HONEYWELL TO SETTLE CONTRACT DISPUTE WITH QUINCY, MASSACHUSETTS

(The following is a reformatted version of a press release
issued by Massachusetts Attorney General Martha Coakley and
received via e-mail. The release was confirmed by the sender.) 
January 15, 2013 
HONEYWELL TO PAY $4 MILLION TO SETTLE DISPUTE OVER CONTRACT WITH
CITY OF QUINCY 
BOSTON - Honeywell International, Inc. and Honeywell Building
Solutions SES Corporation (Honeywell) have agreed to pay $4
million to settle allegations that they failed to provide the
energy savings promised in a contract with the City of Quincy,
and failed to comply with other statutory and contractual
obligations, Attorney General Martha Coakley announced today.
As part of the agreement, Honeywell and the City of Quincy will
terminate a multi-year maintenance contract. 
The “Guaranteed Energy Savings Contract” was procured under
Chapter 25A of the Massachusetts General Laws, an exception to
the public bidding laws for programs intended to reduce
government energy consumption. Honeywell entered into an energy-savings contract with the City of Quincy in March 2007. 
“Strict compliance with this statute is important not only to
conserve energy and protect the environment, but also to ensure
that taxpayer money is well spent,” said AG Coakley. “This
settlement brings millions of dollars back to the City of
Quincy.” 
“Our work from the outset of this investigation was
guided by a single principle: protect the interests of our
taxpayers,” said Quincy Mayor Thomas Koch.  “I am pleased that
this matter has concluded in this fashion for the City of
Quincy, and wish to thank Attorney General Coakley, the Office
of the Inspector General and the City’s legal team for their
determined, methodical, and successful work on a matter of much
importance to our community.” 
The City of Quincy and Mayor Koch took appropriate
action in referring the matter to the AG’s Office and the
Inspector General.  An investigation by the AG’s Office examined
whether the water meter replacement project included in the
Guaranteed Energy Savings Contract was a proper “energy
conservation measure” under Chapter 25A, and whether the
contract’s projected energy savings were sufficiently guaranteed
by Honeywell. Under Chapter 25A, it is a requirement that the
primary purpose of the contract is energy conservation, and that
contractors guarantee that the government will achieve a certain
amount of “energy savings” or else the contractor will pay the
amount of any shortfall. 
The settlement requires Honeywell to pay $4 million
to the Commonwealth. Honeywell cooperated with the Attorney
General’s investigation. 
Assistant Attorneys General Matthew Connolly, Jeffrey Walker,
Division Chief Stephanie Kahn all of Attorney General Coakley’s
Consumer Protection Division handled this matter with assistance
from paralegal Yolanda Kruczkowski and with cooperation from
George Xenakis and John Drummey, Office of the Massachusetts
Inspector General and Eileen McHugh, Massachusetts Department of
Energy Resources. 
MEDIA CONTACT:
Jillian Fennimore
(617) 727-2543 
(sgp) NY 
#<278855.14078.3.4.0.0.76>#
 
 
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