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Office of Competition and Consumer Protection

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Tender collusion

< previous | next > 26.08.2011

Tender collusion

Joint agreeing on bids by tenderers is prohibited. This practice was applied by undertakings organizing transportation of students in the following Voivodeships: Malopolskie and Podkarpackie. For participation in an illegal agreement they will have to pay almost PLN 20 thousand

UOKiK's task is to eliminate collusion or situations where bidders have agreed with each other in bidding or the organizer reached an agreement with one of the bidders. Elimination of unlawful agreements in public procurement is one of the priorities in the activities of the Authority in the coming years, as described in the governmental Competition Policy for 2011-2013. Fair competition of the bidders is a guarantee of purchase of specific products or services in the best possible conditions, and thus the effective spending of public money

More than PLN 100 billion is spent annually from public funds on goods and services purchased by tender. This implies the data of Public Procurement Office, the entity responsible for overseeing the tenders in Poland. The power to control their proper course is also held by the Office of Competition and Consumer Protection. UOKiK's task is to eliminate collusion or situations where bidders have agreed with each other in bidding or the organizer reached an agreement with one of the bidders. Elimination of unlawful agreements in public procurement is one of the priorities in the activities of the Authority in the coming years, as described in the governmental Competition Policy for 2011-2013. Fair competition of the bidders is a guarantee of purchase of specific products or services in the best possible conditions, and thus the effective spending of public money

The recent decision identifying the illegal practice during the public procurement tenders concerns the transportation of students to educational institutions, which were organized by the following municipalities: Szczuczyn (Małopolskie Voivodeship) and Wadowice Górne (Podkarpackie Voivodeship). According to the findings of UOKiK two entrepreneurs – a married couple conducting separate business activities concluded an illegal agreement. If their bid was the best, then the tender winner gave up the contract conclusion or failed to complement the required bid documentation, so that the order could be awarded to the spouse, whose bid was more expensive than originally selected. This practice took place during the three tenders held in 2009 and 2010.

The fact that the actions described were the result of collusion was evidenced by several factors – e.g. the waiver of service provision was always followed in the case when it appeared that the bids of the participants of the collusion were the two most advantageous, and they were filled in the same way, and by the same handwriting.

UOKiK does not question the participation of businesses of related persons or married couples in the same tenders. However, if they are separate economic entities they cannot agree on the bids submitted

It should be emphasized that UOKiK does not question the participation of businesses of related persons or married couples in the same tenders. However, if they are separate economic entities they cannot agree on the bids submitted.

For participation in the collusive tendering the undertakings were punished with a financial penalty in the total amount of PLN 19,474.

The decision is not final. It may be appealed against at the Court of Competition and Consumer Protection.

Organizers and participants of tenders who would like to find out what practices may constitute an infringement of competition should refer to the brochure Tender Collusions, issued by UOKiK and available on www.uokik.gov.pl. It may be available in a traditional form after ordering by e-mail – [SCODE]am9hbm5hLmxhdGthQHVva2lrLmdvdi5wbA==[ECODE] or by phone – 22 55 60 502.

Additional information for media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. 22 827 28 92, 55 60 314, 55 60 430
faks 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]

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ICPENICNPolish Aid