Do vendor lawsuits put you off?

23 June 2009
As a journalist you quickly learn there are certain people you should be extra careful with when writing about or interviewing them because they have a reputation for being litigious. It made me consider whether this is ever a consideration for buyers when selecting a supplier. Evidence suggests that challenges to procurement processes from suppliers have increased during the economic downturn. But if a vendor had successful challenged a procurement with another client, would that put you off inviting them to tender? Would their be any solidarity in the procurement profession, which may essentially “blackball” a vendor? I guess the difficulty would be the justification of excluding them from the tender process (after all, you wouldn’t want to give them an excuse to challenge). For a private sector firm this shouldn’t pose too much of a problem, you can just invite whoever you want. But in the public sector, EU procurement regulations make this far more difficult. Could you justify excluding a supplier from a tender based on their past legal action with other clients?
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