Negotiations and Standard Processes: The Pursuit of Approval

2. 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.

3. 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

4. Learning Objectives • Understand the significance of management buy-in • Know the importance of planning the negotiation • Understand the importance of documentation

5. A maze or amaze? 4

6. Why Get Management Buy-in? • 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

7. Do your company procedures make you feel like this? What the ….. 6

8. What Info Do You Need to Plan for Negotiations? • Data significant to the RFP • Company strategy • Tactics • All of the above • What to wear 7

9. 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

10. 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

11. 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

12. 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

13. 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

14. Plan the Negotiation (cont.) • Reviews • RFP review results • Initial cost review • Pricing approval • Return on sales • Pricing strategies • Red Team comments 13

15. Do your meetings feel like this? 14

16. Why do you need documentation? • Because you cannot rely on your memory • If the contract goes south – management will remember things differently • Government auditors like to see paper • What else have you got to do? • Answers a, b and c 15

17. Documentation • Types of documentation • RFP review • Approvals • Memo of negotiations • Negotiation summary • Bilateral negotiation letter • Contract or contract mod 16

18. Documentation (cont.) • Why do you need documentation? • You may be replaced • Management selective amnesia • Customer selective amnesia • Government or internal audit 17

19. Now You Know… • The significance of management • buy-in • The importance of planning the negotiation • The importance of documentation

20. And Now, Let’s Play Contract Jeopardy

21. 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500

22. “The Answer Is” The document that describes Security Requirements.

23. “The Question Is” What is the DD 254? Back to Game Board

24. “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.

25. “The Question Is” What is Section L – Proposal preparation instructions and other? Back to Game Board

26. “The Answer Is” Provides detailed instructions for work to be performed for the U.S. Government.

27. “The Question Is” What is Section C – Statement of Work? Back to Game Board

28. “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.

29. The “Question Is” What are Representations and Certifications? Back to Game Board

30. “The Answer Is” This section defines the factor, sub factors, and elements used to grade the proposal.

31. “The Question Is” What is Section M – Evaluation Criteria? Back to Game Board

32. “The Answer Is” The FAR part that defines roles and responsibilities for Government Furnished Equipment.

33. “The Question Is” What is FAR Part 45? Back to Game Board

34. “The Answer Is” The Clauses are here.

35. “The Question Is” What is FAR Part 52? Back to Game Board

36. “The Answer Is” Contains information about negotiated procurements.

37. “The Question Is” What is FAR Part 15? Back to Game Board

38. “The Answer Is” Small Business’s favorite part.

39. “The Question Is” What is FAR Part 19? Back to Game Board

40. “The Answer Is” Contains information about Government Audits.

41. “The Question Is” What is FAR Part 42? Back to Game Board

42. “The Answer Is” Describes the work to be done.

43. “The Question Is” What is the Statement of Work? Back to Game Board

44. “The Answer Is” Lists each hardware item to be delivered, when it is due and quantity.

45. “The Question Is” What are Line Items? Back to Game Board

46. “The Answer Is” Lists each deliverable document, due date, format, etc.

47. The “Question Is” What are CDRLs or SDRLs? Back to Game Board

48. “The Answer Is” The Clause in a typical Cost Plus Contract that describes how funding will be handled.

49. “The Question Is” What is the Limitation of Funds clause? Back to Game Board

50. “The Answer Is” Describes how invoices are to be prepared, when they are to be sent and how they are transmitted.