More Indicators of Collusive Tendering
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the last issue of Fraud Prevention
Review we considered ten indicators of possible collusion in
tendering. Here we consider another ten indicators.
practices subvert the purposes of an organisation and are tantamount to
lead to organisations overpaying for goods and services and having to
accept inferior quality.
list is not comprehensive and is meant to stimulate thought on other
indicators of collusive tendering.
one or more of the indicators exists it does not necessarily mean that
there is collusive tendering; it merely means that you should consider the
possibility of collusive tendering.
tenderers always tender against each other. When one does not
tender, others do not tender either.
of the original tenderers to retender.
submit tenders in an identical ranking upon retendering.
same company wins the tender against frequently changing other
submit tenders but never win contracts.
prices drop when a new or infrequent tenderer submits a bid.
tenderer submits tenders with prices substantially higher or lower
than on other similar projects and there is no apparent reason to
account for the price being higher or lower.
existence of strong "industry organisations", especially
those with limited memberships.
regularly socialise, hold meetings or cooperate on other ventures.
leave tender briefing sessions together. Representatives of one or
more of the tenderers present at the briefing session do not appear
to show any real interest.
the above points refer primarily to tender prices, the same principles
generally apply also to tender conditions.
are that collusive practices in the tendering process are far more
widespread than was previously believed.
cost to organisations could be immense. Managers and auditors should
therefore be aware of the risks and the indicators.
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