U.S. Department of Transportation Federal Highway Administration	Notice Subject DEBARMENT FROM FEDERAL NONPROCUREMENT PROGRAMS
	Classification Code	Date	Office of Primary Interest
	N 2000.602	August 8, 2007	HIPA-30

1. What is the purpose of this Notice? This Notice cancels FHWA Notice N2000.584 issued on June 8, 2007, and it serves to advise that the Federal Highway Administration (FHWA) has made a decision concerning the proposed debarments of the following individual and company:

   Jimmy "Dale" Shanks
   204 North 4th Street
   P.O. Box 510
   Webbers Fall, OK 74470

   Shanks Excavating Company
   204 North 4th Street
   P.O. Box 510
   Webbers Fall, OK 74470

2. What actions have been taken?

   1. The FHWA has decided to debar the individual and company cited above for a period of 3 years. Their debarments are retroactive from the date of their suspensions by the FHWA; DEBARMENTS EXPIRE: April 27, 2010.

   2. The individual and company cited above have been notified in writing of this decision.

3. What is the scope of these actions?

   1. The individual and company cited in paragraph 1 are prohibited from being participants or principals in any covered transaction, as defined in 49 CFR Part 29, Subpart B. Generally, the individual and company 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 debarments are effective throughout the Executive Branch of the Federal Government.

   2. As stated in 49 CFR 29.110, these debarments are consistent with the Federal Government's policy of using the discretionary action of debarment to conduct business only with responsible persons and companies, and to protect the public interest, the Federal Government, and the integrity of Federal programs.

4. What are the causes for debarment?

   1. 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.

   2. Pursuant to 49 CFR Part 29, Jimmy "Dale" Shanks and Shanks Excavating Company have committed acts that are cause for debarment. Specifically, their conviction for commission of major fraud constitutes cause for debarment pursuant to 49 CFR 29.800(a)(1) for being convicted of commission of fraud in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction.

   3. After considering the serious nature of these acts, the FHWA has decided that Jimmy "Dale" Shanks and Shanks Excavating Company pose a risk to the Federal Government and that it is in the best interests of the Federal Government that they be debarred for a period of three years from the date of their suspensions. As stated above, their debarments will expire on April 27, 2010.

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

Related Sites:
FHWA N2000.584
FHWA Order 2000.2A
DOT Order 4200.5D
Executive Order 12549

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