Current Practices to Decrease Subcontractor Bid Shopping in the Public Sector

Abstract

Legally, several definitions of bid shopping exist. The United States comptroller General described bid shopping as 'the effort' of a prime contractor to reduce his subcontract prices by shopping his lowest bid from sub to sub in an effort to gain a lower price from another subcontractor, this activity occurring after the prime contractor has been awarded the contract (1:52). At least one state court has referred to shopping subcontractor bids after award as 'bid chiseling'. This court defined 'bid shopping' as the act of 'shopping bid' prior to award (1.52). For the purpose of this paper the term 'bid shopping' refers to the practice of the prime contractor using another sub's bid to negotiate a lower price from other competing sub's, either before or after award of the contract to the prime contractor.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1993
Accession Number
ADA268762

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  • John R. Stevenson Iv

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  • University of Florida

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