Which type of bid rigging involves participants not submitting bids in order to suppress competition?

Which type of bid rigging involves participants not submitting bids in order to suppress competition?

• A. Bid Rotation
• B. Complementary Bidding
• C. Market Division
• D. Bid Suppression

Answer: (D)

The correct answer is bid suppression, which refers specifically to a form of bid rigging where participants in the bidding process refrain from submitting their bids to limit competition. This tactic ensures that there are fewer bidders, thereby increasing the likelihood that the remaining participants can win the contract at an inflated price or on favorable terms. In bid suppression, certain bidders may agree not to submit bids or may withdraw their bids, leading to a controlled bidding environment that undermines the tenets of fair competition. This practice is illegal and can lead to significant consequences for those involved, including legal action and loss of professional credentials. Understanding bid suppression is crucial for Qualified Purchasing Agents who must maintain ethical standards and recognize the importance of fair competition in procurement processes. This knowledge enables QPAs to identify potential collusion among bidders and ensure compliance with procurement laws and regulations.

The correct answer is bid suppression, which refers specifically to a form of bid rigging where participants in the bidding process refrain from submitting their bids to limit competition. This tactic ensures that there are fewer bidders, thereby increasing the likelihood that the remaining participants can win the contract at an inflated price or on favorable terms.

In bid suppression, certain bidders may agree not to submit bids or may withdraw their bids, leading to a controlled bidding environment that undermines the tenets of fair competition. This practice is illegal and can lead to significant consequences for those involved, including legal action and loss of professional credentials.

Understanding bid suppression is crucial for Qualified Purchasing Agents who must maintain ethical standards and recognize the importance of fair competition in procurement processes. This knowledge enables QPAs to identify potential collusion among bidders and ensure compliance with procurement laws and regulations.