Armenda Daye, Procurement Analyst, Acquisition Career Manager, DOI

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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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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

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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

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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 Objectives

1. Distinguish between position-based and
   interest-based negotiation
2. Identify the interest-based negotiation process
3. Explain the elements of an interest-based
   approach to negotiating

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Discussion of

• Definition of Negotiation
• Types of Negotiation Methods
• The Interest-based Negotiation Process

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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

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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 Negotiation

• Position Based (The What)
• Interest Based (The Why)

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Position-Based Negotiation

• Focuses on pre-determined solutions
• Attacks the opposing parties positions
• Produces unsatisfactory agreements

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Interest-Based Negotiation (IBN)

• Focuses on all parties
• Individual needs
• Organizational needs

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Five Elements of IBN

1. Separate the people from the problem
2. Focus on interests, not positions
3. Create options for mutual gain
4. Define objective criteria
5. Develop your BATNA

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1. Separate the People from the Problem

• People and problems get entangled by
• Emotions
• Communications
• Perceptions

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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

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3. Options for Mutual Gain

• Recognize there can be gt 1 option
• Expand the pie thru Brainstorming

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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

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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

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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

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The IBN Process
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Vacation Problem

• Wife
• I want a vacation in Las Vegas

• Husband
• I want a vacation at the beach

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Vacation Solution

• Wife
• I want a vacation in Las Vegas

• Husband
• I want a vacation at the beach

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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

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Government Example of IBN Process Negotiation
with Program Office

• Program 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 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)

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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