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U.S. Department
of Transportation
Federal Highway
Administration
 		Notice
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Subject
DEBARMENT FROM FEDERAL NONPROCUREMENT PROGRAMS

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Classification Code
N 2000.488 		Date
July 30, 1999

  1. PURPOSE

    1. This Notice serves to advise that the Federal Highway Administration (FHWA) has determined that sufficient cause exists to debar the company listed below in paragraph 2a for a period of three (3) years, with the last two (2) years conditionally suspended.

    2. The FHWA believes that a three (3) year debarment, with the last two (2) years conditionally suspended is consistent with the Federal Government's policy to use the discretionary action of debarment to conduct business only with responsible persons and to protect the public interest, the Federal Government, and the integrity of Federal programs. This debarment action is taken pursuant to the regulations of the U.S. Department of Transportation (49 CFR Part 29) and the FHWA Order 2000.2 on the FHWA Nonprocurement Suspension and Debarment Process.

  2. ACTION TAKEN AND ITS SCOPE

    1. The company cited below has been given written notice of the debarment action. This Notice of Debarment from Federal Nonprocurement Programs and Projects is effective upon signature of this Notice by the Debarring Official. The debarment shall be effective throughout the Executive Branch of the Federal Government, and shall have the scope outlined in paragraph (b) below.

        Redondo Construction Corporation
        Corporate Office Park
        Martinez Nadal Avenue, Km. 2.6
        Guaynabo, Puerto Rico 00966

        DEBARMENT EXPIRES AT MIDNIGHT
        ON JULY 30, 2000.

    2. Under the debarment, the company cited above is prohibited from being a participant or principal in any primary or lower tier "covered transaction," as defined in 49 CFR §§ 29.105 and 29.110. Generally, the company is 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. Any firm or individual affiliated with the above named company also may be affected by this debarment. The debarment shall be effective throughout the entire Executive Branch of the Federal Government and shall also be recognized by and effective as a debarment under the Federal Acquisition Regulations. The scope of the debarment is defined in 49 CFR Part 29.

  3. CAUSE FOR DEBARMENT

    1. On April 15, 1999, Redondo Construction Corporation pled guilty to violations of Title 18, United States Code, Sections 1014, 1020 and 2. According to the Superceding Indictment and the Information contained in the documents filed by the United States Attorney, this company aided and abetted in the making of false statements to the United States Department of Transportation in violation of 18 U.S.C. §§ 1020 and 2. The company also aided and abetted in making false statements to Banco Santander Puerto Rico, in violation of 18 U.S.C. §§ 1014 and 2. It obtained money by means of false or fraudulent statements, representations or reports by certifying on monthly progress payment reports that "unclassified excavation" work had been performed by the company when in fact and in truth such work had not been performed.

    2. The company committed acts which are sufficient cause for debarment under 49 CFR § 29.305(a)(1), (a)(3), and (a)(4). Further, the FHWA has determined that the conduct is 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 the company. The company has waived its right to have debarment begin after entry of an official court judgment.

    3. The actions of this company indicate a serious lack of business integrity and business honesty. Due to the nature of this conduct and the FHWA's obligation to protect the public interest and to conduct business only with responsible persons, the debarment (pursuant to a pre-arranged plea agreement,) is for a period of three (3) years, with the final two years suspended on the condition that the company complies with a pre-approved compliance program and monitoring facilitation plan. Serious violations of law or essential provisions of the plan beyond RCC s ability to cure, in accordance with the terms of the plan, will result in the reinstatement of the 2-years suspended debarment period.

    4. This debarment action is taken in accordance with 49 CFR Part 29.
  Signature: Vincent F. Schimmoller
Vincent F. Schimmoller
Debarring Official

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