The Department of Justice's Procurement Collusion Strike Force is leading a coordinated national response to combat bid rigging, price fixing, and market allocation schemes targeting government contracts at federal, state, and local levels. For individuals working in government contracting, procurement, sales, bidding, or compliance who have witnessed collusion, this enforcement initiative represents a critical opportunity to protect taxpayers and expose anticompetitive conduct.
A Powerful Coalition Against Collusion
The Procurement Collusion Strike Force brings together the DOJ's Antitrust Division, multiple U.S. Attorneys' Offices nationwide, the Federal Bureau of Investigation, and Inspectors General from multiple federal agencies. This coordinated approach means enhanced investigative capabilities, shared intelligence, and aggressive prosecution of individuals and corporations seeking to defraud government programs.
Three Forms of Procurement Fraud
The Strike Force targets collusive conduct that subverts competitive bidding:
Bid Rigging: Two or more firms agree to bid in such a way that a designated firm submits the winning bid. This can involve competitors agreeing to submit deliberately high bids, rotating winning bids among conspirators, or agreeing not to bid at all on certain contracts. The result: taxpayers pay inflated prices for goods and services.
Price Fixing: Two or more competing sellers agree on what prices to charge, such as by agreeing to increase prices by a certain amount or refusing to sell below a certain price. When competitors who should be undercutting each other instead coordinate pricing, government agencies pay far more than they should in a truly competitive market.
Customer or Market Allocation: Two or more firms agree to split up customers, such as by geographic area, to reduce or eliminate competition. Competitors might agree that Company A will bid on contracts in the Northeast while Company B takes the Southeast, eliminating the competitive pressure that drives down prices and improves quality.
The Hidden Nature of Collusion
These agreements are generally secret, and participants defraud customers by holding themselves out as competitors despite their agreement not to compete. They harm taxpayers by causing them to pay more for products and services and by depriving them of the benefits of true competition—innovation, quality improvements, and fair pricing.
Advanced Detection Methods
The Strike Force launched a Data Analytics Project to facilitate collaboration across the law enforcement community. This interagency effort develops and uses data analytics to identify signs of potential collusion in government procurement data. The Strike Force also operates PCSF: Global to deter misconduct impacting U.S. taxpayer dollars spent overseas and prosecute international cartel cases affecting U.S. government interests.
Whistleblowers Are Essential
Collusion schemes rely on secrecy. Insiders—employees who witness competitors meeting suspiciously, sales teams instructed to coordinate with rivals, or procurement professionals who notice suspicious bidding patterns—are often the only people positioned to expose these schemes.
If you work in government contracting and have knowledge of bid rigging, price fixing, or market allocation, you may have a valuable whistleblower claim. The False Claims Act allows whistleblowers to file lawsuits on behalf of the government for fraud in procurement and receive 15-30% of recovered funds. Federal law also protects you from retaliation.
Take Action
The Strike Force stands ready to investigate and prosecute individuals and corporations engaged in procurement collusion. Contact us for a confidential consultation to discuss how we can help you come forward while protecting your rights and maximizing your recovery.
