Bid-Rigging & Procurement Red Flags

Detecting and preventing collusive behavior in public tenders is key to maintaining fair competition. Below are common warning signs of bid-rigging and procurement manipulation, along with tips on how contracting authorities and compliance officers can identify them early.

1. Suspicious Bidding Patterns

• Same companies taking turns to win contracts (“rotation schemes”).
• Identical or near-identical bid prices submitted by different suppliers.
• Bids that appear intentionally high, incomplete, or withdrawn after submission.
• Unusual patterns in bid timing or identical mistakes across documents.

2. Questionable Supplier Behavior

• Competitors submitting bids from the same fax number, IP, or email domain.
• Similar formatting, typefaces, or document structures across bids.
• Frequent subcontracting between competing bidders.
• Industry meetings or social contacts between “competing” suppliers before tenders.

3. Procurement Process Irregularities

• Limited number of bids despite many potential suppliers in the market.
• Specifications or qualification criteria tailored to a single bidder.
• Late or last-minute changes that disadvantage new entrants.
• Officials showing favoritism or leaking confidential bid information.

4. What to Do If You Suspect Collusion

• Preserve all tender documentation and communications.
• Do not alert the suspected firms.
• Contact your internal compliance officer or legal counsel immediately.
• Report the suspicion to the relevant competition authority.