Updated: Former Amtrak contract chief ‘s payoff case involves Milford company

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Amtrak seat

A former Amtrak contract administrator has pleaded guilty in a case involving a Delaware company that upholsters train seats.

Timothy Miller, 36, of Philadelphia was charged with one count of federal program bribery.

According to the Information, Miller worked for the National Railroad Passenger Corporation (“Amtrak”) Procurement & Logistics Department as its Lead Contract Administrator. He was responsible for procuring equipment and services and for managing the account for Amtrak diesel and locomotive seat cushion vendors, according to a release from the U.S. Attorney’s office.

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“The defendant in the case was responsible for millions of dollars in contracts in what was supposed to be a fair bidding process. As the filing alleges, he simply sold out his position,” U.S. Attorney for Eastern Pennsylvania William McSwain stated.

The Information charges that, from about August of 2015 through June of 2017, Miller awarded more than $7.6 million in contracts to a small manufacturing firm, in exchange for bribes of approximately $20,000 and other things of value, including trips to Rehoboth Beach arranged by two executives at the firm.

If convicted, Miller faces a maximum possible sentence of 10 years’ imprisonment, a $250,000 fine, and three years’ supervised release.

The company was not identified but based on a court filing matches the description of First State Manufacturing of Milford.

The charging document lists unidentified executives of the manufacturing company but does not disclose their identities.

According to the charging document, the company was not a listed vendor, but became the sole supplier of seat coverings for the government-owned passenger train service.

The decision was unusual because Amtrak typically prefers more than one vendor in the event that problems develop with one company, the document noted.

The charging document went on to cite quality problems with some of the work of the Milford company. Despite the difficulties, Miller greenlighted work from the manufacturer.

The document also indicates that Miller set up a separate consulting business that received separate payments from the manufacturing company. Miller also received trips to Rehoboth Beach, thedocument indicated.

The amount of payment was listed as $20,000.

A lawyer listed in the News Journal story as a representative of First State did not immediately respond to a request for comment.

Click on the next link for previous stories on First State Manufacturingin Delaware Business Now.

The company has a been honored as a top Delaware business and won an award from the Small Business Administration.

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