Hewitt Contracting Co. v. Department of Transportation

20 Fla. Supp. 2d 265
CourtState of Florida Division of Administrative Hearings
DecidedJanuary 28, 1986
DocketCase No. 85-4167
StatusPublished

This text of 20 Fla. Supp. 2d 265 (Hewitt Contracting Co. v. Department of Transportation) is published on Counsel Stack Legal Research, covering State of Florida Division of Administrative Hearings primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hewitt Contracting Co. v. Department of Transportation, 20 Fla. Supp. 2d 265 (Fla. Super. Ct. 1986).

Opinion

OPINION

K. N. AYERS, Hearing Officer.

FINAL ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, K. N. Ayers, held a public hearing in the above-styled case on January 17, 1986, at Tampa, Florida.

[266]*266By Petition dated November 27, 1985, Hewitt Contracting Co., Inc., Petitioner, by and through its attorney, seeks reinstatement of its Certificate of Qualification to bid on and be awarded contracts let by the Department of Transportation (DOT), Respondent. As grounds therefor it is alleged that it will be in the public interest to reinstate Petitioner’s Certificate of Qualification.

At the commencing of the hearing the parties submitted a STIPULATION which comprises Findings of Fact 1-14. Additions to those stipulated facts gleaned from evidence presented at the hearing are underlined. Thereafter, Petitioner called three witnesses, Respondent called one witness, and nine exhibits were admitted into evidence.

Proposed findings have been submitted by the Petitioner. Treatment according to those proposed findings are contained in Appendix A, which is attached hereto and made a part hereof.

FINDINGS OF FACT

1. In 1984 and for many years prior Petitioner held a Certificate of Qualification to bid on and be awarded contracts let by the Department.

2. On April 10,1984, Petitioner entered into a voluntary plea, and was convicted of a one-count criminal violation of Title 15, USC, Section 1, which is commonly known as “The Sherman Antitrust Act.” The charge involved a public contract with the Florida Department of Transportation in which Petitioner received a complimentary bid from another contractor who was bidding on the same project which was awarded to Petitioner. This practice is commonly known as “bid rigging.” The conviction took place in the U. S. Northern District of Florida. Petitioner would have submitted the same bid on this project without the beneñt of the complimentary bid.

3. 33 C.F.R., Part 16, provides for a maximum debarment on first conviction of 36 months by a federal agency.

4. Petitioner was debarred by the Federal Highway Administration for only six (6) months based upon a review and determination of culpability of the Petitioner in the crime of which Petitioner was convicted.

5. Immediately subsequent to December 17, 1984, Petitioner was declared acceptable for employment on highway projects which required approval or concurrence of the Federal Highway Administration.

6. On June 18, 1984, Respondent revoked the Petitioner’s Certificate [267]*267of Qualification for a period of 36 months pursuant to Florida Statutes 337.165(2)(a). The only reason given for the revocation was the aforementioned conviction.

7. With the exception of Petitioner, who has never had a decision rendered on a Petition for Reinstatement by Respondent, every contractor who has been debarred and/or had its Certificate of Qualification revoked by Respondent pursuant to Section 337.165, Florida Statutes, who has petitioned for reinstatement, has been reinstated by Respondent.

8. Exhibit “A” hereto is a list of contractors who were debarred by Respondent and were reinstated. It was in the public interest to reinstate each of these contractors.

9. It is in the public interest and the interest of the Respondent to build roads, build them at a good price, and have a competitive bidding system with integrity.

10. Petitioner has promptly and voluntarily continued to pay its fine of $65,000 to the Federal Court.

11. No payment of damages has ever been requested by the State as a result of the Petitioner’s violation of state or federal antitrust laws.

12. The Petitioner notified the Respondent within thirty (30) days after his conviction of the contract crime.

13. Petitioner has the manpower, equipment, financial resources, and contracting experience to meet the Respondent’s requirements in those areas for the purpose of a Certificate of Qualification.

14. Howard H. Hewitt became affiliated with Square D Contracting Company in 1967 when he acquired a minority interest in the company. He subsequently increased that interest to 50 percent. In 1980 he acquired the remainder of the stock and changed the name of the company to Hewitt Contracting Co., Inc.

15. In 1980 the Florida Attorney General’s Office commenced an investigation of bid rigging by road contractors. In February 1983 the Attorney General’s Office subpoenaed Hewitt to appear under their Civil Investigative Demand procedures and give evidence about his knowledge of bid rigging in Florida. He appeared and, on the advice of counsel, refused to give testimony claiming protection under the Fifth Amendment.

16. By Court Order, Exhibit 8, dated June 24, 1983, Hewitt was directed to give testimony to the Florida Attorney General under grant of immunity from criminal prosecution and from any civil penalty as [268]*268provided in § 542.21(1), Florida Statutes (1981), as to those transactions about which he testifies. In compliance with that order he submitted documents and testified before assistant attorney generals three times. A grant of immunity by the Florida Attorney General’s Office would not shield Hewitt from federal prosecution.

17. Following the filing of charges by the Federal District Attorney, Hewitt provided testimony to federal officials several times regarding his knowledge of contract crimes, dropped his membership in the Florida Road Builders Association, started using a different hotel during his appearances in Tallahassee, and limited his contacts with fellow contractors to those necessary to conduct business.

18. In a subsequent damage trial brought by the Attorney General’s Office against Ezelle Construction Company, Hewitt advised both parties that he would testify for neither and, upon advice of counsel, would claim the Fifth Amendment if subpoenaed. Neither side subpoenaed Hewitt. The jury found Ezelle not liable for damages as claimed by the Attorney General.

19. The only witness called by Respondent, Assistant Attorney General Bayard W. Heath, testified that the critical part of the bid rigging investigation in which he was involved occurred in 1983 at which time Hewitt asserted the Fifth Amendment privilege and caused a change in the investigation plans of the antitrust division. When Hewitt’s counsel in January 1985 advised Heath that Hewitt would take the Fifth Amendment if subpoenaed to testify in the civil damages suit brought against Frank Ezelle, et al., he released Hewitt from the subpoena and did not attempt to enforce the subpoena.

20. Petitioner presented one rebuttal witness, the attorney who represented Hewitt during the civil investigative demand procedures by the antitrust division of the Attorney General’s Office. He testified that he was never advised by Heath or any other attorney from the Florida Antitrust Division that there was a critical period during which Hewitt’s testimony was wanted, or that they were in any manner dissatisfied with the cooperation given by Hewitt after the grant of immunity.

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Bluebook (online)
20 Fla. Supp. 2d 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hewitt-contracting-co-v-department-of-transportation-fladivadminhrg-1986.