I-Team: State Contractor Rigged Bids?

 

 

DARMOUTH (WBZ)-It's being called an "insidious" scheme to rig bids on big ticket public works projects. 

The I-Team has learned a well-known South Shore electronics company has now been suspended by the state.   The Patrick administration believes thousands of taxpayer dollars could be at stake.

The Cedar Dell college dormitories at UMass-Dartmouth might look quiet, but they're now the epicenter of a state investigation.

Lt. Governor Tim Murray says the controversy involves two public contracts worth about $400,000 in taxpayer money and includes contracts to install fire alarm systems at those dorms two years ago.

"We have deep concerns in terms of what went on here," he said.

The work was done by well-known Norwell company Signet Electronics, a major player when it comes to state contracts.

For years, the company has been winning valuable bids on court houses and schools.

But now that's all on hold.

Signet, which employs 140 people, has been notified it was suspended immediately and the state wants to take the extreme action of debarment or prohibiting any more state work. 

What did it do?

The state says Signet rigged bids.

How?

Public contracts obtained by the I-Team suggest, over the years, Signet repeatedly persuaded architects and engineers to name the company as an exclusive supplier. 

That locks out other suppliers and controls prices. That is a violation of state law.

Lt. Governor Murray says, "We are going to continue to be aggressive with companies up and down who are abusing the law …trying to influence or rig the process."    

The state's Inspector General first raised a red flag about Signet ten months ago, concluding, "no amount of vigilant oversight could have revealed the insidious nature of the bid rigging scheme uncovered here."

Company President Brad Caron refused WBZ's request for an interview.

Through a company spokesperson he died any wrong doing.

"Signet has a longstanding record of quality work with no black marks whatsoever," he added.  "These allegations are wrong factually and completely unfair."

On Monday, company executives notified the state that they want a hearing to fight the suspension and possible debarment.

In the meantime, Signet is not allowed to take on any new work involving taxpayer dollars.

Signet tells the I-Team 70 employees who work on public contracts could lose their jobs because of the suspension.

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