[Federal Register Volume 76, Number 187 (Tuesday, September 27, 2011)]
[Notices]
[Pages 59738-59741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24810]


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DEPARTMENT OF LABOR


Notice of Debarment: Manheim, Inc.

AGENCY: Office of Federal Contract Compliance Programs, Labor.

ACTION: Notice.

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SUMMARY: This notice advises of the debarment of Manheim, Inc., Manheim 
Auctions Government Services, LLC, and all wholesale vehicle 
remarketing facilities located in the United States which are owned, 
either directly or indirectly, by Manheim, Inc. (hereinafter referred 
to collectively as ``Manheim Entities''), as eligible bidders on future 
Government contracts or extensions or substantive modifications of 
existing contracts, except as otherwise stated in the Consent Decree, 
the full terms of which are published below. The debarment is effective 
immediately.

FOR FURTHER INFORMATION CONTACT: Patricia A. Shiu, Director, Office of 
Federal Contract Compliance Programs, U.S. Department of Labor, 200 
Constitution Ave., NW., Room C-3325, Washington, DC 20210 (202-693-
1106).

SUPPLEMENTARY INFORMATION: On September 13, 2011, the United States 
Department of Labor's Administrative Review Board approved a Consent 
Decree, pursuant to Executive Order 11246 (``Executive Order''); 
section 503 of the Rehabilitation Act of 1973, as amended (``section 
503''); section 4212 of the Vietnam Era Veterans' Readjustment 
Assistance Act (``VEVRAA''); and the rules and regulations issued 
pursuant thereto.

[[Page 59739]]

Under the terms of the Consent Decree, the Manheim Entities and their 
officers, agents, employees and purchasers agree not to bid for, 
knowingly enter into, knowingly perform work, or knowingly provide 
services necessary to any future Government contracts or subcontracts, 
except as otherwise provided for in the Consent Decree below. Moreover, 
under the terms of the Consent Decree, the Manheim Entities and their 
officers, agents, employees and purchasers are debarred from receiving 
future contracts or subcontracts or extensions or substantive 
modifications of existing contracts or subcontracts. The debarment 
shall be lifted if Manheim satisfies the Director of OFCCP that it is 
in compliance with Executive Order, section 503, and the VEVRAA and 
their implementing regulations.

    Dated: September 20, 2011, Washington, DC.
Les Jin,
Deputy Director, Office of Federal Contract Compliance Programs.

United States Department of Labor Administrative Review Board

    Office of Federal Contract Compliance Programs, United States 
Department Of Labor, ARB Case No. 11-060 Plaintiff, ALJ Case No. 2011-
OFC-00005. v. Manheim, Inc., and Manheim Auctions Government Services, 
LLC d/b/a Manheim Government Services, Defendants.

Amended Consent Decree

    This Consent Decree is entered into between the Plaintiff, United 
States Department of Labor, Office of Federal Contract Compliance 
Programs (hereinafter ``OFCCP''), and Defendants Manheim, Inc. f/k/a 
Manheim Auctions, Inc. (``Manheim'') and Manheim Auctions Government 
Services, LLC d/b/a Manheim Government Services (``MAGS'') 
(collectively, ``Defendants'') in resolution of the Administrative 
Complaint filed by OFCCP pursuant to Executive Order 11246 (30 Fed. 
Reg. 12319), as amended by Executive Order 11375 (32 Fed. Reg. 14303) 
and Executive Order 12086 (43 FR 46501) (``Executive Order''); section 
503 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. 793 
(``Rehabilitation Act'' or ``section 503''); section 4212 of the 
Vietnam Era Veterans' Readjustment Assistance Act, 38 U.S.C. 4212 
(``VEVRAA''); and the rules and regulations issued pursuant thereto. 
The Administrative Complaint alleges that, at all times pertinent 
thereto, Defendant MAGS, a party to contracts with the General Services 
Administration (``GSA'') totaling more than $100,000, was a government 
contractor and that Defendant Manheim was a government contractor by 
virtue of its operation as a ``single entity'' with government 
contractor MAGS. The Administrative Complaint further alleges that both 
Defendants violated the Executive Order, the Rehabilitation Act, and 
the VEVRAA by refusing to permit OFCCP access to Manheim or MAGS's 
facilities and otherwise permit OFCCP to conduct and complete a 
compliance review of Manheim and MAGS.

Part A. General Provisions

    1. The record on which this Amended Consent Decree (``Consent 
Decree'') is based shall consist of the Complaint and all exhibits to 
the Complaint, the Answers, and this Consent Decree.
    2. As meant herein, the term ``Manheim Auction Subsidiaries'' shall 
mean all wholesale vehicle remarketing facilities located in the United 
States which are owned, either directly or indirectly, by Manheim.
    3. This Consent Decree shall become final and effective on the date 
it is signed by the Administrative Review Board (``Effective Date'').
    4. This Consent Decree shall be binding upon Defendants, any and 
all officers, agents, employees and purchasers of Defendants, and all 
Manheim Auction Subsidiaries, and shall have the same force and effect 
as an Order made after a full hearing. Defendants waive their right to 
a hearing.
    5. All further procedural steps to contest the binding effect of 
the Consent Decree, and any right to challenge or contest the 
obligations entered into in accordance with the agreement contained in 
this Decree, are waived by the parties.
    6. Subject to the performance by Defendants of all duties and 
obligations contained in this Consent Decree, all alleged violations 
identified in the Administrative Complaint shall be deemed fully 
resolved. Nothing herein shall be deemed an admission of wrongdoing, 
liability, or ``single entity'' status by Defendants.

