What to Do When Two Companies Ask for the Same Parts? | Machine Shop Talk Ep.103

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  • Опубліковано 29 тра 2024
  • You check your email inbox and hey! There’s a new request for quote waiting for you there - awesome! A few hours later, you get another RFQ from a different company - you open it up, and… it’s the same lot of parts to be quoted?
    What do you do in this situation, especially if you already have a good working relationship with one of the companies?
    On this episode of Practical Machinist’s MACHINE SHOP TALK, Ian Sandusky from Lakewood Machine & Tool is back to help out a Practical Machinist forum member who came on with this all-too-common situation on their hands.
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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  • Наука та технологія

КОМЕНТАРІ • 116

  • @BrettFleming
    @BrettFleming 4 місяці тому +89

    NDAs almost always have a clause that the NDA does not apply if the "thing" had been previously known to either receiving party. Which means the disclosing party can't use the NDA against you if you can already show prior knowledge of the "thing". No matter which route you choose, it's very wise to disclose to the 2nd party your pre-existing knowledge of the "thing" ASAP as to prevent problems in the future.

    • @AlanTheBeast100
      @AlanTheBeast100 4 місяці тому +6

      Indeed, if such a clause is not in the NDA, have it added.

    • @shyft09
      @shyft09 4 місяці тому +15

      The "thing" here is not the designs though, the "thing" is the fact that a second company asked you to quote for the same designs. _That_ wasn't known before the NDA was signed, share that info and it may well break the NDA

    • @BlackSmokeDMax
      @BlackSmokeDMax 4 місяці тому +6

      This is definitely something to consult your own lawyer before doing any type of reveal to either party.

    • @lasskinn474
      @lasskinn474 4 місяці тому +4

      the nda wouldn't be for the thing itself, but rather for the fact that the big company is contracting it out to them. the big company not being so "big" when it comes to actually doing anything themselves. its fairly common in many fields.. you know the big company has 10000 guys but there it is the guy from high school doing kernel work at the subcon office.

    • @AlanTheBeast100
      @AlanTheBeast100 3 місяці тому +4

      @@shyft09 The procedure is to discuss it before signing the NDA. And if already under NDA with co. A, then receiving an RFQ from co. B. cannot break the terms of the NDA as co. B came to you - covered under the clause about information not under your control.

  • @parkerprecisionmoldinginc.5550
    @parkerprecisionmoldinginc.5550 4 місяці тому +88

    I didn’t watch the whole thing yet, but as someone who’s had this happen, IMHO - keep your mouth shut, quote it at the same price for both, hope you get the job from either company, collect the check, move along.
    It is not uncommon to have this happen, DO NOT make enemies, more likely you’ll get more work from either companies down the line.
    Don’t forget, you’re not the only manufacturer out there, except for very special circumstances, you’re not the only company receiving the RFQ.

    • @Failure_Is_An_Option
      @Failure_Is_An_Option 4 місяці тому

      Yet here you are giving this clown oxegen. What is his product? Oh that's right. Videos.

    • @shawnmcatee895
      @shawnmcatee895 4 місяці тому +7

      I agree, and the profit margin actually goes up because both orders can be filled in the same run. No resets. Quote fulfillment time for both orders for the end of the total run. And take the whole thing as a compliment. You must be doing something right.

    • @dubi127
      @dubi127 3 місяці тому

      @@shawnmcatee895 thats not entirely how it works, you get the order either directly, or through middleman, so far i have not seen duplicate orders of the same parts...
      but every time we get duplicate RFQ, we just quote the same price for both, i mean exactly the same price...

    • @Taskarnin
      @Taskarnin 3 місяці тому +5

      As an engineer who is usually getting these jobs quoted for me, this is the correct answer.
      Make sure the quoting experience is good, whether it’s me or my sub if you were good to quote with I’ll be back.

    • @PeterParker-tb7ce
      @PeterParker-tb7ce 3 місяці тому +3

      Same here didn't watch it. This should happen all the time. Both those companies maybe bidding on the same job also and need this/these parts.

  • @jamesg8246
    @jamesg8246 3 місяці тому +22

    I work in Engineering for a medical device company and sent a quote to a company, the rep was local and stopped by to discuss in person. At some point during the conversation he said "funny thing, I just got an RFQ from another company for the same exact thing" and showed me their request complete with the same print. That was the day I found out who one of our direct competitors are and that our mutual client was of course, shopping around (as they should) or perhaps were looking for a second supplier. Interesting day. He technically broke the NDA if the other company had one by divulging this info to me. That told me he would do the same thing with our RFQ when discussing an RFQ with another company. We rescinded our RFQ and he never gets business from us now.

