collusive bidding

The third possibility being investigated, he said, is "collusive bidding" in which contractors agree to find ways to divide contracts among themselves.

It finds that multiple contracting actually fosters collusive bidding.

State studies find it has added as much as 30 percent to the cost of building some public structures, and that multiple contracting encourages collusive bidding.

Subcontractors argue that the law protects taxpayers against corruption, but crime experts say multiple contracting actually fosters collusive bidding.

Disadvantages Despite the apparent success of spectrum auctions, an important disadvantage limiting both efficiency and revenues is demand reduction and collusive bidding.

"Collusive bidding is so ingrained in the economic life of the city that it would be meaningless to disqualify one or two bidders suspected of bid-rigging."

"On the basis of that review, we are satisfied that Morgan Stanley has not engaged in any market manipulation, including a 'short squeeze' or collusive bidding," the firm said.

In February 2008, Express One and Joseph Kuchta were debarred from government contracting as a result of collusive bidding conduct and fraud.

Christine Steiner, a lawyer who represents many arts-related clients, explains: "Collusive bidding is illegal in the auction world and has been the subject of investigations and scandals in the past."

Mrs. Hills said the Japanese had agreed to discourage collusive bidding, to give potential bidders more information about projects and to refrain from interfering in private decisions regarding formation of joint ventures.

A trustee of the authority, Meyer S. Frucher, said the prequalification strategy would ultimately cut costs by enlarging the pool of responsible bidders and limiting opportunities for collusive bidding.

The Ethicist also reported a lawyer's advice that "collusive bidding is illegal in the auction world," adding that it "may not be illegal online - Internet auctions are largely unregulated."

Citing collusive bidding and other restrictive practices, the Bush Administration said today that Japan continued to restrict American bidders unfairly from its $300 billion-a-year construction market, but it ruled out retaliation at this time.

Other measures passed during the session included a basic coal safety measure, a common school statute, a measure prohibiting collusive bidding on tobacco, new regulations on grain warehouses, and a law providing free turnpikes.

The investigation centers on three types of contract fraud: the payment of bribes for inside information relating to competitive bids, the manipulation of contract specifications to favor one contractor over another and collusive bidding by more than one contractor.

The "action plan," as it is being called, would make the bidding system more transparent, provide foreign companies equal access to information about projects and strengthen enforcement against collusive bidding practices, which a recent series of scandals have shown to be rampant in Japan.

The investigation, the prosecutor has said, centers on three types of contract fraud: improper disclosure, sometimes for bribes, of confidential information relating to competitive bidding for contracts; manipulation of contract specifications to influence what companies would win contracts, and collusive bidding.

Layers of Conspiracies In particular, the charges being contemplated include multiple layers of conspiracies to defraud the Government, the improper disclosure of confidential information, theft of Government property, violations of conflict-of-interest laws, wire fraud, and collusive bidding for contracts.

Mr. Wright said that Mr. Hudson, in outlining the scope of the inquiry, had indicated that investigators were looking at the manipulation of bid specifications in ways to favor certain contractors and, in Mr. Wright's words, "indications of collusive bidding on the part of individual contractors."

'It's Very Troublesome' Mr. Hudson told lawmakers last week that his investigation has uncovered at least three types of contracting abuse: the illegal disclosure of proprietary information about contracts; the manipulation of bid specifications to improperly steer contracts to a particular supplier, and collusive bidding by more than one contractor.