Collusive bidding in Brazilian infrastructure projects

Article

Signor, Regis, Love, Peter E. D., Olatunji, Oluwole, Vallim, Joao J. C. B and Raupp, Alexandre B.. 2017. "Collusive bidding in Brazilian infrastructure projects." Proceedings of the Institution of Civil Engineers: Forensic Engineering. 170 (3), pp. 113-123. https://doi.org/10.1680/jfoen.17.00013
Article Title

Collusive bidding in Brazilian infrastructure projects

Article CategoryArticle
AuthorsSignor, Regis (Author), Love, Peter E. D. (Author), Olatunji, Oluwole (Author), Vallim, Joao J. C. B (Author) and Raupp, Alexandre B. (Author)
Journal TitleProceedings of the Institution of Civil Engineers: Forensic Engineering
Journal Citation170 (3), pp. 113-123
Number of Pages11
Year2017
Place of PublicationUnited Kingdom
Digital Object Identifier (DOI)https://doi.org/10.1680/jfoen.17.00013
Web Address (URL)https://www.icevirtuallibrary.com/doi/10.1680/jfoen.17.00013
Abstract

Allegations of corruption have resulted in an investigation of Brazil’s national ‘oil’ company prior to an incumbent Brazilian president disputing their re-election. The investigation has examined allegations that several directors of the ‘state’-owned company received bribes from construction companies and that the funds were used to support the parties of the governing coalition. Using a case study, this paper presents the approach adopted by the Brazilian Federal Police to determine if collusion had occurred. The bidding patterns of construction firms in 22 infrastructure projects suggested to the police that collusion occurred. Considering these circumstances, 561 bids for 77 projects were examined. Investigators obtained evidence that indicates that a collusive behaviour regarding procurement at specific construction firms (the League of 16) had taken place. The conclusions of the research provide insights into the intendment of the League of 16’s bidding patterns with an example of the ‘real’ cost of cartelisation that was experienced in an infrastructure project.

KeywordsGovernment; Statistical analysis; Tendering
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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