CFE – Financial Transactions and Fraud Schemes — Question 3

Which of the following is NOT a way that dishonest contractors collude to circumvent the competitive bidding process?

Answer options

• A. Agree to stay out of each other’s designated markets.
• B. Refrain from submitting bids on certain contracts.
• C. Use obscure publications to publish bid solicitations.
• D. Submit token bids that are not serious attempts to win the contract.

Correct answer: D

Explanation

The correct answer is D because submitting token bids is a tactic used to create the illusion of competition while not genuinely attempting to win. Options A, B, and C are all legitimate strategies that dishonest contractors may employ to manipulate the bidding process.