ORGANIZED INFLUENCE - ALVITI: The Keys to the Scheme
Tuesday, February 20, 2024
Today, GoLocal publishes the second installment in the series Organized Influence, an in-depth investigation in which we track how billions of dollars of public monies are spent and how the process, as many told us, is manipulated to the detriment of Rhode Island’s transportation system and the state's economy.
The Washington Bridge closure is the outcome of the broken Rhode Island Department of Transportation (RIDOT), and GoLocal unveils the decade-long transformation. According to dozens of interviews, sources, and months of research, what is revealed is the failed system is due to a series of factors all wrapped around the placement of Peter Alviti as Director of RIDOT.
For the second time in less than four years, the U.S. Department of Justice is investigating RIDOT projects.
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Over the past decade, four transformations in Rhode Island's multi-billion road and bridge building program have impacted the state.
The components of the scheme are:
1) The appointment of former Laborers' International staffer Alviti to serve as RIDOT director.
2) Awarding contracts, not to the lowest bidder, but directed instead to the "winner" of the "design-build" process.
3) Under Alviti, many of Rhode Island's largest RIDOT contracts have gone to Massachusetts-based contractor Barletta Heavy Division — now under indictment by Rhode Island Attorney General Peter Neronha's office.
4) Barletta has a labor-management agreement with the Laborers' International union — which has shifted work from other unions, according to multiple industry leaders.
Laborers' Get Their Man
Prior to the appointment of Alviti, RIDOT awarded contracts, all things being equal, to the lowest bidder.
It all changed when Alviti was named Director of RIDOT in 2015 by newly elected Governor Gina Raimondo. Raimondo had a union problem and barely won the Democratic primary and the governorship. She won the Democratic primary with just 42% of the vote and the general election with just 40% of the vote — both three-way battles.
Raimondo had infuriated state workers and public school teachers by freezing their COLAs as part of her pension reform program.
Her pension reform was selective.
But Raimondo had a couple of strong union friends: Armand Sabitoni — the then-General Secretary-Treasurer of the Laborers’ International, and his cousin Michael Sabitoni. While Armand Sabitoni was a national leader — the number two man in the union in the U.S. and Canada, Michael Sabitoni was the “local guy.”
According to those with direct knowledge who were interviewed for the series of stories — the Sabitonis wanted their man to head RIDOT.
That was Alviti.
Raimondo admitted to the Providence Journal in February 2015 that the Sabitonis helped direct the process:
"I consulted with Michael, the transition team and business leaders, labor leaders...to find the best person I could," she responded, in an apparent reference to Michael Sabitoni, the president of the Rhode Island Building and Construction Trades Council and business manager of the Rhode Island Laborers District Council who served on her transition team. Michael and Armand Sabitoni are cousins.
"I think he may have been in some interviews," she added. “I had a number of people do our interviews.”
Asked by The Journal whether either Sabitoni had taken part in interviewing current DOT director Michael P. Lewis to determine whether he would be reappointed, a Raimondo spokeswoman said: "Both."
Asked about "‘Armand’s input,’’ Raimondo said: “He was very helpful. He has a lot of expertise in this area."
“I don’t want to speak for him, but I think he shares my frustration with some of the inefficiencies around DOT...we need to be getting more bang for our buck in terms of the higher quality of roads for the money we spend...so he was helpful. Many people were helpful.”
The confusion did not surface until after Raimondo had returned to her office, after leading an unrelated news conference on the economic challenges facing the state. At that point, her key media aides promised to try to clarify which of the Sabitoni cousins, who loom large in Rhode Island’s unionized construction trade, had a hand in interviewing candidates to head DOT.
Alviti came to the position from a mid-level position at the Laborers. He served under the Sabitonis for more than 15 years.
Functionally, Alviti had no experience in running a transportation department. Prior to the Laborers' position, Alviti was the public works director in Cranston.
But those powerful supporters backed him, and then, Alviti had discretion over how billions of dollars were spent. Part I of this series, ORGANIZED INFLUENCE: Governor McKee and Armand Sabitoni’s Special Relationship.
“Design-Build" Raises Questions
Prior to Alviti taking over the control of RIDOT, projects were first designed by one firm, then they were bid for construction — a second firm.
The winning construction firm was selected based — all things being equal — on price, and lowest price won.
Under the “design-build” process, a single contractor or group of firms together bid for both designs and then build the project under one contract. One of the benefits of the "design-build" was supposed to be far fewer change orders, but that has not always proven to be true.
As an example, 6/10 was awarded to a consortium of companies led by Barletta Heavy Division.
In an interview with the late Bill Rappleye in 2017, Alviti said, "Two teams bid on the job, and the one selected had both the lowest price by $82 million and the best technical score. So I got the best of both worlds out of this competition."
But despite the promises of "design-build" saving money and limiting change orders, the 6/10 project has had tens of millions in change orders. The final numbers are yet to be reported.
In 2022, GoLocal secured nearly 80 pages of documents that showed that in the 6/10 construction project, the contractor submitted and received approval for more than $21 million in change orders from the beginning of the project through August 2021.
And, in other cases, the lowest bidder never had a chance. Under Alviti, some jobs went to the highest bidder. A RIDOT project on Route 146 was budgeted by the staff of RIDOT to cost $120 million. The winning bidder, Skanska and JH Lynch, won the bid at $167 million— nearly 40% higher than the state’s estimate and their bid was the highest of the three companies submitting bids.
According to two individuals who have direct knowledge, Alviti entered project review meetings and directed staff on the weighting of the technical scores.
