ALRAQABA . ISSUE 15
91
1.The pre-solicitation phase:
In this first phase, the entity states its needs
and develops the specifications required. It also
demonstrates the method used for obtaining the
good or service. During this phase, procurement
fraud could occur through any of the following:
• Need recognition.
• Bid tailoring
o narrow specifications
o broad specifications
o Vague specifications
• Bid splitting.
• Unjustified method of procurement.
• Change order abuse.
2.The solicitation phase:
In this second phase, the entity starts the bid
solicitation, preparation, and submission. The
entity must issue the documents that states its
needs and requirements, which enables the
bidders to start preparing their proposals. During
this phase, procurement fraud could occur
through any of the following:
• Bid manipulation.
• Leaking bid data.
• Collusion among contractors
o complementary bids
o bid rotation
o bid suppression
o market division
• Defective pricing schemes
o inflating labor costs
o inflating material cost
3.The bid evaluation and award phase:
In this third phase, the entity evaluates, discusses,
and negotiates the bids or proposals submitted by
the bidders. Then, the entity chooses the winning
bid based on their financial, technical, and legal
evaluation. During this phase, procurement fraud
could occur through any of the following:
• Bid manipulation.
• Leaking bid data.
4.The post-award and administration phase:
In this forth phase, both parties fulfill their duties
through performing their contractual obligations.
In addition, there could be some changes or
modifications called “change orders”. During this
phase, procurement fraud could occur through
any of the following:
• Nonconforming goods or service.
• Change order abuse.
• Cost mischarging
o accounting mischarges
o material mischarges
o labor mischarges
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