Bid rigging occurs when government officials preparing the contract, perhaps in conspiracy with a local or foreign company, ensure through a device or scheme that the contract is ultimately awarded to the designated bidder.  This generally occurs when government officials secretly, or not so secretly, decide who will win the bid.

Though rigging may occur solely to favor one contractor, most bids are rigged in favor of a certain contractor in return for a kickback.

Bid Suppression: In this type of scheme, one or more competitors agree not to bid, or withdraw a previously submitted bid, so that a designated bidder will win. In return, the non-bidder(s) may receive a subcontract or payoff.

Complementary Bidding: In this scheme, co-conspirators submit token bids which are intentionally high or which intentionally fail to meet all of the bid requirements in order to lose a contract. "Comp bids" are designed to give the appearance of competition.
Bid Rotation: In bid rotation, all co-conspirators submit bids, but by agreement, take turns being the low bidder on a series of contracts.
Customer or Market Allocation: In this scheme, co-conspirators agree to divide up customers or geographic areas. The result is that co-conspirators will not bid or will only submit complementary bids when a solicitation for bids is made by a customer or in an area not assigned to them. This scheme is most commonly found in the service sector and may involve quoted prices for services as opposed to bids.

 
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