WRITTEN BY Zachary Newland, Founding Partner, July 31, 2026

Bid Rigging: What Federal Contractors Need to Know

On This Page

• What Is Bid Rigging?
• How Federal Bid Rigging Investigations Work
• What You Should Do If You Are Under Investigation for Bid Rigging
• How Evergreen Attorneys Can Help
• Frequently Asked Questions About Bid Rigging

Federal prosecutors treat bid rigging as one of the most aggressively pursued forms of white collar crime. If you are a federal contractor, a subcontractor, or a business owner whose company bids on government or private-sector projects, a bid rigging investigation can threaten your freedom, your livelihood, and every professional relationship you have built. The Department of Justice’s Antitrust Division has the authority to bring criminal charges that carry up to ten years in federal prison per count — and they do.

If federal agents, the FBI, or a grand jury have contacted you or your company about bidding practices, stop talking and call a federal criminal defense lawyer immediately. Contact Evergreen Attorneys today at (303) 948-1489 or email [email protected] for a free and confidential consultation.

What Is Bid Rigging?

Bid rigging is a form of collusion in which competitors agree — secretly — to manipulate a competitive bidding process so that one predetermined party wins a contract. Under federal law, bid rigging is prosecuted primarily under the Sherman Antitrust Act, 15 U.S.C. §§ 1–3, which makes conspiracies in restraint of trade a federal crime.

The DOJ guidance on preventing and detecting bid rigging identifies several common bid rigging schemes:

• Bid suppression: One or more competitors agree not to bid, or withdraw a previously submitted bid, so that a designated competitor wins.
• Complementary (cover) bidding: Competitors submit intentionally high or non-competitive bids designed to lose, giving the appearance of genuine competition.
• Bid rotation: Competitors take turns being the designated low bidder across multiple contracts over time.
• Market allocation: Competitors divide markets, customers, or geographic territories so that each firm dominates its assigned area without facing real competition.

The federal government treats all of these as per se violations of antitrust law. That means the DOJ does not need to prove that the scheme actually harmed competition — only that the agreement existed.

Contractors should also be wary that aggressive prosecutors will also try to sometimes charge wire-fraud in these cases. That’s because wire fraud is punishable by up to 20 years in prison. You can read more about wire fraud on our prior blogs here:

• https://evergreenattorneys.com/white-collar-crime/denver-wire-fraud-lawyers-303-948-1489/
• https://evergreenattorneys.com/white-collar-crime/white-collar-crime-lawyer-denver/
• https://evergreenattorneys.com/tag/wire-fraud/

Bid rigging can occur in any industry where competitive bidding is used: government contracting, construction, defense procurement, IT services, healthcare purchasing, and infrastructure projects. When the bidding involves federal procurement dollars or interstate commerce, the case is federal. For more information on how the federal government prosecutes financial schemes, see Evergreen Attorneys’ federal fraud crimes practice area overview.

How Federal Bid Rigging Investigations Work

Federal bid rigging investigations are typically led by the DOJ’s Antitrust Division, often in coordination with the FBI, the Defense Criminal Investigative Service (DCIS), or an Office of Inspector General. These investigations can last months or years before any charges are filed.

Here is how a federal bid rigging investigation typically unfolds:

1. The government identifies suspicious bidding patterns. Procurement officers, auditors, or competing bidders may flag anomalies — identical bid amounts, rotating winners, or sudden withdrawals. Federal agencies and the FTC train procurement staff to spot these red flags.
2. Agents collect records. The government issues grand jury subpoenas, civil investigative demands, or search warrants to obtain emails, bid documents, internal communications, meeting records, and financial data. If you receive a federal grand jury subpoena, treat it as an immediate priority.
3. Employees are interviewed. FBI agents and DOJ attorneys interview current and former employees, subcontractors, and competitors. Agents can and will use information from these interviews against the company and individual targets. They are not required to tell you the truth during these conversations.
4. The government evaluates cooperation. DOJ’s Antitrust Division operates a leniency program: the first company to report the conspiracy and cooperate fully may receive immunity from criminal prosecution. Every other participant faces the full weight of federal penalties.
5. Charges are filed. If the DOJ proceeds, it brings a criminal indictment under the Sherman Act. Related charges may include wire fraud (18 U.S.C. § 1343), mail fraud (18 U.S.C. § 1341), or false statements (18 U.S.C. § 1001) if bid certifications or procurement representations were falsified.

The investigation stage is where the case is often won or lost. Every document you produce, every statement your employees make, and every certification you signed during the bidding process is potential evidence.

