Agreement Collusive Bidding

An international agency conducted a special audit to determine whether agreements had been reached when a contract was awarded to build a new 300 euro headquarters for the Agency. Construction is expected to take place in a region where collusive, allegedly widespread offers from contractors are expected to increase construction costs by at least 10%. 3. Obtain the following tender documents, including, if possible, tender documents from similar previous projects (to identify bid rotation): collusive bids from contractors are a collusive practice. Collusive tenders involve cooperation agreements between contractors or suppliers in a given market or territory so as not to tender in order to raise prices at an artificially high level. It can happen in large and small contracts. Where collusive auctions are well established, prices can rise significantly and, in some cases, up to several hundred per cent. 2. Conduct background checks of the due diligence of winning and losing bidders, for example to determine undisclosed commons, employees or other affiliations, or prior participation in other collusive bidder systems. Consider concrete cases of collusive offers from contractors in cases reviewed. 4.

Examine the actual physical offer documents for the red flags listed above, in particular: 8th interview with « divers » (companies that, in defiance of the collusive group, make legitimate and low offers); to question the diver about any threats received or any other effort to block his offer. Bid manipulations, also known as collusive tenders, occur when two or more competitors agree that they will not actually compete with each other for bids, so that one of the cartel members can « win » the offer. Participants in an offer manipulation agreement can take turns presenting themselves as « winners » by agreeing on how they submit bids, including some competitors who oppose an offer. For bid handling systems to be successful, group members must prevent external companies from applying. This can be done through the payment of an intruder or by more aggressive measures such as threat or violence. The collusive group may also submit fictitious tenders or encourage suppliers and subcontractors not to do business with foreign countries to protect their monopoly. Bidders in two tenders for another transportation project in Southeast Asia agreed to submit non-competitive bids to ensure that a company chosen by government officials would win at an artificially high price. The winner compensated the named losers for their collaboration. Non-cooperative enterprises have been threatened with exclusion from future contracts, which is once again a testament to the participation of public procurement officials. In some cases, local suppliers and subcontractors can participate in the collusive group and help it by refusing to deal with outside companies or by driving very high prices to outside companies to make their offer prices incompetent.

Companies that have cooperated may divide markets or product lines and agree to non-competitive competition in each other`s territory, or only through collusive measures such as the submission of complementary offers.