Federal prosecutors have accused a transportation parts supplier and its owner of participating in a years-long bid-rigging scheme involving SEPTA contracts, according to documents obtained by the NBC10 Investigators. Prosecutors charged Hatfield-based Qual-Tran Products Company LLC with violatin g federal antitrust laws, alleging the company conspired with competitors and others to manipulate SEPTA’s bidding process between March 2016 and November 2024. According to documents, Qual-Tran supplied transportation parts to transit agencies across the country, including SEPTA. Prosecutors allege the company participated in a conspiracy to restrain trade by rigging bids on SEPTA contracts. SEPTA’s procurement process is designed to promote competition and secure the best prices for taxpayers when purchasing parts and equipment for buses, trains and rail systems, prosecutors said. The filing alleges the scheme undermined that process by creating the appearance of competition while predetermining contract winners. Court records identify Cathleen Shive, who joined Qual-Tran in 2011 and became its president and owner in 2024. Prosecutors allege Shive and others coordinated with competing vendors and a SEPTA senior resource controller identified in court records only as “Person #1.” A representative for SEPTA told NBC10 that the employee is no longer with the agency. Federal prosecutors allege Qual-Tran and its co-conspirators coordinated bids before SEPTA solicitations closed. In some cases, competing vendors allegedly submitted intentionally losing bids to ensure a predetermined company won the contract, according to the filing. In one example, prosecutors allege Qual-Tran submitted both its own bid and a second bid that falsely appeared to come from another company. Prosecutors claim both submissions originated from the same internet address linked to individuals associated with Qual-Tran, including Shive. In another instance, prosecutors allege a SEPTA employee alerted Qual-Tran to a solicitation and wrote that “two or three quotes would be perfect.” According to court records, a competing company was then directed to submit a bid at a specific price above Qual-Tran’s, helping Qual-Tran secure the contract. Prosecutors further allege that in 2023, a SEPTA insider helped arrange for another supplier to submit a losing bid and instructed the company on what price to quote. Court records state the supplier was later told to provide a false explanation if questions arose about the bid. The alleged scheme involved SEPTA contracts that received federal funding, prosecutors said. The Justice Department did not respond to NBC10’s questions about the estimated dollar amount involved. The U.S. Attorney’s Office for the Eastern District of Pennsylvania declined to comment. SEPTA declined further comment. Qual-Tran did not respond to requests for comment. As of Tuesday, July 28 attorneys for Qual-Tran and Shive were not listed in federal court records. Qual-Tran and Shive are charged with one count of conspiracy to restrain trade. No hearing had been scheduled as of Tuesday. NBC10 investigative reporter David Charns can be reached at [email protected]. ...read more read less