The UK's Competition and Markets Authority (CMA) is actively working with the Ministry of Defence (MoD) to address bid-rigging in defense contracting. The CMA has offered its support to the MoD, including the deployment of AI tools and other data science techniques, to tackle collusion in public procurement. This initiative aligns with the CMA's broader focus on using competition policy to support economic growth, with defense being identified as a key growth-driving sector.
CMA leadership, including Interim Chair Doug Gurr and Chief Executive Sarah Cardell, have emphasized the significant risk posed by procurement collusion. The CMA aims to leverage public procurement to shape markets, support 'scale-ups' – smaller, agile companies – and increase competition. This may involve recommendations for relaxing some procurement rules in certain sectors by Spring 2026 and potentially more centralized procurements to improve market design and buyer pressure.
This push to combat bid-rigging is part of a wider effort to save taxpayer money, as research suggests bid-rigging can increase prices by approximately 20%. The CMA has a high priority for enforcing against such practices in public contracts and has already utilized AI in pilot programs to scan bidding data for anomalies. Changes to the Procurement Act 2023, which increased data reporting requirements, are expected to further aid detection. Companies found in breach of competition law can face debarment from public contracts for up to five years, with recent changes to the leniency regime offering immunity to the first applicant before an investigation begins.
