M4,

Service from companies like these, (McCarr and Grainger), in our case, is very small. A very occasional return/RMA is about it.

If you read my OP really close, the cut and paste from our PPS website, they admit that these "relationships" are built along the lines of cash signing bonuses and year-end rebates.

What I don't understand is that these contracts are awarded on the basis of competitive bids.

How can that be if the "rules" listed are allowed (rebates, signing bunuses etc.)?

As I see it, these guys are talking out of both sides of their mouths. The "openness" of competitive bids AND the crap? I don't buy it.