Pre-Negotiation Planning

Planning is the cornerstone of effective negotiation. As a best business practice, depending on the requirements, it is recommended that the negotiation team engage in pre-negotiation planning to ensure that all relevant issues are adequately defined.

Negotiations

Negotiation is 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. Bargaining is done in the sense of discussion, persuasion, alteration of initial assumptions and positions, and give-and-take. Negotiations usually include three stages:

         Fact-finding,

         Preliminary negotiations, and

         Bargaining/negotiation

These stages may include some of the items listed below:

Fact Finding Stage

         Review and discuss offerorís proposal and results of analysis from support team.

         Check inconsistencies between buyer and sellerís cost information.

         Probe for rationale behind the sellerís basis of estimates for the various elements of the proposal.

         Obtain clarification from seller concerning questions raised with respect to its proposal.

         Identify general negotiation objectives.

         Attempt to determine the range of negotiation position.

Preliminary Negotiation Stage

         Critique additional data or re-pricing received form the seller.

         Narrow the range of objectives.

         Determine if both parties are ready to negotiate.

Bargaining/Negotiation

          During this stage, negotiators are trying to obtain the most favorable terms.

         Involves discussion, hard bargaining, compromise and reaching final agreement.

 

Negotiation Issues

Issues which might be negotiated include, but are not limited to:

         Contract Type

         Payment Terms

         Terms & Conditions

         Technical Requirements

         Scope of Effort

         Delivery & Schedules

         Contract Price, and

         Incentives

The Evaluation Team may choose to engage in negotiations with any or all of the offerors who have submitted a proposal. The Evaluation Team may request the assistance of appropriate personnel, including technical line organizations, auditing, price/cost analyst, etc., in preparing for negotiations.