Part B. Jurisdiction

    7. This court has jurisdiction over this proceeding under sections 
208 and 209 of the Executive Order, the Rehabilitation Act, the VEVRAA, 
41 CFR 60-1.26, 60-741.65, 60-300.65, and 41 CFR part 60-30. Defendants 
admit to the jurisdiction of this Court over them regarding the subject 
matter of this action.

Part C. Specific Provisions

    8. From the Effective Date of this Consent Decree, Defendants agree 
not to bid for, knowingly enter into, knowingly perform work, or 
knowingly provide services necessary to any future Government contracts 
or subcontracts, except as otherwise provided herein. By this 
agreement, Defendants are debarred from receiving future contracts or 
subcontracts or extensions or substantive modifications of existing 
contracts or subcontracts. In addition, no Federal agency may exercise 
any renewal option under an existing contract or subcontract listed at 
paragraph 9 below, unless the agency head determines that there is a 
compelling reason for such action pursuant to Federal Acquisition 
Regulation (``FAR'') 9.405-1(b), with the following exception: General 
Services Administration (``GSA'') Contract No. GS-30F-X0028 may, in the 
discretion of GSA, be renewed for one one-year or less Option Period 
after the expiration of the Base Period on September 30, 2011. The 
prohibitions in this paragraph shall be effective against Defendant 
MAGS, Defendant Manheim, and all Manheim Auction Subsidiaries located 
in the United States.
    9. Defendants may continue to perform work only on the following 
existing contracts until the natural expiration of each contract, 
except as otherwise specified in paragraph 8, unless the agency head 
determines that there is a compelling reason for further renewal 
pursuant to FAR 9.405-1(b):

Army Air Force Exchange Service (AAFES)
Contract Number: HQ-08-SDZ-053
Expires September 27, 2011

General Services Administration (GSA)
Contract Number: GS-30F-X0028
Expires September 30, 2011

Worldwide Schedule for Logistics Services
Contract Number GS-10F-0013M
Expires September 30, 2011

United States Marshals Service (USMS)
E. District of Wisconsin
Contract Number: DJMS-08-D-0019
Expires February 29, 2012

United States Marshals Service (USMS)
E. District of Pennsylvania
Contract Number: DJMS-07-AFO-F-0008
Expires September 30, 2011

United States Marshals Service (USMS)
District of Puerto Rico
Contract Number: DJUSMS-11-0003
Expires December 31, 2011

United States Marshals Service (USMS)
N. District of Georgia
Contract Number: DJMS-07-AFO-F-0007

[[Page 59740]]

Expires September 30, 2011

United States Marshals Service (USMS)
Districts of Massachusetts, Maine, Rhode Island & New Hampshire
Contract Number: DJMS-09-D-0020
Expires May 31, 2012

United States Marshals Service (USMS)
Middle District of Florida
Contract Number: DJMS-05-D-0013
Expires December 31, 2011

United States Postal Service (USPS)
Contract Number: 1DVPMS-03-U-3941
Expires March 31, 2013

United States Department of the Navy
NAVFAC Hawaii, FSC Management and Facilities Services
Contract Number: N62478-08-D-2315
Expires March 31, 2012

United States Department of the Navy
NAVFAC Midwest Public Works Department
Contract Number: N40083-07-M-3003
Expires April 30, 2012

    The Manheim Auction Subsidiaries may also perform services and/or 
provide facilities necessary to the Flynn-Jensen Company, LLC's 
subcontract with VSE Corp., Subcontract Number: VSE-TREAS-10-FJC, Prime 
Contract Number: TOS-11-C-001, or any renewals, extensions, 
substitutions, or modifications thereof, at the discretion of VSE and 
the Department of the Treasury, through and until December 31, 2011, 
but not thereafter. After December 31, 2011, unless and until the 
debarment described herein is lifted, no entity bound by this Consent 
Decree may perform services or provide goods necessary to any 
Government contract held, now or in the future, by the Flynn-Jensen 
Company, LLC.
    10. Notice of this debarment shall be printed in the Federal 
Register on or after the Effective Date and shall include the full 
terms of this Consent Decree. In addition, on or after the Effective 
Date, OFCCP shall notify the Comptroller General of the United States 
(the ``Government Accountability Office'') that Defendants, including 
all Manheim Auction Subsidiaries, are ineligible for the award of any 
Government contracts or subcontracts, except as otherwise provided 
herein.

