Procurement Anomalies
Cover Quoting Pattern Detection
Identifies quotation sets showing the loss patterns and pricing symmetry of cover quoting.
Why cover quoting must be detected in the quote pattern
Cover quoting, where a favoured supplier arranges complimentary losing quotes to manufacture the appearance of competition, is a prohibited practice under the Competition Act and a frequent finding in SCM investigations. The fraud lives in the pattern: the same losers, suspiciously uniform pricing, and quotes that never win. AuditPro Core identifies quotation sets bearing these signatures so SCM can challenge competition that was only ever staged.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Quote Sets Analysed
1,920
Cover Pattern Flags
84
4.4%
Rotating Winners
26
groups
Identical Margins
38
Cover-Quoting Indicators by Type
Highest-Risk Quote Sets
| Request | Winner | Loser Margin % | Value (R'000) |
|---|---|---|---|
| RFQ-5011 | Vendor 4010 | 12 | 287 |
| RFQ-5044 | Vendor 4122 | 11 | 214 |
| RFQ-5067 | Vendor 4010 | 12 | 198 |
| RFQ-5090 | Vendor 4233 | 13 | 156 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
What cover quoting is
A supplier seeking the award arranges for associates to submit higher 'cover' quotes that are designed to lose. The buyer receives three quotes and believes the process was competitive when it was not.
Pricing symmetry and loss patterns
Cover quotes often show mechanical relationships, such as consistent percentage mark-ups over the favoured price, and the same firms always appearing as losers. These regularities betray coordination.
Recurring participant clusters
When a fixed group of suppliers rotates winning and losing across many quotations, the competition is choreographed. The recurrence is more telling than any single quote set.
How AuditPro Core Bridges the Gap
- Pattern detection: analyses quote sets for pricing symmetry, consistent loss roles and recurring participant clusters.
- Relationship overlay: cross-references suspected cover quoters with shared directors, banking and addresses.
- Exception workflow: escalates suspect quotation sets for SCM and competition-law review.
- Audit-ready export: assembles the quote set, pricing analysis and links for the investigation.
Key Takeaways
- Cover quoting fakes competition and is prohibited under the Competition Act.
- Look for mechanical pricing relationships and a fixed cast of losers.
- Recurring winner-loser rotation across quotes is the strongest signal.
- Overlay director and banking links to corroborate coordination.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.