Certified Fraud Examiner Practice Exam 2026 – All-in-One Guide to Master Your Certification!

The primary purpose of a bid-splitting scheme is to avoid competitive method requirements. This tactic involves dividing a larger contract into smaller pieces and soliciting bids for each piece, which can be awarded without requiring competitive bidding for the total value of the project. By doing so, the individuals or organizations involved can evade regulations that mandate open bidding processes for contracts above a certain financial threshold.

This approach often leads to a lack of transparency and smaller, potentially non-competitive bids where the true intent may be to favor certain contractors or inflate costs while circumventing established procurement protocols. In contrast, the other options do not accurately capture the essence of bid-splitting. Inflating project costs can be an indirect outcome, but it is not the primary aim. Encouraging diverse bidding and ensuring transparency are generally objectives of fair bidding practices, contradicting the very nature of a bid-splitting scheme.