Apparent connections between bidders involved in collusive bidding schemes can be revealed by, among other things:
- Common addresses, fax or telephone numbers, common spelling errors or typos, on supposedly competing bids;
- Physical similarities in bid documents submitted by different bidders, such as common formatting or type faces;
- Sequentially numbered bid securities submitted by different bidders, indicating that one person purchased all of the securities at the same time;
- Similar or identical line item bid prices, indicating that the bids were prepared jointly or by one person.
Do a due diligence background check on companies that appear to be connected to look for evidence of common ownership or undisclosed affiliations.
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 it is actually present.