- The Washington Times - Monday, July 5, 2010

The majority partner of the company running the D.C. Lottery had boasted on its corporate website of general contracting experience from federal jobs it did not perform for government clients who had never heard of it, according to a review by The Washington Times.

The claims, which make up virtually the entire construction-services profile posted on the website of Veterans Services Corp. (VSC), raise questions about the background and capability of the firm, which has a 51 percent interest in a joint venture with international gaming giant Intralot.

“Never heard of ‘em,” said Bob Humphreys, a project manager for the National Park Service (NPS), when asked about VSC, which listed him as the point of contact for a $13.5 million mechanical contract.

“No, I haven’t heard of them,” said Tim Grau, operations manager for Emcor Group Inc., general contractor for the General Services Administration (GSA), on the excavation of a steam tunnel at the U.S. Treasury Building, which also was listed among VSC’s general-contracting projects.

Bill Line, an NPS spokesman, also said he had not heard of VSC, which listed as another of its prior contracts an irrigation project on the north and south grounds of the White House in excess of $2 million.

In all, the construction-services profile on VSC’s website listed 16 prior general contracting or landscaping and irrigation projects at major government facilities or sites, including the FBI headquarters and the Ellipse. A dozen of those projects were completed before the company was formed in June 2009, according to the profile. Much of the work was done by different firms for which VSC executives also serve in an executive capacity.

Little information about VSC is on file with the D.C. Council or the Office of the Chief Financial Officer, which oversees the contract — despite a previous round of bidding during which Intralot’s first lottery partner was heavily scrutinized.

Last week, D.C. Attorney General Peter J. Nickles said he is looking into why the D.C. Council has no information on file about VSC.

The council voted 9-1 in December to approve the $38 million award that paved the way for Intralot’s joint venture with VSC, a local company formed in June 2009 by businessman Emmanuel S. Bailey. Mr. Bailey is the chief executive officer of that joint venture, DC09 LLC.

Mr. Bailey declined to answer written questions submitted to his attorney or to comment for this article.

VSC’s capability statement, filed Aug. 7 with the D.C. Department of Small and Local Business Development, described the company as specialists in “strategic planning, financial and accounting, and business management services” to “for-profit and non-profit clients.”

That statement does not identify any clients.

The construction-services profile on the VSC website was a more in-depth document that detailed16 “representative past projects.” The profile said VSC has won millions of dollars’ worth of contract awards or task orders from federal agencies and offices.

But USAspending.gov, a government website that allows the public to track federal contract awards, has no projects listed for VSC.

An NPS project to replace the main gate at Wolf Trap Foundation for the Performing Arts, among several others listed on VSC’s profile, was completed by a Maryland company called Marco Enterprises Inc., according to Ron Bailey, branch chief for the NPS in Denver, who said he had never heard of VSC.

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