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What is bid rigging in a public tender?
作者:    访问次数:110    时间:2022/01/21

今天这个话题,西班牙中资企业的朋友可以看一看。


1 What is bid rigging in a public tender?


Bid rigging in tendering processes occurs when bidders collude to fix the price or any other commercial conditions, or to divide up the market, with the objective of obtaining greater gains from the public tender or auction.


2 What is so harmful about bid rigging?


These arrangements have a negative impact both on market competition for the goods and services tendered and on the administration’s management of public resources. The citizens are thus harmed on two fronts: as consumers, because competition in the market is reduced or eliminated, and as taxpayers, because the resulting public procurement is costlier. By some estimates, prices of goods and services acquired through tenders can be as much as 20% higher when there is bid rigging.


Collusion between companies is prohibited by article 1 of theSpanish Competition Act (LDC), and, according to article 62 of that law, such collusion may be considered a very serious infringement. In this case, article 63 envisages the possibility of imposing fines of up to 10% of the total turnover of the company or, where that turnover cannot be specified, a fine of up to 10 million euros.


Fraudulent circumvention of competition in government tenders is not just an administrative infringement; it can also be considered a criminal offence. Article 262 of the Spanish Criminal Code (Código Penal) provides that persons who distort prices in public tenders and auctions may be punished with prison sentences of from one to three years and a fine equivalent to twelve to twenty-four months, along with possible special disqualification from contracting with government bodies for a period of from three to five years.


Similarly, Additional Provision 27 of the LCSP lays down the obligation of contracting authorities and of the State Administrative Procurement Consultative Board to notify the CNC of possible evidence of conducts contrary to competition law. Breach of this obligation can give rise to administrative liability.