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Department of Administration Terminates Contracts With Falcom Maintenance and Tri-State Enterprises

The Department of Administration announced today all the Executive Office state contracts with Falcon Maintenance and Tri-State Enterprises will be terminated, effective 11:59 PM, July 25, 2008.

Commenting on the action, Governor Carcieri stated, “This should send a clear message to all companies who are doing business with the State. We will not tolerate non-compliance of state and federal laws and we will not tolerate companies who violate the terms of their contract.”

Following last week’s operation, where 31 individuals employed by Falcon and Tri-State were detained by the U. S. Immigration and Customs Enforcement (ICE) office for allegedly violating federal immigration laws, the Department of Administration immediately conducted an internal review of the current contracts between the State of Rhode Island and the two companies to ensure compliance with all state and federal laws, and that contract service levels were being met.

The initial findings of the review uncovered that Falcon Management did not complete the I-9 forms for all employees, as required by federal law. In addition, Falcon Management did not provide additional documentation requested by the Department including certificate of insurance, Memorandum of Understanding between the company and E-Verify, a complete list of all employees working under the state contracts, and payroll records, in addition to the arrest of several employees by ICE.

An internal review of Tri-State Enterprises and its contract with the state has resulted in an incomplete response to the Department’s request for copies of employee identification, the company’s certificate of insurance for liability and workers’ compensation and a copy of the Memorandum of Understanding between Tri-State and E-Verify, in addition to the arrest of several employees by ICE.

The Department of Administration has initiated an emergency procurement process for janitorial services for those building previously serviced by Falcon and Tri-State, with new contracts expected to be in place by August 12, 2008, for a term of 90 days, allowing the Department to conduct a full bid process for services. In the interim, each agency will manage janitorial needs separately.

“We are working with the different agencies to do everything we can to keep these building maintained during this time,” said Jerome Williams, Director of the Department of Administration.

In addition, the Governor has directed the Department of Administration to continue to mandate that vendors comply with Federal and State laws and expand audit procedures to ensure this compliance.

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