| | |
What is the purpose of this Notice?
This Notice advises that actions have been taken by the Federal Highway Administration (FHWA) for the suspensions and proposed debarments 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 (DOT’s) implementing regulations in 49 CFR Part 29, DOT Order 4200.5D, Governmentwide Debarment, Suspension, and Ineligibility, and FHWA Order 2000.2A, Nonprocurement Suspension and Debarment Process.
What actions have been taken?
The company and individual cited below have been sent written notices of their suspensions and proposed debarments:
Shanks Excavating Company
204 North 4th Street
P.O. Box 510
Webbers Fall, OK 74470
Jimmy “Dale” Shanks
204 North 4th Street
P.O. Box 510
Webbers Fall, OK 74470
What is the scope of these actions? The company and individual cited above are prohibited from being a participant or principal in any covered transaction as described 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 and debarments, if imposed, are effective throughout the Executive Branch of the Federal Government.
What are the causes for these suspensions and proposed debarments?
On or about October 4, 2005, Shanks Excavating Company pled guilty to participating in an arrangement with Patton Construction Company to defraud the Small Business Association’s (SBA’s) 8(a) business development program. Shanks Excavating Company became an SBA 8(a) certified firm and, using its 8(a) status, received a $15.3 million contract to perform work at Tinker Air Force Base in Oklahoma City, Oklahoma. However, Patton Construction Company performed all the work under this contract as opposed to Shanks Excavating Company as required under the SBA’s 8(a) program. On June 19, 2006, Shanks Excavating Company was sentenced to 5 years probation and the payment of a $50,000 fine.
Pursuant to 49 CFR Part 29, Shanks Excavating Company has committed acts that are cause for suspension and proposed debarment. Specifically, the FHWA believes that the guilty plea constitutes sufficient cause for suspension and proposed debarment. Additionally, Jimmy “Dale” Shanks, in his capacity as principle owner and president of Shanks Excavating Company, caused his company to commit major fraud by receiving an SBA 8(a) certification and using that certification to secure a $15.3 million construction contract for the benefit of Patton Construction Company. Thus, Shanks Excavating Company’s guilty plea may be imputed to Jimmy “Dale” Shanks, and the FHWA believes that there is sufficient cause for suspension and proposed debarment.
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 Shanks Excavating Company and Jimmy “Dale” Shanks from participating in Federal nonprocurement programs. The suspensions shall be for a temporary period imposed only for the duration of their debarment proceedings.
King W. Gee |
Related Sites:
FHWA Order 2000.2A
DOT Order 4200.5D
Executive Order 12549