    • @UsernameXOXO
      @UsernameXOXO 3 місяці тому +5

      As someone not familiar with manufacturing or NDAs I would imagine I am helping uncover corporate espionage. Guess not!

  • @ryanhanks4852
    @ryanhanks4852 3 місяці тому +9

    One reason we have ordered from bigger companies even when we know they are subbing out and buying from other companies is our accounting department likes it because of whatever crazy accounting they want to do.

  • @guybonfiglio5899
    @guybonfiglio5899 3 місяці тому +8

    Another option is company A has done the initial development and has taken it to a point where they have subcontracted further work to a bigger company or sold the IP to them.
    If the big company has never worked with you before your detail may have been given to them as a known vendor with experience on the part.

  • @ChrisPadilla
    @ChrisPadilla 4 місяці тому +13

    I work professionally in this space (no pun intended) and many times, big companies who are recieving quotes on stuff they need, go to the smaller job shops directly and request quotes for the same parts so they can use that information to calculate how much markup the medium companies are putting into their quotes. This means big company sometimes has no intention of buying the parts at all, OR sometimes they DO buy the parts directly so the can de-content the medium companies work and get an overall best price on some assembly. These things are normal, and often there isnt much love lost between companies. Companies want the best price and are often creative in getting them. Just make sure you have a solid cost estimation process for your work, and reply to quotes at a rate that allows you to keep your doors open regardless of company size that you reply to. Respect NDA's, deliver quality parts on time, and dont get caught up in what-ifs until you have a purchase order in hand.

  • @Bill_N_ATX
    @Bill_N_ATX 4 місяці тому +13

    We work in an industry where we are often a subcontractor to large prime contractors. At the same time, there are end users that specify our product as part of a larger system. So we regularly get the RFQs that match from 2 or more primes. In this case, we quote everyone the same since we were specified and there wasn’t much choice on the part of the prime. Where it gets interesting is when we weren’t specified but are one of the options and we still have 2 or more primes wanting to offer our products. We still try as hard as possible to play fair because we will have to do business with these guys in the future.
    What’s messed up is when we are specified and get RFQs from multiple primes. And one or of the primes wants to play 800 pound gorilla and asks us to not respond to other primes or to give them exclusively cheaper prices. That’s when I’m happy I’m not the guy making the ultimate decision.

    • @UncleKennysPlace
      @UncleKennysPlace 3 місяці тому

      Yeah, it can get very messy. We won a decent Y2K software project contract from the DoD. After signing the papers, we found that a company we used to do business for was the only other bidder, and that _our company was listed as a sub!_ They would have been in for a surprise had they won.

  • @cantgoslow
    @cantgoslow 4 місяці тому +16

    I've had this happen countless times. Most of my work was arms industry and aerospace. There were a couple of big players, BAE systems and Thales. I did a ton of work for both and virtually all of it came in from a third party. I think you really covered all of the reasons why this happens, certification and the end user looking to buy lots of parts and only deal with one supplier are probably the two most common reasons. Another reason I came across was that the smaller company was bought out, our working on a project with one of the larger companies and the buying got handled by the bigger company because they have a better buying power. Either way, I never lost out because I had a great relationship with the third party companies and we all knew who was doing the work and who the end user was. Being open like that made for the best working relationship and made communication better.

  • @Arthur-ue5vz
    @Arthur-ue5vz 4 місяці тому +13

    30% is a HUGE price cut. I've been bit b4. You cannot afford that big of a price cut, especially since it'll only get you more of the same.
    I'd politely tell them that you already gave them a very reasonable price and you don't have the room to discount the item.
    Simple honesty.
    You cannot work for nothing simply to stay busy. It's NEVER worth it. NEVER!!!!!
    I already give each customer the best price I can in the hope that I'll get more work at the same kind of prices.
    I don't know of anyone, who's honest, that could survive a 30% cut.
    Better to go fishing and have some fun until you get some reasonable RFQ's that let you make what you need to make to keep going.
    That's born of hard learned experience.

  • @notsolm
    @notsolm 4 місяці тому +8

    It's important to remember that when you're working at scale, the convenience of outsourcing large blocks of things to a single company can be worth paying more than the hassle of coordinating with a large number of vendors. Even if you can save money on the individual parts, the time spent contacting folks, receiving lots of smaller deliveries, processing invoices, etc, all adds up.

