AP NEWS

Contract complaint prompts federal probe of commuter system

September 19, 2018

ATLANTA (AP) — The Federal Transit Administration is investigating a Georgia commuter system over a complaint that it violated a law ensuring minority- and women-owned businesses get a share of government contracts.

The Atlanta Journal-Constitution reported Tuesday that the complaint says Metropolitan Atlanta Rapid Transit Authority allowed a contractor to end an agreement with a minority-owned subcontractor.

MARTA’s agreement with MV Transportation says disadvantaged businesses would get 20 percent of the contractor’s work, most of which was subcontracted to Gresham Transportation Services of Atlanta. But that didn’t happen.

MV Transportation says Gresham failed to maintain necessary insurance. Gresham says it couldn’t afford insurance because MV Transportation didn’t provide work. MARTA says MV Transportation worked with another minority-owned subcontractor.

Gresham was awarded $650,000 following a May complaint with the FTA about the broken contract.

___

Information from: The Atlanta Journal-Constitution, http://www.ajc.com

AP RADIO
Update hourly