Who said its never happened before?
It obviously has otherwise the laws and regulations regarding awarding of tenders wouldnt have changed. The authorities wouldnt have to abide by cheapest then would they. But they do. Price dictates who gets job. Thats why price fixing and the awarding of recent construction contracts to various building companies has been scrutinised and theyre up for I think it was £126M in fines between them (those that were found to be rigging the books). Anyway, back to the awarding of contracts to local companies, yes of course it has happened in the past and is likely to in the future, but if those who award the contracts are found to be somehow discriminating then its their lookout.
Contracts are not actually awarded by anyone in the dept they are being tendered by, ALL tenders are opened by independent individuals who have no interest in who gets the work. Cheapest gets it.
Thats the theory anyway. No-one we have ever dealt with in 15 years of council run contracts did anything to enable us to gain work, ever. No bribes, no nought! We got the work if we were cheapest, and you can compare your price to other companies tendering as you do get to see the prices the others put it, and we didnt get it if we wern't.
If a contract is over a particular budget it automatically has to go to (usually 3) other companies for a price. With that and the ability to review what others have bid for a job I cant see how you can screw a dept to give you a contract.