What does collusion involve in a tender process?

Collusion in a tender process refers to secret cooperation among suppliers aimed at undermining competition. This often involves parties coordinating their bids to ensure that they can control the market or manipulate pricing, thereby eliminating true competitive pricing and potentially leading to inflated costs for the buyer. By engaging in collusion, suppliers can create an environment where fair competition is stifled, making it difficult for other participants to compete on equal footing.

This behavior is considered unethical and illegal in many jurisdictions because it violates principles of fair competition and can lead to significant consequences for those involved, including penalties and legal repercussions. The essence of a tender process is to foster competitive bidding, allowing for the best value to be achieved by the buyer. When collusion occurs, it disrupts this fundamental principle, damaging the integrity of the procurement process.