Presentation on theme: "BAMS/DSS vs. COLLUSION WHO’S WINNING?"— Presentation transcript:
1BAMS/DSS vs. COLLUSION WHO’S WINNING? Senior Special Agent Mark PetersTelephoneU. S. Department of TransportationOffice of Inspector GeneralBAMS/DSS vs. COLLUSION WHO’S WINNING?Vermont 2003 TUG ConferenceBurlington, VermontSeptember 9, 2003
3OIG Investigative Statistics Contract/Grant Fraud Investigations (January 1998 thru December 2002)Indictments:Convictions:Fines, Recoveries, & Restitution: $96.92 Million
4ANTITRUST—HIGHWAY STRIPING U.S. v. ACCENT STRIPE, INC. Competition among three companies for striping contracts in NY and VAMisrepresentation:$ Value:Inflated bids on contracts for reflective pavement markings and stripes on highways in NY and VA due to advance agreement not to competeFelonies:Sherman Antitrust Act$1.2M fine and restitutionDebarment
737 42 42 17 37 OIG INVESTIGATIVE REGIONS National & Regional Contract & Grant Fraud CoordinatorsREGION 5Senior Special AgentMark PetersChicago, ILREGION 2Senior Special AgentCraig FureyNew York City, NYREGION 9Senior Special AgentTim ParkerSan Francisco, CAChicagoNorth DakotaMinnesotaSouth DakotaWyomingColoradoNebraskaKansasMissouriIowaWisconsinIllinoisKentuckyMichiganIndianaMaineNewYorkCityVermontSeattleWashingtonMontanaMinneapolisNew YorkMass.Cambridge3742Rhode IslandPennsylvaniaConnecticutOregonNew JerseyIdaho42OhioDelawareCincinnatiNevadaSan FranciscoUtahMarylandWestVirginia17CaliforniaVirginiaNorth CarolinaLos AngelesTennesseeArizonaOklahomaArkansasHEADQUARTERSSenior Special AgentElise WoodsWashington, D.C.New MexicoMis.SouthCarolina37AtlantaAlabamaREGION 4Senior Special AgentLaVan GriffithNational Fraud CoordinatorAtlanta, GAFt. WorthGeorgiaTexasAlaskaLouisianaFlorida(Includes Puerto Rico,Virgin Islands)Ft. Lauderdale
8What the Experts SayFHWA encourages state DOT’s to continually improve their bid analysis procedures by using computers to analyze bids and detect bidder collusion.
9What the Experts SayINFO TECH’s BAMS/DSS supports computerized detection of “collusion red lights”:Stable market sharesPredictable win patternsTerritorial allocation of contractsRotation of marketsPrices above competitive levels
10Bottom-line Questions ? ? ? ? ? ? ? ? ?Who’s winning the war against bidder collusion?What is the score?What does collusion look like?
11State DOT Questionnaire In the past 5 years, how often has your state DOT’s computerized bid analysis system identified possible bid collusion?never1 or 2 timesmore than 2 times but less than 10 timesmore than 10 times but less than 25 timesover 25 timesuncertain
12State DOT Questionnaire When collusion was detected, what steps did state DOT representatives take?no action but further monitoringbids rejected and contract re-letcontractors interviewed / supplier information collectedreferral to state DOT legal counselreferral to criminal law enforcementuncertain
13Summary Similes Bid collusion is like the Loch Ness monster. Collusion detection is like hunting mushrooms.
14BAMS/DSS vs. COLLUSION WHO’S WINNING? Senior Special Agent Mark PetersTelephoneU. S. Department of TransportationOffice of Inspector GeneralBAMS/DSS vs. COLLUSION WHO’S WINNING?Vermont 2003 TUG ConferenceBurlington, VermontSeptember 9, 2003