Question
ABC, Inc. and XYZ, Inc. are the only two companies in Lincoln County that pave roads and repairs potholes. An audit reveals that the state
ABC, Inc. and XYZ, Inc. are the only two companies in Lincoln County that pave roads and repairs potholes. An audit reveals that the state is paying significantly more for roadwork in Lincoln County than in other counties in the state. A review of the county's records reveals that of the last twenty roadwork contracts awarded, ABC and XYZ have each won ten contracts. For all twenty contracts, the winning bid was priced much lower than the losing bid. What fraudulent scheme could ABC and XYZ be perpetrating against Lincoln County?
Select one:
a. The companies are colluding to take turns to submit the low bid.
b. The companies are suppressing bids from competitors.
c. The winning bidder is colluding with a county employee to altering their bid after the bid close deadline.
d. Both companies have a conflict of interest with the county.
e. The companies are submitting phantom bids.
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