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

IBN Course Schedule and Registration


2010 Schedule
Wednesday, March 24 Tuesday, April 20 Wednesday, May 12 Wednesday, August 11 Thursday, March 25 Wednesday, April 21 Thursday, May 13 Thursday, August 12

Registration
Federal Acquisition Institute Training Application System https://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 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

Discussion of:
Definition of Negotiation
Types of Negotiation Methods

The Interest-based Negotiation Process

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?
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 Negotiation


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

Position-Based Negotiation
Focuses on pre-determined solutions
Attacks the opposing parties positions

Produces unsatisfactory agreements

Interest-Based Negotiation (IBN)


Focuses on all parties:
Individual needs Organizational needs

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

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)

Interests
Examine Why a solution is preferred Require explanation (reason) Start discussions

End discussions

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 What is customary Precedent Law

The last time this happened we


The standard contract says

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

The IBN Process


1-Separate the people from the problem 3-Create options for mutual gain

2-Focus on interests not positions

5Develop your BATNA

4-Define objective criteria

Vacation Problem
Husband
I want a vacation at the beach

Wife
I want a vacation in Las Vegas

Vacation Solution
Husband
I want a vacation at the beach

Wife
I want a vacation in Las Vegas

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

Government Example of IBN Process: Negotiation with Program Office


Program 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 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)


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