Problem
At T&D Manufacturing, the procedure to obtain needed tooling is to have the tools designed in-house by company tool engineers. When the design is approved, part prints and specifications are mailed to at least three approved outside vendors. The outside shop supplying the best price and delivery date is usually awarded a contract to produce the tool. T&D also has an internal tool and die department.
In the past, this department has been used primarily to sharpen and repair the tools that are purchased outside. However, now the head of the department has requested management to allow them to offer a price to produce the tooling internally. This request is approved. Next, the department head places a call to the Purchasing Department and asks for the prices obtained from the outside vendors before he submits his quote. The Purchasing Manager refuses, citing ethical issues.
The department head is disappointed with the Purchasing Department's refusal to provide quotes of other vendors in advance. But he tries to persuade Purchasing that it is making a mistake: "Look, all inplant departments are a part of the company! They should be working together to make money, stay in business, preserve jobs, and whatever other objectives the company might have. When you treat the inside tool and die shop as you would an outside vendor, you could be putting the company in competition with itself! We can't lose sight of the fact that we should all have the same objectives and goals here at T&D."
Task
A. Based on the NSPE Code of Ethics, was the Purchasing Manager correct in refusing to share the outside vendors' quotes? Where is this addressed in the Code of Ethics?
B. The department head points out that the internal tool and die department is part of the same company so there shouldn't be a problem with sharing this information internally. Is he correct?
C. How might the Purchasing Manager resolve this problem for future quoting opportunities?