Benchmark Construction, a longtime city contractor, allegedly lied to get water and sewer deals from City Hall by saying it's based in Chicago — and, as a punishment, City Hall’s inspector general proposed banning the company from ever again getting another city contract.For some companies, such debarment can be a death knell. Benchmark, which actually is based in the suburbs, has been involved in $1 billion in city infrastructure projects since 2002, records show.But rather than accept the proposed penalty from City Hall Inspector General Deborah Witzburg, Mayor Brandon Johnson’s new procurement chief, Sharla D. Roberts, gave Benchmark a big break — reaching a settlement on Sept. 25 that allows the company to keep getting city contracts.As part of the settlement, Benchmark’s president, Mark Atkins Sr., agreed to retire — leaving Mark Atkins Jr., his son, in charge of the company that has been involved in 93 city construction projects dating to the tenure of Mayor Richard M. Daley.Benchmark also agreed to pay the city $100,000 to help the city's Department of Procurement Services support and promote businesses owned and operated by minorities and/or women.And the company will now hire an auditor and an attorney to provide advice on submitting bid packages to City Hall. Under the settlement, Benchmark denied "that it violated the DPS Debarment Rules." Originally founded by construction magnate Michael P. Vondra, Benchmark specializes in installation and repairs of water and sewer pipes. Benchmark Construction’s Mark Atkins Sr., who is leaving the company as part of a settlement with City Hall.benchmarkconstruction.net The company “shall not identify itself as a city-based business'’ when bidding on city contracts during the next two years, according to the eight-page settlement agreement.Benchmark had claimed on five sewer contracts awarded by Mayors Rahm Emanuel and Lori Lightfoot that it was a Chicago-based company, allowing it to have a competitive edge of at least 4% on those contracts.But city records show that most of the employees were assigned to Benchmark’s office in Bartlett.“The contractor made these misrepresentations to obtain a bidding advantage on infrastructure contracts of significant value — specifically, the contractor was awarded all five contracts, which were collectively valued over $50 million,” the inspector general wrote in a report. Related Company once accused of being minority front gets $407M more Witzburg accused the company of “making false statements to obtain a bid ... using false statements to obtain some benefit ... falsely claiming to be eligible for the Chicago Business Preference.”Ryan Gage, the mayor's procurement department spokesman, defended the handling of Benchmark, saying the chief procurement officer is allowed to reach settlement agreements to resolve debarment proceedings, "which is not unprecedented in instances where vendors are open to corrective actions that address underlying conduct. "Initial debarment proceedings were started under the previous CPO and continued under the current administration," Gage said. "The vendor negotiated in good faith with DPS and agreed to take corrective actions that addressed the offending behavior and will safeguard against future violations. This ensures that the vendor will be accountable as a good partner to the city going forward." Chicago Inspector General Deborah Witzburg.Jim Vondruska / For the Sun-Times Benchmark attorney Mara Georges, who was City Hall’s top lawyer under Daley, said, “We decided it was in Benchmark’s best interest to settle this.”While the inspector general was investigating Benchmark, Johnson’s administration awarded the company three contracts to replace lead pipes that provide water to Chicago homeowners. Each of those contracts could be worth as much as $39 million, according to the city.One of the City Council’s champions of lead pipe replacement, 36th Ward Ald. Gilbert Villegas, has gotten more than $10,000 in campaign contributions from the company in recent years. The business and its executives have given more than $500,000 over the last three decades to political candidates including some current City Council members and Cook County Board President Toni Preckwinkle. Related Ex-Daley operative Victor Reyes once again in the midst of a big political storm Atkins has a long history with Benchmark, a company founded decades ago by Vondra, a construction magnate who owned and operated Reliable Asphalt, now run by his daughter.Vondra said he sold Benchmark “about 25 years ago." The company operates from a Bartlett office building that he and his wife co-own with Atkins.Vondra sold his company to Michael Smith and Atkins.The Daley administration certified Benchmark as a minority-owned and operated business because Smith, who is Black, was its president. Mayor Brandon Johnson’s chief procurement officer, Sharla Roberts.LinkedIn Atkins was the company vice president, running daily operations, Smith testified in a court deposition in 2002.Smith appeared confused when asked whether the company installed sewers and water pipes below grade level.“Grade being what?” Smith responded, prompting the attorney to explain that it meant below ground.A Chicago Sun-Times investigation in 2004 on Benchmark’s status as a minority-owned and -operated business reported that Smith acknowledged that Atkins, who is white, ran the company.Daley dismissed questions at the time about whether Benchmark was an example of minority business fraud.“He’s African American,” Daley said then. “He’s Black. He went to the interview with the Sun-Times. He talked about it. He has people working for him. He’s Black, and he owns the company.”A few years later, Smith left Benchmark, and Atkins became the president. Smith owns a maintenance company that Benchmark has hired as a subcontractor, according to city records.Three years ago, the city’s Board of Ethics fined Benchmark $5,000 for making illegal contributions to a political fund for then-Ald. Carrie Austin, who was fined $145,000 for accepting those contributions.Under the law, companies were only allowed to give $1,600 a year per candidate, but Benchmark’s campaign contributions to Austin exceeded the limit by $48,500. Related Ald. Carrie Austin’s 34th Ward campaign committee slapped with $145,500 fine Banned by City Hall for lying on construction contracts, company is still getting government work Banned contractors participate in campaign fundraiser for DuPage County state’s attorney