U.S. v. Asphalt Specialists / Michigan asphalt paving bid-rigging

Asphalt paving for roads, lots, and public sites is often bid locally. When only a few contractors can do the work, collusion is both tempting and devastating for taxpayers.

According to DOJ, ASI and rivals talked through who wanted which job, then had the designated loser submit a deliberately non-competitive price. On paper it looked like rivalry; in reality the winner was pre-selected.

That is textbook bid-rigging under Sherman Act §1—prosecuted criminally. ASI’s $6.5 million fine and executive prison sentences show that ‘we’re just a local paving shop’ does not shrink the statute.

The Procurement Collusion Strike Force has made infrastructure cartels a priority. Small and mid-size contractors on public jobs sit squarely in the crosshairs.

Public contracts inflate when cover bidding replaces real competition.

Owners and estimators can go to prison—not only the company.

Local SMEs are frequent defendants in DOJ cartel dockets.

Conspiracy to rig asphalt paving bids in Michigan.

Submission of intentionally non-competitive complementary bids.

Multi-year coordination among named paving firms.

Defendants pleaded guilty rather than contest liability at trial.

Sentencing followed U.S. Sentencing Guidelines and cooperation factors.

Never swap intended bid prices with a competitor.

Train estimators that ‘courtesy bids’ for rivals are illegal.

If approached to cover-bid, refuse in writing and consider reporting.