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Fed watchdog wants DoD to have better insight into contractors’ safety records

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The U.S. Government Accountability Office, a congressional “watchdog,” has issued recommendations to the U.S. Department of Labor’s OSHA and the Department of Defense aimed at helping them better track defense contractor safety violations. GAO was tasked with reviewing safety and health records of contractors and how they were handled by DoD, the largest contracting agency in the government, with $320 billion in contracts in 2017.

The GAO report noted that OSHA’s inspection data does not include a corporate identification number, which means “website users will likely have difficulty obtaining accurate information on individual companies’ previous violations,” such as whether the violations occurred on defense projects. DoD also may be missing opportunities to consider a company’s safety performance when awarding contracts, it continued, because only a few parts of the agency rate contractors in this category.

GAO recommends that OSHA consider requiring a corporate identification number as part of the information it collects during an inspection, and that DoD officials use OSHA’s website to find contractor safety information and consider requiring a safety performance rating for contractors engaging in construction and other risky types of work.

Keep reading this article at: https://www.constructiondive.com/news/fed-watchdog-wants-dod-to-have-better-insight-into-contractors-safety-reco/550792/

GAO report calls for ‘enhanced information’ on DoD contractors’ safety records

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Nearly 4 out of 5 Department of Defense manufacturing or construction contractors inspected by OSHA or state agencies over a recent five-year period were cited for at least one safety or health violation, according to a new report from the Government Accountability Office.

Researchers used federal data to examine previous safety and health violations of 192 selected companies with DoD contracts in fiscal year 2017, as well as how DoD and its components addressed contractor workplace safety and health during the acquisition process.

Of the 192 companies, 106 had been inspected by OSHA or state agencies between FYs 2013 and 2017. The inspections resulted in 83 being cited for at least one violation (78.3 percent) and 52 cited for at least one serious violation (49 percent). Three were cited for at least one repeat violation.

GAO concluded that OSHA “doesn’t collect data that could be used to match federal contracts with violations, so it’s not always possible to know whether the violations occurred on defense contracts. Also, oOD doesn’t always require contractors to be rated on safety.”

GAO made three recommendations to increase the use and availability of information regarding defense contract worker safety.

Keep reading this article at: https://www.safetyandhealthmagazine.com/articles/18144-gao-report-calls-for-enhanced-information-on-dod-contractors-safety-records

General contractor can be cited for subcontractor safety violations

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A U.S. Appeals Court judge for the 5th Circuit in New Orleans has ruled that OSHA can cite general contractors — even if their employees are not affected — for subcontractor safety violations.

The ruling came after Labor Secretary Alexander Acosta requested that the 5th Circuit review an OSHA administrative court decision that said a general contractor could only be cited for safety threats to its own employees.

In 2017, a Denver Occupational Safety and Health (OSH) Commission administrative judge ruled that Hensel Phelps could not be cited by the agency for safety hazards created by one of its subcontractors on a project in Austin, Texas. However, the 5th Circuit said more recent rulings have rendered the case law on which the administrative judge based his decision “obsolete” and said that Hensel Phelps could be held responsible for safety on the multi-employer site as a “controlling employer.”

According to court documents, Hensel Phelps hired subcontractor Haynes-Eaglin-Waters (HEW) for a library construction project, and HEW, in turn, hired CVI Development as a sub-subcontractor to perform demolition, excavation and other work. Hensel Phelps and HEW project staff allegedly directed CVI to work in an unsafe excavation area. An OSHA inspector cited both Hensel Phelps and CVI for safety violations. The OSH Commission will now review the matter again, taking the 5th Circuit’s decision into consideration.

Keep reading this article at: https://www.constructiondive.com/news/court-general-contractor-can-be-cited-for-subcontractor-violations/544678/

 

OSHA cites 5 contractors in bridge collapse, proposes $87K in fines

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Main span of FIU pedestrian bridge being moved on March 10, 2018, prior to placement on the south pier and north pylon pier.  Labels added by the NTSB.

The Occupational Safety and Health Administration (OSHA) has cited five contractors who had been working on the Florida International University (FIU) pedestrian bridge that collapsed March 15, killing five motorists and one worker and injuring five others. The agency has also proposed fines totaling $86,658 for the group of companies.

  • OSHA issued Figg Bridge Engineers and engineering and inspection firm Network Engineering Services one serious violation each and proposed that each firm be fined $12,934 for exposing employees to physical danger by not removing them from the bridge area when cracks were observed.
  • The agency proposed fines of $25,868 for both post-tensioning specialty contractor Structural Technologies and general contractor Munilla Construction Management and cited both companies with two serious violations each for failing to provide adequate personal fall arrest systems.
  • Finally, OSHA issued concrete formwork contractor The Structural Group of South Florida one serious violation and a proposed fine of $9,054 for also failing to provide an adequate personal fall arrest system. The worker who died, Navaro Brown, worked for Structural Technologies.

“Collectively,” said Kurt A. Petermeyer, OSHA regional administrator, “these employers failed to take appropriate action and provide the necessary protections to their employees while they were working on the bridge on the day it collapsed.” All five companies have 15 days from the receipt of the citations and notice of proposed penalties to protest, request an informal hearing or comply.

