OFFICE OF INSPECTOR GENERAL TO REPORT CORRUPTION AND VIOLATIONS OF LAW

Do not allow local government rubber stamp purchasing requests by overzealous public safety officials.

what is procurement fraud
procurement fraud refers to violations of the
bidding process when private companies
solicit contracts from public agencies
it includes overcharging for materials
or labor non-competitive bidding
processes conflicts of interest in
supplying defective materials this type
of fraud prohibits public agencies from
obtaining goods or services at the
lowest possible cost fraud might occur
during the bid preparation process if
costs are inflated or when a request for
bids gives advantage to a certain firm
public agencies typically place
advertisements to solicit bids from
competing companies when planning or
budgeting errors undermine competition
it might be considered procurement fraud

Procurement Fraud
Fraud can also occur when a government
employee gives confidential information
to a particular supplier procurement
fraud can also occur during the
selection process typically when bribes
or kickbacks are offered in exchange for
awarding the contract to a certain
company government employees commonly
rank submitted bids to evaluate which
firm can provide the service at the best
price the policy of some public agencies
requires two or more people during the
bid consideration process to ensure
fairness public employees might commit

Deception
procurement fraud by deception
they might split goods or services into
two separate contracts to avoid going
through a formal approval process public
bodies that oversee spending typically
set a threshold for contracts approval
linked to a certain monetary amount if
an employee deliberately splits the
order to avoid scrutiny he or she might
be accused of this type of fraud
suppliers might also cheat the public
during the bidding process or after a
contract is awarded bid rigging occurs
when companies conspire to submit high

Bid Rigging
bids that give one firm an advantage a
contractor that wins the bid might agree
to send subcontracting work to a
competitor who submits a high or
unacceptable bid these conspiracies give
the appearance of competitive bidding
when none exists another form of
procurement fraud happens when a
contractor inflates costs of materials
or falsified documents submitted to
support these costs when a firm charges
for work that wasn't performed
materials not provided it represents
fraud in some cases a contractor might
substitute defective or inferior
products to increase profits some public
agencies ask for documentation to
confirm certain materials were used in
Emergency situation their cost controlling procurement fraud
in an emergency situation is typically
more difficult if a natural disaster
occurs public agencies generally lack
time to solicit competitiveness and
follow the normal procedure when
awarding contracts in some cases there
may be a sole source of the services the
agency needs in an emergency which
eliminates opportunities for competition