  • @FinallyMe78
    @FinallyMe78 4 місяці тому +5

    I am an Engineer and work for a big aerospace company. When we work on a government contract, we have to get multiple quotes before buying. We almost always send the same drawing to multiple vendors who act as middle men. The government is the reason for this.

    • @Bill_N_ATX
      @Bill_N_ATX 4 місяці тому +2

      Same here. And we have to play it really carefully since these contracts often carry “most favorite nation” clauses where I have to certify that I’m selling at my best price offered to anyone. Lots of games get played in these kinds of deals. I play it straight and hope for the best. If we win, we win. If we lose, we lose. I’m too pretty for jail, so I don’t play games with government contracts.

  • @Bigrignohio
    @Bigrignohio 4 місяці тому +6

    I have seen this on the building design side. Two GCs go to the same sub and get different pricing. Usually because the higher price GC is a PIA and is either slow to pay, or hard to get paid for change orders/scope creep.

  • @geniferteal4178
    @geniferteal4178 4 місяці тому +5

    I work for a company that won a bid from a public entity. We didn't even make the product they wanted. We were just reselling it from the manufacturer.
    as it turns out. The manufacturer was pretty much the only one that made it and they knew this. They bid the cost high. My boss put a normal mark up on it so we made a reasonable profit and low and behold we won. Then we had to Go to the manufacturer and have them make it for us.
    Obviously they realized what happened. They even put the name of the public entity on the product because that's what they've done in the past.
    We pretended to be upset but in the end it was what was wanted anyway. funny how that can work. Even if you don't think there's competition, bid your jobs fairly

  • @AlitaGunm99
    @AlitaGunm99 3 місяці тому +4

    I've been in this position. I just quoted them the same; if the middleman wants to make money, they'll have to bid higher.

  • @richhuntsd12
    @richhuntsd12 4 місяці тому +12

    Good morning Ian. Very well done video. Happens to me all the time. Not so much with the NDA’s but the dual RFQ’s. For me it’s really simple. I figure my price and delivery for the requested parts and quote the same numbers to both companies. They only way I usually alter pricing is based on delivery requirements and or quantities. Many times the big companies will request the same parts but in larger quantities and I prefer that, hence forth a small discount. Sometimes the delivery date on these quotes are realistic and sometimes ridiculous. I get a kick out of Big companies because they often times go to other shops to see if they can get better pricing and then the other shops get me to quote the job as well. So it ends up costing the Big company more anyway! Go Figure

    • @iansandusky417
      @iansandusky417 4 місяці тому +1

      Thank you very much sir! I definitely agree with your approach - seems to be the best way to go about it! I’ve definitely experienced that before as well!

  • @user-vn6hi2bi3g
    @user-vn6hi2bi3g 4 місяці тому +10

    I always was out front and open with my valued customers so I informed both that I was submitting an identical bid to each customer. My reputation was always in my mind an important company asset and this is how I handle these type of issues, in the long run these methods have served me well. Ray Stormont

  • @JimmyJamesJ
    @JimmyJamesJ 3 місяці тому +1

    In my line of work I've been part of the team that puts out requests for proposals as the end customer. We usually have a minimum of three different bidders on our projects. It is not uncommon that two, or all three bidders, go to the same subcontractor or supplier for certain parts and services. In some cases the design requires only a specific product or vendor so all bidders have no option but to request a quote from that vendor.
    I've also seen similar work in subsequent contracts flipped back and forth between two contractors over the course of years where some of the subcontractors were the same for all projects, just the general contractor changed.
    The point is, they my not be a "middle man", they may both be subcontracting the job out to you independently. Be glad they both came to you and give them the same price. Don't read too much into anything and treat business as business.

  • @xjdisuehd
    @xjdisuehd 4 місяці тому +1

    I've worked at a small company where equipment parts were sometimes sourced directly from shops or sometimes via the big company. Often times, we went to the big company, basically an EPC sorta operations, because they'd be able to do certifications required and needed for which we didn't have the expertise or the resources. Also, plenty of times, the big company had a contract for a larger system, and the small part broke off, and we needed it quick - you ship it to the big company and then the big company ships it to us - that can increase lead times for us significantly. And more often than not, we do not know their vendor lists - if we didn't have a relationship with you already, it is highly possible your shop name came across within a 150 mile google search for the work that needed to be done.

