Bidder Collusion

Bidder collusion occurs when competing parties in an auction or procurement secretly cooperate to manipulate the outcome. They may agree to set artificially high or low bids, divide contracts among themselves, or otherwise distort competition. The goal is to secure favorable terms or prices at the expense of fairness, often leading to higher costs for the organization awarding the contract or a distorted market. Collusion undermines the integrity of the bidding process, reduces competition, and can result in economic inefficiency and unfair advantages for the colluding parties.