Contract and procurement fraud
Unjustified Sole Source Awards or Other Non-competitive Method of Procurement
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| Unjustified Sole Source Awards or Other Non-competitive Method of Procurement
Non-competitive methods of procurement, like sole-source contracting, exclude competition therefore, such methods can be used improperly to eliminate competition and steer contracts to a particular vendor. Again, is a non-competitive procurement process accomplished through the solicitation of only one source, thereby limiting full and open competition. Sole-source contracting is more vulnerable to fraud than competitive methods because it provides a greater freedom for manipulation and collusion with a vendor/contractor, and consequently, organisations that use this form of procurement typically require justification for its use. Typically, justification occurs when the goods or services are available only from a single source, when exigent circumstances will not permit delay resulting from a competitive solicitation, or when solicitation is determined inadequate after soliciting a number of sources. Additionally, in cases involving unjustified sole source awards, the supplier typically charges a much higher price than the company could have obtained through bidding. EXAMPLE
specifications called for a sole source provider. Based on the requisitioner’s information, competitive bidding was disregarded and the contract was awarded to a particular supplier. A review of other bids received at a later date showed that certain materials were available for up to $70,000 less than what the company paid in the sole source arrangement. The employee had helped divert the job to the contractor in return for a promise of future employment. Some common red flags of unjustified sole source award schemes include: Frequent use of sole source procurement contracts High number of sole source awards to one supplier Requests for sole source procurements when there is an available pool of contractors to compete for the contract Procuring entity did not keep accurate minutes of pre-bid meetings False statements made to justify noncompetitive method of procurement Justifications for noncompetitive method signed or approved by employees without authority Employee fails to obtain the required review for sole source justifications Sole source justifications developed by or in consultation with a contractor who is permitted to compete in the procurement Download 0.62 Mb. Share with your friends:
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