U.S. Department of Transportation
Federal Highway Administration

NOTICE

1. PURPOSE. This notice serves to advise that actions have been taken by the Federal Highway Administration (FHWA) to propose debarment for the below named individual and company pursuant to the regulations of the United States Department of Transportation for Federal assistance programs.

2. ACTION TAKEN

   1. The individual and company cited below have been given notice of this proposed debarment action. If the individual and company are debarred, they would be excluded from participating in any Federal Government contracting and Government-approved subcontracting or any programs and projects receiving Federal financial assistance. As mandated by 49 CFR § 29.200(a) (1992), the proposed debarment would be effective throughout the Executive Branch of the Federal Government.

      Water and Waste Water Equipment Company
      5200 Bethel Street
      Boise, Idaho 83707

      Mr. Roy Lee Phillips
      President
      Water and Waste Water Equipment Company
      5200 Bethel Street
      Boise, Idaho 83707

   2. If the above individual and company are debarred, they would be prohibited from participating as a contractor or subcontractor and from performing services in any programs or contracts receiving Federal financial assistance during the debarment period. Any firm or individual affiliated with the above named individual and company also may be prohibited from participating as a contractor or subcontractor and from performing services to any contractor on such programs or contracts.

   3. On or about July 29, 1981, Mr. Phillips, on behalf of Water and Waste Water Equipment Company (WWWE), executed an application for DBE certification to the State of Idaho. On or about July 5, 1988, he executed applications for DBE certification to the State of Washington and the State of Oregon. On or about June 16, 1989, he also executed an application for DBE certification to the State of Montana. On the final page above his signature, both the Idaho and Montana applications contained a continuing obligation to inform the relevant grantee or agency of any significant changes to the information submitted.

      On or about July 17, 1989, the State of Oregon denied WWWE's application for DBE certification because, in relevant part, Mr. Phillips did not have the "usual documentation to substantiate" his membership in the Cherokee Indian tribe. Further, his supporting documents were insufficient to establish that the Cherokee Indians held him to be a member of their community. After an informal hearing, the State of Oregon again notified him of its final decision to deny his DBE certification on or about September 7, 1989.

      On or about December 11, 1991, Mr. Phillips filed his application, on behalf of WWWE, for DBE recertification with the State of Montana. In response to whether WWWE had ever been denied DBE certification "in any state by any agency," he answered "no." Besides this false statement on the Montana application in 1991, there apparently are no records of either Mr. Phillips or WWWE amending the DBE applications with Montana or Idaho in a reasonable time after the 1989 denial by the State of Oregon.

      Pursuant to 49 CFR Part 29, Mr. Phillips and WWWE have committed acts which are cause for debarment. In particular, the FHWA believes that the above listed false statement, material omissions, and actions involving applications for DBE status in a number of states are cause for debarment. Pursuant to 49 CFR §29.305(b), Mr. Phillips and WWWE have violated the terms of a public agreement or transaction to the extent that it affects the integrity of an agency program. Further, in accordance with 49 CFR § 29.305(d), the FHWA has determined that the conduct by Mr. Phillips and WWWE is so serious or compelling in nature that it affects their present responsibility. Due to the nature of this conduct and FHWA's obligation to protect the public interest and to conduct business only with responsible persons, the proposed debarment is for a period of three (3) years.

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

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