You are currently working on the Conduct Procurements process and are trying to select the appropriate seller. You have been instructed by management to choose the lowest bidder. However, the lowest bidder has a reputation for low quality craftsmanship. The second lowest bidder offers the best quality in the industry and has only a 1% higher price point. The third lowest bidder is 30% higher than the best price, but is owned by your cousin who promised you a 10% commission for choosing his company. How should you handle this situation?
A. Select the lowest bid, regardless of the potential quality issues B. Select the highest bid (your cousin s bid), because you ll personally gain from it C. Select the second lowest bid, because it s the best quality and only costs 1% more D. Ask the second highest bidder to revise their bid to match the lowest price
Select the lowest bid, regardless of the potential quality issues-professional & social responsibility - ethicsin the question you were clearly instructed by management to choose the lowest bidder. thus choice a is the correct answer. obviously b is wrong, because that would be considered personal gain, which is an ethics violation. you should disclose the relationship to management immediately to avoid the appearance of impropriety. choice d would also be inappropriate. bids are confidential and should never be shared. choice c is tempting, but if you read the question its clear that price is the main concern for management and should be your sole deciding factor. remember on the exam that you should always follow the rules outlined in the question and not try to come up with creative solutions.