State of Minnesota

Department of Transportation
In the Matter of the
Proposed Suspension of SUSPENSION ORDER
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 wi l 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 issuanceof this Suspension Order.
Date: May 15, 2014
Amr Jabr, Deputy Director
Engineering Services Division