In procurement fraud, which scenario best illustrates bid-rigging?

• A. A single supplier submits a bid in a limited market.
• B. Market testing is avoided and only one supplier is invited.
• C. Competitors collude to fix bids, allocate contracts, or inflate prices.
• D. A clear and competitive bidding process with published criteria.

Answer: (C)

Bid-rigging is when competitors secretly cooperate to control the outcome of a bidding process, often by fixing bids, allocating contracts, or inflating prices. This undermines fair competition and drives up costs. The scenario that best illustrates bid-rigging is when competitors collude to fix bids, allocate contracts, or inflate prices, because it shows explicit coordination to manipulate the bidding outcome. The other options describe anti-competitive behavior that does not involve collusion among bidders: a single supplier in a limited market points to lack of competition rather than an agreement among bidders; avoiding market testing and inviting only one supplier is unilateral exclusion, not collusion; and a clear, competitive bidding process with published criteria represents proper procurement, not bid-rigging.