North Carolina Construction News staff writer
The president of a North Carolina construction company has pleaded guilty to conspiring to rig bids on maintenance and repair contracts for U.S. military installations, federal prosecutors said.
Brett Sanborn of Pinehurst admitted in U.S. District Court for the Northern District of Illinois that he took part in a scheme to suppress competition on procurements administered by the Defense Logistics Agency, according to court records. The contracts involved maintenance, repair and operations work at military bases across the country.
Prosecutors said the conspiracy ran from at least 2017 through 2021, during which Sanborn coordinated with other individuals and companies to predetermine which subcontractor would win certain contracts. The procurements were supposed to be awarded through a competitive bidding process.
“For $6 million, the defendant defrauded his own government and deprived the U.S. Army of the benefits of open and honest competition,” said Omeed A. Assefi, a deputy assistant attorney general in the Justice Department’s Antitrust Division.
Court documents say Sanborn and his co-conspirators exchanged emails, phone calls and text messages to agree in advance on pricing. They then submitted bids designed to appear competitive but were intentionally set up to lose, a practice they referred to internally as “comp” bids.
In his plea agreement, Sanborn acknowledged that about $6 million in commerce was affected by the bid-rigging scheme.
Sanborn pleaded guilty to one felony count of restraining trade in violation of the Sherman Antitrust Act. The charge carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. Corporations convicted under the statute can face fines of up to $100 million, with higher penalties possible depending on the financial impact of the crime.
A sentencing date has not yet been set. A federal judge will determine Sanborn’s sentence after reviewing advisory sentencing guidelines and other factors.
The case is being investigated by the Defense Criminal Investigative Service, part of the Department of Defense Office of Inspector General, and prosecuted by the Justice Department’s Antitrust Division.