Professional Documents
Culture Documents
Objectives
To provide a brief overview of the negotiation process. Conducting Discussions/Negotiations. Offer guidance as to the negotiation process and address/recognize hurdles.
Procurement Objective
To conduct a fair, thorough and impartial evaluation of products or services from responsible firms which results in the selection of goods or services that best your agency. g y meet the needs of y
Negotiations
If it was your money, how would you spend it?
Clarifications Negotiations
Clarifications versus Negotiations: - Clarification A communication with an offeror for the sole purpose of eliminating minor irregularities, informalities, or apparent clerical mistakes in a proposal. - Negotiation A procedure that includes the receipt of proposals from offerors, permits bargaining and usually affords offerors an opportunity to revise their offers before award of a contract.
Negotiations
Purpose of Negotiations: Promote understanding of your agencys requirements and offerors proposal. To clarify parts of proposal which are unclear (exceptions or deviations to the contract). Facilitate arriving at a price that will be most advantageous.
Negotiation Process
The contract negotiation process generally consists of three phases:
- Negotiation Planning - Conducting g the Negotiation g - Documenting the Negotiation Process
Negotiations Planning
Plan the Negotiations - Identify the negotiations team - Know the other party Who is attending? - Identify f the objectives for f the negotiations - Develop your strategy with your team, know the limits - Create options
Negotiations Planning
Plan the Negotiations (continued) Prepare an agenda and stick to it What are the non-negotiable terms and what can be modified? When do we walk away?
Negotiation Approach
What is the approach to negotiations? - The no-plan, no clue approach? - Fly-by-the-seat-of-your pants approach? - Think out-of-the-box f approach? ? - Who needs a plan approach?
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Negotiation Approach
Identify Team
Contract Administrator, Project Manager, and if required, other departments (IT, General Counsel).
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Conducting Negotiations
- Where and when will the meeting take place. - Review the agenda for the meeting. - Review your negotiation position so that the team knows where we are going. - Set the right tone (win-win or win-lose).
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Conducting Negotiations
Exchange information Be able to back up your position based on data Its all about communication Negotiate the terms and conditions before price Dont force your position Listen to what their concerns or issues are
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Documenting Negotiations
Document the negotiations: Documentation includes; audit report, pre-negotiation position, summary of meetings conducted. Documentation needs to be in writing and include starting position, the Offeror's position and final outcome.
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Documenting Negotiations
- Finalize the negotiation memorandum. - Management review if necessary. - Prepare conformed agreement.
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Negotiation Techniques
Things To Avoid: - Revealing your final position too early - Making big concessions first - Forgetting the agenda and issues - Assuming you know what the other party wants or needs - Not listening to the concerns of the other party
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Negotiation Process
An objective process will determine the best overall firm. The integrity of the process shall be beyond reproach. Manage the process, process dont don t let it manage you you.
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Any questions
Reminders Plan your negotiations be prepared! Know your position understand what you can and cant do. Document negotiations tell the story.
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