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Rail News: Federal Legislation & Regulation

Amtrak OIG investigation leads to settlement in alleged bid rigging


The U.S. Attorney's Office of the Eastern District of Pennsylvania reached a $466,500 settlement this week with a Michigan-based electric company and two construction firms after an Amtrak Office of Inspector General (OIG) investigation uncovered alleged bid rigging and inflated invoices for work performed at Amtrak locations.

Tooles Contracting Group LLC, Commercial Contracting Corp., G&B Electric Inc. and G&B President James Gierlach agreed to pay the settlement to resolve allegations that Gierlach, G&B Electric and Tooles engaged in bid rigging and inflating invoices for work performed for Amtrak, according to an OIG press release.

The work was performed as part of projects to increase accessibility at Amtrak stations in Hammond, Louisiana; Beaumont and Alpine, Texas; and Little Rock, Arkansas, according to the U.S. Attorney's Office of the Eastern District of Pennsylvania, which handled the case.

"We're proud of the tenacity displayed by our investigative staff and the U.S. Attorney's office, a team effort that helped bring this complex case to its resolution," said Amtrak Inspector General Kevin Winters.