Food Assistance

School Milk Contract Bid-Rigging Gao ID: T-RCED-93-63 July 21, 1993

Although GAO notes much good news in the enforcement of federal milk bid-rigging laws, more work needs to be done. On the plus side, the Justice Department continues to aggressively investigate milk bid-rigging cases and has taken legal action against a number of violators. The Agriculture (USDA) and Justice Departments agree that more systematic sharing of information on bid-rigging is warranted and are trying to improve communication between the two agencies. In addition, USDA is expanding its training in detecting bid-rigging to other areas of the country. On the down side, USDA seems hesitant to suspend or disbar dairy companies and individuals found guilty of bid-rigging. GAO believes that suspension and disbarment can be effective deterrents to bid-rigging. If USDA fails to exercise these options, however, their effectiveness as deterrents is lost.



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