Negotiations and Standard
Processes: The Pursuit of Approval
Breakout Session # 503
Names: Lisa Farrall
Marie Verderame
Date 7 April 2009
Time 10:30 a.m. – 12:00 p.m.
1
Disclaimer and Non-attribution
• Disclaimer
– The views in this presentation are those of
Lisa Farrall and Marie Verderame and are
not to be construed as the views of the
Harris Corporation
• Non-attribution
– Do not attribute the discussions today to
the speakers or those in the audience
2
Learning Objectives
• Understand the significance of
management buy-in
• Know the importance of planning the
negotiation
• Understand the importance of
documentation
3
A maze or amaze?
4
Why Get Management
Buy-in?
a.
b.
c.
d.
e.
f.
Want their support during negotiations
You may need to see the “big picture”
Their experience is invaluable
Your company procedures require it
All of the above
You want a raise
5
Do your company procedures
make you feel like this?
What the …..
6
What Info Do You Need to
Plan for Negotiations?
a.
b.
c.
d.
e.
Data significant to the RFP
Company strategy
Tactics
All of the above
What to wear
7
Plan the Negotiation
• Data significant to the RFP
– Does the SOW support
• Contract type
• Price proposed
• The work proposed
– CDRLs/SDRLs
– EVMS or other similar requirements
– Intellectual Property
– Acceptance Criteria
8
Plan the Negotiation (cont.)
• Data significant to the RFP (cont.)
– Are there Ts&Cs that affect the price or
schedule
•
•
•
•
Warranty
Specialty Metals
Net payment terms
Delivery schedules
- Early deliveries permitted?
- Partial deliveries permitted?
9
Plan the Negotiation (cont.)
• Data significant to the RFP (cont.)
– Security
•
•
•
•
Personnel Reliability Program reviews
Common Access Cards
Information Systems Security
Data security
– Export
• Timing of Technical Assistance Agreement
• Need for export license
10
Plan the Negotiation (cont.)
• Strategies and Tactics
– Does your company have other
relationships that may affect your
negotiations?
•
•
•
•
Past performance
Previously negotiated Ts&Cs
Contracts of larger value than yours
Is customer a current subcontractor?
– Management willing to compromise for
future work
11
Plan the Negotiation (cont.)
• Strategies and tactics important BUT
you also need
– Reviews to obtain approvals
– Agreement of negotiation objectives
– Support of organizational leadership
12
Plan the Negotiation (cont.)
• Reviews
– RFP review results
– Initial cost review
– Pricing approval
• Return on sales
• Pricing strategies
– Red Team comments
13
Do your meetings feel like this?
14
Why do you need documentation?
a. Because you cannot rely on your
memory
b. If the contract goes south –
management will remember things
differently
c. Government auditors like to see paper
d. What else have you got to do?
e. Answers a, b and c
15
Documentation
• Types of documentation
- RFP review
- Approvals
- Memo of negotiations
- Negotiation summary
- Bilateral negotiation letter
- Contract or contract mod
16
Documentation (cont.)
• Why do you need documentation?
- You may be replaced
- Management selective amnesia
- Customer selective amnesia
- Government or internal audit
17
Now You Know…
• The significance of management
buy-in
• The importance of planning the
negotiation
• The importance of documentation
18
And Now, Let’s Play
19
The RFP
FAR
The Contract
Definitions
World Congress
“The Answer Is”
The document that describes Security
Requirements.
“The Question Is”
What is the DD 254?
Back
to
Game
Board
“The Answer Is”
• The section that provides instructions for preparing your
proposal. These include any formatting requirements,
how to submit questions regarding the RFP or
procurement, how the proposal is to be delivered.
“The Question Is”
What is Section L – Proposal
preparation instructions and other?
Back
to
Game
Board
“The Answer Is”
Provides detailed instructions for work to be
performed for the U.S. Government.
“The Question Is”
What is Section C – Statement of
Work?
Back
to
Game
Board
“The Answer Is”
This document contains things that you must
certify to bid on this contract. For example
your taxpayer identification, ownership of
your firm, size of business, etc.
The “Question Is”
What are Representations and
Certifications?
Back
to
Game
Board
“The Answer Is”
This section defines the factor, sub
factors, and elements used to grade the
proposal.
“The Question Is”
What is Section M – Evaluation
Criteria?
Back
to
Game
Board
“The Answer Is”
The FAR part that defines roles and
responsibilities for Government Furnished
Equipment.
“The Question Is”
What is FAR Part 45?
Back
to
Game
Board
“The Answer Is”
The Clauses are here.
“The Question Is”
What is FAR Part 52?
Back
to
Game
Board
“The Answer Is”
Contains information about negotiated
procurements.
“The Question Is”
What is FAR Part 15?
Back
to
Game
Board
“The Answer Is”
Small Business’s favorite part.
“The Question Is”
What is FAR Part 19?
Back
to
Game
Board
“The Answer Is”
Contains information about Government
Audits.
“The Question Is”
What is FAR Part 42?
Back
to
Game
Board
“The Answer Is”
Describes the work to be done.
“The Question Is”
What is the Statement of Work?
Back
to
Game
Board
“The Answer Is”
Lists each hardware item to be delivered,
when it is due and quantity.
“The Question Is”
What are Line Items?
Back
to
Game
Board
“The Answer Is”
Lists each deliverable document, due date,
format, etc.
The “Question Is”
What are CDRLs or SDRLs?
Back
to
Game
Board
“The Answer Is”
The Clause in a typical Cost Plus
Contract that describes how funding will
be handled.
“The Question Is”
What is the Limitation of Funds
clause?
Back
to
Game
Board
“The Answer Is”
Describes how invoices are to be prepared,
when they are to be sent and how they are
transmitted.
“The Question Is”
What are payment terms?
Back
to
Game
Board
“The Answer Is”
The period of time that you guarantee that
your deliverable will work.
“The Question Is”
What is Warranty?
Back
to
Game
Board
“The Answer Is”
Government Contracts “bible.”
“The Question Is”
What is The Federal Acquisition
Regulation (FAR)?
Back
to
Game
Board
“The Answer Is”
The expected outcome of an acquisition
that, in the Government’s estimation,
provides the greatest overall benefit in
response to the requirement.
“The Question Is”
What is Best Value?
Back
to
Game
Board
“The Answer Is”
Action taken by a government official under
9.406 to exclude a contractor from
Government contracting and Governmentapproved subcontracting for a reasonable,
specified period.
“The Question Is”
What is Debarment?
Back
to
Game
Board
“The Answer Is”
A problem that exists at the time of
acceptance but cannot be discovered
by a reasonable inspection.
“The Question Is”
What is a latent defect?
Back
to
Game
Board
“The Answer Is”
Where the NCMA 50th Anniversary Gala was
held.
“The Question Is”
What is the Long Beach Aquarium of
the Pacific?
Back
to
Game
Board
“The Answer Is”
The theme of this year’s World Congress.
“The Question Is”
What is Contracting: Surfing the
Waves of Change?
Back
to
Game
Board
“The Answer Is”
The esteemed conference chair.
“The Question Is”
Who is Dee Lee?
Back
to
Game
Board
“The Answer Is”
Company that has the cool dog
giveaways in the Exhibit Hall.
“The Question Is”
What is Distributed Solutions, Inc.?
Back
to
Game
Board
“The Answer Is”
Ft. Lauderdale, Florida
“The Question Is”
What is the location of the 2010 World
Congress?
Back
to
Game
Board