Baltimore-based roofing company violated county policies, OIG report finds
BALTIMORE -- A Baltimore-based roofing company knowingly violated the county's Minority Business Enterprise (MBE) policies during an $879,000 roof replacement project at a police precinct, according to a report from the Baltimore County Office of the Inspector General (OIG).
At the time, the company was already being investigated for two prior MBE violations, the report said. One of those investigations was conducted by the Baltimore City Office of the Inspector General in 2022.
Baltimore County's MBE policies ensure that socially and economically disadvantaged small business owners are included in the state's procurement and contracting opportunities, according to the state.
According to the county OIG, a 2023 report detailed that the company engaged in fraudulent activities after it was awarded a $1 million contract in November 2018 to replace the roof of the county's Public Safety Building in Towson. The fraudulent activity related to the company's subcontracting arrangement with a company that was a certified MBE.
In an internal report to the county, the OIG raised concerns about awarding another contract to the company while it was still under investigation for fraudulent activities.
Latest investigation
In January 2024, the OIG received a complaint about a contractor violating labor laws while working on county projects. The contractor was quickly identified as a company that likely engaged in similar labor law violations, prompting another investigation in February 2024.
At that time, the company was still involved in the roof replacement project at the Woodlawn police precinct.
The OIG determined the company may have violated certain labor laws and undoubtedly violated the MBE requirements of the Woodlawn project, following an investigation that included witness interviews.
The inspector general will refer the potential labor law violations to another agency that specializes in those matters, according to the report.
The OIG's report detailed several interviews they conducted and documents they reviewed during the investigation which ultimately determined the company knowingly violated the county's MBE policies.
During the Woodlawn project, the company arranged to have the demolition work performed by a subcontractor who was not certified MBE, according to the report.
The report said the company facilitated the transfer of work despite telling the county in multiple documents that it would be performing the work itself. The investigation did not find any evidence that the company notified the county of its intention to alter the MBE plan.
According to the county OIG, the city sued the contractor following its 2022 investigation and requested monetary damages. That lawsuit is ongoing.
In a December 2024 letter sent to former Baltimore County Executive Johnny Olszewski, the OIG recommended that the county disbar the company and move to request financial penalties.
In his response, Olszewski said the county would remove the company from the prequalification list, withhold $42,950 associated with the Woodlawn project, and inform the company it is being suspended from the county's procurement program.
