Anticompetitive Conduct After a Natural Disaster
In the wake of devastation caused by a natural disaster, the Federal Emergency Management Agency (FEMA) works with state and local government agencies to solicit competitive bids for cleanup and rebuilding contracts. Anticompetitive conduct that subverts the competitive bidding process includes:
Bid rigging: Two or more firms agree to bid in such a way that a designated firm submits the winning bid.
Price fixing: Two or more competing sellers agree on what prices to charge, such as by agreeing that they will increase prices a certain amount or that they won't sell below a certain price.
Customer or market allocation: Two or more firms agree to split up customers, such as by geographic area, to reduce or eliminate competition.
These agreements are generally secret, and the participants defraud customers by holding themselves out as competitors despite their agreement not to compete. They harm consumers and taxpayers by causing them to pay more for products and services and by depriving them of other byproducts of true competition.
The steps I had to take in order to track down this particular public document wre few and easy. By simply attempting a basic Google search, I was able to locate a site that seemed to have been goverment funded. The site is www.usodoj.gov/atr/pubdocs.html
Wednesday, December 12, 2007
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