  • @georgehelyar
    @georgehelyar 4 місяці тому +2

    Same thing happens in software with managed service providers. Big clients can take a long time to set up a deal direct with the vendor, and sometimes already have a deal with a managed service provider so may rather go through them, even if the MSP puts a mark up on

  • @IainMcClatchie
    @IainMcClatchie 4 місяці тому +6

    I used to work for a big company, Google. One of our suppliers called us up and said, we just got a RFQ for a part which is basically exactly the same as the part we make for you. Just FYI.
    Turns out an employee (Anthony Levandowski) had left, (illegally) took a bunch of trade secret stuff with him, and started his own company to compete with us. His start-up got purchased by another big company (Uber). The two big company legal departments opened fire on one another. Multi-hundred-million dollar lawsuit. That employee that left got mostly wrecked, and eventually got convicted of criminal charges.
    The vendor that brought this up? Heroes.
    Wacky you-have-got-to-be-kidding ending twist: rogue employee got a pardon from President Trump! WTF?

  • @larryh968
    @larryh968 4 місяці тому +4

    Happens all the time here in Houston. Been quoting for fab & machine shops for decades, see it all the time. We all know who's doing what even in this big city, its a small world sometimes.

    • @austinwinston684
      @austinwinston684 3 місяці тому

      Yep. Everyone knows what the railcar mfrs are working on, the mining mfrs, the oil and gas drilling mfrs...

  • @gijoecam
    @gijoecam 4 місяці тому +8

    While I don't get into contracts, I've been in the position of Space Company. The scenario was that we prototyped a small run ourselves, then subbed out the assemblies to a 3rd party. The 3rd party went to all the same suppliers to make and source the components, then assembled, tested, and inventoried spares on our behalf. No malice or ill-will (or bottom-feeding), and we recognize the cost of the markup for the service that 'big company' provides.

  • @Vankel83
    @Vankel83 4 місяці тому +3

    I do work for a couple machine shops in my county and surrounding. It's work they can't do. Be it machines they don't have or ability. I've gotten the same RFQ from a couple. Maybe the same day or day apart. Hey, it's their company/client. I just do the work and collect a check. It has work out well.

  • @nickj2508
    @nickj2508 4 місяці тому +4

    I suspect the project was transferred from engineering to operations and they just went to the big company to outsource in bulk, the customer wants more layers to move their engineers onto other projects. It is OK to let them send out original drawings if they are a value added contract manufacturing position.

  • @ultraflightamerica9019
    @ultraflightamerica9019 4 місяці тому +2

    I worked for an automation consultancy a few years ago, we also had an issue where we knew one of our customers was producing parts for another customer of ours. 2nd customer opened the shipping packages of the parts from customer 1, machined off the manufacturing mark boss on the part, then would stamp into the same location their logo, and were selling the part, as their own product, to a 3rd customer of ours. over a period of a year we managed to find out the 3rd customer used the part in a sub assembly for their final product, and was buying the parts from customer 2 at a massive markup (>600%). we were under an NDA that we couldn't talk about what we had found out. well, we didn't really have to when we found out the CFO of customer 1 was at the summer 'family day' celebration of company 3, as his new wife's younger brother worked at company 3. never knew what happened with the specific situation, but customer 2 ended up not being able to afford our services by that Christmas.
    Things have their own ways to work out. always keep your own personal integrity, and your word as your bond. That Integrity might cost you customers now, but those are rarely customers you want long-term.

  • @cleanmachine08
    @cleanmachine08 4 місяці тому +2

    I have been on the other end of this.
    Quote the work for each like you'd never seen the job before.
    "Space Company" to you via "big company" may reasonably attract a higher risk and complexity loading than the direct approach.
    Do not breach the NDA, or make any mention of the multiple approaches to either party.
    P.S. Your manufacturing improvements are your own IP, and those should not be put back out to market for a race to the bottom.

  • @dejavu3741
    @dejavu3741 3 місяці тому +1

    i have been thru this a bunch, like weekly, but because i am a primary vendor for a large company. When they are taking bids on subbed out work they advise their subs to come to me so i have told the large company that i will always give their subs if they identify as a sub the exact same pricing as i would give the large company, and therefore all of the bids would have the same material costs from me. (slight difference is that i do not sell finished work only components). Also their bids are enhanced by having my name as the supplier as the large company is assured that the subs parts that i supply will fall within their procurement guidelines.
    i always try to live by the idea of play it straight and you will be rewarded. I mean hell i have gotten the exact same RFQ from 10 companies. just change the name on the top of the quote and send it back.

