Which type of fraudulent activity occurs when the same contractor is consistently awarded contracts with unreasonable specifications?

The type of fraudulent activity that occurs when the same contractor is consistently awarded contracts with unreasonable specifications is known as bid tailoring fraud. This practice involves creating or modifying the bidding process and specifications in such a way that a specific contractor is favored over others. It often entails outlining requirements that only one contractor can feasibly fulfill, thereby restricting competition and ensuring that the targeted contractor wins the bid.

In environments where bid tailoring is present, the integrity of the procurement process is compromised. It can lead to inflated contract prices and poor quality services or products, as the unfair advantage prevents other qualified contractors from competing. Entities engaging in this type of fraud often manipulate the terms of the bid to suit a preselected vendor, which is a significant violation of ethical standards and legal regulations.

Understanding this concept is crucial for identifying potential fraud in procurement processes, ensuring competition is maintained, and that all vendors have a fair opportunity to bid on contracts.