cover bid

(redirected from Cover Bids)

Cover Bid

In an auction or other competitive sale, the second-highest bid. The term carries a slight connotation that the bidder was a plant who was simply trying to drive the price higher. This may or may not imply collusion.

cover bid

The second-highest bid in a competitive sale.
References in periodicals archive ?
In Bulgaria, the most common bid-rigging practices were cover bidding, where some bidders put in offers knowing that the amounts demanded were too high or contained unacceptable conditions; bid suppression, where one or more bidders abstain from putting in offers or withdraw their offers; bid rotation, where the bidders take turns being the designated contract winner; subcontract bid-rigging, where tender participants agreed not to put in offers or make cover bids on the condition that part of the contract activities are subcontracted to them; and splitting the market, where companies agree to carve out segments of the market or geographic locations for themselves in order to reduce competition.
It added that in 11 instances, the lowest bidder faced no genuine competition at all as all other companies involved in the tender had put down cover bids.
These will cover bids for seed funding from a Euro 155 million budget that will stretch until 2013, generally meeting 10% of costs for building energy infrastructure linking the 27 member states of the European Union (EU).