Bibbo, 57, of Gates Mills, was indicted June 8 on two charges -- bribery and conspiracy to steal from federally-funded programs. He pleaded not guilty to both charges and was awaiting trial when his change of plea was entered Monday.
Bibbo's plea agreement has him admitting that he paid $7,500 total to former Maple Heights school district treasurer Christopher Krause and former Maple Heights school board member Santina "Sandy" Klimkowski for their influence in securing the contract.
He said he did not overcharge the school district but paid the $7,500 with his own money.
Another federal charge, saying Bibbo allegedly first bribed Krause in 2005 with $10,000 for a $221,900 paving contract, has been dropped.
Bibbo faces just over three years in prison. His attorney, Angelo Lonardo, says Bibbo is recovering from a liver transplant and is not in the best of health.
In an unrelated case, Bibbo's Midwest Paving was just named in Secretary of State Mary Taylor's state audit in July that detailed the alleged overbilling of the city of Solon $351,986 for concrete and $30,858 for a billing error for a 2007 street repair job.
Cuyahoga County Prosecutor Bill Mason is investigating Taylor's findings. Bibbo has already said Taylor's findings are flawed.
Those findings are being looked into by the Cuyahoga County Prosecutor's office and are not part of the federal investigation.
The federal investigation went public on July 28, 2008, when more than 200 FBI and IRS simultaneously raided Cuyahoga County government offices, businesses, and the homes of office holders and business owners.
So far, more than 30 people have been charged and nearly all have pleaded guilty in the federal probe.
Although not identified by name, both Cuyahoga County Commissioner Jimmy Dimora and Cuyahoga County Auditor Frank Russo have been repeatedly linked to the probe in plea agreements as Public Official One and Public Official Two, respectively, by other defendants and in federal documents.
Neither has been charged and both have denied any wrongdoing.