FIGHTING BID-RIGGING A Guide for Procurers Fazleen Ismail & - - PowerPoint PPT Presentation

FIGHTING BID-RIGGING

A Guide for Procurers

Fazleen Ismail & Rebecca McAtamney

Bid-rigging

• Bid-rigging is a real threat
• Bid-rigging breaches the Commerce Act
• Signs to look out for
• Design tenders to minimise risk
• Report suspicions to Commission

Bid-rigging is a real threat

• Can occur in any market
• Can raise prices significantly
• Commerce Commission has recently investigated bid-

rigging

• Customer will generally not know (but there are signs)

Bid-rigging breaches the Commerce Act

• Agreement between competitors as to which will win

bid

• Can be verbal or written
• Common types:

– Cover bidding – Bid suppression – Bid rotation

Signs to look out for

• Suspicious bidding patterns
• Suspicious behaviour or prices
• Clues in documents or things said by bidders
• Opportunities that bidders have to communicate
• Relationships amongst bidders eg sub-contracting

Design tenders that minimise the risk

• Maximise number of bidders
• Avoid predictability
• Reduce opportunities for communication eg site visits
• Include anti-collusion clauses in tender documents
• Raise awareness of bid-rigging – use Commission

Guidelines

Report suspicions to Commission

• Remember – signs do not prove bid-rigging
• Indications may have legitimate explanation
• Do not assume guilt – continue with tender process
• Commission has statutory powers to assist investigation

NAME: Fazleen Ismail/Rebecca McAtamney TITLE: Manager/Chief Adviser, Advocacy & Development TEL: (04) 924 3600 EMAIL: fazleen.ismail@comcom.govt.nz rebecca.mcatamney@comcom.govt.nz

CONTACT To contact the Commission with information about false or misleading trading practices,

• r anti-Competitive behaviour by businesses

CALL the Contact Centre on 0800 943 600 WRITE to Contact Centre, PO Box 2351, Wellington EMAIL contact@comcom.govt.nz