Antitrust Enforcement in the Procurement Space During the Second Trump Administration

That there is uncertainty concerning federal antitrust enforcement in the second Trump administration is perhaps the understatement of the year. With proposals to roll the Federal Trade Commission’s (FTC) antitrust enforcement into the Department of Justice, and a statement from now-FTC Chair Andrew Ferguson that the “Biden-Harris FTC has no future,” American companies are left confused as to what antitrust guidelines currently apply and what may change in the coming months.

For government contractors, however, we expect that antitrust enforcement will remain active through the second Trump administration. The Procurement Collusion Strike Force (PCSF), which was launched in 2019 under the first Trump administration, is a national initiative led by the United States Department of Justice’s Antitrust Division that targets antitrust crimes and related schemes in government procurement, grants, and program funding at federal, state, and local levels. Given the politically neutral objective of preventing misuse of government funds in the procurement process, it stands to reason that this administration will continue antitrust enforcement in the procurement space.

The PCSF, in collaboration with various U.S. Attorneys’ offices, the FBI, and Inspectors General from different federal agencies, aims to deter, detect, investigate, and prosecute bid rigging, price fixing, and market allocation schemes that undermine fair competition and harm consumers and taxpayers. Since its launch in November 2019, the initiative has trained over 39,000 agents, attorneys, auditors, analysts, and procurement officials, initiated more than 145 investigations, and secured over 60 guilty pleas and trial convictions involving government contracts worth over $575 million.

Trends in Criminal Antitrust Enforcement

The landscape of criminal antitrust enforcement is becoming increasingly aggressive and sophisticated. Prosecutors are pursuing charges under both Title 15 (antitrust offenses) and Title 18 (fraud, obstruction, money laundering, conspiracies), with a heightened focus on individual accountability. Advanced technology, including machine learning and network analysis, is employed to uncover complex schemes. Collaboration between federal, state, and international law enforcement agencies has strengthened enforcement efforts, addressing cross-border conspiracies and disrupting global cartels targeting public procurement markets.

Leniency policies and compliance programs remain a priority for the Antitrust Division, incentivizing good corporate citizenship. It is recommended that companies develop comprehensive instructions on designing and implementing compliance measures that align with DOJ standards. Key topics that should be covered in the guidance include:

• Proper Use of Artificial Intelligence: Companies should ensure the responsible use of artificial intelligence in their business operations to prevent any anticompetitive practices.
• Management of Ephemeral Messaging: Effective management of ephemeral messaging is crucial to prevent data deletion that could hinder investigations. Companies should implement policies to manage and retain important communications.
• Appropriate Use of Nondisclosure Agreements: Companies should use nondisclosure agreements in a manner that ensures they do not facilitate anticompetitive practices.

Moreover, companies are encouraged to stay informed and continuously update their compliance programs to address evolving legal standards and enforcement practices. By following these recommendations, businesses can enhance compliance measures and maintain good corporate citizenship.

Recent Significant Matters

In the past year alone, the PCSF has pursued civil and criminal cases involving, inter alia, bid rigging, price fixing, and monopolization. Below, we highlight noteworthy recent cases. 

Maryland IT Services Fraud and Bribery Case (January 14, 2025)

Four defendants pleaded guilty in the District of Maryland to schemes involving bid rigging, defrauding the government, and bribery related to the sale of IT products and services to federal government purchasers, including the Department of Defense. These pleas were part of the Justice Department’s ongoing investigation into IT manufacturers, distributors, and resellers selling to government purchasers.

On November 7 and 13, 2024, Brandon Scott Glisson (Glisson), a government contractor, and Lawrence A. Eady (Eady), a federal government official, pleaded guilty to bribery. Between August 2019 and October 2020, Glisson paid approximately $630,000 in bribes to Eady. In return, Eady ensured government purchases from a co-conspirator’s company at inflated prices, with the excess diverted to Glisson’s company, Alpha Greatness Omega.

