United States Department of Agriculture Office of Procurement

United States Department of Agriculture Office of Procurement and Property Management Effective Negotiation Refresher August 2008 Exhibit 1

Successful Contract Negotiation Success in contract negotiation is when the Government and the vendor reach an agreement that they are both fully committed to implement. Ø Having the right knowledge, skills, and abilities (KSAs) are crucial to achieving success Ø Obtaining those KSAs is the first step towards becoming an effective negotiator Ø Practicing those skills and abilities makes them stronger 2

Knowledge Required for Effective Negotiations ØTo be an effective negotiator, you will need to know: § The importance of negotiations in Government contracting § The importance of protecting proprietary information during discussions § Basic principles for trade off decisions § Win-win and win-lose negotiation tactics § The procurement tasks associated with contract negotiations § How to choose the right members for the negotiation team 3

Skills of an Effective Negotiator ØGood negotiators can: § Lead the Government’s negotiation team § Control a meeting to resolve complex issues § Comprehend complex proposals, updates, and revisions § Apply appropriate negotiation tactics given the situation § Handle difficult people § Maintain a positive outlook and display a professional image § Think outside the box § Maintain the honesty and integrity of the acquisition process 4

Key Abilities to Effectively Negotiate ØStrong negotiators have perfected the ability to: § Lead the Government’s negotiation team to obtain the best value § Implement the negotiation strategy yet remain flexible enough to ensure the negotiation objectives are met § Analyze problems and related facts to identify alternatives for resolution § Communicate your ideas clearly and effectively § Be innovative when necessary § Make sound business decisions § Consider negotiation tradeoffs for both the vendor and Government § Display a professional demeanor § Calmly and effectively deal with high stress situations 5

Contract Negotiation Tasks Ø Select a negotiation team that best meets the acquisition situation Ø Determine team strategies and tactics to deliver the best approach throughout the negotiation process Ø Finalize a negotiation plan with the support and input from team members and determine team members’ roles Ø Brief and present the negotiation plan to upper management for their feedback Ø Once approved by management, prepare an agenda Ø Set the date, time and location of the negotiation Ø Conduct the negotiation Ø Close the negotiation when an agreement is reached Ø Develop the price negotiation memorandum (PNM) 6 6

The Bad, Better, and Best Negotiators ØPoor negotiators leave participants hoping they never see you again. ØGood negotiators make their points clearly understood by other parties. ØHighly experienced negotiators make understanding others their top priority. 7

Remember… ØGood Listening Skills Makes a Difference § Be in the moment; listen to what is being said. § Maintain a supportive climate so that participants feel free to express themselves. § Try to achieve agreement. Avoid trying to win arguments. § Show that you are listening by asking questions. § Empathize. It helps you to be patient and to remain calm. 8