The Boston Herald reports on yet another TSA worker being implicated in an illegal scheme to use agency authority for personal benefit. Instead of the more mundane activities employed by TSA workers such as smuggling drugs or stealing from bags, this worker decided to take a creative and more profitable path to personal gain using her position as a TSA employee. In doing so, she has also implicated a large multinational transit company, Keolis in a scheme to use a Disadvantaged Business Enterprise (DBE) status to gain a 41.8 million public contract

A keolis competitor, Massachusetts Bay Commuter Railroad (MBCR) argues that Madigan’s full-time federal job renders her company “ineligible” to be certified as minority-owned under state rules.

“This matter is of immediate and significant importance to the Commonwealth of Massachusetts because it involves the integrity of the state’s DBE certification and compliance program,” wrote Ronald Hartman, on behalf of MBCR in a letter to Administration and Finance Secretary Glen Shor.

TSA reviewing employee’s ties to Keolis
Friday, March 28, 2014
By: Chris Cassidy

The TSA is looking into one of its inspectors, whose side company — a rail safety consulting firm — is listed as a minority contractor by French transit giant Keolis in its winning bid to run the state’s commuter rail system.

Transit Safety Management of Georgetown was in line to land a three-year, 
$1.8 million subcontract as a so-called Disadvantaged Business Enterprise from Keolis, according to its filings with the MBTA.

Susan Madigan, TSM’s president, is also a full-time, $113,390-a-year surface transportation security inspector with the Transportation Security Administration, according to TSA spokeswoman Ann Davis.

Among Madigan’s TSA duties is regulating freight and passenger rail carriers, and she covers areas served by the Massachusetts commuter rail system, according to Davis.

Davis said the agency has known for several years that Madigan owned TSM, but was unaware of her dealings with Keolis until about a month ago. Madigan has since been transferred to cargo inspection pending the TSA review, Davis said.

She said the agency “is currently looking into the matter. Based on what our review discloses, TSA will take appropriate action.”

Madigan, reached via phone Wednesday after several attempts over the past two weeks, declined to comment.
The TSA review comes as losing rail bidder Massachusetts Bay Commuter Railroad filed a formal request with the state, asserting that TSM is improperly certified as a minority-owned business. Keolis listed TSM as a Disadvantaged Business Enterprise (DBE) in its bid to meet the MBTA’s 15 percent minority contractor requirement.

MBCR argues that Madigan’s full-time federal job renders her company “ineligible” to be certified as minority-owned under state rules.

“This matter is of immediate and significant importance to the Commonwealth of Massachusetts because it involves the integrity of the state’s DBE certification and compliance program,” wrote Ronald Hartman, on behalf of MBCR in a letter to Administration and Finance Secretary Glen Shor.

Shor’s office told the Herald that an “investigation immediately commenced.”

“Whenever a potential eligibility issue is brought to our attention, we have an obligation to review the matter and will do so in this instance,” Shor said in a statement. “Upon completion of our review, the Supplier Diversity Office will determine what, if any, action is necessary.”

Madigan’s husband, Jim Stoetzel, was also hired by Keolis and is listed in its August 2013 management proposal to run the state’s commuter rail operation.

Stoetzel did not return multiple calls from a Herald reporter, and a Keolis spokesman said Stoetzel declined to comment.

Keolis spokesman Alan Eisner said TSM is still under consideration for the 
$1.8 million contract, as long as it qualifies as a state DBE: “Keolis expects all of its subcontractors to be in full compliance with all applicable state and federal certifications and requirements. Any violation … is cause for dismissal.”

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