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Negotiations: What You Need to Know

Common offer myths vs. realityHow to prepare to negotiate a proposal Best practicesFSS negotiation processImportant definitionsNegotiated termsRoles

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Negotiations: What You Need to Know

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    1. Negotiations: What You Need to Know Tuesday, March 15, 2011

    3. Common offer myths vs. reality How to prepare to negotiate a proposal Best practices FSS negotiation process Important definitions Negotiated terms Roles & responsibilities 3

    4. Company Name: The Germ Obliterator Small Veteran Owned Business Situation: Small business that sells hand sanitizer Submitted an offer & demands a FSS contract Is not offering the Government an upfront discount 4 NEGOTIATION SITUATION

    5. 5 COMMON MYTHS

    6. All vendors must take the GSA Pathway to Success seminar A contract will not be awarded unless Anticipated sales: Exceed $25,000 in first 24 months Exceed $25,000 in sales each 12-month period thereafter Between January 1st – December 31, 2010 463 new proposals received 264 new FSS contracts were awarded 18% of FSS contractors had no sales 6 REALITY

    7. HOW TO PREPARE TO NEGOTIATE A PROPOSAL 7

    8. A FSS Contract Specialist will contact you once your firm’s proposal is submitted. Letter of clarification Negotiations begin A process of communication in which two parties, each with its own viewpoint and objectives, attempts to reach a mutually satisfactory result on a matter of common concern. 8 CONTRACT NEGOTIATION PROCESS

    9. 9 NEGOTIATIONS

    10. 10 IMPORTANT DEFINITIONS

    11. 11 Worldwide Coverage Warranty Provisions Return/Exchange Goods Policy Installation/Training Rental/Lease Agreements Medical equipment only Service Agreements Tracking Customer Basic Discount Quantity Discount Annual Rebate Payment Terms Minimum Order FOB Points Delivery Time Normal Expedited NEGOTIATION OBJECTIVES NEGOTIATED TERMS

    12. 12 Net Hourly Rates Holiday Pay Rates Overtime Shift Differentials Minimum Assignment Periods NEGOTIATION TERMS MEDICAL SERVICES (621I)

    13. The players: Contract Specialist You, the contractor 13 NEGOTIATION ROLES

    14. 14 THE CONTRACT SPECIALIST Responsibilities Represents the US Government Determination of responsibility Financial responsibility Past performance evaluation Fair & reasonable price determination Price List – offer to the Government Three components of price $ (dollars and cents) Discounts Concessions

    15. 15 REJECTION CRITERIA Submitting incomplete information Not responsible Pricing deemed NOT fair & reasonable Failure to meet an established timeframe

    16. 16 YOU, THE CONTRACTOR Identify authorized negotiator(s) Name, title, phone number, email address, etc. Research the applicable schedule Be responsive, reasonable, and respectful

    17. 17 FINAL PROPOSAL REVISION (FPR) Requested at conclusion of negotiations Written notice includes: Notice that negotiations are concluded Notice that this is the vendor’s opportunity to submit written FPR FPR due date Indication of Government’s intent to award without further revisions Vendor’s response includes: Statement indicating that the response is their “Final Proposal Revision” Identifies proposed terms for each negotiation point

    18. 18 AWARD DECISION

    19. Questions??? 19

    20. Federal Supply Schedule Service FSS Helpdesk helpdesk.ammhinfss@va.gov (708)786-7737 http://www.fss.va.gov

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