Category Archives: Food.Services

Federal Fraud Recoveries Decline in Fiscal Year 2017

Source: Project on Government Oversight, January 2, 2018

… The DOJ announced it had recouped $3.7 billion through settlements and judgments in False Claims Act cases in fiscal year 2017. This amount is nearly 23 percent lower than the previous fiscal year, but roughly in line with FY 2015’s total. This seems to be a trend: a historical analysis of DOJ’s fraud recoveries since 1986 (the year Congress substantially strengthened the False Claims Act) shows that, in recent years, a substantial drop-off occurs in non-election years. … As in past years, the largest share of the recoveries—about two-thirds—involved health care fraud. But a substantial sum also came from some of Uncle Sam’s largest contractors:

  • AECOM and Bechtel: $125 million to settle False Claims Act allegations that the contractors charged the government for deficient materials and services at the Hanford Nuclear Site. Separately, AECOM paid over $5.2 million to settle another fraud investigation involving its work at Hanford.
  • Agility: $95 million to settle a 12-year-old case accusing the company of overcharging the government for food supplied to U.S. troops in the Middle East.
  • Atlantic Diving Supply: $16 million for allegedly inducing the government to award small business contracts to companies misrepresenting their eligibility as socially or economically disadvantaged small businesses.
  • Huntington Ingalls Industries: $9.2 million to resolve claims of overbilling the government for work at its Mississippi shipyards.
  • Pacific Architects and Engineers: $5 million to settle allegations that it failed to properly screen and oversee personnel working on a contract to train Afghan security forces.
  • Sierra Nevada Corporation: $14.9 million for allegedly causing the government to pay inflated labor costs on contracts.
  • Defense contractors accounted for $220 million in fraud settlements and judgments.

The Privatization Agenda Goes Bust

Source: Tom O’Leary, Jacobin, January 18, 2018

The collapse of Carillion, the mammoth UK government contractor that went bankrupt Monday, was wholly made in Britain, although it has negative consequences internationally. The reason for Carillion’s bankruptcy, which puts vital public services and thousands of jobs at risk, is that the firm and its component companies grew fat during the first phase of neoliberal economic policy and could not cope with the more recent phase, austerity. The immediate cause of the collapse is a failed acquisition spree since the crisis began. Yet the underlying cause is the disastrous relationship successive governments have had with the private sector. Whether the Thatcher, Major, and Blair governments believed the nonsense they spouted about the superior efficiency of the private sector is immaterial. Only the willfully ignorant could ignore the litany of failed privatizations and the extortion of PFI “public-private initiative” contracts that followed their policies. The real purpose of Thatcherite economic policy, which has become widely known as neoliberalism, was precisely to hand state resources and revenues to the private sector. …

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Carillion directors to be investigated
Source: BBC, January 16, 2018

The government has ordered a fast-track investigation into directors at the failed construction firm Carillion. The UK’s second biggest construction firm went into liquidation on Monday, after running up losses on contracts and struggling with heavy debts. The business secretary has asked for an investigation by the Official Receiver to be broadened and fast-tracked. The conduct of directors in charge at the time of the company’s failure and previous directors will be examined. Carillion’s business is now in the hands of the official receiver, which is reviewing all of Carillion’s contracts. The company employed 43,000 people worldwide, 20,000 in the UK, and had 450 contracts with the UK government. …

Carillion’s Government contracts could have been stopped by a single law. Why wasn’t it used?
Source: Hazel Sheffield, Independent, January 16, 2018

Carillion is part of what is known as ‘the shadow state’: a group of large companies secretively awarded government contracts to run Britain’s public services. There are others. …

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Union Action Sparks Awareness as Labor Issues Continue

Source: Eliza Partika, New University, December 6, 2017
 
The UC’s largest workers union, AFSCME 3299,  is still fighting for renewed service workers’ contracts with their latest protest on Nov. 28 and 29 at UCI Medical Center. According to a press release, the protest, which aimed to address UC’s work contracting and a potential wage increase among other demands, yielded a negative response from the UC, which called it “out of reality and not logical.”  Students and campus union workers marched to The Anteatery on Oct. 21 in support of students and campus workers who have been allegedly abused by Aramark, a private company which contracts food services for UCI. … Aramark, according to an anonymous AFSCME organizer, has been forcing non-union workers to work without necessary support due to UCI’s increased enrollment. ….

