Splitting contracts into several separate bids

It can sometimes make commercial sense to split contracts into several separate bid packages.

However, this process can be corruptly abused, in that a procurement manager may do so in order to bring the bid packages below the financial threshold which requires competitive, or fully competitive, bidding.

This can assist the corrupt award of contracts to pre-selected winners.

Bid evaluation criteria favour one bidder

The procurement manager and/or design engineer may corruptly ensure that there are bid evaluation criteria which only certain bidders can comply with.

For example, an explicit requirement may be included in the technical specification for a named brand product, or for a specific construction technique, which only one bidder (or one sub-contractor or supplier) can provide.  This may result in:

• the other bidders being disqualified for failing to meet the specification requirements, and/or
• the relevant sub-contractor or supplier being guaranteed a contract.

Subjective decision criteria

Competing bids should as far as reasonable be assessed based on objective decision criteria.

The more subjective the criteria, the easier it is for a corrupt procurement manager to manipulate the evaluation process, and ensure that the contract award goes to the pre-selected winner.

The absence of objective criteria also makes any challenge of the award decision by losing contractors much more difficult.