A request for proposal (RFP) yields a bid with a better delivery schedule and a lower cost, but originates from a vendor not on the prequalified vendor list. During the final review of the RFPs, the…

Question

Options

• ASelect the best bid from the prequalified vendor list.
• BAccept the bid from the new vendor and document the decision.
• CAdvise the sponsor of a possible conflict of interest prior to awarding the bid.
• DAdd the new vendor to the prequalified list and replace the project manager.

• A
  17% (9)
• B
  4% (2)
• C
  69% (36)
• D
  10% (5)

Explanation

Even though the bid fully meets company policies, the familial relationship between the project manager and the vendor creates a potential conflict of interest that must be disclosed before a decision is made. The program manager's ethical obligation is transparency - the sponsor must be informed so the bid award decision is made with full awareness of the relationship. Selecting a lesser bid (A) wastes value without justification. Silently accepting the bid (B) conceals a material fact from decision-makers. Replacing the project manager and adding the vendor (D) is a disproportionate, unilateral action. Disclosure to the sponsor is the correct and proportionate ethical response.

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