Bid-rigging
What is bid-rigging?
Bid-rigging occurs when competing suppliers secretly and unlawfully agree who should win a tender. Bidders may purposefully submit an unreasonably high bid, not bid at all or botch their bid in order for the agreed supplier to win.
If you suspect a case of potential bid-rigging, then you should report it to the CCPC. If you prefer, you can report anonymously.
How is bid-rigging harmful?
In a fair tender process, suppliers compete by bidding their best price and highest quality. When suppliers secretly and unlawfully decide on a predetermined winner, price and quality is disregarded. Bid–rigging schemes may be carried out across multiple tenders, so each supplier gets to win a contract at an increased rate. Unsuspecting procurers end up paying more for contracts, and the cost of the procurement process is wasted. Bid–rigging increases public spending, reduces the quality of public services and can deter foreign investment.
How can procurers prevent bid-rigging?
Procurers can prevent bid–rigging by designing their tender specification to encourage competition, knowing the warning signs and implementing safeguards recommended by the CCPC.
- Download the Bid–rigging prevention Guide
- Use the Bid–rigging prevention Checklist
- Contact the CCPC at cartels@ccpc.ie to present about the risks of, and how to prevent bid-rigging
What should you do if you are involved in bid–rigging?
Consider applying for immunity under the CCPC and DPP’s Cartel Immunity Programme (CIP) or leniency under the CCPC’s Administrative Leniency Policy (ALP). The CIP and ALP encourage self-reporting of cartel conduct in return for immunity and/or leniency.
What are the penalties for bid–rigging in Ireland?
Under the Competition Act 2002, bid–rigging can result in:
- Criminal convictions with up to 10 years imprisonment
- Fines of up to €50 million or 20% of turnover for individuals or undertakings.
- Director disqualification for five years
