Definition

There is a new buzzword in the flood project scams of DPWH in the Philippines.

BID RIGGING in the Department of Public Works and Highways (DPWH) in the Philippines is a form of collusion among contractors to manipulate the outcome of a public bidding for a project. 

Instead of competing, contractors secretly conspire to fix prices, share contracts, or limit competition, resulting in higher costs for the government and taxpayers.

This practice undermines the goal of achieving the best value for public money, often leading to higher project costs, lower quality outcomes, and the misuse of taxpayer funds.

What is an example of bid rigging?

For example, if one member of the bidding ring is designated to win a particular contract, that bidder's conspirators could avoid winning by not bidding ("bid suppression") or by submitting a high bid ("cover bidding").

• Definition: Bid rigging occurs when competitors secretly agree to manipulate a bidding process rather than compete fairly.
• Impact: It undermines the purpose of public bidding, which is to get the best value for money.
• Consequences: This can lead to higher project costs, lower quality of goods and services, and the misuse of taxpayer money.
• Illegality: It is illegal under the Philippine Competition Act (Republic Act No. 10667) and carries severe penalties, including imprisonment and significant fines.
• How it happens: Competitors may agree on who will win the bid and that others will submit higher, non-competitive bids, or they might agree to submit "dummy bids".