Eric J. Caddy, a 62-year-old business owner from Huntington, Texas, pleaded guilty on Mar. 18 to two felony counts related to conspiring to rig bids and defraud the U.S. Department of War in connection with the sale of shelving and storage products for U.S. Air Force healthcare facilities, according to the Justice Department’s Antitrust Division.
The case highlights concerns about fair competition and integrity in government procurement processes, especially when it comes to contracts that support military healthcare infrastructure.
Court documents show that Caddy and his co-conspirators submitted collusive bids for several projects at Moody Air Force Base in Valdosta, Georgia. These included the Medical Logistics Warehouse Project, Pharmacy Modernization and Renovation Project, Veterinary Clinic Project, and Dental Lab Clinic Project. The total value of these projects exceeded $1.6 million and was funded through the Defense Logistics Agency’s Facilities Maintenance, Repair, and Operations Program. According to prosecutors, one co-conspirator instructed Caddy to submit intentionally higher prices using specific pricing details provided by the group. Caddy then submitted these bids through a prime vendor who passed them on to the Department of War. To conceal their actions, Caddy rewrote certain bid forms in his own handwriting before submission.
“Defending free and fair competition in healthcare spending is a critical priority for the Antitrust Division, particularly when it affects the U.S. military,” said Acting Deputy Assistant Attorney General Daniel Glad of the Justice Department’s Antitrust Division. “The Antitrust Division’s Procurement Collusion Strike Force and its partners will continue to find and prosecute those who corrupt the competitive process and increase healthcare-related costs in the United States.”
U.S. Attorney William R. “Will” Keyes for the Middle District of Georgia said: “Bid rigging harms taxpayers, honest contractors and all of us who play by the rules, and will not tolerated.” He added that collaboration with federal partners is essential for maintaining fair competition.
Special Agent in Charge Derrell Freeman of the Air Force Office of Special Investigations Southeast Field Office said: “Bid rigging schemes like this undermine fair competition, inflate costs for essential healthcare infrastructure, and ultimately harm the brave men and women serving in our military.”
Special Agent-in-Charge Jason Sargenski from Defense Criminal Investigative Service Southeast Field Office said: “Today’s guilty plea sends a clear message that companies and individuals who cheat the competitive bidding process for contracts that support our nation’s defense will be held accountable.”
The investigation was conducted by multiple agencies including the Antitrust Division’s Washington Criminal Section; Air Force Office of Special Investigations; Defense Criminal Investigative Service; Defense Logistics Agency Office of Inspector General; as well as trial attorneys Daniel Chung and Christian Neumeister with assistance from local prosecutors.
The Justice Department encourages anyone with information about anticompetitive conduct related to government spending to contact its Procurement Collusion Strike Force or visit www.justice.gov/procurement-collusion-strike-force. Whistleblowers may be eligible for rewards if their reports lead to significant recoveries.
