Press Release  Chicopee-Based Mechanical Contractor to Pay More Than $220,000 to Resolve False Claims Allegations

Boston — A Chicopee-based mechanical contractor has agreed to pay more than $220,000 to resolve allegations it falsely certified compliance with equal opportunity requirements on two public contracts, Attorney General Maura Healey announced today. 

The assurance of discontinuance, filed today in Suffolk Superior Court, alleges B-G Mechanical Contractors, Inc. (B-G) violated the state’s consumer protection laws and False Claims Act by failing to abide by provisions in two public design-build energy contracts requiring B-G to subcontract a certain percentage of work to Minority/Women Business Enterprises (M/WBEs). 

“Equal opportunity requirements in public contracts are a vital tool in ensuring that everyone has a chance to engage in government work,” said AG Healey. “Our office will do everything it can to protect the integrity of this important program.”

For both contracts, the AG’s Office alleges B-G improperly claimed full M/WBE credit for supplies subcontractors sold to and then repurchased from M/WBEs in sham transactions. The AG’s Office further alleges that B-G improperly failed to disclose the Commonwealth’s investigation in multiple prequalification submissions to government entities in 2015 and 2016.

State and federal laws establish programs to promote equal opportunity in public contracts by requiring provisions that ensure a certain percentage of jobs go to businesses owned by women or people who belong to minority or other disadvantaged groups. In general, public construction contracts contain provisions requiring that not less than a certain percentage of the contract be performed by M/WBEs, and bidders must agree to meet these percentages as a pre-condition of receiving a contract. Failure to comply with the provisions can result in a loss of the contract or damages.

This matter was referred to the AG’s Office by the Division of Capital Asset Management and Maintenance.

Under the terms of the assurance of discontinuance, B-G will pay $220,500 to the Commonwealth, consisting of $120,000 in multiple damages, $80,500 in penalties and $20,000 for costs and fees of the investigation. B-G will also conduct annual trainings for all current employees in Massachusetts concerning compliance with M/WBE contract provisions and applicable laws and guidelines.

AG Healey’s False Claims Division works to safeguard public funds by ensuring that companies and individuals that seek to obtain government contracts or funds maintain high standards of integrity.

The case was handled by Assistant Attorneys General Amy Crafts and Meghan MacKenzie of AG Healey’s False Claims Division, with assistance from Gillian Feiner, Chief of the False Claims Division.

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