WI contractor fined $3M for sidestepping 'Buy America' requirements

Dive Brief:

A Wisconsin contractor, Novum Structures, LLC, has agreed to pay $3 million to settle lawsuits that claim the company bought materials manufactured in China and Italy on government projects with "Buy America" provisions, according to the Milwaukee Business Journal.
Novum, which specializes in steel and glass frames for atriums and roofs, will be banned from working on federally funded projects. The company pleaded guilty to both criminal and civil charges.
The U.S. Department of Justice alleged that Novum used foreign-made materials on projects in New Orleans, Rockford, IL, and elsewhere, but repackaged them and falsified documents to make them look American-made, the Business Journal reported. If contractors bound to Buy America contracts want to buy foreign materials, they must obtain a waiver.

Dive Insight:

The civil case against Novum was initiated by whistleblower Brenda King, a former employee. King, who will receive $400,000 of the settlement money, said executives told her that project managers were required to lie if caught violating the Buy America regulations, according to the Business Journal. She said she was also asked to falsify records and saw employees repackaging foreign materials to look American-made.

Novum Vice President of Global Finance & US Operations Travis Loften said in a statement, "As is made clear by the settlement, we take this matter very seriously and accept full responsibility for our actions. We have also improved our internal procedures to ensure Novum will fully comply with contractual requirements going forward."

Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division, said, "When taxpayer dollars are provided for construction projects, the government expects contractors to comply with all requirements, including ones that ensure the money remains in the U.S. economy."

In April of last year, Senators Jeff Merkley of Oregon and Tammy Baldwin of Wisconsin introduced legislation that would extend Buy America standards to include all major U.S. Department of Transportation construction and Federal Aviation Administration transit projects, but the bill is currently still in committee.