Louisiana Administrative Code
Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL
Part V - Procurement
Chapter 23 - Reporting of Suspected Collusive Bidding or Negotiations
Section V-2309 - Identical Bidding [Formerly LAC 34:I.2309]

Universal Citation: LA Admin Code V-2309

Current through Register Vol. 50, No. 9, September 20, 2024

A. The term identical bidding means the submission by bidders or proposers of the same total price or the same price on a particular line item. The submission of identical bids may not signify the existence of collusion. In some instances, price controls imposed by state or federal governments result in the submission of identical bids. Bids may also be identical as a result of chance. Identical bids for supplies are more likely to occur due to chance if:

1. the supply is a commodity with a well-established market price or a brand name with a "suggested retail price;"

2. the quantity being purchased is small in relation to the supplier's total sales;

3. early delivery is required; or

4. transportation expenses are low relative to total costs.

B. In seeking to determine whether collusion has taken place, the procurement officer should view the identical bids or proposals against present and past pricing policies of the bidders or proposers, the structure of the industry involved, including comparisons of prices f.o.b. shipping point and f.o.b. destination, and the nature of the supply, service, or major repair involved, such as whether it is a basic chemical or material. Identical bids or proposals may also result from resale price maintenance agreements which are described in §2311. C of this Part.

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1581.

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