Birdsall Services Group Explained

Birdsall Services Group
Trade Name:BSG
Traded As:Birdsall
Industry:Engineering, environmental and energy consulting
Fate:Purchased
Predecessor:Birdsall Engineering, Inc
Successor:Partner Engineering and Science, Inc
Foundation: in Monmouth County, United States
Founder:Claude W. Birdsall
Hq Location City:Eatontown
Hq Location Country:USA
Num Locations:7
Num Locations Year:2010
Area Served:New Jersey
Key People:Joseph Derhake
Profit:-->
Profit Year:-->
Assets:$5.6 million
Assets Year:2013
Owners:-->
Slogans:-->
Homepage:-->

Birdsall Services Group (BSG, Birdsall) was an engineering, environmental and energy consulting firm based in Eatontown, New Jersey. Established in 1919, Birdsall provided services to private and public clients throughout the tri-state area, including government agencies, healthcare facilities, developers, industrial and construction managers, architects and attorneys.[1]

In June 2013, most of the assets of the now bankrupt firm were purchased by California-based Partner Engineering and Science, Inc. (Partner), a national environmental and engineering consulting firm focusing on real estate due diligence.[2] BSG is continuing most of its civil engineering, MEP, regulatory compliance[3] and environmental consulting services under the new company name.

Corporate structure

In 1919, Birdsall Engineering, Inc. was founded by Claude W. Birdsall in Monmouth County.[4] The company provided engineering services to public clients including local municipalities, government agencies and public authorities.[5] In subsequent years, Birdsall significantly expanded its services and client markets by acquiring a number of companies that added new capabilities, including: LGA Engineering, Inc. (Land Development) in 1996, Johnson and Associates (MEP) in 1997, DiStasio & Van Buren, Inc. (Structural) in 1999 and John C. Morris Associates in 2001, which Birdsall combined with Johnson and Associates to form Morris, Johnson & Associates, Inc. (Mechanical/Electrical/IT) in 2002.[6] In 2008 Birdsall purchased PMK Group, Inc. (Environmental, Geotechnical, & Energy)[7] and in 2010 acquired select assets of CMX/SCHOOR DEPALMA (Surveying/Water Resources) and CMX NY, Inc.[8]

Initially these firms operated as independent subsidiaries to Birdsall, but in 2010 they were merged to create one cohesive company, known as Birdsall Services Group (BSG).[5] BSG was one of New Jersey's biggest engineering firms, headquartered in Eatontown with seven additional offices in various locations across New Jersey, New York City, and Philadelphia.

Divisions

BSG's key environmental, design and engineering services included:

Key projects

Pay-to-play scandal

In March 2013, seven BSG executives were charged on suspicions of involvement in a scheme to circumvent New Jersey’s so called pay-to-play laws.[15] Prosecutors allege that the executives routinely made – or asked employees to make- illegally reimbursed donations to secure public contracts.[16] By bundling multiple personal political contributions worth less than $300 (which by NJ law do not have to be disclosed[17]) the scheme avoided disqualification under state laws that prohibit public contracts being awarded to firms that have made corporate political contributions to the campaigns of public officials responsible for granting those contracts.[18]

On March 26, 2013, a court order authorized the state Attorney General’s office to freeze Birdsall’s assets, then valued at $41.6 million, prompting the firm to file for Chapter 11 bankruptcy protection.[19] The following month, Birdsall Services Group agreed to pay $2.6 million to settle a civil forfeiture action brought by the attorney general’s office so it could access its bank accounts and pay employees who had temporarily been furloughed.[20] On June 13, the firm pled guilty and was ordered to pay an additional $1m in penalties, fines and institutions.[21] Edwin Stier, who was appointed by a federal bankruptcy judge in April to lead the company, said that “This guilty plea is an acknowledgement on behalf of (Birdsall) of the serious wrongdoing that occurred and accepts the consequences of those actions while still protecting the interests of the innocent employees, clients and creditors”.[22]

Individual cases against the seven executives are pending.[23]

Acquisition by Partner Engineering and Science

On June 5, 2013 the United States Bankruptcy Court approved the sale of most of Birdsall Services Group to Partner Engineering and Science, a national engineering and environmental consulting firm with New Jersey offices in Ramsey and Red Bank.[24] The acquisition was finalized on June 21.

Partner's President Joseph Derhake has said that the company will not engage in any pay-to-play activities. “We have a track record of winning work based solely on the merit of our professionalism and commitment to excellence, and we are confident that we will be successful doing business in New Jersey with integrity. If we can’t win the work based on merit alone, we don’t want that work."[25]

Partner paid $5.6 million for select assets including their accounts receivable, physical assets, select contracts, existing project files, select intellectual property, and license agreements.[26] The activated bankruptcy process protects Partner from any liabilities associated with the pay-to-play case. BSG will continue operating and providing service to its clients largely as previously under the Partner name. The firm has said it will retain as many of Birdsall's staff as possible.[27] The combined firm now has 3 offices in New Jersey, plus 22 more offices across the country providing services including Environmental Due Diligence; Subsurface Investigations and Remediation; Regulatory Compliance; Industrial Hygiene; Building Engineering and Consulting; MEP and Structural Design; Marine and Development and Consulting; Public and Transportation Engineering; Waste Management; Water Resources Management; Construction Risk Management; Energy Efficiency and Sustainable Building Consulting and Design; Land Surveying; and Zoning Reports.[28]