Keep reading this article at: https://www.constructiondive.com/news/osha-cites-5-contractors-in-fiu-bridge-collapse-proposes-fines-totaling-8/532921/

See OSHA’s Sept. 18, 2018 press release here: https://www.osha.gov/news/newsreleases/region4/09182018

See earlier article on NTSB reports here: https://gtpac.org/2018/08/23/new-ntsb-report-on-fiu-bridge-collapse-stops-shy-of-naming-a-culprit/

 

OSHA releases free silica compliance tools for contractors

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In an effort to help construction contractors comply with its new Respirable Crystalline Silica Standard for Construction, the Occupational Health and Safety Administration (OSHA) has released instructional videos and other free educational materials about the topic.

Some of the aids provided by the agency, Safety + Health reported, are a customizable slideshow presentation to help employers train construction workers; a short YouTube video about how to protect employees from silica dust; a video series on dust control methods for common construction tasks; and a website with answers to frequently asked questions.

The rule went into effect for the construction industry on Sept. 23, 2017, but OSHA delayed full enforcement by a month to Oct. 23, 2017, giving employers more time to comply and the agency more time to develop detailed enforcement guidelines.

The deadline for laboratory evaluation of exposure samples started on June 23, 2018.

Keep reading this article at: https://www.constructiondive.com/news/osha-releases-free-silica-compliance-tools-for-contractors/530864/ 

New NTSB report on FIU bridge collapse stops shy of naming a culprit

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Mar. 15, 2018 bridge collapse in Miami Florida. (Photo: Florida International University)

On Aug. 9, the National Transportation Safety Board released the latest update on its investigation into the March 15 Florida International University pedestrian bridge collapse. It still, however, isn’t ready to identify the probable cause of the structure’s failure despite photo evidence of cracks — some fissure-like — in the bridge deck and other areas, presumably that developed after the prefabricated span was set in place just a few days before the fatal incident.

The bridge was transported into position from its offsite location on March 10 to much fanfare, while its building method, accelerated bridge construction, was touted as a way to deliver such structures with minimal interruption to traffic. Five days later, the bridge collapsed onto vehicular traffic below, killing six — one bridge worker and five vehicle occupants — and injuring several others.

The collapse occurred while workers were tightening, or re-tensioning, steel rods at the bridge’s north end, including at diagonal member 11, after they were de-tensioned on the day of the move.

Keep reading this article at: https://www.constructiondive.com/news/new-ntsb-report-on-fiu-bridge-collapse-stops-shy-of-naming-a-culprit/530346/

See NTSB reports at:

Military bought thousands of boots labeled ‘Made In the USA’ — but they were from China

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Five executives with a former leading manufacturer of U.S. military boots have been sentenced in federal court for saying the boots were made in Tennessee when they were actually produced in China.

According to an indictment filed in U.S. District Court, the actual Chinese manufacturer of the boots was told to include “USA” on the label of Wellco boot uppers that were then shipped to the U.S. The “Made in China” tags were removed, the indictment says. Soles were affixed to the boots at Wellco’s plant in Morristown, Tennessee, and elsewhere, according to the document.

From 2006 through 2012, the U.S. Department of Defense paid at least $138 million to Wellco for military footwear, according to the indictment.

Keep reading this article at: https://taskandpurpose.com/wellco-execs-military-boots-china/

See earlier articles at:

 

Management of DoD contractor pleads guilty to ‘Made in the USA’ contract fraud

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The former president and CEO of Wellco Enterprises, Inc. (Wellco) and Tactical Holdings Operations, Inc. (Tactical Holdings), Vincent Lee Ferguson, of Knoxville, Tennessee, has pled guilty to conspiracy to commit wire fraud.

Wellco’s former sales VP, Matthew Lee Ferguson, of Geneva, Illinois, and former marketing director, Kerry Joseph Ferguson, of Houston, Texas, also pled guilty to conspiracy to commit wire fraud.  In addition, Wellco’s former VP of government contracting, Neil Streeter, of Warren, Massachusetts, and former operations manager, Stephanie Lynn (Ferguson) Kaemmerer, of Knoxville, Tennessee, pled guilty to smuggling goods into the United States.

Sentencing has been set for Vincent Lee Ferguson, Matthew Lee Ferguson, and Kerry Joseph Ferguson for June 6, 2018.  Sentencing for Neil Streeter and Stephanie Lynn Kaemmerer is set for June 11, 2018.  Conspiracy to commit wire fraud and smuggling goods into the United States both carry a maximum penalty of 20 years in prison and a fine of up to $250,000.  Each defendant was released pending sentencing.

According to information on file with the U.S. District Court, Wellco was a leading manufacturer and supplier of military footwear to the U.S. Department of Defense (DoD) and to civilian (commercial) customers for over 70 years.  From 2006 through 2012, DoD alone paid in excess of $138 million to Wellco for the supply of combat boots.  Wellco pioneered and patented the first practical method for molding and attaching a rubber sole to a shoe upper in a single operation.  During the Vietnam War, the U.S. Army adopted Wellco technology for the manufacture of its hot-weather boots for the jungles of Vietnam, a boot that became known as the “Vietnam Boot” or the “jungle boot.”   In May, 2007, in a deal involving approximately $22 million, Wellco was acquired by two investment firms, Golden Gate Private Equity, Inc. and Integrity Brands, Inc.  Wellco became a wholly owned subsidiary of Golden Gate’s portfolio company, Tactical Holdings.

