The Czech competition authority, in collaboration with the OECD, is hosting a workshop aimed at training public procurement officials on how to detect bid rigging in public contracts. The event, taking place in Prague, has attracted around fifty representatives from major Czech public procurement entities, including ministries and state-owned enterprises.

During the workshop, the chairman of the Czech competition authority, Petr Mlsna, emphasized the significance of public contracts in the Czech Republic, which amount to nearly one trillion crowns annually. He noted that while this presents an opportunity for effective management, it also poses risks of losses if competition fails, with cartel agreements being a major cause of inflated contract prices.

Bid rigging occurs when suppliers collude in advance to determine who will win a contract, how bids will be structured, and who will submit cover bids, creating an illusion of competition. This behavior leads to higher contract prices, poorer contractual conditions, reduced quality pressure, limited innovation, and often a long-term closure of the market to honest competitors.

The Czech competition authority has the power to investigate and penalize cartel agreements, but it relies heavily on the cooperation of public buyers to effectively uncover such illegal activities. Experts from both the authority and the OECD are providing guidance on identifying potential cartel signals in bids and the proper procedures for reporting suspicions to the competition authority. Participants will also receive recommendations on establishing internal controls, systematically working with public procurement data, and documenting findings.

This workshop is part of an OECD project funded by the European Commission, which also includes participation from France, Ireland, Latvia, Poland, and Portugal. The project aims to educate public buyers, regulatory bodies, and the judiciary in the participating countries through workshops and seminars. The Czech Republic is the first member country where these workshops are being conducted.