  • @skwerlz
    @skwerlz 4 місяці тому +5

    Assuming no NDA with "space company" I'd send the same packet with modification suggestions and everything that I sent to the small company to the big company, with the same pricing. I've got no problem recycling quotes. I've had this happen before in the signage world, big company sends me an RFQ and one of their other regular vendors sends me an RFQ for the same product, I always send both the same quote.
    As far as when "big company" comes looking for a price reduction, my quotes are always very detailed and leave no question about what the fudge factor is in the price. If they're demanding a price that's below materials + overhead, it's a hard no. It's been my experience that if you cave once you're always going to be expected to cave and that relationship you wanted to take a loss to make is worthless anyway.

  • @richardstilwell5932
    @richardstilwell5932 3 місяці тому +1

    My company does work for the government. Sometimes in the contracts that the government puts out for bids state that the item has to come from my company. We also bid on government contracts, so we give everyone the same price with adjustments for shipping. Only once did another company get the contract at significant mark up. So I guess the guy signing off on the contract had a buddy at that company. Doesn't matter, we still made the sale.

  • @phillhuddleston9445
    @phillhuddleston9445 4 місяці тому +3

    Give them both the same quote so you know it will eliminate the middle man and unless someone else can give a much lower bid they will not be able to beat your quote. A fair price is a fair price, I quote on time and materials regardless of who the customer is, chances are you will still get work from the middleman and get work from the company directly unless the middleman gets most of their work from that company in which case you will likely get it anyway direct from the end customer if they are jobbing out most of their work with a mark-up

  • @sheepman6291
    @sheepman6291 3 місяці тому +1

    I'm a supply chain engineer. Its best to send a quote to the big company. This happens a lot to me because it is my job to request quotes from multiple suppliers. I find it annoying when the people I request a quote from email other suppliers looking for it. When I notice this, I stop emailing those middlemen all together. Don't do business with middlemen.

  • @mennoregts208
    @mennoregts208 3 місяці тому +1

    The smart thing to do is quote a slightly lower price to the big company. Another thing to consider is the amount of parts to be produced. Just send out a quote where you make about the same profit margin in the job, not the part. Bair in mind the big company is now your prospective client and not the space company. If the big company then tell you you need to lower the price, think about it and consider can i make a healthy profit. Most likely not. Then you need to decline the job. If you go below your own profit margins you'll set yourself up for bankruptcy.

  • @aaronokimoore
    @aaronokimoore 4 місяці тому +1

    If you are worried about "being caught" then you are doing something that isn't right. If you don't have an NDA, talk to the customer and share with them. They are likely interested in keeping their business and continuing to work with you. If you want to level up, make partnerships and keep communication channels open.

  • @saxmusicmail
    @saxmusicmail 4 місяці тому +1

    This is not unknown in other industries. I was the US (and entire western hemisphere) importer/distributor for a unique product lin which I sold at retail through that part of my operation, and sold to other retailers. More than a few times I got an order for a rare combination of parts, some of which I would have to bring in from the manufacturer overseas. Then suddenly I received the same order from a number of my dealers. Get on the phone, is this order you just sent me for (name of customer)? Yes, all of them. He had ordered from all of them, and me, to see who would scramble the fastest and give him the lowest price. Had I filled that order to all of my dealers they would have been stuck with the product they probably would not sell in the next 5 years, sitting on their shelves.

  • @sheepman6291
    @sheepman6291 3 місяці тому +1

    This is really good video! I encounter this a lot.

  • @andrewwilks2700
    @andrewwilks2700 4 місяці тому +10

    Require a copyright on the plans. If you get a whited out copyright, it's not against the NDA to report IP theft to the copyright holder since an NDA cannot prevent you from reporting something illegal.

    • @dakadakoperator
      @dakadakoperator 4 місяці тому +1

      Ridiculous and in 99.8% of cases just mind your own business....
      The big OEMS that use VMI know who makes the parts as per the contract of the VMI provider. When the big OEM goes shopping for a new VMI provider they give the prospective supplier a list of parts and where to go. This is the same case with defense parts, If you're lucky your name will be on the print as an approved supplier.
      There's even mid size OEMs that have multiple supplies for the same part but both will come to you to make the part. Both should get the same price and if the stars align, you will get to run the jobs together and save the setup time.
      There's also the world of "overflow" work and "farming" out jobs.

  • @ktmtragic1397
    @ktmtragic1397 3 місяці тому +1

    Great twist on business ! Thanks !

  • @ExaltedDuck
    @ExaltedDuck 2 місяці тому +1

    Even without an NDA, professionalism dictates client confidentiality. If the prime feels you have a need to know about anything related to their decision to subcontract, they'll let you know. And if the subcontractor has any need to let you know the destiny of the parts you're making, they'll let you know. Just offer the best service you can for a fair price and keep cashing the checks.

