Watchdog issues warning to procurement professionals on bid-rigging

The Competition and Markets Authority has issued an open letter to procurement professionals on where and how bid-rigging can occur during a tender process.

The letter, which can be viewed here, is from John Kirkpatrick, CMA Senior Director Advocacy, and covers:

  • Detecting and deterring bid-rigging;
  • What procurement professionals need to know;
  • What types of bid-rigging they need to look out for: bid rotation; cover pricing; bid suppression;
  • Tools to help procurement professionals;
  • How to report bid-rigging.

According to the CMA, evidence suggests that cartels – of which bid-rigging forms part – overcharge by up to 20%.

The watchdog has also developed a 60-second summary and video to provide further information and advice.

The CMA worked with the Crown Commercial Service on the package of information, which is being made available to members by the Chartered Institute of Procurement & Supply and the Local Government Association.

Kirkpatrick said: “Bid-rigging can cost taxpayers and consumers many millions of pounds. This e-learning package will help procurers spot cases and root out attempts to cheat before they cause any damage.

“The CMA has a hotline which people can call if they suspect cases of bid-rigging or other anti-competitive practice, so I urge anyone with doubts to call.”

In 2013/14 the UK public sector spent £242bn on procurement of goods and services, of which around £60bn was spent by local government.