Are multiple bids required?

[markthompson108]

What is the name of your state (only U.S. law)? PA

I work for a privately held for-profit company. We are a subsidiary of a very large nonprofit. A new marketing VP came on board and this person has started moving us from our current vendors to new vendors without any RFPs or getting multiple bids. I over heard some bathroom talk that these new vendors are all friends of the new VP. He's even bringing in friends as consultants to give us advice on various projects. I know this isn't the best business practice but is this VP doing anything wrong?

 

[tranquility]

You'll have to ask his boss.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

I work for a privately held for-profit company. We are a subsidiary of a very large nonprofit. A new marketing VP came on board and this person has started moving us from our current vendors to new vendors without any RFPs or getting multiple bids. I over heard some bathroom talk that these new vendors are all friends of the new VP. He's even bringing in friends as consultants to give us advice on various projects. I know this isn't the best business practice but is this VP doing anything wrong?

I doubt that he is doing anything wrong from a legal perspective because I doubt that he is legally required to get competing bids in this scenario. However, as far as company policy is concerned, as Tranq said, ask his boss.