What is a key indicator of a bid splitting scheme?

A bid splitting scheme typically aims to circumvent competitive bidding regulations by dividing a larger procurement into smaller contracts, which allows each portion to fall under the competitive bidding threshold. When you observe sequential purchases that are just above the competitive bidding limits, it can indicate that someone is intentionally structuring contracts in a way to avoid the competitive bidding process that would normally apply to larger amounts.

This behavior suggests that the individual or organization is attempting to manipulate the procurement process, making it easier for certain suppliers to win contracts without facing true competition. In contrast, high employee turnover in procurement, frequent sole-source contracts, and frequent use of competitive bids do not directly demonstrate the intent to sidestep competitive bidding regulations like bid splitting does. Each of these other indicators may signal different issues within an organization, but they do not inherently relate to the manipulation of the competitive bidding limits in the same way that sequential purchases just above those limits do.