In a poorly controlled bidding process project officials can tamper with bids after receipt to ensure that a favored contractor is selected. Common methods of manipulating bids include:
- Non-public bid opening
- Failing to read out bid prices and terms at bid opening
- Making changes to or discarding parts of bids, for example, bid securities, after receipt; “losing” all or parts of bids
- Changing the announced evaluation criteria during the evaluation process
- Arbitrarily assigning or changing bid scores; making deliberate “errors” inscoring
- Voiding all bids for alleged errors in specifications and re-bidding the work
- Extending the bid due date to permit late, changed or altered bids
- Allowing unauthorized persons to participate in and influence the bid evaluation
- Interference in the bid selection process by senior officials
- Failing to record important information in the bid evaluation report, such as the ranking of bidders or bid prices
RED FLAGS OF MANIPULATION OF BIDS
- Inadequate controls over the opening, recording and handling of bids
- Highly subjective or unbalanced evaluation criteria that can be used to manipulate the bid scores
- Complaints of changes to bids after they are received
- Some bids are rejected because of allegedly missing components
- Unusual changes to or “errors” in the scoring of bid
- Missing or inadequate documentation to support the recommendation for contract award
- All bids are voided for “errors” in contract specifications and the job is re-bid
CASE EXAMPLES OF MANIPULATION OF BIDS
See actual case example of manipulation of bids from investigated cases.
BASIC STEPS TO DETECT AND PROVE MANIPULATION OF BIDS
- Identify and interview all complainants to obtain further detail.
- Obtain the following documents and examine them for the red flags listed above
- Minutes of bid opening
- Bid evaluation reports
- Copies of losing bids
- Obtain retained copies of the bids from the losing bidders and compare them to the bids in the bid evaluation files.
- Examine the losing bids for indications of changes to the bids and removal of attached documents.
- Review the bid evaluation reports, notes and minutes prepared by the bid evaluators and note disputed changes to scoring, arithmetical “errors,” etc.
- Determine the legitimacy of extending bid due dates or re-bidding contracts due to alleged “errors,” changes to contract specifications, or “lost” bids.