U.S. Department of Transportation Federal Highway Administration	Notice Subject Suspension From Federal Nonprocurement Programs
	Classification Code	Date	Office of Primary Interest
	N 2000.555	April 17, 2006	HIPA-30

1. What is the purpose of this notice?

   1. This notice serves to advise that actions have been taken by the Federal Highway Administration (FHWA) for the suspensions of the company and individual named in paragraph 2a. These actions are taken pursuant to Executive Order 12549 , the U.S. Department of Transportation's (USDOT's) implementing regulations in 49 CFR, Part 29, and FHWA Order 2000.2A, Nonprocurement Suspension and Debarment Process.

   2. In accordance with 49 CFR 29.110, these suspensions are consistent with the Federal government's policy to use the discretionary action of suspension to conduct business only with responsible persons and to protect the public interest, the Federal government, and the integrity of Federal programs.

2. What actions have been taken?

   1. The company and individual cited below have been notified in writing of their suspensions:

      Pavco Asphalt, Inc.
      615 Furrows Road
      Holtsville, NY 11742-2001

      William Louis Fehr, Sr.
      615 Furrows Road
      Holtsville, NY 11742-2001

   2. These suspensions became effective on March 30, 2006.

3. What is the scope of these actions? The company and individual cited in paragraph 2a are prohibited from being a participant or principal in any primary or lower tier covered transaction, as defined in 49 CFR Part 29, Subpart B. Generally, the company and individual are prohibited from submitting a proposal for, or entering into, a covered transaction, or participating in a covered transaction as an officer, director, owner, partner, key employee, or other person with primary management or supervisory responsibilities, or one who has critical influence on or substantive control over the transaction, whether employed by a person who submits a proposal for, or enters into a covered transaction, including any procurement and nonprocurement transaction between an agency and a person. These suspensions are effective throughout the Executive Branch of the Federal government.

4. What are the causes for the suspensions?

   1. On December 16, 2005, Pavco Asphalt, Inc., and William Louis Fehr, Sr., were each indicted on two counts of attempt and conspiracy to commit mail fraud in violation of 18 U.S.C. 1349 and 3551. According to the indictments, these parties participated in a scheme to manipulate the awarding of contracts by the Suffolk County Department of Public Works (SCDPW) in New York and the Town of Brookhaven in New York through a system of bid-rigging. In furtherance of this scheme, the parties all used the mail to send relevant correspondence to the SCDPW and Brookhaven, and they caused SCDPW and Brookhaven to use the mail to transmit payments to the parties.

   2. Pursuant to 49 CFR Part 29, Pavco Asphalt, Inc., and William Louis Fehr, Sr., have committed acts that are cause for suspension. Specifically, the FHWA believes that their indictments constitute adequate evidence for a suspension.

   3. 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 FHWA finds it necessary to immediately suspend the parties listed above from participating in Federal nonprocurement programs. The suspensions shall be for a temporary period imposed only for the duration of Pavco Asphalt, Inc.'s, and William Louis Fehr, Sr.'s, criminal proceedings.

   4. Their suspensions have been taken in accordance with 49 CFR Part 29.

Related Sites:
FHWA Order 2000.2A
Executive Order 12549