Part D. Reinstatement

    11. Neither Defendant shall be allowed to bid for, knowingly enter 
into, knowingly perform work, or knowingly provide services, goods, or 
facilities necessary to a Government contract or subcontract, except as 
otherwise provided herein, unless that Defendant (the ``requesting 
Defendant'') or both of them (the ``requesting Defendants''), if 
applicable, request reinstatement to federal contractor status and 
satisfy the Director of OFCCP that it or they are in compliance with 
the Executive Order, Section 503, VEVRAA and their implementing 
regulations. To do so, at a minimum, any requesting Defendant must 
submit to a full compliance review.
    12. OFCCP shall initiate within 30 days a compliance review upon 
the request of the requesting Defendant(s), including any on-site 
compliance evaluations at such Defendant(s)' facility or facilities, as 
necessary to determine whether the requesting Defendant(s) is in 
compliance at the time of the request with the terms of this Consent 
Decree and the terms of the Executive Order, Section 503, VEVRAA, and 
their implementing regulations. OFCCP shall notify the requesting 
Defendant(s) in writing, within 30 days of its completion of the 
compliance review, if there is a deficiency or a finding of compliance.
    13. If OFCCP finds that the requesting Defendant(s) has complied 
with the terms of this Consent Decree and with the terms of the 
Executive Order, Section 503, VEVRAA and their implementing 
regulations, the prohibitions in paragraph 8 above and otherwise herein 
shall be lifted as to the requesting Defendant(s), and such 
Defendant(s) shall be free to enter into future Government contracts 
and subcontracts. Within 30 days of OFCCP's finding of compliance (see 
paragraph 12 above), notice of the reinstatement shall be made to the 
Government Accountability Office, and notice of reinstatement shall be 
printed in the Federal Register.
    14. If OFCCP finds that the requesting Defendant(s) has not 
complied with the terms of the Consent Decree or with the terms of the 
Executive Order, Section 503, VEVRAA and their implementing 
regulations, OFCCP will notify the requesting Defendant(s) within 30 
days of its finding (see paragraph 12 above) that the prohibitions in 
paragraph 8 above and otherwise herein shall not be lifted and shall 
remain in effect until the requesting Defendant(s) successfully 
demonstrates compliance with the Consent Decree, the Executive Order, 
Section 503, VEVRAA and their implementing regulations. The requesting 
Defendant(s) may file a motion with the Administrative Law Judge for 
review of the Director's decision, and Defendants may request a hearing 
at which the sole issue will be whether the requesting Defendant(s) 
have complied with the terms of this Consent Decree and the Executive 
Order, Section 503, VEVRAA and their implementing regulations.

Part E. Implementation and Enforcement of the Decree

    15. Jurisdiction, including the authority to issue any additional 
orders or decrees necessary to effectuate the implementation of the 
provisions of this Consent Decree, is retained by the Office of 
Administrative Law Judges for a period of 24 months from the date this 
Consent Decree becomes final. If any motion related to this Consent 
Decree is pending before the Office of Administrative Law Judges 24 
months from the date this Consent Decree becomes final, jurisdiction 
shall continue beyond 24 months and until such time as the pending 
motion is finally resolved.
    16. If an application or motion for an order of enforcement or 
clarification indicates by signature of counsel that the application or 
motion is unopposed by Plaintiff or Defendants, as appropriate, the 
application or motion may be presented to the Court without hearing and 
the proposed Order may be implemented immediately. If any party hereto 
opposes an application or motion, the party in opposition shall file a 
written response within twenty (20) days of service. The Office of 
Administrative Law Judges may, if it deems it appropriate, schedule an 
oral hearing on the application or motion.
    17. The Agreement, herein set forth, is hereby approved and shall 
constitute the final Administrative Order in this case.
    It is so ordered, this 13th day of September 2011.

PAUL M. IGASAKI,
Chief Administrative Appeals Judge Law Judge.

E. Cooper Brown,
Deputy Chief Administrative Appeals Judge.

SO AGREED.

ON BEHALF OF MANHEIM, INC. f/k/a MANHEIM AUCTIONS, INC. and MANHEIM 
AUCTIONS GOVERNMENT SERVICES, LLC d/b/a MANHEIM GOVERNMENT SERVICES:

By:--------------------------------------------------------------------

Jason S. McCarter.

Matthew T. Parrish, DOW LOHNES PLLC, Six Concourse Parkway, Suite 
1800, Atlanta, Georgia 30328, (770) 901-8800, (770) 901-8874 (FAX). 
-and-

John C. Fox, FOX, WANG & MORGAN P.C., 160 West Santa Clara St., 
Suite 700, San Jose, California 95113, (408) 844-2350, (408) 844-
2351 (FAX).

Attorneys for Defendants
SOL Case No. 10-04112
ON BEHALF OF THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS:
M. PATRICIA SMITH, Solicitor of Labor
STANLEY E. KEEN, Regional Solicitor

CHANNAH S. BROYDE, Counsel

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By:--------------------------------------------------------------------
LYDIA A. JONES
Attorney
Office of the Solicitor, U.S. Department of Labor, 61 Forsyth 
Street, S.W., Room 7T10, Atlanta, GA 30303, Telephone: (404) 302-
5435, (404) 302-5438 (FAX).
Attorneys for the Secretary of Labor, United States Department of 
Labor.

[FR Doc. 2011-24810 Filed 9-26-11; 8:45 am]
BILLING CODE 4510-45-P