Notes and References

  1. Web site: Perspective New Jersey. Birdsall Services Group... Client's Trusted Advisors. 3 July 2013. https://web.archive.org/web/20160304050242/http://www.perspectiverem.com/images/pdfs/pnjbsgwntr12.pdf. 4 March 2016. dead.
  2. Web site: Partner Engineering and Science, Inc.. Acquisition of Birdsall Services Group Assets Complete. 25 June 2013.
  3. Web site: Kristine M. MacWilliams, P.E. . Regulatory Compliance Partner Engineering and Science, Inc. - Partner Engineering and Science, Inc . Partneresi.com . 2013-07-06.
  4. Web site: Daily Record. Birdsall Indictments Threaten Firm's Existence.
  5. Web site: Perspective New Jersey. Birdsall Services Group... Client's Trusted Advisors. 2 July 2013. https://web.archive.org/web/20160304050242/http://www.perspectiverem.com/images/pdfs/pnjbsgwntr12.pdf. 4 March 2016. dead.
  6. Web site: Birdsall Services Group. Company History. 3 July 2013. https://web.archive.org/web/20130915034406/http://www.birdsall.com/company/birdsall-history. 2013-09-15. dead.
  7. Web site: PMK Group. PMK Acquired by Birdsall Services Group (BSG). 2 July 2013.
  8. Web site: CE News. CMX Closes Its Doors; Birdsall Engineering to Purchase Contracts. 2 July 2013. 2010-04-20.
  9. News: Huffington Post Green. Pocono Raceway Becomes Largest Solar-Powered Sports Facility. 25 June 2013. 2 August 2010.
  10. Web site: Pocono Raceway. Go Green Solar Project. 25 June 2013. 2011-03-28.
  11. Web site: My Central Jersey. Business Briefs - Birdsall Services Group Receives Project of the Year Award. 25 June 2013.
  12. Web site: Spahr. Rob. Belmar Boardwalk to Officially Reopen Wednesday. NJ.com.
  13. Web site: Birdsall. Rebuilding our Backyard Video. 25 June 2013.
  14. Web site: New Jersey Chamber of Commerce. New Jersey Stands Together in Wake of Hurricane Sandy. 25 June 2013.
  15. Web site: Pizaro. Max. Birdsall Execs Indicted in Pay-to-Play Scheme. Politicker NJ. 25 June 2013. 2013-03-26.
  16. Web site: The Republic. Court Approves $5.6million sale of indicted NJ firm to California-based Company. https://archive.today/20130706213733/http://www.therepublic.com/view/story/2d7bb68bcff9465e904c881c6c6892e0/NJ--Engineering-Firm-Campaign-Finance. dead. 6 July 2013. 25 June 2013.
  17. Web site: State of New Jersey, Department of Community Affairs. "Chapter 19: Pay to Play Frequently Asked Questions Chapter 19: Pay-to-Play Frequently Asked Questions. 25 June 2013.
  18. Web site: Baxter. Christopher. Indicted NJ Engineering Firm Birdsall Services Group, 7 Former Execs Plead Not Guilty. The Star Ledger. 25 June 2013. 2013-05-20.
  19. Web site: Koloff. Abbott. Engineering Firm Birdsall Accused of Violating Pay-to-Play Law Files for Bankruptcy Protection. North Jersey. 25 June 2013.
  20. Web site: Baxter. Christopher. Indicted N.J. Engineering Firm Birdsall Services Group agrees to forfeit $2.6M. The Star Ledger. 25 June 2013. 2013-04-15.
  21. Web site: Department of Law and Public Safety, Office of the Attorney General. Birdsall Services Group Pleads Guilty to Charges That It Made Illegal Corporate Controbutions Through Employees to Evade Pay-to-Play Law and Obtain Lucrative Public Contracts. 25 June 2013.
  22. Web site: NJ.com. Indicted N.J. Engineering Firm Birdsall Services Group Pleads Guilty in Pay-to-Play Conspiracy. 25 June 2013. 2013-06-13.
  23. Web site: Asbury Park Press. Politicians named: hundreds of campaigns got Birdsall's donations. 25 June 2013.
  24. Web site: NJ.com. Indicted N.J. Engineering Firm Birdsall Services Group Sold for $5.6m to California Firm. 3 July 2013. 2013-06-05.
  25. Web site: Baxter. Christopher. Indicted Engineering Firm Birdsall Services Group Sold for $5.6M to California Firm. The Star Ledger. 25 June 2013. 2013-06-05.
  26. Web site: Heumiller. Keith. Birdsall Sold to California Engineering Firm for $5.6M. Atlanticville. 25 June 2013. https://web.archive.org/web/20150912101047/http://atl.gmnews.com/news/2013-06-13/Front_Page/Birdsall_sold_to_California_engineering_firm_for_5.html. 2015-09-12. dead.
  27. Web site: NJ Biz. Court Approves Sale of Bankrupt Birdsall's Assets to Partner Engineering. https://archive.today/20130706213809/https://www.njbiz.com/article/20130605/NJBIZ01/130609919/Court-approves-sale-of-bankrupt-Birdsall's-assets-to-Partner-Engineering&template=art. dead. 6 July 2013. 25 June 2013.
  28. Web site: Partner ESI. Partner Acquisition of Birdsall Services Group Now Complete. 3 July 2013.

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