commonwealth of Virginia. The payment settled allegations that Midasco (a subsidiary of Imes and ACS Group) submitted false or noncompliant certified payrolls to the Virginia Department of Transportation, and failed to pay the proper prevailing wages for work performed on the I-95/I-495 High Occupancy Toll Lanes Project.
The settlement agreement represents neither an admission of liability by Midasco, ACS Group, or Imes, nor a concession by the United States that its claims were not well founded.
DOT-OIG conducted this investigation with the Department of Labor OIG, and the U.S. Attorney’s Office for the Eastern District of Virginia.
Update: On March 28, 2018, FHWA terminated the suspension and proposed debarment of ACS and Imes. FHWA determined that ACS and Imes do not present an immediate threat to the Federal-aid Highway System, the public interest, or the integrity of future Government contracts. The suspension of and proposal to debar Midasco remains in effect.
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 out whether a company is currently excluded.