Question

Taylor is a procurement specialist for Hillside Corporation. He is reviewing contracts, and notices a pattern between three particular contractors. Contractor A bid the lowest on the first job, Contractor B bid the lowest on the second job, and Contractor C bid the lowest on the third job. All three contractors bid on all three jobs. Which of the following is a potential scheme perpetrated by these contractors?

a. Bid tailoring
b. Bid rotation
c. Complementary bids
d. Phantom bids

Answer 1

B

Step-by-step explanation:

Bid rotation is when contractors collude and take turns in winning a bid. Colluding contractors submit bids but take turns being the low bidder.

Bid-tailoring is when an employee in collusion with a contractor tailors bid specifications to give an unfair advantage to a certain contractor.

Complementary bids are bids intended only to give the appearance of a genuine bid. Colluding bidders submit higher priced or deliberately defective bids to in order to ensure the selection of the designated winner at inflated prices.

Phantom bids are fake bids