‘One day longer’: Union pledges to outlast Cedar Haven owner in four-week-old strike

Source: Daniel Walmer, Lebanon Daily News, November 17, 2017
 
The local union president for striking Cedar Haven employees thanked her fellow nurses at a rally Friday – but she also issued a dire warning to any who might be thinking of crossing the four-week-old picket line.  “If we lose this fight, like people have said, where on earth are people going to bring their loved ones for quality care?” Penny Kleinfelter asked. “If we would, somehow, lose this fight, I would hold everyone who crossed that picket line responsible for helping to ruin Cedar Haven’s future.”  Union officials said they haven’t received any new offers from nursing home owner Chas Blalack of Stone Barn Holdings. In fact, Kleinfelter said Blalack’s alleged unwillingness to negotiate may now not only be about the contract – which reduces paid time off and substantially increases employee costs for health insurance – but also about breaking the will of the union. … The lengthy standoff has caught the attention of regional and international union leaders for the American Federation of State, County and Municipal Employees. Officials announced that the international union is donating $10,000 to support strike operations, while AFSCME Council 13 is donating another $10,000. …

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Because They Care: Cedar Haven Workers and Residents Stand for Dignity
Source: Secretary-Treasurer Elissa McBride, HuffPost, November 14, 2017
 
It’s not easy for workers to stand up to powerful bosses in our country today. Too often, the deck is stacked against them. But when healthcare workers and the people they take care of join together on the picket line, you know something extraordinary is going on. That’s exactly what is happening at Cedar Haven nursing home, where residents are joining nurses, nursing assistants, and support staff and making a powerful statement about dignity for all. … The staff of Cedar Haven are care takers, whether for the facility’s residents, their own children or their aging parents. The vast majority of the 300 employees are women, many of them single mothers. Blalack’s unilateral decision to increase their health care costs is a mark of disrespect to the people who provide top notch care to the residents of Cedar Haven. After Blalack refused to negotiate, they took the only action they could: they went on strike.  When I joined the strikers on the picket line last week, several residents were on hand, showing their support. …

Two weeks in, Cedar Haven strikers are prepared for Christmas
Source: Daniel Walmer, Lebanon Daily News, November 3, 2017

A labor dispute at Cedar Haven shows no signs of abating two weeks after nurses went on strike. If you need proof, consider this: AFSCME Local 2732 President Penny Kleinfelter has placed an artificial Christmas tree along the Fifth Avenue picket line in preparation for the holiday season. Kleinfelter said she isn’t trying to send a message – she’s just decorating, since she usually puts up her Christmas tree at home at the beginning of November. But she hopes Cedar Haven ownership understands the strikers are “in it for the long haul.” … Some union members have applied for unemployment compensation, and the union is defending their claim on the basis that they went on strike to protest an unfair labor practice, said AFSCME council director Steve Mullen. The union has maintained that owner Stone Barn Holdings bargained in bad faith by implementing a new contract even though it was voted down by union members and while negotiations were still ongoing. …

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Opinion: Maggots, food shortages and contraband — this week in Michigan prison scandals

Source: Nancy Kaffer, Detroit Free Press, November 6, 2017
 
Maggots in the prison food. Again.  You know, I’m starting to think that a state government can’t outsource a service for $11 million less than it paid for in-house work and expect to deliver a quality product.   In three separate recent incidents, inmates at the G. Robert Cotton Correctional Facility near Jackson, found moldy food, crunchy dirt in mashed potatoes, and maggots or other foreign substances in or near food, provided by outside contractor Trinity Services Group of Florida per incident reports obtained by a state worker through the Freedom of Information Act and reported in Monday’s Detroit Free Press. That’s on top of reported food shortages, inadequate staffing, unapproved substitutions, a change to the way the company gets paid (from number of prisoners eating to just the number of prisoners) and 176 Trinity workers barred from prison premises for transgressions like smuggling drugs, contraband or overfamiliarity with prisoners. …

