CMA probes possible bid-rigging in relation to school improvement fund

CIF money is awarded annually by the Department for Education (DfE) and can involve significant sums of money. Funds are primarily awarded to schools with buildings in poor condition, to ensure educational buildings are safe and remain in good working order – this includes funding projects that address health and safety issues and building compliance.

The investigation, launched this week, has commenced with unannounced inspections by the CMA at several business premises. The purpose of the inspections is to gather any relevant evidence, including physical or digital documents, to assist the CMA in its enquiries. The CMA has also worked closely with the DfE throughout its investigation.

If the CMA provisionally decides that the companies have broken competition law, after assessing the evidence gathered, it will issue what is known as a statement of objections. This details the CMA’s concerns and businesses have an opportunity to respond. However, not all cases proceed to a statement of objections, and, at this stage, no assumptions should be made that the law has been broken.

Public procurement represents around a third of public expenditure and evidence from around the world suggests it is highly vulnerable to anti-competitive behaviour. The CMA provides advice to government and public authorities across the UK on the design of competitive procurement processes. In addition, last year the CMA issued fines totalling almost £60 million to firms involved in rigging both public and private sector bids.

The CMA’s investigation comes in advance of the new debarment regime, which is expected to come into force in February 2025. This means that any businesses which break competition law could also be banned from bidding on public contracts in the future – in addition to the risk of financial penalties and potential director disqualification, which are available under the current regime.

Further details about the CMA’s procedures in competition cases are available in its CMA8 guidance, and any updates to this investigation will be made on the CMA’s dedicated case page: Suspected anti-competitive conduct in relation to the supply of roofing and other construction services.