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Flooring Bids and Bid Rigging Prosecutions: What You Need To Know

Published March 10, 2020

Written by Samuel B. Cavnar and Ken Florey

The U.S. Department of Justice is prosecuting certain individuals in the Northern District of Illinois in connection with an alleged conspiracy to suppress and eliminate competition through an agreement to rig bids and fix prices for commercial flooring services and products.  As a result, units of local government including municipalities, schools, community colleges, and other public entities should - as always - carefully review their bid submittals to identify the lowest, responsive and responsible bidder for each bid.  In situations where the low bidder may have employed or otherwise contracted with one or more of the individuals subject to criminal prosecution, and in situations where the corporate entity itself may be involved in the prosecution, each public body should consult with its legal counsel concerning whether and to what extent additional due diligence can or should be conducted prior to award of a contract.