Federal prosecutors have accused a transportation parts supplier and its owner of participating in a years-long bid-rigging scheme involving SEPTA contracts, according to documents obtained by the NBC10 Investigators.<\/p>\n
Prosecutors charged Hatfield-based Qual-Tran Products Company LLC with violating federal antitrust laws, alleging the company conspired with competitors and others to manipulate SEPTA’s bidding process between March 2016 and November 2024.<\/p>\n
According to documents, Qual-Tran supplied transportation parts to transit agencies across the country, including SEPTA. <\/p>\n
Prosecutors allege the company participated in a conspiracy to restrain trade by rigging bids on SEPTA contracts.<\/p>\n
SEPTA’s procurement process is designed to promote competition and secure the best prices for taxpayers when purchasing parts and equipment for buses, trains and rail systems, prosecutors said. <\/p>\n
The filing alleges the scheme undermined that process by creating the appearance of competition while predetermining contract winners.<\/p>\n
Court records identify Cathleen Shive, who joined Qual-Tran in 2011 and became its president and owner in 2024. <\/p>\n
Prosecutors allege Shive and others coordinated with competing vendors and a SEPTA senior resource controller identified in court records only as “Person #1.” <\/p>\n
A representative for SEPTA told NBC10 that the employee is no longer with the agency.<\/p>\n
Federal prosecutors allege Qual-Tran and its co-conspirators coordinated bids before SEPTA solicitations closed. <\/p>\n
In some cases, competing vendors allegedly submitted intentionally losing bids to ensure a predetermined company won the contract, according to the filing.<\/p>\n
In one example, prosecutors allege Qual-Tran submitted both its own bid and a second bid that falsely appeared to come from another company. <\/p>\n
Prosecutors claim both submissions originated from the same internet address linked to individuals associated with Qual-Tran, including Shive.<\/p>\n
In another instance, prosecutors allege a SEPTA employee alerted Qual-Tran to a solicitation and wrote that \u201ctwo or three quotes would be perfect.\u201d <\/p>\n
According to court records, a competing company was then directed to submit a bid at a specific price above Qual-Tran’s, helping Qual-Tran secure the contract.<\/p>\n
Prosecutors further allege that in 2023, a SEPTA insider helped arrange for another supplier to submit a losing bid and instructed the company on what price to quote. <\/p>\n
Court records state the supplier was later told to provide a false explanation if questions arose about the bid.<\/p>\n
The alleged scheme involved SEPTA contracts that received federal funding, prosecutors said. <\/p>\n
The Justice Department did not respond to NBC10’s questions about the estimated dollar amount involved.<\/p>\n
The U.S. Attorney’s Office for the Eastern District of Pennsylvania declined to comment.<\/p>\n
SEPTA declined further comment. Qual-Tran did not respond to requests for comment. <\/p>\n
As of Tuesday, July 28 attorneys for Qual-Tran and Shive were not listed in federal court records.<\/p>\n
Qual-Tran and Shive are charged with one count of conspiracy to restrain trade. No hearing had been scheduled as of Tuesday.<\/p>\n