Relationships with Suppliers

  1. How does Northrop Grumman define a "gratuity"?
    1. A gratuity is any benefit for which fair market value is not paid by the recipient. It can include, but is not limited to, entertainment, meals, beverages, recreation, hospitality, transportation, discounts, tickets and passes.
  2. A supplier is hosting an industry meeting on a new technology. They are providing the facility and meals. May I attend?
    1. Yes, if approved by your management, but Northrop Grumman will pay your transportation, room and board (except for meals provided to all participants at the facility as part of the conference).
  3. A company consultant has offered to pay me for work I could do for him on my own time. Is this against company policy?
    1. "Moonlighting" for a consultant or supplier could lead to a conflict of interest. The prior written approval of your company element head is required.
  4. I belong to a Northrop Grumman computer user group. May a software manufacturer put on a product demonstration for us?
    1. This is permitted, but not during working hours unless arranged and approved ahead of time by your manager. The Materiel department at your location should be advised of such visits. If the vendor wants to leave some demo software for you to evaluate, you may accept it if you first get a "no-cost" purchase order from Materiel to document the transaction.
  5. I've received a calendar in the mail as a "thank-you" from a supplier for arranging a recent plant visit. Should I send it back?

    1. Northrop Grumman's corporate policy allows for some exceptions to the general ban on accepting anything from suppliers or potential suppliers. Perishables or other items of modest value that might be impractical to return as well as items of nominal value may be accepted. Most wall calendars would fit the description of nominal value.

      However, corporate policy allows sectors to be more specific or restrictive. Consult your local BCO for the policy at your location.

      When you are dealing face-to-face with a supplier on a government contract who wants to give you a gratuity, the answer should be "No thanks." 

  6. A supplier friend of mine and I take turns paying the bill when we go to lunch together. Is this okay?
    1. No. This kind of exchange supports the notion that "one favor deserves another." Northrop Grumman does not want you or any employee to be in a position of "owing" anything to a supplier.
  7. I've been invited to speak at a conference and the sponsors will pay my expenses. May I accept?
    1. If the conference is hosted by a supplier or customer of Northrop Grumman, you may participate as a speaker but Northrop Grumman will pay your expenses. If the event is part of a professional association or sponsored by a company that is not a Northrop Grumman supplier or customer, then this sponsor can pay your expenses. In all cases, especially if an exception seems in order, get proper approval in advance from your management.

Questions to Ask Yourself