After the U.S. Department of Justice secured a non-prosecution agreement with Barletta and a $1.5 million payment and a top longstanding supervisor, Dennis Ferreira, pled guilty to multiple charges, WPRO radio host Gene Valicenti questioned Alviti about the actions of the company in October of 2022.
"Let's move to this 6/10 connector and the dirty dirt, the contaminated dirt that was shipped in by the developer, turns out these reports were right, the stuff was bad, it was contaminated. He used it, he lied about it, is this guy ever going to work on another Rhode Island project again, I understand he's still up there?" asked Valicenti.
But Alviti defended Barletta despite the federal actions, an ongoing state criminal investigation, and tens of millions of cost overruns.
Alviti said, "Well, in terms of the work that they're doing, they are doing a good job in terms of the construction of the project it's on time, it's on budget, and the quality of the workmanship is good."
None of Alviti's statements were true.
Charges of Laborers' Benefiting Under Alviti's Reign
With Alviti at the helm, the Laborers got more work — a lot more work— to the detriment of other unions, according to multiple labor and construction leaders. Not only was the pie getting bigger because Raimondo's new transportation funding source, RhodeWorks, was pumping more money into road and bridge construction, but the Laborers' slice of the pie was getting bigger.
Stephen A. Cardi, Sr., the top executive at Cardi Corp for 50 years, tells GoLocal that under Alviti, "Laborers displaced the Teamsters for certain work. The Laborers signed up Barletta, and their work and the type of work increased."
In September 2020, the boss of the Rhode Island Teamsters, Matt Taibi, could not take it anymore. He believed his union was getting screwed out of millions of dollars of work — work that he thought should have been going to the Teamsters was going to Laborers' International.
In a letter to fellow members of the Rhode Island Building Trades — the umbrella group for many construction unions — Taibi announced the Teamsters quit.
"Due to continued jurisdictional encroachment by the Laborers on Teamster work, particularly with the exclusive relationship of the Laborers with Barletta Engineering, and the unwillingness and/or inability of the RI Building Trades Council to address jurisdictional disputes; Teamsters Local 251 sees no further need or use to be part of such an organization," Taibi wrote in his letter.
Barletta, the Canton-based construction company, had gobbled up RIDOT contracts like Pac-Man. SEE THE LIST OF BARLETTA PROJECTS BELOW
Taibi is not the only union leader to call out the growing influence of the Laborers since Alviti took over RIDOT.
James White, the president of Local 57 of the International Union of Operating Engineers, told GoLocal how under Alviti the Laborers' influence has grown.
“For over 100 years, the Operating Engineers, Local 57, have operated the heavy equipment used to build Rhode Island’s roads and bridges. In recent years, RIDOT has awarded major projects to contractors who have begun assigning the traditional work of the Operating Engineers to other crafts," said White.
"The practice of assigning work to folks that don’t possess the experience nor the expertise causes disharmony on the job site and disharmony amongst the unions. Safety of the construction workers and the general public comes into play when inexperienced people jump on equipment and 'learn as they go,'" added White.
"Coincidentally, this unsafe way of reassigning work on Rhode Island projects has certainly ramped up during Director Alviti’s tenure," said White.
With powerful friends, Alviti has had a history of coverups and bullying. At one public hearing, Alviti berated an elderly man, complaining that public input on the 6/10 project was being ignored.
Barletta Lands Four Major Projects Under Alviti's RIDOT Leadership
Barletta, the Massachusetts-based contractor, has won many of Rhode Island’s largest RIDOT projects since Alviti became RIDOT’s director.
The Canton-based company did little work for the RIDOT before Alviti. Barletta is the lead contractor on four major projects — the total project costs exceed more than $600 million combined.
Barletta Lead Contractor
Total Projected Cost: $410 Million
Contaminated soil was dumped on a portion of the 6/10 site by Barletta in the Olneyville neighborhood adjacent to homes and businesses. The U.S. Department of Justice signed a non-prosecution agreement with Barletta. The company paid $1.5 million. Barletta’s project supervisor, Dennis Ferreira, pled guilty to multiple federal charges. Barletta is presently under state indictment, as is Ferreira. The project has also incurred tens of millions in cost overruns.
Henderson Bridge No. 600 & Henderson Expressway
Barletta Lead Contractor
The total cost for this project is $84.4 million.
Barletta Lead Contractor
Total Projected Cost: $78 Million
The westbound Washington bridge failed forcing its closure.
The bridge’s failure is now under investigation by the U.S. Department of Justice and the Inspector General’s Office of the U.S. Department of Transportation.
McKee defends using Barletta to do emergency repair work while the company is under state indictment.
Search warrant issued to conduct an investigation at Pawtucket-Central Falls project. PHOTO: GoLocal
Barletta Lead Contractor
Total Projected Cost: $63 Million
Contaminated soil was taken from the Pawtucket site by Barletta construction and dumped in the Olneyville neighborhood adjacent to homes and businesses. This violation was cited in the U.S. Department of Justice’s Non-prosecution agreement with Barletta. Barletta’s project supervisor, Dennis Ferreira, pled guilty to multiple federal charges. Barletta is presently under state indictment, as is Ferreira.
Barletta Won, Cardi Closed
While Barletta won projects under Alviti, some Rhode Island companies were big losers. As an example, Cardi Corporation, the Rhode Island-based 4th-generation construction company, is now defunct. Ten years ago, the company employed more than 550 Rhode Islanders.
Over the past year, the company has been sold off.
COMING NEXT WEEK: ORGANIZED INFLUENCE, PART THREE
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