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ARTICLE · 06 DECEMBER 2021

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ACCC Warns Against Bid Rigging In Public Tenders

Jones Day
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The Australian Competition and Consumer Commission ("ACCC") also cautions government agencies to be alert to potential bid rigging in the procurement process for public tenders.

AustraliaGovernment, Public Sector
Jones Day
Jones Day
John Cooper
John Cooper
James Ebert
James Ebert
Steven Fleming
Steven Fleming
Pip Goldman
Pip Goldman
Kenneth Hickman
Kenneth Hickman
Annie Leeks
Annie Leeks
Prudence Smith
Prudence Smith
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The ACCC cautioned agencies of the Australian government (the "Government") to be on guard against "bid rigging" among competitors with respect to contracts with the Government ("public contracts"). Bid rigging occurs when multiple competitors agree to allow one competitor to "win" a bid or tender with the purpose of increasing the cartel members' profits, while maintaining a facade of competition.

Public contracts represent a significant commercial opportunity for companies in Australia. In 2020-21 alone, there were 84,054 public contracts with a combined value of AUD 69.8 billion. The Government recently declared its intent to consolidate its contracted services and technologies, which means there likely will be fewer public contracts, but those that remain will be more valuable.

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