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, or 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