how does bid rigging work and why is it illegal?
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Another way it works: There are three bridge building companies. Government needs a bridge built. Bridge costs $100 million. Company A & B are already busy building bridges so they bid $200 million (to cover overtime and adding additional crews). Company C bids $190 million (knowing that A & B can’t actually handle the extra work).
Next month, a $100 million bridge needs built. Company A, now done with their bridge, and knowing that B & C are busy, bids $190 million.
Next month, a $100 million bridge needs built. Company B, now done with their bridge, and knowing that A & C are busy, bids $190 million.
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