The Gentle Art of Trading Favors

My company recently lost a bid for a city government contract. We have learned that the company that submitted the winning bid -- which was more expensive than our own -- has a family connection to someone on the approval board. This is in clear violation of the board's policy on "conflict of interest," but we're unsure whether it would be in our best interest to fight the decision. Where's the line?

Don't fight their game. Play it. What you've discovered could turn into a nightmare for the board. If you use this information correctly - and legally - you'll give your company some power with the board and a better seat at their table.

Government contracts are not a science; they're an art based on finessing information. I'm not talking about blackmail. I'm talking about politics, which is all about trading favors (see: Halliburton, the entire lobbying industry, and anything to do with Boston City Hall).

The media loves to put the smackdown on back-room political deals. The board knows this, and they don't want to be in the next round of public officials to go down in scandal.

You're never going to get that contract back without going into a long, dirty battle that will probably drag your company name down with that of the board (nobody likes to play with a tattletale).

But this is one of those cases where your power comes from simply letting the board know that you know. Find a way to get your information to the board, but use caution and don't be threatening. Any mention of "we knew about this, but didn't go to the media" is borderline blackmail. The fact that you kept quiet will go without saying, and they'll know you did them a favor.

You can't ask for a favor in return, but they'll know that you'll be expecting one. Next time a contract comes up, bid on it. You might just get lucky.

Have a workplace-ethics dilemma? Ask it here, or email wherestheline@gmail.com.