Bid rigging is a form of fraud in which competing parties collude to manipulate the outcome of a bidding process, typically in procurement or auction settings. This practice is illegal in most countries as it undermines fair competition and often results in inflated prices or subpar services.

Bid rigging schemes are often complex and well-hidden, typically involving regulatory bodies such as antitrust authorities or procurement oversight agencies. Whistleblowers, especially those within the involved companies or procurement departments, play a crucial role in detecting and exposing these fraudulent practices.

Bid Rigging and Whistleblowing

Employees or executives involved in the bidding process may become aware of collusion between competitors. Their insider perspective makes them valuable whistleblowers, as they can provide specific details about how the bid rigging occurs. Whistleblowers who expose such schemes can potentially save taxpayers millions of dollars and ensure fair competition.

Exposing a bid-rigging scheme can lead to investigations of similar practices across an entire industry, which can help restore fair competition in markets, potentially leading to long-term benefits such as lower prices, improved quality, and increased innovation.