Competition Matters

When unscrupulous vendors rig bids, the competitive process is disrupted.  At times, the bid results look perfectly normal and the wrongdoers fly quietly under the radar.  At other times, however, the results look so unusual as to raise immediate suspicion in the mind of the purchasing official.  For example, a competitive solicitation on which only one bidder bids but where historically three or four bidders have participated will raise an immediate red flag. 

Vendors who rig bids are well aware of this fact.  Thus, in situations where their schemes are vulnerable to detection, they often agree to submit intentionally losing – or “sham” – bids in order to protect the predetermined winning vendor and to conceal their conspiracy.  Even though sham bids are intended to lose, they are often successful at giving the false impression that competition is alive, well, and thriving.