Supplier Evaluation and General Policies

Supplier Evaluation

As a matter of good procurement practice, we periodically evaluate all of our major suppliers on the basis of actual performance as compared to promised delivery dates, their ability to meet our rush requirements, the number of rejects due to poor quality, and adherence to purchase order prices. Subsequent buying decisions are strongly influenced by this evaluation. We also have an active cost reduction and savings program. Thus, your ability to give and maintain low prices, combined with consistent quality and service, is of great importance in our selection of suppliers.

Feedback to Service Providers

We have developed and standardized various methods to facilitate the evaluation of our service providers. Feedback on the results of these evaluations will remain confidential between UPRR and each individual supplier, contractor and consultant. It is our goal to provide you with our perception of the areas in which you perform well, and identify the areas which we feel need improvement.

Gifts and Entertainment

A relationship between company representatives and suppliers which extends beyond the formality of the office can be of value when approached in a manner that benefits both parties. Such relationships are encouraged to build better working associations and share information about new ideas, marketplace forecasts, etc.

Luncheons, dinners and meetings held outside of business hours to extend the workday are acceptable, and we expect to host an appropriate number of these. Entertainment in any form that would be likely to result in a feeling or expectation of personal obligation should not be extended or accepted.

Inappropriate entertainment, hospitality or gifts from companies doing or seeking to do business with us cannot be accepted.

When visiting our suppliers, we expect to pay for transportation, hotels and related expenses.

Confidentiality of Information Provided by Suppliers

Under no circumstances are any bidder's prices disclosed to any other party, either before or after the award. All competitive and/or sensitive information is handled in a completely confidential manner.

Conflict of Interest

It is our policy not to buy from or sell to company employees.

Equal Opportunity

Union Pacific Railroad is an Equal Opportunity Employer and maintains affirmative action programs which promote minority business enterprises. These programs are administered by the Supply Department and are intended to provide minority and female business enterprises with more opportunities to share in our company's procurement needs.