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Guide to Combating Corruption & Fraud in Infrastructure Development Projects

  • Detection
    • Complaints
      • General initial interview questions
      • How to Generate Complaints and Reports
      • List of fraud reporting sites for Multilateral Development Banks
    • Red Flags
      • Red Flags Listed by Project Cycle
      • “Visible red flags” of Implementation Fraud
      • Proactive Fraud Detection Tests
    • Due Diligence
      • “Top Five” Due Diligence Background Checks
      • Free and Subscription Internet Sites
      • Local and On-Site Due Diligence Checks
      • Due Diligence Service Providers
  • Proof
    • Proving Common Schemes
      • Corruption Schemes
      • Bid Rigging Schemes
      • Collusive Bidding Schemes
      • Fraud Schemes
      • The Basic Steps of a Complex Fraud and Corruption Investigation
    • Elements of Proof for Sanctionable Offenses
      • Elements of Proof of Corrupt Practices
      • Elements of Proof of Obstructive Practices
      • Elements of Proof of Coercive Practices
      • Elements of Proof of Collusive Practices
      • Elements of Proof of Fraudulent Practices
  • Evidence
    • The Basics of Evidence for Investigators
  • Prevention
    • Anti-fraud Resources
Home » Proof » Most Common Schemes » Potential Scheme: Rigged Specifications

Potential Scheme: Rigged Specifications

Project officials can tailor the specifications in the requests for bids or proposals to favor a particular bidder and to exclude others, often as the result of corruption. Specifications that are too narrow can be used to exclude qualified bidders or justify improper sole source awards.  Unduly vague or broad specifications can allow an unqualified bidder to compete or justify fraudulent change orders after the contract is awarded.  Vague specifications also can indicate an unbalanced bidding scheme.

RED FLAGS OF RIGGED SPECIFICATIONS

  • Specifications are significantly narrower or broader than in previous similar requests for bids
  • Close similarity between the specifications and the winning bidder’s product or services
  • Specifications in Request for Bids includes specific brand names
  • Fewer than the normal or expected number of bids
  • Les tha 30% of bidders that buy bid packages submit bids
  • High number of contract awards to one bidder
  • Complaints from losing bidders that the specifications are tailored to a competitor
  • Indications or allegations that the winning bidder prepared the contract specifications

CASE EXAMPLES OF RIGGED SPECIFICATIONS

See actual case example of rigged specifications from investigated cases.

BASIC STEPS TO DETECT AND PROVE RIGGED SPECIFICATIONS

  1. Identify and interview all complainants to obtain further detail.
    • General interview questions
    • Rigged specifications questions
  2. Obtain the following documents and examine them for the red flags listed above:
    • Requests for bids
    • Bid evaluation reports
    • Change order requests and approvals
  3. Consult industry experts for assistance in examining specifications for technical contracts.
  4. Examine the website, catalogue or product list of the winning bidder and note very close similarities to the bid specifications.
  5. Compare the suspect contract specs to previous specifications for similar product or services and note differences.
Category: Most Common Schemes

International Anti-Corruption
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info@iacrc.org

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