One of McKee’s Two Bridge Finalists Hit for $11M+ for “Fraud Scheme” and “Faulty Design”

GoLocalProv News Team

One of McKee’s Two Bridge Finalists Hit for $11M+ for “Fraud Scheme” and “Faulty Design”

U.S. Department of Justice
On Tuesday, Rhode Island Governor Dan McKee announced two finalists to build a replacement for the westbound Washington Bridge.

One of those companies — Walsh Construction Corporation — has settled charges with federal and state agencies by paying more than $11 million.

In addition, Walsh has been cited more than 25 times for workers' health and safety violations.

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The most recent of the major incidents occurred in 2023, just across the border in Massachusetts.

 

Walsh Cited by Department of Justice for "Fraudulent Scheme" 

According to the U.S. Department of Justice, in 2023, Walsh Construction Company (Walsh) and a second company, Melo’s Rodbusters, Inc. (Melo’s), agreed to pay $1.24 million collectively to resolve False Claims Act allegations that they participated in a fraudulent scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in connection with their work on the federally funded Whittier Bridge/I-95 Improvement Project. 

Melo’s agreed to pay $146,102 to resolve the government’s investigation and Walsh agreed to pay $1,099,000.  

According to the U.S. Attorney’s office in Boston, Walsh, an Illinois corporation, is a general contracting and construction management firm. Melo’s is a Massachusetts corporation and a certified DBE that subcontracted with Walsh on the project to perform furnishing and installation of steel rebar.

The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to work on projects financed by the federal government. The program requires contractors to award, or make good faith efforts to award, a percentage of subcontracts on a given project to DBEs that serve a “commercially useful function.” A DBE does not serve a commercially useful function if it acts as a mere pass-through—that is, a DBE through which funds are passed to create the appearance that historically disadvantaged persons did the work, when they did not. Companies regularly certify their compliance with the DBE regulations when making claims for payment on federally funded contracts.

In February 2013, the Massachusetts Department of Transportation (MassDOT) selected Walsh, along with its joint venture partner, to be the prime contractor for a federally funded MassDOT project known as the Whittier Bridge/I-95 Improvement Project. Walsh, in turn, subcontracted with DBEs, including Melo’s, for portions of the work. The project was completed in 2018,

"As part of the settlement agreement, Walsh admitted that it assisted with certain work functions for Melo’s, and for another DBE on the project that is not a party to the settlement, including assistance in the selection of suppliers and participation in price discussion and negotiation. As part of its own settlement agreement, Melo’s admitted that Walsh performed these functions even though they should have been performed by Melo’s. Melo’s also admitted to providing inaccurate information in response to a MassDOT inquiry regarding Melo’s price negotiation with suppliers," according to the Justice Department.

 

Chicago's O'Hare Airport PHOTO: David Syphers, Unsplash

 

$10 Million Payment for "Faulty Design" Made by Walsh

Walsh, in 2013, agreed to pay $10 million dollars to settle its role in litigation stemming from the faulty design and construction of a terminal facade project at O'Hare Airport.

According to the Chicago Tribune, “Walsh Construction Co. and six other firms will pay Chicago about $21 million to settle lawsuits stemming from a problem-plagued terminal facade rehab project at O’Hare International Airport."

"The city’s claims against the construction, design and engineering firms had been pending since 2007. They centered on design defects and defects with structural steel and cracks in the welding work performed on the building faces of O’Hare’s Terminals 2 and 3 and on canopies extending over the airport’s upper roadway, officials said," according to the Tribune. 

“The Tribune first reported on the problems and the escalating cost of the project in 2005. Walsh told the city it spent about $26 million on remedial work to correct the flaws, and the company paid about $10 million as part of the settlement to cover all costs that the city incurred while investigating the problems and enforcing the contract, city corporation counsel Steve Patton said,” reported the paper.

Walsh refused to respond to questions about the violations.

The company forwarded the following statement:

“Walsh Construction is excited to be shortlisted and looks forward to participating in the next step of the Washington Bridge procurement,” said Jeff Twidwell, senior vice president of northeast transportation at Walsh Construction.

 

EDITOR'S NOTE: As GoLocal has chronicled, many of RIDOT's claims about the Washington Bridge during the past year have proven to be false.


Washington Bridge Failure Timeline

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