A company banned from public road-building recently completed a job at Whittier School in Downers Grove after coming in as the lowest bidder for a playground project.

Orange Crush won the bidding contract by a unanimous vote from the Downers Grove Grade School District 58 Board of Education July 13 for $137,000. It was noted in the meeting that the company’s bid came in much lower than estimated.

Palumbo Brothers Inc., which owns Orange Crush and Monarch Asphalt, pleaded guilty to racketeering charges in 1999.

The company was found to have taken part of criminal activities during a period of 23 years from 1973 to 1996.

A phone call to the company was not returned before press time.

According to the National Highway Institute, from 1985 to 1996, Palumbo and its subsidiaries “submitted false bills and invoiced for work not performed and construction materials not used on 60 Chicago area projects.”

Peter Palumbo and his two sons pled guilty in 1999 to the fraud charges and agreed to pay $15 million in fines and restitution — and to be banned from public road-building work for life.

Doug Hecox, spokesman for the Federal Highway Administration, said Orange Crush is no longer on the Excluded Party List, which ended in 1999. The company is only excluded from bidding on federal contracts.

“It doesn’t mean they can’t compete at state level or county level,” Hecox said.
District 58 Superintendent Paul Zaander said Orange Crush was the lowest bidder.

“Our architect did a background check and decided they were qualified,” Zaander said, adding the company has had $55 million in projects and has worked with more than 70 municipalities.
Zaander said that legally, the district has to accept the lowest, qualified bidder.

Lorie Pilster, director of business services for District 58, said the School Board has the right to refuse a contract, but it has to be justified.

“There was no real reason to talk about rejecting this bid,” Pilster said.

The company’s bad business practices happened more than 10 years ago, so it would not warrant a board discussion. Pilster said. The job has been completed to the district’s satisfaction , according to school officials.