interest based negotiations presentations armenda daye

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INTRODUCTION Armenda Daye, Procurement Analyst, Acquisition Career Manager, DOI Overview of the new “Interest- Based Negotiations” course Personal Background Information

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  • INTRODUCTIONArmenda Daye, Procurement Analyst, Acquisition Career Manager, DOI

    Overview of the new Interest-Based Negotiations course

    Personal Background Information

  • 2007 & 2008 Contracting Competency SurveysContracting personnel need improvement in negotiating skills

    2-Day interactive IBN course developed to encourage employees to negotiate in a fearless manner

  • IBN Course Schedule and Registration2010 ScheduleWednesday, March 24Thursday, March 25Tuesday, April 20Wednesday, April 21Wednesday, May 12Thursday, May 13Wednesday, August 11Thursday, August 12

    RegistrationFederal Acquisition Institute Training Application Systemhttps://www.atrrs.army.mil/channels/faitas

  • Difference between my Position-Based Negotiation course with DoD and the new Interest-based Negotiation Concept-40 hour course-Emphasis on WINNING-Two Groups 50% students represented contractor, 50% Government-Worked on math-laden proposal for 4 days and conducted the negotiation on 5th day-Negotiations were Emotional (apprehension, anger, tears)

  • Three ObjectivesDistinguish between position-based and interest-based negotiationIdentify the interest-based negotiation processExplain the elements of an interest-based approach to negotiating

  • Discussion of:Definition of NegotiationTypes of Negotiation MethodsThe Interest-based Negotiation Process

  • What is Negotiation?Back-and-forth communication to reach an agreementA means of getting what you want from othersAn attempt to resolve differences

  • Why Do We Negotiate?Because we want or need:Something others have Someone to do something

  • When Do We First Learn to Negotiate?

  • What Do We Negotiate Over in Government Acquisition?

    Price

    Delivery

    Quality

  • Two Types Of NegotiationPosition Based (The What)Interest Based (The Why)

  • Position-Based NegotiationFocuses on pre-determined solutionsAttacks the opposing parties positionsProduces unsatisfactory agreements

  • Interest-Based Negotiation (IBN)Focuses on all parties:Individual needsOrganizational needs

  • Five Elements of IBNSeparate the people from the problemFocus on interests, not positionsCreate options for mutual gainDefine objective criteriaDevelop your BATNA

  • 1. Separate the People from the ProblemPeople and problems get entangled by:EmotionsCommunicationsPerceptions

  • 2. Focus On InterestsPositionsInvolve a Predetermined solutionRequire justification (defense)End discussionsInterestsExamine Why a solution is preferredRequire explanation (reason)Start discussions

  • 3. Options for Mutual GainRecognize there can be > 1 optionExpand the pie thru Brainstorming

  • 4. Objective Criteria (Mutually Acceptable Yardsticks)

    Others in the industry doThe last time this happened weThe standard contract says

    What is customaryPrecedentLaw

  • 5. BATNABest Alternative to a Negotiated Agreement (Walk Away Position)Consider what you will do if an agreement is NOT reachedIs Activated when Alternatives are OUTSIDE the negotiationMust be real and concrete

  • Options vs. BATNAOptionsInside the negotiationCreated with counterpartPotential solution(s)/ brainstormingBOTH you and counterpart receive benefitBATNAOutside the negotiationCreated aloneFall back position if negotiation failsONLY impacts you/your organization

  • The IBN Process

  • WifeI want a vacation in Las VegasHusbandI want a vacation at the beachVacation Problem

  • Vacation SolutionWifeI want a vacation in Las VegasHusbandI want a vacation at the beach

  • Understand your position and theirsRecognize your interests and theirsExplore options for mutual gainUse objective criteriaIdentify your BATNA and theirsIBN CONCEPTS SUMMARY

  • Government Example of IBN Process: Negotiation with Program OfficeProgram Office wants a sole-source contract

  • 1. UNDERSTAND YOUR POSITION AND THEIRS

    Your Position: Legally Sufficient Contract

    Their Position: Assured Quality Contractor

  • 2. RECOGNIZE YOUR INTERESTS AND THEIRS

    Your Interests:Competition, Best Value

    Their Interests:Timely, Quality Service

  • 3. EXPLORE OPTIONS FOR MUTUAL GAINUse of a Government-Wide Acquisition Contract (GWAC)

    Use of an existing DOI Contract

    Use of Sole Source Contract w/proper justification (FAR Part 6)

  • 4. USE OBJECTIVE CRITERIA (for Negotiation with Contractor)

    Rates in GWAC Contract(s) or existing DOI Contract(s)

    Consumer Price Index

    DCMA Forward Pricing Rates

  • 5. IDENTIFY YOUR BATNA

    Target Price in Pre-Negotiation Memorandum

    Amount of the funded requisition

    Ceiling Price in Pre-Negotiation w/concessions on delivery and/or quality

  • QUESTIONS

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