Bid-rigging is a serious type of anti-competitive activity. It can drive up the prices of contracts for vital goods or services and deny purchasers from getting true value for money.
Bid-rigging is a form of cartel – businesses collude when tendering for contracts, driving up the price for the winning bidder.
It removes the incentive for companies to compete to win a contract, which in turn means purchasers do not get true value for money.
Evidence suggests that cartels often result in overcharges of 10% to 20% (and more), costing taxpayers millions of pounds.
Procurement and supply professionals need to know where and how bid-rigging can occur during a tender process.
The Competition and Markets Authority (CMA) has developed tools and advice to help purchasers within the public sector detect suspicious activity and avoid becoming victims of bid-rigging. These include:
If you suspect a business of engaging in illegal cartel behaviour, such as bid-rigging, this should be reported to the CMA.
Contact the cartels hotline on 020 3738 6888 or email email@example.com.
On 17 January 2017, the CMA is hosting a free event in London to help those involved in procurement spot and stop anti-competitive activity from occurring.
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