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Michigan’s prison food contract: A motive to serve yucky meals?
Source: Paul Egan, Detroit Free Press, October 31, 2017
 
Michigan’s prison food contractor — already hit with millions of dollars in fines for performance issues and facing controversy over employees smuggling drugs and having sex with inmates — may now have a financial incentive to serve lousy food.  That’s because Florida-based Trinity Services Group merged last summer with another big out-of-state company that sells packaged food to Michigan prisoners who can afford to stay away from the chow hall and buy food to eat in their cells.  A few months after that merger, the state agreed to change its prison food contract and start paying Trinity based on the total number of prisoners incarcerated, instead of the number who show up for meals, which was the previous basis for payment.  That’s bad news for Michigan prisoners, because Florida-based Trinity Services Group no longer has an incentive — and in fact has a disincentive — to serve food that prisoners want to eat, critics say. …

Michigan prison food woes drag on
Source: Michael Gerstein, Detroit News, May 10, 2017
 
Food problems continue to plague Michigan prisons in 2017 after Gov. Rick Snyder replaced a previous private vendor over similar issues, state documents show.  Inmates at the Upper Peninsula Kinross Correctional Facility picked through “maggot infested potatoes” to find still-intact spuds for prison meals, according to documents the Lansing-based liberal advocacy group Progress Michigan obtained from the Michigan Department of Corrections through an open records request. … The report shows that the potatoes were discovered less than two months before a costly riot broke out amid prisoners’ complaints about food quality.  “We have had food issues or prisoner complaints at a variety of our prisons. Kinross doesn’t stand out to me as being particularly worse off than any other facilities that have food service there,” said Chris Gautz, a spokesman for the Department of Corrections. …

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Senate Meal Supplier Not Banned From Contracts Over Pay Charge

Source: Ben Penn, Daily Labor Report, October 12, 2017 (Subscription required)

The Labor Department won’t ban a Senate cafeteria contractor from government business over charges it didn’t pay workers properly. The DOL settled the case with contractor Restaurant Associates by entering into a compliance agreement with the food service provider, a company spokesman told Bloomberg BNA. The settlement doesn’t include the harsher penalties that had been sought by the Obama administration. A DOL administrative law judge approved the settlement earlier this month, according to an order appearing on the agency website Oct. 12. The company and a DOL regional solicitor’s office agreed that instead of a debarment, Restaurant Associates would abstain from bidding on new federal service contracts for two years, the order states. …

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GAO: Architect of the Capitol’s Oversight of the Senate Food Service Contract
Source: William T. Woods, Government Accountability Office, GAO-17-481R: May 12, 2017

The Architect of the Capitol administers contracts to acquire goods and services for the U.S. Capitol complex. In 2015, questions arose regarding the wages for workers employed by the Senate’s food service contractor. We reviewed the AOC’s oversight of this contract and found that it had considered this contractor’s performance satisfactory in 2015, and extended its contract for another 7 years. However, after the wage issues were identified, the agency enhanced its oversight and required the contractor to provide data on wages paid to its employees.

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Feds Go After Concessions Company That Shorted Senate Workers $1 Million
Source: Dave Jamieson, Huffington Post, December 30, 2016

