Red Flag: Rotation of Winning Bidders

Members of a collusive bidding scheme can agree to rig the bidding process in order to allow each member of the group to win a contract at an inflated price on a rotating basis.

The rotation can be based on geographic area – one road contractor gets all the work in one region, another company all the work in another – or by market, type of job or by time.  A “losing” bidder might receive a percentage of the winning bidder’s profits, or be hired as a sub-contractor, as it awaits its turn to win.

Do a thorough due diligence background check to determine if there are connections between rotating bid winners.

This red flag can indicate the following scheme:

Click on the scheme listed above to see more information on the scheme, a more complete listing of its red flags and steps to determine if the scheme is actually present.