What is the potential consequence when a contractor holds an unfair competitive advantage?

Holding an unfair competitive advantage can lead to tainted market competition, which occurs when some contractors achieve success not through merit but rather by leveraging their unfair advantages. This disrupts the level playing field that is essential for fair business practices. When one contractor has a disproportionate benefit — such as insider knowledge, exclusive relationships, or unethical practices — it can skew competition, leading to few opportunities for other businesses.

This type of advantage can ultimately result in a market where innovation is stifled, prices are driven artificially, and the quality of services or products may decline as companies feel pressure to cut costs in order to compete with those who have leveraged an unfair advantage. A healthy competitive landscape fosters quality outcomes, equitable pricing, and diverse innovation, all of which can be compromised when unbalanced competition prevails.