The Labor Department wants to bar a concessions company from receiving new federal contracts, after the company allegedly stiffed low-wage workers inside the U.S. Senate out of $1 million. In June, the department announced that Restaurant Associates, a subsidiary of the food service conglomerate Compass Group, would repay 674 Senate workers back wages after the company failed to pay employees the prevailing wage under federal law and didn’t compensate employees for all the hours they worked. Restaurant Associates has since paid back the workers. But the department went a step further on Thursday, filing a complaint requesting that the company be forbidden from receiving new contracts for a period of three years. The request will now go before an administrative law judge. If approved, it will only affect future contracts, not the current one at the Senate building, which runs through 2029, according to the Labor Department filing. … According to the Labor Department, Restaurant Associates misclassified workers by putting them in lower job categories, resulting in lower pay. The company said the misclassification was an honest mistake, resulting from “administrative technicalities related to [workers’] evolving day-to-day work responsibilities.” In a statement Friday, Restaurant Associates said it was “surprised and disappointed” that the Labor Department was seeking disbarment: “Restaurant Associates, which had no history of previous [prevailing wage] violations, fully cooperated in the investigation. The company immediately paid all back wages owed and made all changes to pay practices going forward as requested by DOL. … DOL’s decision is unprecedented in these circumstances.” …

US Capitol workers want their voices heard over wage theft
Source: Alba Morales, The Hill, September 20, 2016

Last month, the U.S. Department of Labor announced that U.S. Senate federal contract workers like me had been robbed of over $1 million dollars from our paychecks by our employer, Compass Group. DOL found that Compass had been paying us less than the legal rates for our jobs, had not being paying us proper overtime or even for all the hours we worked, and had not kept proper payroll records. Within weeks, some of my co-workers started receiving as much as $20,000 in back-pay awards. But I only received $240, with no explanation of how it was calculated. I’ve worked at the Senate for over a decade and I believe the company likely stole much more than a couple of hundred bucks from me. And I’m not alone. Over a dozen Senate contract workers received little or no compensation as wage theft victims. Worst of all, neither myself, nor any of these workers were contacted or interviewed by the Labor Department or the Architect of the Capitol, the agency that oversees the contract, as part of the investigation. … The truth is that this is a symptom of a bigger problem: Workers and our representatives have not been invited to participate in the investigation and settlement talks even though we exposed the illegal conduct and are directly impacted by the results. If this were a court case, the victims would have their say, but we are low-wage workers who can’t afford a private attorney. That’s why workers are sending a letter to the Architect of the Capitol and the Department of Labor to request that our voices are respected. For us, respect means a willingness to bring workers into the process. …

House and Senate Restaurants: Current Operations and Issues for Congress
Source: Sarah J. Eckman, Congressional Research Service, August 23, 2016

Those involved with restaurant administration in the House and Senate have often considered how management choices affect operating costs, services available, oversight, and other elements of the restaurant systems. For much of their histories, the House and Senate operated their own restaurants, but since 1994 in the House and since 2008 in the Senate, private vendors have run the restaurants. In August 2015, the House entered an agreement with Sodexo to operate the 17 facilities in the House restaurant system, subject to direction from the Chief Administrative Officer (CAO) and the Committee on House Administration. In December 2015, the Senate entered a new contract with Restaurant Associates to operate the 12 facilities in the Senate restaurant system, subject to direction from the Architect of the Capitol (AOC) and the Committee on Rules and Administration. … Food and price issues, along with other day-to-day operational issues, including personnel matters, are largely the responsibility of the restaurant contractors. Some Members and observers have raised concerns about the degree of accountability for the House and Senate restaurant contractors, believing that the restaurants’ administration reflects upon Congress and that the restaurants should set an example for other businesses to follow. Although the House and Senate are responsible for restaurant oversight, the delegation of restaurant operations to private contractors means the chambers have less control over employee wages and benefits, procurement, or other business decisions that affect the restaurant systems. …

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Senate Cafeteria Workers Will Receive $1 million in Backpay from Restaurant Associates
Source: Lauren Godles, On Labor, July 26, 2016

Today, the Department of Labor announced today that the Senate cafeteria workers who were illegally denied wages will receive $1 million dollars in backpay from Restaurant Associates (RA) and its subcontractor, Personnel Plus. The money will be split among 674 employees, though DOL did not specify how much particular individuals will receive. … In an official investigation, DOL’s Wage and Hour Division (WHD) concluded that RA misclassified the cafeteria workers, in violation of the Service Contract Act. RA was also found to have violated the FLSA. According to the Associated Press, the WHD is considering whether RA should be banned from future government contracts. …

