Interest Based Negotiations Presentations Armenda Daye
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Transcript of Interest Based Negotiations Presentations Armenda Daye
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INTRODUCTIONArmenda Daye, Procurement Analyst, Acquisition Career Manager, DOI
Overview of the new Interest-Based Negotiations course
Personal Background Information
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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
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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
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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)
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Three ObjectivesDistinguish between position-based and interest-based negotiationIdentify the interest-based negotiation processExplain the elements of an interest-based approach to negotiating
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Discussion of:Definition of NegotiationTypes of Negotiation MethodsThe Interest-based Negotiation Process
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What is Negotiation?Back-and-forth communication to reach an agreementA means of getting what you want from othersAn attempt to resolve differences
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Why Do We Negotiate?Because we want or need:Something others have Someone to do something
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When Do We First Learn to Negotiate?
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What Do We Negotiate Over in Government Acquisition?
Price
Delivery
Quality
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Two Types Of NegotiationPosition Based (The What)Interest Based (The Why)
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Position-Based NegotiationFocuses on pre-determined solutionsAttacks the opposing parties positionsProduces unsatisfactory agreements
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Interest-Based Negotiation (IBN)Focuses on all parties:Individual needsOrganizational needs
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Five Elements of IBNSeparate the people from the problemFocus on interests, not positionsCreate options for mutual gainDefine objective criteriaDevelop your BATNA
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1. Separate the People from the ProblemPeople and problems get entangled by:EmotionsCommunicationsPerceptions
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2. Focus On InterestsPositionsInvolve a Predetermined solutionRequire justification (defense)End discussionsInterestsExamine Why a solution is preferredRequire explanation (reason)Start discussions
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3. Options for Mutual GainRecognize there can be > 1 optionExpand the pie thru Brainstorming
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4. Objective Criteria (Mutually Acceptable Yardsticks)
Others in the industry doThe last time this happened weThe standard contract says
What is customaryPrecedentLaw
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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
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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
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The IBN Process
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WifeI want a vacation in Las VegasHusbandI want a vacation at the beachVacation Problem
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Vacation SolutionWifeI want a vacation in Las VegasHusbandI want a vacation at the beach
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Understand your position and theirsRecognize your interests and theirsExplore options for mutual gainUse objective criteriaIdentify your BATNA and theirsIBN CONCEPTS SUMMARY
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Government Example of IBN Process: Negotiation with Program OfficeProgram Office wants a sole-source contract
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1. UNDERSTAND YOUR POSITION AND THEIRS
Your Position: Legally Sufficient Contract
Their Position: Assured Quality Contractor
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2. RECOGNIZE YOUR INTERESTS AND THEIRS
Your Interests:Competition, Best Value
Their Interests:Timely, Quality Service
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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)
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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
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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
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QUESTIONS
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