He pointed out the same company seem to be repeatedly low bidders on contracts i

Question

He pointed out the same company seem to be repeatedly low bidders on contracts in certain areas in certain industries. Is this a matter of antitrust enforcement or bid-rigging and fraud? That is what I have got so far and my question relates to it. Signs and proof of antitrust enforcement in the US, significant price changes involving more than one seller of similar products but different brands. Fewer competitors than normal submitting bids on a project.Statements from a seller suggesting that a particular customer or contract belongs to a specific vendor. The same company repeatedly being the low bidder on contracts for a product or service. Unusual and unexplainable large dollar difference between the winning bids and all other bids. Bidders seem to win bids on a fixed rotation. It leads to production growth and increases in the employment rate.

Explanation / Answer

Yes, It is possible that purchasing managers may have a cartel with bidders. Generally, technology is a solution to all these kind of practices.

Bidding is in the form of online or offline applications. Corrupt business practices may make insider information available to bidders about who is the lowest bidder and then figures can be manipulated.

This may be esaier in offline practices where data is received on different dates before last date of bidding. Online practices may have solution for this

Ensuring digital data security, digital signature and independent server control can make the difference. However, hacking or other technological loopholes can be used.

This case also talks about bidders winning on a fixed rotation. This may give an hint about cartel at bidders level and match fixing before bidding. So only a certain bidder bids for a particulat work.

As there is clarity about who is going to get work, Contractors can effectively plan their manpower and other resources and this leads to increased employment and production growth.

These practices may create disturbance in quality and anti-competitive practices.

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