Bid-Rigging

Bid-rigging charges arise when two or more competitors are said to have agreed in advance who will submit the winning bid in a competitive bidding process. This type of collusion can take many forms, but the following categories of allegations are most often seen:

Bid Suppression

When one or more competitors are believed to have abstained from bidding or engaged in the removal of a previously submitted bid so that a specific company's bid (selected by the competitors beforehand) will be accepted.

Bid Rotation

In these alleged conspiracies, all participants bid, but are said to have agreed to alternate who gets to be the lowest bidder.

Complementary Bidding

This occurs when some competitors are believed to have submitted unreasonable, unrealistic, or otherwise insincere bids, allegedly in order to give the appearance that genuinely competitive bidding is taking place. Complementary bidding schemes are believed to conceal covertly inflated prices, and are the most common form of bid-rigging allegation.

Subcontracting

In these alleged conspiracies, certain competitors are said to have agreed to refrain from bidding or to have submitted an intentionally losing bid in exchange for a subcontract or supply contract from the successful bidder. In some instances, prosecution will allege that the illegally obtained higher price was split between participants.

Bid-Rigging Prosection

Bid-rigging is a criminal offense under the Sherman Act, and prosecution is the responsibility of the Antitrust Division of the United States Department of Justice. The Antitrust Division concedes that bid-rigging is by nature secret and difficult to detect, and therefore is permitted to obtain conviction through circumstantial evidence. Bid-rigging is said to be suggested by the same company consistently winning a particular procurement, but such a pattern can also be established by one organization simply being the best in its particular industry.

Not all competitors need participate in an alleged conspiracy for the Antitrust Division to make a finding of bid-rigging. Unfortunately, this can result in an innocent company being implicated simply because it had the bad luck of being involved in a competitive bidding process with less scrupulous corporations.

We Can Help

When you are facing bid-rigging accusations and a federal investigation, you need more than good luck-you require a legal team with the resources and expertise necessary to defend you from unjust and improper charges.

Antitrust Attorneys at The Blanch Law Firm are always prepared to fight for you in court, but also have experience in getting antitrust accusations dismissed before you have to raise your right hand to be sworn in. Contact one of our bid-rigging attorneys by calling (917) 472-9883 or toll-free (866) 690-9316. Your initial consultation is both free and confidential.