Daniel Rawling from the Competition and Markets Authority (CMA) delivered an engaging presentation to the group, which sparked a lively and thoughtful discussion. His insights on bid rigging, a serious issue in procurement processes, highlighted several crucial points.
Rawling provided an overview of the CMA’s role in tackling anti-competitive practices and protecting consumers. He explained how bid rigging can distort the market, leading to inflated prices and reduced quality in goods and services. He outlined several forms of bid rigging, including bid suppression, bid rotation, cover pricing, and customer or market allocation. Each of these methods allows companies to manipulate tender processes to their advantage, harming competition and ultimately costing public funds.
He also discussed the significant consequences for companies and individuals involved in cartel activity, including heavy fines, reputational damage, and director disqualification. The CMA has successfully prosecuted a number of high-profile cases across various sectors, from construction to pharmaceuticals.
The group found his practical guidance on recognizing bid rigging risks particularly useful. He shared several red flags to watch for, such as identical bids, suspiciously high or low bids, and signs of collusion. Importantly, Rawling emphasized the need for vigilance without directly confronting suppliers suspected of misconduct, as this could hinder investigations.
In the discussion that followed, members raised questions about specific procurement challenges in the Revenues and Benefits sector, including the risks associated with direct awards, frameworks, and limited supplier markets. The group also touched on the balance between maintaining service continuity and ensuring competitive procurement processes. Additionally, Rawling addressed questions regarding the role of soft market testing and the potential for it to inadvertently limit competition.
The session concluded with a broader exchange of views, focusing on the practical steps that local authorities and public procurement professionals can take to reduce their exposure to bid rigging. Everyone found the discussion highly informative, with many valuable takeaways for future procurement practices.
A reminder that VN and inbest are offering free data analysis of your SHBE and/or CTR caseload to help identify those missing out on Pension Credit. With this offer, you’ll get access to a web analytics platform that provides This service is completely free. If you’re interested, contact Manu at Inbest (manu@inbest.ai). The recording can be accessed from https://bit.ly/VN240916.