  • @markhorner4982
    @markhorner4982 4 місяці тому +3

    we have had it loads of times without the NDA, we normally find big company A we always do work for, has lost the contract to company B, boss talks to company A he finds that out and quotes company B. Other times company A or B has just bought out the other and work has moved to a different site as its now in the group. Another one is big company A has subbed the whole assembly to big company B and told them where they normally get the parts made. we always end up quoting .

    • @iansandusky417
      @iansandusky417 4 місяці тому +3

      Definitely, I’ve seen this before too - gotta love when work gets shuffled around between companies in the same group - makes life very fun trying to figure out who you should be dealing with!

  • @DXT61
    @DXT61 4 місяці тому +5

    Can it not backfire? Like company A sends a drawing. You quote it then company B sends a NDA which you sign and they send the same drawing. Can company B claim you violated a NDA even though you answered company A first. Accuse you of sending "their" drawing to others? I guess you would need an email timeline that proves you didn't?

    • @RJMachine62
      @RJMachine62 4 місяці тому

      I think I would tell the BIG company that I can't abide by the NDA because I already quoted these parts to another company prior to your NDA. If you don't be honest and clear you can get in a heck of a bind, I would think.

  • @dangeary2134
    @dangeary2134 3 місяці тому +1

    Personally, I’d play dumb in both instances.
    There is always a chance that the particular item is common to a set of machines within a set of companies that are owned by the same entity.
    As far as the bidding, I would quote the same, because it’s obviously the same part, but I would say nothing to either of the companies about the other.
    If one backed out, shrug it off as to they may have found a better bid elsewhere.
    You haven’t broken any rules, and if any questions arise, bring up any contracts, bids, etc. if it winds up in some litigation.
    Sometimes it’s better to just keep your mouth shut and take things at face value.

  • @FrankensteinDIYkayak
    @FrankensteinDIYkayak 4 місяці тому +2

    it could also be both companies are bidding on the same project.could one company have reviewed the drawings after the other designed it then decided to do it themselves? I'd wonder if something fishy was going on.

  • @jasonalper7898
    @jasonalper7898 4 місяці тому +1

    Depends on the History of the customer, can run in to Price Fixing Laws, so best might be to price the same if all is the same.

  • @JoeJoeTater
    @JoeJoeTater 3 місяці тому +1

    There's also a chnace that Big Company is infringing on the IP of Space Company. Though, if they're known to be a broker/middle-man, then that's less likely.

  • @timgerard8635
    @timgerard8635 4 місяці тому +2

    you quote both. Your costs don't change, the two companies add their margin and the one with the lowest margin gets the order

  • @memoisbill
    @memoisbill 4 місяці тому +1

    Why don't they follow up on the space co quote first. On the other hand is big co probably has reps bringing in way more work than little shop has time to look for.

  • @startx9
    @startx9 3 місяці тому +1

    One thing I did not catch, did the company who first submitted an RFQ have an NDA as well? If so did their NDA have a reporting clause? I have seen this while working in another industry, and had conflicting NDAs to deal with. The company talked to their attorney who reached out and informed the first party that someone else had their IP, and informed the second company that there was a pre-existing NDA with a reporting requirement. Turns out it was a test by the manufacturer to see what my employer would do.

  • @captianmorgan7627
    @captianmorgan7627 4 місяці тому +1

    I can't tell you how many times contracts got changed up, given to different companies, or even just switched around among companies, just because it's been a few years.

  • @Shammoria
    @Shammoria 3 місяці тому +1

    Depends on what info big company is providing now nda is involved and what the nda entails, but it is a red flag if the nda mentions it prevents you from doing thing around previous contracts, dont sign them if thats in there, that way provided you dont mention that big company is asking for the part, you can reach out to space company to see if they need any more of that previous part and if they are happy with the previous work, you know standars sales call stuff, if they indicate they are working with big company or may say, actually we do need more or spme revisions, get a lawyer to look over why big company has sent you the order if it hasnt come from space company, or they may just ghost you, Also it depends on who owns the tooling for the previous job, if you own it, dont agree to provide it to big company unless you are good with loosing future work for space company, cos they will use it to automate their internal processing, but if the client owns the tooling you will need to quote big company for new tooling unless you have confirmation from space company you can use the tooling that they own from the previous job, in that case space company will know you are being subbed by big company as part of that arrangement, if big company presses you to discount, ask them to explain why as the market rate for this part has already been set with previous orders of similar parts, also if they do press for discount make sure that you own the tooling as part of that arrangement so you can reuse it and be able to quote better than someone who would have to tool from scrach. If this was just a matter of plugging drawings into a cnc mill, big company wouldnt be coming to you, so i am assuming there is custom tooling involved.

