State of Minnesota

Department of Transportation

In the Matter of the Proposed Suspension of SUSPENSION O R D E R GCC Alliance Concrete Inc.; and its affiliates

Pursuant to Minnesota Statutes Section 161.315 and Minnesota Administrative Rule 123.4200,

the Commissioner of the Minnesota Department of Transportation ("MnDOT") orders GCC Alliance

Concrete, Inc. and its affiliates hereby suspended and disqualified from entering into or receiving a

Minnesota Department of Transportation ("MnDOT") contract and from serving as a subcontractor or

supplier of materials or services under such a contract for a term of sixty (60) days from the date of this

Suspension Order. Pursuant to Minnesota Statutes Section 161.315, Subdivision 3, this Suspension also

applies to county, town, home rule and statutory cities on contracts for goods or services.

Minnesota Administrative Rule 1230.4200, subpart 1, states

The commissioner of transportation shall suspend a person or business by order upon receiving notice or learning of a conviction for conduct described in part 1230.3200 or upon receiving evidence of an affiliation described in part 1230.3600, subpart 2.

Minn. R. 1230.4200 (2005). The Minnesota Administrative Rules define a "MnDOT contract" as a

written instrument:

A. containing the elements of offer, acceptance, and consideration to which the Minnesota Department of Transportation is a party, or acts as an agent for a party under Minnesota Statutes, section 161.36, subdivisions 2 and 3, 360.016, subdivisions 2 and 3, or 360.039, subdivisions 2 and 3; B. for which competitive bids are required or taken; and C. which is subject to the approval of the commissioner.

Minn. R. 1230.3100 (2005).

Minnesota Statute, Section 161.315, subdivision 3 states that, except as provided in subdivision 4:

(1) neither the commissioner nor a county, town, or home rule or statutory city may award or approve the award of a contract for goods or services to a person who is suspended or debarred;

(2) neither the commissioner nor a county, town, or home rule or statutory city may award or approve the award of a contract for goods or services under which a debarred or suspended person wil l serve as a subcontractor or material supplier;

(3) a person to whom a contract for goods or services has been awarded may not subcontract with or purchase materials or services from a debarred or suspended person for performance of that contract; and

(4) when a debarred person sells or otherwise transfers to a relative or to any other party over whose actions the debarred person exercises substantial influence or control, a business, corporation, association, partnership, sole proprietorship, or other entity, or an affiliate of the entity, that is ineligible by virtue of the debarment to contract with a governmental entity, the sold or transferred entity remains ineligible for these contracts for the duration of the seller's or transferor's debarment.

Minn. Stat. § 161.315, subd. 3 (1998).

This Suspension Order is the result of GCC Alliance Concrete, Inc.'s guilty plea on May 20, 2011

in the United States District Court, Northern District of Iowa to conspiring to suppress and eliminate

competition by price fixing and bid rigging in violation of the Sherman Antitrust Act, 15 U.S.C. § 1. See

Exhibit A. GCC Alliance Concrete, Inc., a ready-mix concrete manufacturer conspired with three (3)

competing ready-mix concrete manufacturing companies from January 2008 to August 2009. Id. at 3.

During the relevant period Mr. Steven VandeBrake in his capacity as sales manager for GCC Alliance

Concrete, Inc. engaged in a conspiracy with other ready-mix concrete manufacturing companies to set

agreed-upon prices, price increases, to submit non-competitive bids and rigged bids for ready-mix

concrete in the Northern District of Iowa and in other regions. Id. at 4. GCC Alliance Concrete, Inc.'s

sales of ready-mix concrete affected by the conspiracy totaled at least $2,394,427. Id. at 5.

Suspension of GCC Alliance Concrete, Inc. and its affiliates is required by law pursuant to

Minnesota Statutes, Section 161.31, which states that "the privilege of transacting business with the

department or local road authority should be denied to persons convicted of a contract crime in order to

preserve the integrity of the public contracting process. Minn. Stat. § 161.315, Subd. 1(3). (1998). A

"contract crime" is defined as

a violation of state or federal antitrust law, fraud, theft, embezzlement, bribeiy, forgery misrepresentation, making false statements, falsification or destruction of records, or other criminal offense in connection with obtaining, attempting to obtain, or performing a public or private contract or subcontract.

Minn. Stat. § 161.315, Subd. 2(b) (emphasis added). Under Minnesota law, a plea of guilty is considered

a conviction. Minn. Stat. § 609.02, Subd. 5(1). GCC Alliance Concrete Inc.'s guilty plea of agreeing to

suppress and eliminate competition by fixing prices and submitting rigged and noncompetitive bids in

violation of the Sherman Antitrust Act is, by definition, a contract crime and thus necessitates suspension

and debarment. See Sherman Antitrust Act, 15 U.S.C. § 1; Minn. R. 1230.3200, Subp. 2(3) (2005).

Because GCC Alliance Concrete, Inc. has committed a contract crime pursuant to Minnesota

Administrative Rule 1230.3100, MnDOT is commencing debarment proceedings against GCC Alliance

Concrete, Inc. and its affiliates concurrently with the issuance of this Suspension Order.

Date: May 15, 2014 Amr Jabr, Deputy Director Engineering Services Division