DOJ Announces $2.8 Million Settlement with Construction Company Over SDVOSB Set Asides, Further Fallout From DOJ’s Settlement with TriMark USA
The DOJ has reached a settlement with Hensel Phelps Construction Company over allegations that the company circumvented subcontract set-asides for service-disabled veteran owned small businesses. The case concerned a multi-million dollar prime contract awarded in 2011 to Hensel Phelps by the GSA to construct the Armed Forces Retirement Home’s New Commons/Health Care Building in Washington, D.C. As part of the contract, the government required Hensel Phelps to create and implement a small business subcontracting plan to provide contracting opportunities for SDVOSBs and other types of small businesses. Hensel Phelps allegedly credited its compliance with set-asides to an entity that the company should have known was merely a “pass-through” for a large, non-qualifying company.
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