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UK CMA seeks MoD partnership to tackle £3.5bn bid-rigging problem

Financial Times Companies •
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The UK Competition and Markets Authority is in talks with the Ministry of Defence to reduce bid-rigging in its supply chains, seeking access to MoD procurement data to scan for suspicious patterns. The CMA aims to centralise government procurement data collection to combat manipulation costing taxpayers an estimated £3.5bn annually. It is already piloting its digital tool with the Department for Work and Pensions, Department for Education, and Ministry of Justice, generating enforcement leads.

The regulator notes that government contracts are prime bid-rigging targets due to their value, volume and frequency, and calls for centralised cross-government commitment to achieve real impact. Since the pandemic, public procurement scrutiny has intensified, with a new debarment regime banning companies from bidding on public contracts for up to five years if they breach competition laws. Defence industry expert Trevor Taylor warns that non-defence specialists supplying generic products to the MoD may be tempted by costly collaboration, though he is unaware of widespread bid-rigging in the sector.