  • @TrPrecisionMachining
    @TrPrecisionMachining 4 місяці тому +1

    good video Ian,,thanks for your time

    • @iansandusky417
      @iansandusky417 4 місяці тому +1

      Thank you very much for checking it out!

  • @YouDriveUSuccess
    @YouDriveUSuccess 4 місяці тому +1

    You would not violate the NDA if you went to those customers and told them you already had knowledge of this and ask how they would like to proceed. The 3rd party will likely be shopping other vendors for the best quote. It's best to be honest and transparent so you aren't faced with this dilemma. If you do not disclose your prior knowledge of the project, the companies may find out your involvement later and sue you for back solicitation or a violation of the NDA, now the burden of proof is on you, and both bridges get burned.

    • @reddragonflyxx657
      @reddragonflyxx657 4 місяці тому +1

      I think revealing that could be an NDA violation. You aren't revealing design details, but you are disclosing some non-public information. I could actually see this disclosure causing problems if the orders were for prototypes by competing companies (either them investigating IP theft through you or suing you for revealing the focus of their R&D efforts in violation of NDA).
      I'd go with quoting and acting as though you hadn't seen the request before. You need to keep documentation which would set the record straight regardless. There's no actual NDA violation on your part, so if that's an issue that should be sorted out in discovery pretty quickly.
      Isn't back solicitation when you realize that you're a subcontractor, figure out who the original client is, and bid the work for the client directly? Check your contract terms with a lawyer, but it's probably fine if the client approaches you unsolicited (if it isn't... that's why you're consulting a lawyer).

    • @YouDriveUSuccess
      @YouDriveUSuccess 4 місяці тому +1

      @@reddragonflyxx657 It depends on the circumstances and the details of the NDA. I have been in this exact situation before. The client was trying to save money by going direct through me. The problem was, the "middle man" is a long time customer. Since this project had multiple jobs, it would have become known that someone was getting backdoored. Without revealing details, I explained to each side that I was a vendor for both. It was understood and we kept my long time customer in the transaction.
      Later, my contact had told me that if we had cut them out we would have been blacklisted. Since then we have done over $5 million in business with them. Honesty is usually the best policy.

  • @grantguy8933
    @grantguy8933 4 місяці тому +1

    How to get to the end customers is key.

  • @dirtboy896
    @dirtboy896 4 місяці тому +2

    I want one of those shirts

  • @davidgutting4317
    @davidgutting4317 4 місяці тому

    There is only one thing you should do, reach out to the company who made the drawings or model (the author is embedded in the file) and let them know what’s going on. I worked for a place that had a competitor request parts from our dies machined to different specs. We really appreciated the shop reaching out to us, and we sued the crap out of the company trying to use our tools. Because the shop reached out to us made them a permanent trusted vendor for us. If the shop didn’t, and we found out, we would pull the tools, and include them in the suit. Your vendors are your partners, not our competitors

  • @lephtovermeet
    @lephtovermeet 4 місяці тому +1

    Is one of the companies keeping your lights on? Let them know. Are you dying for business from one company and losing business from the other company won't crush you? Let em know. Otherwise I just wouldn't say anything and make sure you quote them both the same.

  • @MrSsrt33
    @MrSsrt33 3 місяці тому +1

    I think my price is my price, I don’t reduce for anyone or company wanting a discount of 10% or 30%, I think it’s a know your worth thing. If they want a cheaper price they can use the guy that does crap work and when they realize this they will come back and say we messed up with company B can you please make my parts.

  • @mg30ebay
    @mg30ebay 4 місяці тому +1

    Follow the NDA and keep/build a reputation as a shop with some discipline. You have no idea what's going on between those two companies. Maybe the design or group got sold. Perhaps the first company just did development and the first quote was for the product cost analysis.

  • @rustynail4676
    @rustynail4676 4 місяці тому +1

    Just take the work quote same as last time and get paid.

  • @iamcondescending
    @iamcondescending 3 місяці тому +1

    I'd just quote the same price and time to the second company and make the parts as is. Clearly "Space Company" wants to spend more money...

  • @lasskinn474
    @lasskinn474 4 місяці тому +1

    you add extra margin and put in an easter egg that you made them anyway.

