What is bid leveling?

Bid leveling is a practice where contractors submit higher bids to make their bid more competitive, often in response to a procurement process requiring that bids be within a certain percentage of the lowest bid. This practice can make it difficult for organizations to accurately assess the true cost and value of a bid, as it distorts the competitive bidding process.

Bid leveling is unethical and can lead to unfair competition and price manipulation. It is important for organizations to have measures in place to detect and prevent bid leveling, such as conducting thorough evaluations of bids and requiring transparency in the bidding process. Penalties for bid leveling can include disqualification from the procurement process and legal action.