What is the bid rigging?

Saturday, 09 September 2023 4:00 PM
Bid rigging, and collusion are words that almost everyone participating in bidding has heard. So what is a bid ring, bid ring or bid collusion? Let's find out with DauThau.INFO through the article below.
What is the bid rigging?

Nhấn VÀO ĐÂY để chuyển bài viết sang bản tin tiếng Việt

Bid rigging, and bid collusion are to arrange for a predetermined contractor to win the bid

We know that the ultimate purpose of bid rigging, bid blocking or bid collusion is for a certain contractor to win the bid. Such bidding will reduce competition, the winning price is often very close to the estimated price of the bidding package, causing economic damage (due to low price competition) for the Investor/Inviting Party. contractor. For that reason, this is one of the prohibited acts in bidding.

Bid rigging is a prohibited practice in bidding

Bid rigging is a prohibited act in bidding as prescribed in Clause 3, Article 89 of the 2013 Bidding Law as follows:

Article 89. Prohibited acts in bidding
...
3. Bid collusion, including the following acts:
a) Agreement to withdraw from bidding or withdraw a previously submitted bid so that one or more parties participating in the agreement win the bid;
b) Agreement for one or more parties to prepare bid documents for the bidding parties so that one party wins the bid;
c) Agreement on refusing to supply goods, not signing subcontracts or other forms of causing difficulties for parties not participating in the agreement.

6 practical situations of enclosing and enclosing tenders

Because the parties (Contractors and often with the assistance and direction of the Investor/Procuring Party) want to arrange for a contractor to pre-determine the winning bid, the parties are very concerned when contractors appear. Learn about and approach bidding packages. Therefore, the most common ways to deal with bid rigging are:

  1. Arrangement refers to bidders who arrange to submit bids. Normally, contractors, when participating in bidding, often seek out information and use contact channels with the Procuring Entity/Investor, from which the Procuring Entity/Investor will often receive information from within. Contractors "want" to participate in the bidding package. From there, those who "have a voice or decision-making power" will proceed through "unofficial channels" to warn contractors not to participate. At that time, if the arrangement is successful, only the contractor who has already arranged the main road will bid, possibly accompanied by one or two other contractors, but only as "green troops", paving the way for the contractor. The other bidder won the bid.
  2. Once the arrangement may not be complete or uncertain, a more sophisticated way is for the contractor to influence the Procuring Entity/Investor to set some criteria that make it difficult for unfamiliar contractors. These criteria are included in the capacity and experience requirements in the bidding documents.
  3. Even more sophisticated, but also very commonly used by parties (especially in goods procurement packages), is to include technical elements in the bidding documents that almost only one or a few firms have. similar parameters, which the company almost has a prior agreement with the contractor being arranged in advance.
  4. Previously, when there was offline bidding (paper bidding), there were often difficulties in accessing and purchasing bidding documents, or even not being able to buy bidding documents. However, recently, as online bidding and information technology have developed at the same time as bidding documents must be published online, this form is less common.
  5. In some bidding packages, there is also a situation of stealing bid documents. The parties arrange an army to attend the bid submission session. If strange contractors appear who are not in the plan, this army can completely risk their lives to steal the bid documents. Bidding documents are then destroyed. In the past, many contractors were both laughing and crying about this situation. Recently, this situation is less common because contractors have "awakened" and the involvement of law enforcement agencies is more drastic, so members The bad part does not dare to act rashly.
  6. Bargaining to buy back bids from unfamiliar contractors is not uncommon. When a strange contractor appears intending to participate, after learning about this strange contractor, it is possible to overcome the steps. evaluation of bid documents. Related parties can immediately find a way to connect with this strange contractor and negotiate a price, possibly losing a sum of money so that the contractor does not participate or still participates, but then the bid documents will have to be adjusted so that the contractor does not participate. This bid cannot be awarded.
The phenomenon of bid rigging is not only a headache for truly qualified and experienced contractors, but also a headache for supervisory and inspection agencies and law enforcement agencies.

Bright spots in bidding

Recently, to limit negativity in bidding, the Prime Minister issued Directive No. 47/CT-TTg on rectifying bidding work in development investment projects and regular procurement activities. regularly use state capital, which clearly states: "In case serious violations occur during the contractor selection process such as bid rigging, bid rigging, bid rigging..., based on the level of violation will be strictly handled in accordance with the law." In addition, there are many issues specifically stated in the Directive. Readers can view the full Directive here.
During the past two years, along with the roadmap for developing online bidding, there have been many bidding packages conducted online, helping to repel bid rigging and bringing fairness and competition in bidding. . A customer who recently used our software was very excited in a short period of time thanks to the timely and accurate information from the VIP1 package. He participated in 4 online bidding packages, all bidding packages had 4 to 5 bids. Participating contractors, some packages won the bid, some packages also lost the bid because the participating price was higher than other contractors, but they were still very happy because they felt the competition was very fair.
In recent times, we have tried to gather articles, analysis, comments and instructions so that customers can have good experiences when encountering unfavorable situations, helping readers troubleshoot. contractors. Some related articles can be seen below:
  • When installing bids, it is a common "trick" to block unfamiliar bidders
  • Abnormal signs indicate bid collusion.
  • Experience in identifying "blue pieces, red pieces" when first participating in bidding.
  • Package VIP3 (Analysis of green and red pieces, reading competitors and bidding parties) is ready for launch.
In addition to the bid hunting software DauThau.INFO has been providing to customers, we now have the private bidding network DauThau.Net which will be the place to gather all forms of bidding and bidding for individuals and businesses. businesses, business households... attended. Hopefully, it will open up great opportunities for private contractors to hunt for bidding packages with capital sources other than state capital.
Sincerely thank you!

Author: Linh Hồ Thị

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