A supply manager Is conducting negotiations with a supplier. The supplier states that it cannot offer a lower price because the product under negotiation is covered by a government contract. In this situation, the supply manager should
A.
offer to reduce the order quantity
B.
negotiate the other terms and conditions, and return to the issue of price at a later time
C.
conclude that this is in fact the best price that the supplier can legally offer
D.
require the supplier to provide specifics on the government contract restrictions
When a supplier states that a product is covered by a government contract, implying that they cannot offer a lower price, it is essential for the supply manager to verify this claim. The supply manager should require the supplier to provide specifics on the government contract restrictions. This will help determine if the price is indeed fixed by the government or if there are other negotiable aspects. By understanding the exact restrictions, the supply manager can better navigate the negotiation process, ensuring compliance while potentially identifying areas for negotiation that are not restricted.
References:
Federal Acquisition Regulation (FAR) guidelines on government contracts.
"The Art of Negotiation" by Michael Wheeler.
Institute for Supply Management (ISM) guidelines on government contract negotiations.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit