CFE – Financial Transactions and Fraud Schemes — Question 26

Which of the following is a common red flag of a bid tailoring scheme?

Answer options

• A. Changes in contract specifications from previous proposals are explained in detail.
• B. The procuring entity rebids contracts because fewer than the minimum number of bids are received.
• C. Numerous bidders respond to the procuring entity’s bid requests.
• D. There are unusually broad specifications for the type of goods being procured.

Correct answer: D

Explanation

Option D is correct because unusually broad specifications can indicate an attempt to favor specific bidders, a hallmark of bid tailoring. Options A and B describe legitimate processes that can occur in procurement, while option C suggests healthy competition, which does not indicate any irregularities.