[Federal Register: June 22, 2007 (Volume 72, Number 120)]
[Notices]
[Page 34459-34460]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn07-51]
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DEPARTMENT OF EDUCATION
Arbitration Panel Decision Under the Randolph-Sheppard Act
AGENCY: Department of Education.
ACTION: Notice of arbitration panel decision under the Randolph-
Sheppard Act.
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SUMMARY: The Department of Education (Department) gives notice that on
August 21, 2006, an arbitration panel rendered a decision in the matter
of David Stewart v. Alabama Department of Rehabilitation Services (Case
No. R-S/04-1). This panel was convened by the Department, under 20
U.S.C. 107d-1(a), after the Department received a complaint filed by
the petitioner, David Stewart.
FOR FURTHER INFORMATION CONTACT: You may obtain a copy of the full text
of the arbitration panel decision from Suzette E. Haynes, U.S.
Department of Education, 400 Maryland Avenue, SW., room 5022, Potomac
Center Plaza, Washington, DC 20202-2800. Telephone: (202) 245-7374. If
you use a telecommunications device for the deaf (TDD), you may call
the Federal Relay Service at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION: Under section 6(c) of the Randolph-Sheppard
Act (the Act), 20 U.S.C. 107d-2(c), the Secretary publishes in the
Federal Register a synopsis of each arbitration panel decision
affecting the administration of vending facilities on Federal and other
property.
Background
This dispute concerned alleged violations of the Act, the
implementing regulations in 34 CFR part 395, and State rules and
regulations by the Alabama Department of Rehabilitation Services, the
State licensing agency (SLA), regarding David Stewart's (complainant)
termination as manager of the military dining facility at the Redstone
Arsenal in Huntsville, Alabama.
Summary
On November 13, 2002, the SLA issued a bid announcement for the
military dining hall facility at Redstone Arsenal. Among other details
in the announcement, the SLA specifically indicated that the contract
was a joint venture and that the licensed blind vendor selected would
be required to team with an outside military dining hall contractor
known as KCA, Inc.
On January 7, 2003, the SLA informed complainant that he had been
selected as the licensed manager for the military dining hall at
Redstone Arsenal and complainant accepted on January 8, 2003.
On February 4, 2003, the complainant met with SLA staff members,
KCA, Inc. staff and other interested parties. At the meeting,
complainant explained that his wife would not be able to assume the
administrative roles, i.e., payroll assistant, driving, and other
duties as the previous blind vendor's wife. Therefore, complainant
proposed that one-half of the general and administrative costs normally
passed on to KCA, Inc. be allocated to him since complainant would have
to hire additional staff to perform those duties.
Subsequently, complainant alleged that a member of KCA, Inc.
informed him that a proposed joint venture agreement would be sent to
complainant to consider. On February 13, 2003, the SLA wrote the
complainant stating that he must execute a joint venture and operating
agreement by February 21, 2003 or the military dining hall facility at
Redstone Arsenal would be awarded to the next highest-scoring blind
vendor.
Previously, complainant had hired an attorney to assist him in
reviewing the joint venture agreement. Upon receipt of the February 13,
2003 letter from the SLA, complainant's attorney and the
[[Page 34460]]
SLA staff exchanged a number of letters regarding this matter.
Complainant also alleged that his attorney received information that
KCA, Inc. was unwilling to enter into a joint venture agreement with
him.
On February 19, 2003, SLA staff wrote to complainant's attorney
reiterating its position that complainant and KCA, Inc. must enter into
a joint venture agreement and execute a signed document by February 21,
2003. On February 26, 2003, SLA staff wrote complainant's attorney
explaining that the SLA had to award the military dining hall facility
at Redstone Arsenal to another vendor because complainant failed to
execute the joint venture agreement with KCA, Inc.
On April 2, 2003, complainant requested a hearing. A fair hearing
on this matter was held on August 5, 2003. On September 5, 2003, the
hearing officer issued an order denying complainant's grievance.
Subsequently, the SLA adopted the hearing officer's decision as final
agency action. Complainant sought review by a Federal arbitration panel
of that decision.
Arbitration Panel Decision
The issue heard by the panel was whether the Alabama Department of
Rehabilitation Services violated the Act, 20 U.S.C. 107 et seq., the
implementing regulations in 34 CFR part 395, and its own rules and
regulations in the alleged improper termination of complainant from
managing the military dining facility at Redstone Arsenal.
After reviewing all of the records and hearing testimony of
witnesses, the majority of the panel ruled that the SLA acted properly
and in full and fair compliance with the Act, implementing regulations,
and State rules and regulations. Therefore, the panel denied
complainant's grievance. One panel member dissented.
The views and opinions expressed by the panel do not necessarily
represent the views and opinions of the Department.
Electronic Access to This Document
You may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or Adobe
Portable Document Format (PDF) on the Internet at the following site:
http://www.ed.gov/news/fedregister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in
the Washington, DC, area at (202) 512-1530.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at: http://www.gpoaccess.gov/nara/index.html
.
Dated: June 14, 2007.
John H. Hager,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. E7-12146 Filed 6-21-07; 8:45 am]
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