A prospective seller, Seller XYZ, calls you to discuss the pricing contained in

Question

A prospective seller, Seller XYZ, calls you to discuss the pricing contained in the response they previously provided to you. Seller XYZ is also a large customer of your company, and has been a long-time supplier to your company with superb performance. You would really like to see XYZ win the business for your project. As the Procurement Manager, you have visibility to all of the pricing provided by other prospective sellers. During the discussion, Seller XYZ asks you for “guidance” on their pricing so that they can be competitive with the other prospective sellers. How do you respond to Seller XYZ? Explain your thought process in formulating your response and, if appropriate, reference one or more relevant codes of ethics that may apply to this situation.

Explanation / Answer

AS the Procurement Manager, it is highly immoral and unethical, if not illegal, to share the pricing provided by the other prospective sellers to the (only one seller) XYZ seller and helping him outrightly to win the procurement orders, irrespective of right or wrong reasons. The " guidance" needs to be same for all the prospective sellers. As a part of the procurement policy one may have some weightage to the past performance and future prospects, but as far as bidding/ pricing is concerned, all prospective sellers should be treated at par for fair competition among them.

Todays preference for XYZ may be overtaken by some other ABC on the similiar and or better grounds on account of ever changing business environment.

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