U.S. Department of Transportation
Federal Highway Administration

NOTICE

1. PURPOSE

   1. This Notice serves to advise that actions have been taken by the Federal Highway Administration (FHWA) to suspend and propose debarment for the individual and the companies named below in paragraph 2a. These actions are taken pursuant to Executive Order 12549, the Department of Transportation's implementing regula-tions at 49 CFR Part 29, and the FHWA's Order 2000.2 on the Nonprocurement Suspension and Debarment Process.

   2. The suspensions and proposed debarments are consistent with a policy to use these discretionary actions to conduct business only with responsible persons and to protect the public interest, the Federal Government, and the integrity of Federal programs (49 CFR § 29.115).

2. ACTIONS TAKEN AND THEIR SCOPE

   1. The individual and companies cited below have been given written notice of the suspensions and the proposed debarment actions. The suspensions are effective upon signature of this Notice by the Debarring Official and shall have the scope and effect of a debarment, as detailed in paragraphs (b) and (c) below.

      Mr. James D. Morrissey, Jr.
      President, James D. Morrissey, Inc.
      1328 Old Ford Road
      Huntingdon Valley, Pennsylvania 19006

      James D. Morrissey, Inc.
      JDM Materials Co., Inc.
      Morrissey Construction Co., Inc.
      9119 Frankford Avenue
      Philadelphia, Pennsylvania 19114

   2. Under the suspensions, the individual and companies named above are prohibited from being a participant or principal in any primary or lower tier "covered transaction," as defined in 49 CFR §§ 29.105 & 29.110. Generally, the individual and companies are prohibited from submitting a proposal or entering, or participating as an, officer, director, owner, key employee or other person with primary management or supervisory responsibilities, in any "covered transaction," including any nonprocurement transaction between an agency and a person. The suspensions shall be effective throughout the entire Executive Branch of the Federal Government. The scope of a suspension is defined in 49 CFR Part 29.

   3. If the individual and companies named above are debarred, the scope and effect of the debarment shall be equal to a suspension, as set forth in paragraph (b) above and defined in 49 CFR Part 29. Thus, an individual or company debarred by the Federal Government shall be prohibited from being a participant or principal in any primary or lower tier "covered transaction," as defined in 49 CFR §§ 29.105 & 29.110. Debarments also are effective throughout the entire Executive Branch of the Federal Government.

3. CAUSE FOR SUSPENSION AND PROPOSED DEBARMENT

   1. Mr. Morrissey and the companies named above in paragraph 2a recently were indicted in connection with certain conduct in the construction of Section 500 of the Interstate 476, commonly known as the Blue Route.

   2. On or about December 2, 1993, an indictment was filed against Mr. Morrissey and the companies, a group of closely held corporations, in the United States District Court for the Eastern District of Pennsylvania. The eighty-nine count indictment charges violations of 18 U.S.C. §§ 2, 1341, 287, and 1020.

   3. The indictment arose from construction work completed on a federally-funded highway construction project. Specifically, the Pennsylvania Department of Transportation (PennDOT) contracted with James D. Morrissey, Inc., to build Section 500 of the Blue Route. Mr. Morrissey, as president of the company, signed the contract on behalf of Morrissey Inc. Further, a subcontractor for the bridge structurescontracted with JDM Materials Co., Inc., to supply the deck concrete for the bridge structures. This concrete was required to meet a minimum compression test score after proper field curing and testing. If the concrete was substandard after the seven and twenty-eight day compression tests, a reduction in price would be calculated by PennDOT.

   4. The indictment charges Mr. Morrissey and the companies with using an alleged scheme and artifice to knowingly defraud the United States and PennDOT by means of false and fraudulent pretenses and representations. Generally, the charges focus on an alleged scheme and artifice to submit false and fraudulent Form 458A's attesting to a higher compression strength than actual for the concrete. This alleged scheme utilized controlled tanks with lime water to cure the concrete "test cylinders" to a higher compression strength than the actual concrete used on the Section 500 bridge structures. Further, the indictment charges that the Form 458A's and other documents falsely represented that these "test cylinders" were field cured when in fact they were cured in controlled lime water tanks. The indictment charges that this fraudulent scheme and artifice allegedly resulted in the defendants knowingly receiving monetary payments for amounts greater than they would have received for the concrete actually incorporated into Section 500.

   5. In accordance with paragraph 8 of the FHWA Order 2000.2 on the Nonprocurement Suspension and Debarment Process, the FHWA has determined that adequate evidence exists to suspect the commission of offenses that are cause for debarment under 49 CFR § 29.305(a). The false and fictitious statements and representations, and fraudulent practices, contained in the indictment indicate that Mr. Morrissey and his companies' continued involvement in projects and programs receiving Federal financial assistance would have a significant negative impact on such programs. Thus, in accordance with 49 CFR Part 29, the FHWA hereby suspends the individual and companies named above in paragraph 2a from all nonprocurement programs and projects.

   6. The FHWA believes that the above listed conduct involving a federally-funded highway project, which resulted in a criminal indictment, is sufficient cause for suspension and proposed debarment. The indictment contains sufficient evidence of the commission of offenses (i) in connection with obtaining or attempting to obtain a public transaction, (ii) for making false statements, and (iii) indicating a lack of business integrity or business honesty that seriously and directly affects their present responsibility. This conduct would be grounds for debarment under 49 CFR § 29.305(a)(1), (a)(3) and (a)(4). Further, the indictment contains sufficient evidence of conduct thatis grounds for debarment under 49 CFR § 29.305(d) because it is so serious or compelling in nature that it affects the present responsibility of Mr. Morrissey and the companies.

   7. These suspensions and proposed debarment actions are taken in accordance with 49 CFR Part 29 (1992).

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