Detection of Collusive Tenders in Infrastructure Projects: Learning from Operation Car Wash

Article

Signor, Regis, Love, Peter E. D., Belarmino, Alexanders T. N. and Olatunji, Oluwole Alfred. 2020. "Detection of Collusive Tenders in Infrastructure Projects: Learning from Operation Car Wash." Journal of Construction Engineering and Management. 146 (1), pp. 1-10. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001737
Article Title

Detection of Collusive Tenders in Infrastructure Projects: Learning from Operation Car Wash

ERA Journal ID40479
Article CategoryArticle
AuthorsSignor, Regis (Author), Love, Peter E. D. (Author), Belarmino, Alexanders T. N. (Author) and Olatunji, Oluwole Alfred (Author)
Journal TitleJournal of Construction Engineering and Management
Journal Citation146 (1), pp. 1-10
Article Number05019015
Number of Pages10
Year2020
PublisherAmerican Society of Civil Engineers
Place of PublicationUnited States
ISSN0733-9364
1943-7862
Digital Object Identifier (DOI)https://doi.org/10.1061/(ASCE)CO.1943-7862.0001737
Web Address (URL)https://ascelibrary.org/doi/10.1061/%28ASCE%29CO.1943-7862.0001737
Abstract

Procurement practices are often characterized by competitive tendering. The overarching purpose of this is to ingrain transparency, probity, and value for money into the processes of acquiring goods and services. When tenderers collude and clients are unable to detect them, bids will become uncompetitive. Yet, there have been a limited number of effective practical tools and methods developed that can be used by procurement authorities, controllers, and public officials to detect collusive tendering. Using data obtained from the Brazilian Federal Police and their ongoing criminal investigation titled Operation Car Wash, a robust and practical probabilistic method is developed. The main findings were that the method was able to accurately identify (81%–96%) the occurrence of collusion during a sealed tendering process. Conclusions are drawn from the lessons learned from the forensic investigations, indicating that the approach presented for detecting collusive behavior during tendering is grounded in reality. This paper presents a new way to utilize statistics and probability to identify the presence of and control collusion in public- and private-sector tendering.

KeywordsBrazil; Corruption; Collusion; Public procurement; Sealed tender
ANZSRC Field of Research 2020330299. Building not elsewhere classified
330207. Quantity surveying
330203. Building industry studies
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Byline AffiliationsFederal Police of Brazil
Curtin University
Institution of OriginUniversity of Southern Queensland
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