{"id":3572,"date":"2017-05-03T07:05:41","date_gmt":"2017-05-03T07:05:41","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2017\/05\/03\/rfp-specifications-spark-lawsuit-breach-of-contract-or-supplier-sour-grapes-er-tomatoes\/"},"modified":"2021-07-15T04:10:25","modified_gmt":"2021-07-15T08:10:25","slug":"rfp-specifications-spark-lawsuit-breach-contract-supplier-sour-grapes-er-tomatoes","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/rfp-specifications-spark-lawsuit-breach-contract-supplier-sour-grapes-er-tomatoes\/","title":{"rendered":"RFP Specifications Spark Lawsuit: Breach of Contract or Supplier Sour Grapes (er, Tomatoes)?"},"content":{"rendered":"

Last week, the Pittsburgh Post-Gazette reported that a leading food manufacturer was being sued<\/a> by one of its packaging suppliers.<\/p>\n

The lawsuit was sparked by the specifications used in an RFP issued by the food manufacturer. \u00a0Specifically, the RFP requested bids for the snap tops used on the food manufacturer\u2019s ketchup bottles. \u00a0The supplier claims that the design of those snap tops belongs to the supplier, not the food manufacturer. \u00a0As such, the supplier claims that the specification included in the RFP is their proprietary information. It was provided to competitors, which violates the confidentiality agreement between the supplier and the food manufacturer.<\/p>\n

In other words, the supplier is claiming that the food manufacturer illegally disclosed the supplier\u2019s trade secrets to drive down costs. \u00a0Obviously, every procurement department issues RFP\u2019s to drive down costs. \u00a0But violating intellectual property rights in doing so is clearly wrong.<\/p>\n

The food manufacturer will vigorously defend itself. \u00a0Many suppliers may cry \u201csour grapes\u201d when competitive bidding is introduced into a once single-source relationship, even when the buying organization did nothing wrong. \u00a0There are always the proverbial \u201cthree sides to every story.\u201d \u00a0So, we will not presume that the food manufacturer\u2019s procurement team did anything wrong.<\/p>\n

However, we will use this opportunity to issue advice:<\/p>\n

    \n
  1. Never use a supplier\u2019s proprietary design as your RFP specifications.<\/li>\n
  2. Verify who developed and owns the specifications before you ever provide them to one or more suppliers whether issuing a formal RFP or informally exploring whether a new supplier can serve your organization.<\/li>\n<\/ol>\n

    Make a mistake, and you could end up in some serious hot water (just like the tomatoes used in making ketchup).<\/p>\n

    Become a member of one of the world\u2019s largest procurement associations today.<\/a><\/p>\n

    NLPA Learning<\/b><\/a>:<\/b>\u00a0Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in\u00a0NLPA Learning<\/a>.<\/span><\/p>\n

     <\/p>\n

    Recommended Reading<\/strong><\/p>\n