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Working with buyers and procurement agents

As part of the ACCC's fight against cartels, the ACCC chairman, Graeme Samuel, released the 'Public procurement package' on 4 July 2005. The Package provides information for the assistance of buyers and procurement agents to help them detect and report cartels. The Public Procurement Package is aimed at the government sector. The ACCC has produced a separate package targeted at the private sector.

Procurement, particularly in government, is susceptible to cartel conduct because the transparency required particularly in government contracts provides cartel participants with the information to allocate markets, fix prices and police collusive agreements.

The ACCC has worked with procurement agencies to produce resources that will assist buyers to protect their interests by recognising and reporting suspicious behaviour when they obtain quotes or run a tender. It contains a complete multimedia bid-rigging information/checklist resource covering topics such as:

  • the behaviour that constitutes a cartel
  • warning signs in the procurement process
  • what to do if the agency suspects a cartel, and
  • the penalties attached to cartel conduct.

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