U.S. Department of Transportation Federal Highway Administration	Notice Subject
	VOLUNTARY EXCLUSION FROM FEDERAL NONPROCUREMENT PROGRAMS
	Classification Code	Date	Office of Primary Interest
	N 2000.538	April 7, 2005	HCC-30

1. What is the purpose of this notice? This notice cancels Federal Highway Administration (FHWA) Notice N2000.529 issued on April 23, 2004, announcing the suspensions of the individuals cited below. This notice also serves to advise that the FHWA has entered into an administrative settlement agreement providing for their voluntary exclusion from participating in covered transactions.

   Ernest J. Streu
   3612 Lincoln Ave.
   Two Rivers, WI 54220

   John Streu
   3612 Lincoln Ave.
   Two Rivers, WI 54220

2. What actions have been taken?

   1. On February 3, 2005, the FHWA entered into an administrative settlement agreement providing for the voluntary exclusion of the two individuals cited above for a period of thirty months; VOLUNTARY EXCLUSIONS EXPIRE: August 3, 2007.

   2. Additionally, the February 3, 2005, settlement agreement provided for the following additional stipulations:

      1. (1) Ernest J. Streu and John Streu will transfer all of the shares they own in their companies, PCC Construction Co. and PavEx Construction Co., into a trust with an independent third party trustee;
         
         
      2. (2) The majority of the shares in PCC Construction Co. and PavEx Construction Co. will be transferred to an unrelated, independent third party;
         
         
      3. (3) Ernest J. Streu and John Streu will not have any contact with PCC Construction Co. or PavEx Construction Co. for a period of nine months following the last day of their periods of incarceration; and
         
         
      4. (4) PCC Construction Co. and PavEx Construction Co. must execute an agreement to hire an independent monitor, who reports directly to the FHWA, to oversee the companies' activities with respect to the companies' participation in covered transactions, as defined in 49 CFR Part 29, Subpart B.
      
      
      

3. What is the scope of these actions?

   1. The individuals cited in paragraph 1 are prohibited from being participants or principals in any covered transaction, as defined in 49 CFR Part 29, Subpart B. Generally, the individuals are prohibited from submitting a proposal for, or entering into, a covered transaction, or participating in a covered transaction as an officer, director, owner, partner, key employee, or other person with primary management or supervisory responsibilities, or one who has critical influence on or substantive control over the transaction, whether employed by a person who submits a proposal for, or enters into a covered transaction, including any procurement and nonprocurement transaction between an agency and a person. Their voluntary exclusions are effective throughout the Executive Branch of the Federal government.

   2. In accordance with 49 CFR 29.635, the FHWA has determined that this settlement agreement is in the best interests of the Federal government. Additionally, as stated in 49 CFR 29.110, this action is consistent with the Federal government's policy of conducting business only with responsible persons and companies, and to protect the public interest, the Federal government, and the integrity of Federal programs.

4. What is the cause for the voluntary exclusion?

   1. On March 9, 2004, a criminal indictment was filed in the United States District Court for the Eastern District of Wisconsin against Ernest J. Streu, John Streu, and Streu Construction Co. (now PCC Construction Co.) alleging that they engaged in a combination and conspiracy in unreasonable restraint of interstate trade and commerce in violation of Section 1 of the Sherman Act (15 U.S.C. 1). Specifically, the indictment accused these parties of bid rigging in connection with Federally funded construction projects. On August 30, 2004, these parties pleaded guilty to these charges. On January 21, 2005, Ernest J. Streu was sentenced to twelve months imprisonment, one year supervised release, a $215,000 fine, and $10,000 in restitution; John Streu was sentenced to five months imprisonment, one year supervised release, a $65,000 fine, and $10,000 in restitution; and Streu Construction Co. (now PCC Construction Co.) was sentenced to five years of probation, a $320,000 fine, and $480,000 in restitution.

   2. Pursuant to 49 CFR Part 29, Ernest J. Streu, John Streu, and Streu Construction Co. (now PCC Construction Co.) have committed acts that are cause for debarment. Specifically, their criminal convictions for bid rigging constitutes cause for debarment pursuant to 49 CFR 29.800(a)(2).

   3. These actions have been taken in accordance with 49 CFR Part 29.

King W. Gee Suspending Official

Related Sites:
FHWA Notice N2000.529
Executive Order 12549
FHWA Order 2000.2A