Most Senate cafeteria workers were mistreated on wages, top Capitol official says
Source: Mike DeBonis, Washington Post, March 21, 2016

A majority of the roughly 90 blue-collar restaurant workers serving the U.S. Senate were improperly classified by their private employer, a top U.S. Capitol administrator told a congressional committee last week, putting them at risk of being underpaid and prompting a Labor Department inquiry into the matter. The workers employed by Restaurant Associates have sought higher wages for more than a year, and a December contract renegotiation appeared on its face to deliver better pay and benefits. But several workers said they were subsequently reclassified into new, lower-paying jobs, thus cheating them out of the raise they were expecting. … Ayers’s deputies then interviewed 86 of the cafeteria and restaurant employees. That inquiry determined that 35 employees were classified properly, said Laura Condeluci, a spokeswoman for Ayers; the other 51 were not. Restaurant Associates immediately reclassified 35 of the 51 misclassified workers and delivered back pay, leaving 16 in dispute, Ayers said. Half of those are being resolved through negotiations; the rest have been referred to the U.S. Department of Labor for resolution.

Senate Cooks Say Contractor Dodged Raises
Source: Rhonda Smith, Daily Labor Report, February 1, 2016 (Subscription Required)

The seven-year contract extension between Restaurant Associates and the AOC took effect Dec. 14. As a result, Restaurant Associates increased wage rates for about 80 percent of the 115 employees who work in Dirksen Senate Office Building eateries and in the Senate dining room. In the complaint, signed by attorney George W. Faraday, legal and policy director for Good Jobs Nation, the group said the minimum wage rates to which Compass Group employees at the Senate are legally entitled are established by the federal Service Contract Act for each occupational category. The letter notes that the new wage rates resulted in substantial wage increases for Compass workers classified in the lowest-paid SCA occupational categories, including cashiers, dishwashers and food-service workers. But the federal contractor downgraded various cooks to food-service worker positions, it added, which reduced their hourly wage rate. …

Senate Food Workers Allege ‘Raise Theft’
Source: Bridget Bowman, Roll Call, January 29, 2016

According to the complaint, congressional staff members were told at a Dec. 14 briefing that minimum wages for Level 1 cooks would be raised by $3.65, to $17.45 an hour, and Level 2 cooks would would receive a $5.70 increase to $19.50 an hour. But the complaint alleges several cooks were reclassified as a lower-tier “food service worker,” meaning their wages did not increase as expected. Under the new contract, food service workers’  minimum wage increased to $13.80 per hour. A labor organizer said so far they know of roughly a dozen workers who have had their classification downgraded, even though they still perform the duties of a cook.
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Council urges Univ. of Memphis to decline state outsourcing contract

Source: Michelle Corbet, Memphis Business Journal, September 20, 2017

With the University of Memphis’ next Board of Trustees meeting set for early October, members of the Memphis City Council are asking that the group think twice before opting into the state’s facilities management contract. It’s no secret the University of Memphis plans to opt into the state’s property management contract, said Councilman Martavius Jones, who sponsored a resolution Sept. 19 urging local universities and their administrators to do the opposite. In May, the State of Tennessee entered into a contract with Chicago-based JLL to privatize maintenance, security, janitorial and landscaping services for state-owned public colleges and universities. “Based on my experience on the school board, the quality of the service, the cleanliness and the general morale suffered [when outsourced],” said Jones, who served on the Memphis City Schools Board from 2006 to 2013. …

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Does Outsourcing Some State Jobs Save TN Taxpayers Money?
Source: Local Memphis, August 31, 2017
 
Many Tennessee lawmakers hope to see if outsourcing some state jobs actually saves taxpayers money. It’s been a controversial topic since Governor Bill Haslam began implementing the idea a few years ago.  Questions about outsourcing are always the same. Does it save money and is there accountability?  “There’s… people concerned about state jobs all over Tennessee,” said one protester.  Many state lawmakers have heard and seen the protests about the ongoing outsourcing of state jobs. That’s why a majority of legislators from both parties signed a letter of concern earlier this year to Governor Haslam. The Governor has defended outsourcing state jobs in some areas, especially on state college campuses. …

