Exam CFE - Financial Transactions and Fraud Schemes topic 1 question 5 discussion

Justification (Why B is Correct): A bid tailoring scheme occurs when someone inside the procuring entity (e.g., government agency or company) manipulates the bid specifications so that only one specific vendor can meet the requirements — often to favor a preferred vendor in exchange for kickbacks or bribes. If only one or two vendors can qualify because the specs were unfairly written, few bids will be received, forcing the entity to rebid the contract or proceed with limited competition. This lack of competition is a red flag of bid tailoring.