assess the various features of their public procurement laws and
practices and their impact on the likelihood of collusion between
bidders. Members should strive for public procurement tenders at all
levels of government that are designed to promote more effective
competition and to reduce the risk of bid rigging while ensuring overall
value for money.
To this effect, officials responsible for public procurement at all levels of government should:
in co-operation with sector regulators, the general features of the
market in question, the range of products and/or services available in
the market that would suit the requirements of the purchaser, and the potential suppliers of these products and/or services.
2. Promote competition by maximising participation of potential bidders by:
i) establishing participation requirements that are transparent, non-discriminatory, and that do not unreasonably limit competition;
to the extent possible, tender specifications and terms of reference
focusing on functional performance, namely on what is to be achieved,
rather than how it is to be done, in order to attract to the tender the
highest number of bidders, including suppliers of substitute products;
iii) allowing firms from other countries or from other regions within the country in question to participate, where appropriate; and
iv) where possible, allowing smaller firms to participate even if they cannot bid for the entire contract.
the tender process so as to reduce the opportunities for communication
among bidders, either before or during the tender process. For example,
sealed-bid tender procedures should be favoured, and the use of
clarification meetings or on-site visits attended personally by bidders
should be limited where possible, in favour of remote procedures where
the identity of the participants can be kept confidential, such as email
communications and other web-based technologies.
4. Adopt selection criteria designed i) to improve the intensity and effectiveness of competition in the tender process, and ii)
to ensure that there is always a sufficient number of potential
credible bidders with a continuing interest in bidding on future
projects. Qualitative selection and award criteria should be chosen in
such a way that credible bidders, including small and medium-sized
enterprises, are not deterred unnecessarily from participating in public
efforts to fight collusion and enhance competition in public tenders by
encouraging procurement agencies to use electronic bidding systems,
which may be accessible to a broader group of bidders and less
expensive, and to store information about public procurement
opportunities in order to allow appropriate analysis of bidding
behaviour and of bid data.
all bidders to sign a Certificate of Independent Bid Determination or
equivalent attestation that the bid submitted is genuine, non-collusive,
and made with the intention to accept the contract if awarded.
in the invitation to tender a warning regarding the sanctions for bid
rigging that exist in the particular jurisdiction, for example fines,
prison terms and other penalties under the competition law, suspension
from participating in public tenders for a certain period of time,
sanctions for signing an untruthful Certificate of Independent Bid
Determination, and liability for damages to the procuring agency.
Sanctions should ensure sufficient deterrence, taking into account the
country’s leniency policy, if applicable.