If you have received a federal target letter or a civil investigative demand in connection with a bid rigging investigation, do not respond before speaking with a federal criminal defense lawyer

“Evergreen Attorneys wins 9-0 in the U.S. Supreme Court.” — United States v. Hemani, June 2026

What You Should Do If You Are Under Investigation for Bid Rigging

If you receive a grand jury subpoena, a target letter, a civil investigative demand, or a visit from federal agents related to your bidding practices, treat it as a federal criminal matter from the first moment. Do not assume it is routine. Do not assume it will go away.

1. Do not talk to investigators without a lawyer. FBI agents and DOJ attorneys can and do use your statements against you. Any statement you make — even one you believe is exculpatory — can be used to build a case. Under 18 U.S.C. § 1001, a false or misleading statement to a federal agent is itself a separate federal crime.
2. Preserve all documents. Do not delete emails, text messages, bid files, internal memoranda, or financial records. Destruction of documents after you become aware of a federal investigation can lead to obstruction of justice charges under 18 U.S.C. § 1519.
3. Identify the scope of the investigation. A federal criminal defense lawyer can help determine whether you are a target, a subject, or a witness — and what that distinction means for your rights and your exposure.
4. Evaluate your exposure early. Bid rigging investigations often expand. What starts as an inquiry into one contract can grow to cover years of bidding activity, multiple agencies, and dozens of transactions. Early assessment is the difference between a manageable defense and a sprawling crisis.
5. Do not contact co-conspirators or competitors. Any communication with other parties involved in the alleged scheme can be characterized as obstruction or as evidence of an ongoing conspiracy.

How Evergreen Attorneys Can Help

Evergreen Attorneys is a federal criminal defense firm that works with professionals and business owners facing the most serious federal investigations and charges. Our caseload is exclusively federal criminal defense — no DUIs, no family law, no personal injury. We intentionally limit our caseload to 25 cases per lead attorney so that every client receives partner-level attention from day one.

Zachary Newland, Evergreen Attorneys’ founding partner, has appeared as counsel of record in over 120 federal cases since 2016. In June 2026, Evergreen Attorneys won a unanimous 9-0 decision at the U.S. Supreme Court in United States v. Hemani.

For federal contractors and business owners facing bid rigging allegations, Evergreen Attorneys can:

• Intervene immediately when you receive a grand jury subpoena, target letter, or agent contact
• Analyze the government’s theory of the conspiracy and identify weaknesses in the evidence
• Manage document production and protect privileged communications
• Prepare you and your employees for interviews or grand jury testimony
• Negotiate with DOJ prosecutors on your behalf before charges are filed
• Take your case to trial if the government’s evidence does not hold up

The federal criminal defense attorneys at Evergreen Attorneys prepare every case for trial from day one. That preparation changes how the government approaches your case at every stage.

Frequently Asked Questions About Bid Rigging

What is bid rigging under federal law?

Bid rigging is a form of collusion where competitors coordinate their bids so that the bidding process is no longer competitive. Under the Sherman Antitrust Act, 15 U.S.C. §§ 1–3, bid rigging is treated as a per se violation of federal antitrust law. The DOJ does not need to prove actual harm to competition — only that the agreement to rig bids existed.

What should I do if I think I am being investigated for bid rigging?

If you believe a federal agency, the FBI, or a grand jury is looking into bid rigging, treat it as a criminal defense matter immediately. The investigation may involve subpoenas, employee interviews, procurement records, and bid certifications. A false or misleading statement during the investigation can create additional exposure under 18 U.S.C. § 1001. A federal criminal defense lawyer can help preserve documents, manage communications, and assess the scope of the government’s case.

Can bid rigging lead to criminal charges in government contracting?

Yes. The DOJ’s Antitrust Division criminally prosecutes bid rigging that affects competitive bidding, including public procurement and government contract work. The charges can target both individuals and companies, and related allegations — such as wire fraud or false statements — can add counts and increase exposure. The exact charges depend on the facts, the agencies involved, and whether false certifications were made.

What are the penalties for bid rigging?

Under federal antitrust law, bid rigging can carry up to 10 years in prison for individuals and fines of up to $1 million per individual or $100 million per company — or twice the gain or loss from the offense, whichever is greater. Civil enforcement, debarment from government contracting, and collateral business consequences can follow a criminal conviction.

What can Evergreen Attorneys do for me if I am under federal investigation for bid rigging?

Evergreen Attorneys can evaluate the investigation, identify the federal charges or statutes at issue, and build a defense strategy tailored to your bid rigging or procurement case. The firm can protect you during interviews, subpoenas, and grand jury proceedings while identifying weaknesses in the government’s theory.

Contact Evergreen Attorneys at (303) 948-1489 or [email protected] for an immediate case evaluation with a federal lawyer.