UT campus workers protest Gov. Haslam’s outsourcing plan
Source: WBIR, August 28, 2017

University of Tennessee Knoxville staff, faculty and students joined local business leaders, state representatives and faith leaders in a demonstration Monday to call on university officials to “opt-out” of Gov. Bill Haslam’s outsourcing plan. The demonstration was organized by United Campus Workers. Last week, a bill to introduce oversight in outsourcing was heard in summer study in the General Assembly. If the university were to “opt-in”, United Campus Workers believe as many as 10,000 facilities jobs, including hundreds in Knoxville, would be outsourced. Those who oppose the plan fear it will result in job loss, loss of oversight and accountability, reduced services and negative consequences for local businesses which provide services to campuses. …

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County may privatize library cafe

Source: CJ Baker, Powell Times, August 3, 2017

After years of subsidizing the Cody library’s cafe with thousands of taxpayer dollars, Park County leaders say it may be time to turn the Biblio Bistro over to a private business. …Over the coming year, the Bistro is projected to lose more than $49,500 — about the same amount it’s lost in the last several years. The consensus reached among the commissioners and library leaders on Tuesday was that the county and library system can no longer afford to subsidize the cafe to that degree. County officials decided to start drafting a request for proposals (RFP), in which private businesses would be invited to submit proposals on how they might use the Biblio Bistro’s space in the Cody library and how much they’d be willing to pay in rent. … Library officials and commissioners will discuss the RFP again at another work session.

School board rejects plan to privatize food services

Source: Christina Daly, Long Beach Herald, July 13, 2017

The Long Beach Board of Education voted 3-2 to reject a plan to privatize the school district’s lunch program that administrators said would have saved hundreds of thousands of dollars. At a contentious July 6 meeting, the board rejected a bid by Chartwells, a food- service company, to take over the district’s food operations and help fill a budget gap. School officials said the district lost about $400,000 in food services in each of the past two years due to a lack of student participation in the federally funded National School Lunch Program, which partially reimburses the district for lunches that the agency considers healthy. …

Warning: Trump Administration Wants To Privatize National Park Campsites

Source: James Jimenez, KRWG, July 8, 2017

… U.S. Interior Secretary Ryan Zinke recently announced that he wants to privatize our national park campsites. There are a lot of problems with this—primarily that prices will very likely be raised. Also, there is generally much less accountability when private companies run government programs. It becomes not only more difficult to determine just how our tax dollars are being spent, but there is also more room for subtle forms of discrimination to take place. By definition privatization means an economic focus on the use of public lands rather than a conservation and equity focus. Sec. Zinke’s desire to privatize public campgrounds is just one small symptom of a bigger illness that has this presidential administration in its grip—the illness of commodifying everything and anything that can, in any way, be made to profit someone. …

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As Trump moves to privatize America’s national parks, visitor costs may rise 
Source: Mary Catherine O’Connor, The Guardian, June 25, 2017 

America’s national parks need a staggering $11.5bn worth of overdue road and infrastructure repairs. But with the proposed National Park Service budget slashed by almost $400m, the Trump administration says it will turn to privatizing public park services to address those deferred maintenance costs. … But some public lands advocates are concerned that privatization would drive up costs for visitors and put the egalitarian nature of visiting a park out of reach for some. … If you’ve visited a national park, especially a busy one, such as Yosemite or Grand Canyon, there is a good chance you’ve patronized a private operator. Concessionaires operate a range of services including lodging, restaurants and transportation – ferries to Alcatraz and Liberty islands, for example. All told, the NPS has issued private concession contracts at 100 places within the park system. In recent years, disagreements over park contracts have led to costly lawsuits for the park service. … It would take a tremendous increase in such contracts to generate enough revenue to help the park system. … But despite his bullishness on infrastructure spending, Trump has proposed cutting the NPS budget by nearly $400m, which will force job cuts. …