The press may continue to focus on the fact that individual companies may have overpaid thousands and even hundreds of thousands of dollars in noncompetitive bid
In the example discussed above, suppose the total noncompetitive bid is for $50 million.
2) Noncompetitive bidders submit a quantity bid, up to $1 million for bills and $5 million for notes and bonds, but do not specify any yield; the total amount of noncompetitive bids is subtracted from the dollar amount of the security to be auctioned, and what remains is available for competitive bidding.
If the amount of noncompetitive bids is assumed to be $10 million, the quantity available to the two competitive bidders is $40 million.
However, the Back-Zender model assumes that bidders are risk neutral; by definition, risk-neutral bidders do not care about the risk that noncompetitive bids may cause the low-yield points in their steep demand schedules to be realized as auction-clearing yields.
A recent noncompetitive bid
deal with Huawei totaled $82 million without the approval of the Council of Ministers nor the review of the Court of Accounts.
They range from $148 per ton, charged by Jihad Construction Company to handle garbage for Bekaa and Hermel, to $189, charged by Batco and Lavajet in the North and Akkar, and prices higher still for likely noncompetitive bids
previously awarded seven leases, two through noncompetitive bids
, for projects in the Atlantic Ocean, including Cape Wind in Nantucket Sound.
The ratio of government securities offered for competitive and noncompetitive bids
is 70 %:30%.
The former Marsh managers are accused of colluding with insurance executives to arrange noncompetitive bids
and then conveying these bids to clients under false pretenses.
MOreover, some large institutions in the New York Federal Reserve District have expressed interest in using this new electronic system to submit noncompetitive bids
on behalf of customers.
Finally, any entity or individual may submit noncompetitive bids
in an amount up to $1 million.