A Procedure for Rebalancing Unbalanced Bidding in Unit Price Contracts

Hyari, Khaled Hesham

doi:10.1061/jladah.ladr-939

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2024

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“…Collusive bidding will pose a serious challenge to the fair competition with suppliers [4,5]. Contracts awarded on the basis of collusive bidding by bidders may result in increased costs for material procurement projects [6,7].…”

Section: Introductionmentioning

confidence: 99%

A Statistical Model for Identifying Collusive Bidding Based on Historical Quotations

Li,

Xie,

Guo

2024

Preprint

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Open bidding is widely used in Sinopec's material procurement due to its advantages of openness, transparency, and cost savings. However, there have been many complaints about collusive bidding in recent years. Collusive bidding will pose significant challenges to fair competition and increase project costs for material procurement. Therefore, there is an urgent need for an analysis model to identify and prevent the collusive bidding. In this paper, we propose a statistical model for identifying collusive bidding using the coefficient of variation cv, the ratio of high to low average quotation rP and the deviation rate of quotation δ as indicators, based on the statistics of the historical quotations for material A. Through a case study of the framework agreement bidding for material B, we identified the collusion behavior of bidders effectively, thereby verifying the applicability of this statistical model.

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