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This letter is in further reference to your concems regarding your allegations of financial losses on a project sponsored by the New York City Transit Authority (NYCTA). I am aware that you have been in constant communication with Mr. Robert G. Owens, Director, Office of Civil Rights, Urban Mass Transportation Administration (UMTA), regarding this matter. As you are aware, he has been working with NYCTA to bring about a resolution of this matter.

The NYCTA has been asked to provide to UMTA a detailed report on this entire issue. After review of the report, we will be pleased to advise you of our determination. In the interim, please feel free to contact Mr. Owens at (202) 426-4018 if you have questions or require additional assistance.

Sincerely,

रिटल Robe sung

Ralph L. Stanley

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As you are aware, we have received a letter of complaint from
Ms.
Joan Pardini that her firm, the Glastek Corporation, Malverne,
New York, has not been paid for work performed on a project
sponsored by the New York City Transportation Authority (NYCTA).
We are fully aware of your diligent efforts to resolve

Ms. Pardini's concerns. It is not clear to us, however, that you have fully communicated to her the findings which serve as the basis for your conclusion.

In order that everyone may fully understand the NYCTA's position
in this matter, we ask that you expand on your letter of
November 27, 1985, to Ms. Pardini. In that letter you indicated
that the NYCTA had "fully investigated" the matter and that "our
findings do not provide a reasonable basis for taking further
action against the prime contractor (the Crescent Contracting
Corporation)." Please provide to us a further report on NYCTA's
findings leading to the conclusion that there is no basis for
taking action against the prime contractor.

We appreciate your cooperation and assistance. If you have
questions regarding this matter, please contact me at
(202) 426-4018.

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Secretary Dole has asked me to thank you for writing and respond to your letter concerning the Department of Transportation's (DOT) Disadvantaged and Women Business Enterprise (DBE/WBE) Program.

The Department is committed to ensuring that DBE/WBE firms are provided the maximum opportunity to compete for and perform federally funded contracts. Moreover, the Department works to ensure that DBES/WBES are treated in a fair and equitable manner during the performance of their contracts.

With regard to your specific concern relating to the New York City Transit Authority, I understand that you have been in contact with the former Urban Mass Transportation Administration (UMTA) Regional Administrator in New York, Mr. Richard Nasti. As you are aware, Mr. Nasti had written to the Transit Authority informing them of their obligation under 49 CFR Part 23, "to ensure that all obligations under contracts awarded to minority business enterprises are met." Subsequent to that letter, Mr. Nasti was informed by Dr. Beverly Grisby, Assistant Vice President for Affirmative Action, that the Transit Authority had commenced withholding payments from its prime contractor, Crescent Contracting, pending the release of progress payments to Glastek.

My latest information is that the Transit Authority will meet with Crescent Contracting in an effort to resolve this problem. I have directed the UMTA Regional Office to closely monitor the situation.

I appreciate your bringing this matter to our attention.

Sincerely,

Revishg

Ralph L. Stanley

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Following up on the issues raised in your testimony before the Subcommittee on Government Activities and Transportation, I have prepared additional questions. The responses are requested for inclusion in the record. As Chairwoman Collins announced at the hearing, responses are to be supplied to the Subcommittee (B-350 Rayburn House Office Building, Washington, DC 20515) within two weeks of receipt so that the record may be closed promptly.

Please restate the questions with your answers following to facilitate reprinting. Your cooperation in this regard is appreciated.

cc. Hon. Cardiss Collins

Enclosure

Sincerely yours,

Mer

MAJOR. OWENS

Member of Congress

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You stated that small businesses might be overburdened if they had to enter into conditional contracts with the prime contractor to be submitted with the bid. However, disadvantaged businesses complain that their name is used and that they never hear from the prime

contractor again. happening?

What would you suggest to keep this from

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