When "collusive bidding" is a common "trick" to block unfamiliar bidders

Saturday, 09 September 2023 1:23 PM
Just by bidding, many bidding parties have eliminated "strange" contractors easily and spectacularly. This article DauThau.info will provide some knowledge as well as signs related to bidding and solutions to help contractors feel secure in participating in bidding and avoid bidding packages with signs of bidding.
When "collusive bidding" is a common "trick" to block unfamiliar bidders

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

What is bidding?

Bid-rigging is simply understood as the behavior of the bidding party, installing strict or unusual conditions in the bidding documents (HSMT) with the aim of creating favorable conditions for a certain bidder/group of bidders to win the bid and cause damage. Difficulties for other contractors participating in bidding on that package. This is an illegal act and is strictly prohibited in bidding.

Bidding documents are intended to select the most suitable contractor for the bidding package. However, the impartiality of the person making the proposal will determine whether it is a suitable contractor search option or will be a "first bid course" for other contractors who want to participate but are not qualified contractors. in advance with the bidding party.

Bidding setting - a "familiar" trick in bidding

The story of "locking the first bid" is not new now. In the "bid documents" of the "Investor" King Hung requested the two "contractors" Son Tinh and Thuy Tinh to have an elephant with 9 tusks, a chicken with 9 spurs, and a horse with 9 red feathers. Whoever comes first wins. The above requirements indeed have many disadvantages for "contractor" Thuy Tinh. It is clear that the investor has turned to "contractor" Son Tinh.

Still a familiar trick, but today, the methods of installation in HSMT are diverse. There are small, simple, non-specific items, but the investor still requires the leader or representative to have a diploma or certificate for that item. There are also cases where the request must be a contract with unit A, agency B...

For example, Package No. 03 Construction and installation of Tan Thanh Secondary School, City. Thai Nguyen is managed by the City Construction Investment Project Management Board. Thai Nguyen is the investor/bidder. In particular, a contractor was eliminated because the bid document did not meet a criterion that, according to the Bidding Newspaper, is a criterion that limits the participation of contractors.

In fact, there have been many bidding stories reported to the press. The Vietnam Journalists Association once pointed out ambiguous bidding packages: bidding package No. 10.1 in the project to build a motorway to the center of Ngoc Chanh commune, district Dam Doi (worth nearly 6 billion VND). The investor/bidder sets out bidding conditions that seem to be only for contractors in his district: "Contractors must have previously constructed traffic projects worth 3 billion VND or more in Dam Doi district." ... only meet the bidding capacity conditions". Or another condition of the bidding party is equally ridiculous when installing revenue criteria: The bidding package to buy seats for a hall is only worth about 4 billion VND, but the bidding party requires the contractor to has a revenue of 100 billion VND. A similar situation happened with the bidding documents for package No. 20 - Supply and installation of elevators for the project of Long An Provincial Obstetrics and Children's Hospital.

How to make "strange" contractors feel secure in bidding?

For each requirement in the Bidding Documents, there are still many contractors who can meet it, but when all the criteria are combined, only one contractor or a few contractors can fully meet it. Many contractors have encountered situations like the above. Some contractors choose to withdraw and suffer losses, while others choose another path such as relying on relationships and resources. Currently, the law on bidding has quite complete sanctions to deter parties from intentionally violating, specifically:

Clause 2, Article 34 of Decree No. 63/2014/ND-CP stipulates:

"The Bidding Documents must not state any conditions to limit the participation of bidders or to create an advantage for one or several bidders, causing unfair competition."

Article 89 of the Bidding Law No. 43/2013/QH13 of 2013 clearly specifies prohibited acts in bidding, including specifically prohibiting the following cases: Giving, receiving, or brokering bribes; Taking advantage of positions and powers to illegally interfere in bidding activities; Bid collusion; Cheat; Does not ensure fairness and transparency...

Decree 50/2016/ND-CP stipulating penalties for administrative violations in the field of planning and investment emphasizes the following articles: Article 19. Violations of regulations on invitation for expression of interest documents and invitation for application documents recruitment, bidding documents, request documents; Article 20. Violations of regulations on organization of contractor and investor selection and evaluation of documents of interest, applications, bids, and proposals;
The law on bidding has perfect sanctions
The law on bidding has perfect sanctions

Therefore, the best way is for contractors to fully equip themselves with knowledge of law and bidding to promptly detect and propose to the investor/bidder to clarify and make timely and necessary corrections. can use the right to complain and denounce to relevant agencies.

In addition, DauThau.INFO always has software available to help contractors solve these "painful" problems. A typical example is the VIP3 software package - Reading competitors and bidders. Contractors can view the relationship history between the bidding party and the contractor, see the relationship between contractors, see how many packages this bidding party has announced and who is the winning bidder,...

Link to register and pay online for VIP3 package: https://dauthau.asia/en/page/vip3-package-features-price.html 

DauThau.info was born as a bridge to help businesses access bidding packages on the Government's bidding system in the fastest and most accurate way, contributing to increasing transparency in bidding, bringing more opportunity for contractors who want to participate.

If you have any questions, please contact DauThau.info immediately via:

Author: Nguyen Thuy

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