Which procurement fraud scheme involves employees convincing the employer that it needs unnecessary products or services?

The procurement fraud scheme that involves employees convincing the employer that it needs unnecessary products or services is accurately identified as "Need recognition schemes." In this context, individuals within the organization may create a false narrative around the necessity of certain products or services that are not genuinely needed for the company's operations. This fraudulent activity can lead to significant financial losses as the business may spend money on items that do not contribute to its needs or objectives.

Understanding this scheme is crucial as it reflects a manipulation of the decision-making process regarding procurement—ultimately exploiting the organization's resources for personal gain. Employees may use different tactics to justify these unnecessary purchases, such as presenting misleading information, exaggerating potential benefits, or downplaying the costs involved.

In contrast, nonconforming goods schemes generally relate to the delivery of goods that do not meet the established specifications. Bid manipulation schemes focus more on altering the bidding process to favor certain bidders, while bid tailoring schemes involve customizing the bidding requirements to benefit a specific supplier or contractor. Therefore, none of these alternatives accurately depict the scenario where employees create a perception of need for unnecessary products or services.