Ceres Environmental Services, Inc. Ceres Caribe Inc. RFP # 18-02 (CERES ENVIRONMENTAL SERVICES, Inc. & CERES CARIBE, INC has not paid its Subs) San Juan

In reference to Request for Proposal (RFP)# 18-02 awarded in part to CERES Environment Services by the Department of Transportation of Puerto Rico (DTOP) on November 8, 2017, and reimbursable by FEMA; I would like to inform that the prime contractor (CERES) has not paid its subcontractors in accordance to contract terms and therefore, is in non compliances with the contract terms.    I please request that this information is foward to the corresponding contract administrator and proper enforcement is given to this matter.   

I also request that the contact info for the administrative contracting officer (ACO) for both DTOP and FEMA is provided.   I am a 2nd-tier  Sucontractor who has not been paid for work performed and invoices under this contract where CERES is the prime contractor.    Like my self, there are many other subcontractors which have not been paid.   In accordance with the contract and as required by FEMA federal regulation. The contract requires the prime contractor to have the financial capability to pay its subcontractors "unconditionally once a week" Furthermore, the federal acquisitions regulations requires the Prime to report reduced payments to the subs which has been the situation in this contract for several weeks.
 

1. Article 22 (page 8) of the contract states (attached) states that: (a) Contractor shall pay..., unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account, the full amounts accrued at time of payment, computed at wage rates not less than those stated in the advertised specifications, regardless of any contractual relationship which may be alleged to existing between the PROJECT MANAGER or subcontractor and such laborers and mechanics. CERES has been paying reduced payments of 10% or 20% of the amount owed. CERES currently owes it's subs 70% of week 6, 100% of weeks 7, 8 and 9  The contract ended on March 23rd.   2. FAR 52.242-5(b) (Payments to Small Business Subcontractors)  states that: The Contractor shall notify the Contracting Officer, in writing, not later than 14 days after--

• (1) A small business subcontractor was entitled to payment under the terms and conditions of the subcontract; and

  (2) The Contractor--

• • (i) Made a reduced or untimely payment to the small business subcontractor; or

    (ii) Failed to make a payment, which is now untimely

After the contract ended on March 23rd the contractor has been slow to pay by paying only a 10% of one week with no justified explination.   In summary, I ask that proper action is taken to ensure compliance with the contract terms. I ask to stay anonymous in order to avoid any retaliation.    If I don't get a response with actions that will be taken by your agency to resolve this matter, I have no other choice than reporting the non compliance to FEMA, OIG or (and) the press.   References: CERES contract with DTOP http://www.dtop.gov.pr/avisos_subastas.asp?cnt_id=2252
  FAR regulation http://farsite.hill.af.mil/vmfara.htm