Case Example of Rigged Specifications

IT Contract

A former employee of an international IT firm reported that the company had won a major contract because its agent had bribed Project Officials to tilt the hardware and software specifications to match the company’s products.  In fact, the former employee said, the Project team allowed the firm to draft the specifications itself, which the firm had done with some care to avoid making the scheme too obvious.

To compound the fraud, the employee disclosed, the IT firm colluded with its prime “competitor” to divide the work on the contract and to submit collusive bids on successor projects.  As a result of the various manipulations, the firm was able to secure a contract for almost 30% above the competitive price.