Scenario: Jim’s company has an in-house tool-and-die department that would like to bid on a contract that has been submitted to outside vendors. The in-house manager asks Jim for the quotes from other vendors so he can under-bid them. “After all,” the department manager argues, “we are both on the same team. It’s better to keep the money inside if we can. You don’t have to tell the outsiders what you have done.” What should Jim do?

Class Discussion

For what reasons would Jim’s company submit this contract to outside vendors knowing the company has its own in-house tool-and-die department capable of doing the job?

If you were Jim, how would you approach this situation with the in-house manager?