Antwann C.K. Rawls (Rawls), an on-site government IT consultant, and Scott A. Reefe (Reefe), an IT sales executive, also pleaded guilty. On January 8, Reefe pleaded guilty to conspiracy to defraud the United States and commit wire fraud. On January 13, Rawls pleaded guilty to conspiracy to defraud the United States. From at least 2018 to May 2019, they used insider information to rig bids for government IT procurements, causing a loss of at least $1,300,000 to the U.S. government.

The Justice Department, FBI, and other officials emphasized the importance of fair procurement processes and holding accountable those who exploit the system.

Sentencing hearings will be set later. Glisson and Eady face up to 15 years in prison, Reefe up to 20 years, and Rawls up to five years.

Wildfire-Fighting Fuel Truck Monopoly Scheme (May 8, 2024)

The former owner of contractor companies providing fuel truck services to the U.S. Forest Service’s wildfire fighters pleaded guilty to conspiring to monopolize, rigging bids, and allocating territories in violation of Sections 1 and 2 of the Sherman Antitrust Act. This plea followed a wiretap investigation that led to the indictment of two executives in December 2023.

According to a plea agreement and information filed in the U.S. District Court for the District of Idaho, Ike Tomlinson (Tomlinson), conspired with co-defendant Kris Bird (Bird), and others in at least two conspiracies. From March 2015 to March 2023, Tomlinson rigged bids and allocated territories in the market for wildfire-fighting fuel truck services for the U.S. Forest Service’s Great Basin wildfire dispatch region. Additionally, from February 2020 to March 2023, Tomlinson and Bird conspired to monopolize this market, excluding competitors and maintaining higher prices. In March 2023, Tomlinson coordinated with Bird to disadvantage two competing vendors on the Forest Service’s dispatch priority lists.

Assistant Attorney General Jonathan Kanter emphasized the importance of prosecuting monopolistic conduct. At the same time, U.S. Attorney Josh Hurwit for the District of Idaho and FBI officials highlighted the commitment to fair bidding processes and holding contractors accountable.

Oklahoma Transportation Contracts Price-Fixing (February 27, 2024)

Four erosion control company owners or managers pleaded guilty to rigging bids and fixing prices, targeting more than $100 million in publicly funded transportation construction contracts in Oklahoma. Stanley Mark Smith (Smith), Roy Henry Henrich (Henrich), Ryan Ashley Sullivan (Sullivan), and James Travis Feazel (Feazel) conspired to allocate contracts, raise prices, and manipulate bids from 2017 to various points up to April 2023. Court documents detailed the actions of sending high-priced bids or declining to bid. Smith's company aimed at more than $42 million in contracts, Feazel's at over $50 million, Heinrich's at over $7 million, and Sullivan's involvement concluded in April 2019.

The Justice Department’s Antitrust Division and the PCSF emphasized the importance of protecting fair competition in public contracts. Kanter and other officials highlighted the commitment to prosecuting those who targeted infrastructure contracts through criminal schemes. The defendants faced penalties under Section 1 of the Sherman Act, including up to 10 years in prison and a $1 million criminal fine, potentially increased based on the crime’s impact.

These cases illustrate ongoing efforts to detect, investigate, and prosecute antitrust crimes and related schemes in government procurement. The use of advanced technology, collaboration with federal, state, and international law enforcement agencies, and a focus on individual accountability are key elements of this strategy.

PCSF Summit

On November 16, 2024, the PCSF held a summit to discuss strategies for combating emerging threats in government procurement. The summit focused on enhancing data analytics to identify collusion, increasing training and awareness for procurement officials, strengthening law enforcement partnerships, and implementing targeted initiatives such as the Data Analytics Project and PCSF: Global. The discussions also addressed risks associated with recent legislation like the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, with an aim to mitigate procurement-related threats and protect taxpayer funds.

Conclusion

Although there is uncertainty regarding the future of federal antitrust enforcement, the PCSF remains an active initiative. At Ballard Spahr, we are committed to providing comprehensive legal support to clients navigating these complex and evolving landscapes. Our extensive experience in antitrust law and our deep understanding of the PCSF’s objectives and strategies allow us to offer targeted guidance and robust defense against allegations of antitrust violations. We assist clients in developing proactive compliance programs, conducting internal investigations, and responding to government inquiries.