Red Flag: Bidder Not Listed in Directories or on Internet

Firms in which project officials hold undisclosed interests often are shell companies that are organized merely to bid on a particular contract.  Such companies usually are not listed in business or telephone directories or on the internet.

In some collusive bidding cases the winning bidder prepares and submits losing bids from shell companies to give the appearance of competition.   Such “companies” most likely will not be listed in directories or appear on the internet.

This red flag can indicate the following schemes:

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