In March 2006, Vincent Lee Ferguson was made President and CEO of Wellco.  At that time, he discussed a turnaround plan with Wellco’s Board of Directors for the company to increase commercial sales and “aggressively pursue” sales to the U.S. government.  From December 2008 through August 2012, he conspired with his executive team to import military-style boots that were made in China into the United States and then deceptively market and sell those boots to DoD (and other federal departments and agencies), government contractors, and the general public as “Made in the USA” and as compliant with the Berry Amendment and the Trade Agreements Act (TAA).   The Berry Amendment prohibits DoD from buying clothing that is not grown, reprocessed, reused or produced in the U.S.   The purpose of the Berry Amendment is to protect the viability of America’s textile and clothing production base.  The TAA provides that the government may acquire only “U.S.-made or designated country end products” and requires government contractors to certify that each “end product” meets applicable requirements.

By December 2008, Wellco was manufacturing certain military boot model uppers and insoles in China.  In order to conceal this fact, the conspirators required the Chinese manufacturing facility to include the American flag and “USA” on labels of certain boot uppers.  After two shipments of these deceptively marked boots were detained and seized by the U.S. Department of Homeland Security’s Customs and Border Protection, the conspirators ordered the Chinese facility to stitch tear-away “Made in China” labels in Wellco boot uppers.  After importation, the conspirators instructed Wellco factory workers in Morristown, Tennessee to tear out the “Made in China” tags prior to shipping the boots to government and commercial purchasers.

The defendants marketed and sold these Chinese-made Wellco boots as “Made in the USA.”  They also submitted false certifications to DoD and other federal agencies, and to government contractors that these boots complied with the Berry Amendment and TAA and met certain safety standards, including electrical hazard and blood-borne pathogen protections for U.S. troops.  For example, on August 15, 2012, the defendants submitted a signed “Certificate of Conformance” to a government contractor, representing that Wellco’s boot model S161 was “100% Berry Compliant” and “fully protective against Electrical Hazard,” even though the model was imported from China and not safety tested.  The boots were then supplied to troops stationed at Sheppard Air Force Base in Wichita Falls, Texas.   In total, Wellco sold at least $8.1 million of fraudulent boots.

This case was investigated by Homeland Security Investigations, Defense Criminal Investigative Service, Air Force Office of Special Investigations, General Services Administration Office of Inspector General, and Defense Contract Audit Agency.

Source: https://www.justice.gov/usao-edtn/pr/former-ceo-and-executive-management-defense-contractor-wellco-enterprises-inc-pleads

Contractors group files suit against ‘Fair Pay and Safe Workplaces’

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President Obama’s long-controversial Fair Pay and Safe Workplaces rule — set to take effect Oct. 25 — is being challenged in district court by the Associated Builders and Contractors (ABC), one of several contractors associations that oppose the rule as costly and burdensome.

DOLIn a suit filed Oct. 7 in the U.S. District Court for the Eastern District of Texas, the associated builders and its Southeast Texas Chapter argued that the Labor Department rule finalized in August and intended to protect low-wage workers from abuses such as wage theft is a “blacklisting” rule that forces contractors to report “alleged violations,” thus harming their prospects for winning government work.

“The Obama administration has exceeded its authority by forcing government contractors and prospective government contractors to publicly disclose mere accusations that they have violated labor and employment laws,” said Associated Builders and Contractors Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “ABC supports policies that provide value to taxpayers by ensuring that federal contractors compete on a level playing field, but this rule will require contractors to report alleged violations that have not been fully adjudicated and are being contested, which violates their first amendment and due process rights and is likely to harm fair and open competition in the federal marketplace.”

Keep reading this article at: http://www.govexec.com/contracting/2016/10/contractors-group-files-suit-against-fair-pay-and-safe-workplaces/132243

OSHA fines Georgia contractor $140,000 for ‘deliberate lack of concern’ for worker safety

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The Occupational Safety and Health Administration (OSHA) has cited a Georgia roofing contractor, Jasper Contractors Inc., for two willful violations and fined the company $140,000 for exposing workers to falls and other job site hazards.

OSHAOSHA reported that upon an inspection of one of Jasper’s residential projects in Jacksonville, FL, it found Jasper’s employees executing roofing work without fall protection and cited the company for failure to ensure employees were properly utilizing fall protection equipment, putting them at risk for an 8-foot fall. The agency also issued Jasper a violation for failing to make sure employees were wearing eye protection while they operated powered nail guns.

OSHA said Jasper has a long history of safety issues and that it has previously cited the company for 34 violations as a result of 19 inspections.

Keep reading this article at: http://www.constructiondive.com/news/osha-fines-ga-contractor-140k-for-deliberate-lack-of-concern-for-worker-1/417086/

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