What type of procurement fraud is likely indicated when a procurement employee drafts bid specifications favoring a specific contractor?

When a procurement employee drafts bid specifications that specifically favor a certain contractor, this behavior indicates a form of procurement fraud commonly referred to as bid rigging or procurement favoritism. By tailoring the bid specifications, the employee is essentially manipulating the procurement process in a way that undermines fair competition, ensuring that only the favored contractor can meet the criteria set forth in the bids. This practice can distort the intended competitive nature of procurement processes and often leads to inflated costs and poor service or product delivery.

The correct identification of this type of corruption is critical because it highlights the ethical breaches that can occur in procurement activities and underscores the importance of maintaining an impartial system that allows for fair competition among vendors. Detecting such manipulations is essential for organizations to prevent fraud and secure the best value for their purchases.