How the CMA’s New AI Tool Can Detect Bid‑Rigging—and What Suppliers Should Know

Public procurement in the UK is massive—worth around £300 billion every year—and a prime target for anti‑competitive practices such as bid‑rigging. The Competition and Markets Authority (CMA) has taken a bold step forward with a new AI‑powered tool designed to scrutinise bid data at scale for signs of collusion. Here’s what suppliers need to understand—and do—to stay compliant and avoid sanctions.

What the CMA’s AI Tool Does

• Analyses bidding data at volume: The AI system scans large datasets from public procurement tenders, looking for anomalies that may indicate collusion—such as matching bid patterns, frequent cover bids, bid rotation or suppression.
• Pilot success: Launched in January 2025, the tool has already undergone a successful trial in one government department, proving effective in flagging suspicious behaviour.
• Part of wider AI roll‑out: This fits into the Government’s broader AI strategy in public services and is expected to feature in the CMA’s 2025/26 Action Plan.

Why Suppliers Must Take Note

1. New Procurement Act 2023 rules
   On 24 February 2025, the Procurement Act 2023 introduced:
   • A debarment regime: Companies found guilty of bid‑rigging can be excluded from public tenders for up to five years.
   • Mandatory and discretionary exclusion grounds, even pending investigations, mean suppliers can be blocked from bidding.
2. Heightened enforcement
   In late 2024, the CMA began investigations into suspected bid‑rigging in roofing and construction for school improvement contracts, following prior fines of nearly £60 million against 10 firms for established anti‑competitive practices.
3. Fines and reputation risks
   Beyond debarment, the CMA can issue fines—and the reputational damage can be even more costly. Debarment decisions are published centrally and monitored by contracting authorities.

What Suppliers Should Do

1. Review your bids for compliance

Carry out internal audits of past and current bids. Look out for patterns such as repeated winners, similar bid amounts, or unusual withdrawal behaviour.

2. Implement monitoring systems

Use your own AI or data analysis tools to flag potential anomalies before the CMA does.

3. Train your teams

Update your compliance programme to:

• Define collusive practices (cover bidding, bid rotation, suppression),
• Educate employees on tender ethics,
• Prepare clear, documented protocols for tenders,
• Plan for CMA interventions (e.g. responding to “dawn raid” scenarios).

4. Understand the legal landscape

Stay fully informed about:

• Procurement Act 2023 provisions,
• Grounds for mandatory/discretionary exclusions,
• The debarment process and how it applies to your business.

5. Be transparent and proactive

Keep thorough, cross‑entity documentation throughout the tender process. If approached by a contracting authority or the CMA, ensure prompt, organised responses.

💡 Final Takeaway

The CMA’s AI-powered monitoring marks a new era in public procurement oversight. The risk of bid‑rigging is not just theoretical—it carries real legal, financial, and reputational consequences. For suppliers engaging with public sector contracts:

• Be proactive in compliance and detection,
• Educate and train your teams thoroughly,
• Monitor your bidding and be ready for CMA scrutiny.

By taking these steps, you’ll not only align with best practice but also position yourselves as trustworthy partners in the public procurement arena—an increasingly significant competitive advantage.

If you’d like support implementing procurement compliance systems, conducting bid audits, or training your team, Hudson Outsourcing offers tailored solutions to help you protect against regulatory risk and maximise growth.