Pre-negotiation Objectives and Negotiation Plan
BUS340 Contracting and Purchasing Negotiation Techniques
Developing Pre-negotiation Objectives
Developing a pre-negotiation objective is very crucial in determining the outcome of the contract agreement and success. While developing pre-negotiation objectives is a significant step in contract formation, it often requires thorough evaluation of appropriate factors. Pre-negotiation objectives will identify the negotiation position of the Old Dominion University, department of Biology. This element assists the procurement officer in determining fair and reasonable prices of a water purification system. The results of the procurement officer’s analysis of the bidder’s proposal determine the pre-negotiation objectives. The analysis takes incorporates field-pricing aid, independent price histories and cost estimates of the department, and audit account and nominal analysis.
In developing the pre-negotiation objective, the procuring contracting officer of the university must take into account the nature of the contract he anticipates to negotiate and the contractor risk linked therewith when determining the position in the cost-benefit range that is necessary for the supplier to bear the risk. This element is very crucial in reaching a pre-negotiation cost-benefit objective. Assessment of this risk needs a determination of the extent of cost accountability the supplier assumes; the intensity of the task the supplier assumes; and the dependability of the cost relative to the task involved. This element is restricted to the risks of the complete contract cost. Therefore, risks on the side of the supplier including status, risk of missing prospective profits in other areas, losing a corporate market or a risk that relates to the contracting office (the university). For instance, risks of failing to acquire a proper report do not fall under the scope of this element.
The procurement officer shall develop pre-negotiation objectives in advance of pricing negotiation of any kind. The negotiating team must relate the scale and depth of the assessment backing the objectives to the value, significance, and demands of the pricing process. In case cost analysis is requisite, the procurement officer must record the important issues for negotiation, fee objective, and the cost objectives.
Developing Negotiation Plan
Information compiled from Request for Proposals (RFPs) feedback, analysis, and other information sources, are requisite for developing primary and back up strategies for negotiating. The negotiating team, headed by the procurement officer, should develop a negotiating plan before entering into negotiation. The negotiating plan integrates sensible beginning and final needs. Negotiating team should meet to discuss the negotiating strategy and appreciate their role in the contract negotiation. It is expedient to develop a written negotiating plan for the team to review prior to pre-negotiation forums. Thus, the negotiating team can make and discuss alterations in the plan. There are certain key elements that the team must establish and integrate in the negotiating plan. These elements include determining:
(a) The most desired outcome;
(b) The least permissible bargain;
(c) The optimal alternative to negotiated bargain;
(d) The assumptions the team is making;
(e) Everything the team does not know;
(f) Everything necessary that is nonnegotiable;
(g) The things to inquire about by way of probing;
(h) The concessions the procurement officer is eager to make as trade-offs;
(i) The existing alternatives for mutual benefit;
(j) The likely barriers to reaching a consensus;
(k) The probable risks that might arise after reaching a consensus.
It is import for the negotiating team to construct a negotiating planning sheet with the mentioned key elements before entering into any negotiations.
** FOR THIS ASSIGNMENT, Using that scenario, you are now to write a four (4) page paper that addresses:
1. Determine how you would rehearse the negotiation plan.
2. Prepare an agenda for the negotiation session.
3. Determine the tactic(s) you will use and explain why you chose the ones you did.
4. Anticipate challenges you will encounter and explain what measures you will take to counteract them.
The format of the report is to be as follows:
o Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format.
o Use headers for each of the subjects being covered, followed by your response.
o Include at least three (3) references (no more than three years old) from material outside the text.
o In addition to the four (4) pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor‘s name, the course title, and the date.
Note: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]