12 Miss. Code. R. 6-3.122.04

Current through December 10, 2024

Section 12-6-3.122.04 - Identical Bidding and Price Fixing

The term "identical bidding" means the submission by bidders or offerers of the same total price or the same price on a particular line item. The submission of identical bids may or may not signify the existence of collusion. In some instances, price controls imposed by state or federal governments result in the submission of identical bids. Identical bids for supplies are more likely to occur in the absence of collusion if:

(1) The supply is a commodity with a well-established market price or a brand name with a "suggested retail price;"

(2) The quantity being purchased is small in relation to the supplier's total sales;

(3) Early delivery is required; or

(4) Transportation expenses are low relative to total costs.

In seeking to determine whether collusion has taken place, the Agency Procurement Officer should view the identical bids against present and past pricing policies of the bidders or offerers, the structure of the industry involved including comparisons of prices f.o.b. shipping point and f.o.b. destination, and the nature of the supply, service, or construction involved, such as whether it is a basic chemical or metal. Identical bids may also result from resale price maintenance agreements which are described in Subsection 3.122.05.3, Resale Price Maintenance. Any other attempt by bidders or offerers to fix prices should also be reported.

Commentary

Executive Order No. 10,936, 26 Fed. Reg. 3555 (1961) directs the U.S. Attorney General to invite state and local governments to report tie bids.

12 Miss. Code. R. 6-3.122.04

Adopted 1/1/2018