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INTRODUCTION Armenda Daye, Procurement Analyst, Acquisition Career Manager, DOI Overview of the new “Interest-Based Negotiations” course Personal Background Information 2007 & 2008 Contracting Competency Surveys Contracting personnel need improvement in negotiating skills

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introduction
INTRODUCTION

Armenda Daye, Procurement Analyst, Acquisition Career Manager, DOI

Overview of the new “Interest-Based Negotiations” course

Personal Background Information

2007 2008 contracting competency surveys
2007 & 2008 Contracting Competency Surveys

Contracting 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 registration
IBN Course Schedule and Registration

2010 Schedule

Wednesday, March 24 – Thursday, March 25

Tuesday, April 20 – Wednesday, April 21

Wednesday, May 12 – Thursday, May 13

Wednesday, August 11 – Thursday, August 12

Registration

  • Federal Acquisition Institute Training Application System

https://www.atrrs.army.mil/channels/faitas

slide4

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 objectives
Three Objectives
  • Distinguish between position-based and interest-based negotiation
  • Identify the interest-based negotiation process
  • Explain the elements of an interest-based approach to negotiating
discussion of
Discussion of:
  • Definition of Negotiation
  • Types of Negotiation Methods
  • The Interest-based Negotiation Process
what is negotiation
What is Negotiation?
  • Back-and-forth communication to reach an agreement
  • A means of getting what you want from others
  • An attempt to resolve differences
why do we negotiate
Why Do We Negotiate?

Because we want or need:

  • Something others have
  • Someone to do something
two types of negotiation
Two Types Of Negotiation
  • Position Based (The What)
  • Interest Based (The Why)
position based negotiation
Position-Based Negotiation
  • Focuses on pre-determined solutions
  • Attacks the opposing parties’ positions
  • Produces unsatisfactory agreements
interest based negotiation ibn
Interest-Based Negotiation (IBN)

Focuses on all parties:

  • Individual needs
  • Organizational needs
five elements of ibn
Five Elements of IBN
  • Separate the people from the problem
  • Focus on interests, not positions
  • Create options for mutual gain
  • Define objective criteria
  • Develop your BATNA
1 separate the people from the problem
1. Separate the People from the Problem

People and problems get entangled by:

  • Emotions
  • Communications
  • Perceptions
2 focus on interests
Positions

Involve a Predetermined solution

Require justification (defense)

End discussions

Interests

Examine “Why” a solution is preferred

Require explanation (reason)

Start discussions

2. Focus On Interests
3 options for mutual gain
3. Options for Mutual Gain
  • Recognize there can be > 1 option
  • Expand the pie thru Brainstorming
4 objective criteria mutually acceptable yardsticks
“Others in the industry do…”

“The last time this happened we…”

“The standard contract says…”

What is customary

Precedent

Law

4. Objective Criteria (Mutually Acceptable Yardsticks)
5 batna
5. BATNA

Best Alternative to a Negotiated Agreement (Walk Away Position)

  • Consider what you will do if an agreement is NOT reached
  • Is Activated when Alternatives are OUTSIDE the negotiation
  • Must be real and concrete
options vs batna
Options

“Inside” the negotiation

Created with counterpart

Potential solution(s)/ brainstorming

BOTH you and counterpart receive benefit

BATNA

“Outside” the negotiation

Created alone

Fall back position if negotiation fails

ONLY impacts you/your organization

Options vs. BATNA
the ibn process

1-Separate the people from the problem

3-Create options

for mutual gain

5-Develop

your

BATNA

2-Focus on interests

not positions

4-Define objective criteria

The IBN Process
vacation problem
Wife

“I want a vacation in Las Vegas”

Husband

“I want a vacation at the beach”

Vacation Problem
vacation solution
Wife

“I want a vacation in Las Vegas”

Husband

“I want a vacation at the beach”

Vacation Solution
ibn concepts summary
IBN CONCEPTS SUMMARY
  • Understand your position and theirs
  • Recognize your interests and theirs
  • Explore options for mutual gain
  • Use objective criteria
  • Identify your BATNA and theirs
1 understand your position and theirs
1. UNDERSTAND YOUR POSITION AND THEIRS

Your Position: Legally Sufficient Contract

Their Position: Assured Quality Contractor

2 recognize your interests and theirs
2. RECOGNIZE YOUR INTERESTS AND THEIRS
  • Your Interests: Competition, Best Value
  • Their Interests: Timely, Quality Service
3 explore options for mutual gain
3. EXPLORE OPTIONS FOR MUTUAL GAIN
  • Use 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
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
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