What is the term for a procurement fraud scheme where bid specifications favor a specific contractor?

The term describing a procurement fraud scheme where bid specifications are manipulated to favor a specific contractor is known as bid tailoring. In this scenario, the specifications are crafted in such a way that only the intended contractor can meet them, effectively eliminating competition. This not only undermines the fair bidding process but can also lead to inflated costs and diminished quality of goods or services procured since other potential bidders are unfairly excluded.

Bid tailoring is particularly insidious because it can be difficult to detect; it often masquerades as a legitimate decision to meet specific project needs. However, it is essentially a manipulation of the procurement process which violates ethical standards and laws designed to ensure fairness in public and private contracting. Recognizing this form of fraud is vital for maintaining integrity in procurement practices.