  • @jameschristman7964
    @jameschristman7964 3 місяці тому +1

    Could always NDA your work revisions so it can't be used by others

  • @bayramlielxan
    @bayramlielxan 4 місяці тому +1

    I work with who send first 😂

  • @Nanan00
    @Nanan00 4 місяці тому +1

    I work for a company that makes valves and hydraulics and when it comes to stuff we can't make in house we sub it out to another machine shop, if they find they can't do it all they will sub it out to another shop. Same thing goes the other direction, our customer is often not the end user, often times the customer will hire an engineering company to quote work on a unit and often times more than 1 company will go out for bids for the stuff we make to where we have quite a few times gotten the same set of drawings and specs from different companies for the same product. The fun one for me is that I have been in the industry for long enough and worked for a few different companies to where I have seen my name not only on the drawings but also the specs referencing said drawings years before and now I am being asked to quote parts for stuff I designed 15 years ago while working at a different company. I have friends at all 3 of the companies that work in this industry and will often get text messages saying stuff like "hay I just got a spec with your name on it, or why did you use XXX material instead of YYY etc. on this job.

  • @weldmachine
    @weldmachine 3 місяці тому +1

    I don't really see the dilemma ???
    Just quote the same parts at the same price, and send the quotes back to who ever
    wanted them quoted 😒

  • @GilmerJohn
    @GilmerJohn 4 місяці тому +1

    Always play dumb!

  • @samheasmanwhite
    @samheasmanwhite 2 місяці тому +1

    You probably want to tell the 3rd party company that you have done the work before, they may prefer you over other offers due to experience, but this would depend on part complexity.
    Certain 3rd party companies just suck though, do your research since they might be known as bottom-feeding scum, and could even cause problems for the first company (seems like that isn't the case here tho).

  • @mikeakerstrom1667
    @mikeakerstrom1667 4 місяці тому +1

    I don't understand the actual issue. This is one Practical Machinist got wrong IMO.
    You signed an NDA, keep your mouth shut. Quote the parts, make the parts, make the money, don't break the GD NDA!
    NDA doesn't mean you can't make the same parts for a different customer, it just means you can't talk about it. Quoted prices should be similar unless one customer asks for the parts to be made a different way

  • @blackout7615
    @blackout7615 2 місяці тому

    I got a p3fs5rbgq from 2 different companies once. I told them to remember p.o.o.p. People order our patties. I almost had to give one customer p.e.n.i.s. perforated exhaust near isolated system. I also have a PPO and HSA.

  • @larrykent196
    @larrykent196 3 місяці тому +1

    Be honest, it's not your problem. Sounds like a cat fight to me and they just want someone to blame. Look out.

  • @nunyabusiness3786
    @nunyabusiness3786 4 місяці тому +1

    As the Generation Z "zoomers" say it is pretty sus when this happens. Are they copying the competition? Instead of questioning it like a sussy baka yourself though be a wise crewmate and give them both their parts.

  • @prahjister
    @prahjister 4 місяці тому +2

    I am surprised there is any debate on this. There is no dilemma with the scenario you have given. Quote the part the exact same. I'm not a machinest but ran into this a lot in rfq situations. Nothing good can come from doing anything else.

    • @iansandusky417
      @iansandusky417 4 місяці тому +1

      I’m confused - that’s literally the advice I give, to quote out both the same?

    • @prahjister
      @prahjister 4 місяці тому +1

      @@iansandusky417 Your right. I corrected my wording.

  • @robertw.1499
    @robertw.1499 4 місяці тому +1

    You can't ask viewers to like, subscribe and share at the beginning of your vid, at that point, we haven't seen any content. A lot of UA-camrs do this and it's absurd. So now, I'll watch what you have on offer and make my choice at the end. Make sense?

  • @janeblogs324
    @janeblogs324 4 місяці тому

    Why are you assuming we know what RFQ stands for?

    • @Sketch1994
      @Sketch1994 4 місяці тому +2

      Lol... Can't speak in parenthesis but he literally said what it means in the first few seconds (request for quote)

    • @AdamEarl2
      @AdamEarl2 4 місяці тому +1

      When is he going to say what TLA means?

    • @iansandusky417
      @iansandusky417 4 місяці тому +1

      @@AdamEarl2TLA?

    • @AdamEarl2
      @AdamEarl2 4 місяці тому

      @@iansandusky417 three letter acronym 😜

    • @iansandusky417
      @iansandusky417 4 місяці тому +2

      @@AdamEarl2hahaha okay you got me 😂😂

  • @dustinandtarynwolfe5540
    @dustinandtarynwolfe5540 3 місяці тому

    Practical machinist is the most toxic forum ive ever been on.