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Ch 1 - I nt r oduct i on To Negot i at i ons

1. 1 - Descr i bi ng Negot i at i ons 1. 2 - Recogni zi ng Poss i bl e Negot i at i on Out comes And

St yl es

1. 3 - Descr i bi ng At t i t udes That Lead To Successf ulNegot i at i ons

1.1 Describing Negotiations

Negotiation Is Part of Life ( FAR 15. 402 ) . Negot i at i on i s apar t of nor mal ever yday l i f e. I n f act , exper t s on t hesubj ect have sai d t hat l i f e, i t sel f , i s j us t one cont i nuousnegot i at i on.

St i l l , many peopl e f eel t hat t hey ar e not exper i encedcont r act negot i at or s. Per haps t hey do not r eal i ze t hatt her e ar e many t ypes of cont r act s. Not al l ar e compl exwr i t t en agr eement s. Most cont r act s ar e or al agr eement swhi ch may or may not i nvol ve t he exchange of monet ar yconsi der at i on.

Wi t hout r eal i zi ng i t , you have pr obabl y been i nvol vedi n a var i et y of cont r act negot i at i ons ever y day of yourl i f e. I n f act , we const ant l y bar gai n wi t h ot her peopl e t of ul f i l l bot h our monet ar y and non- monet ar y needs.

At wor k, you ar e pr obabl y i nvol ved i n cont i nui ngnegot i at i ons wi t h your super i or s, subor di nat es, andcowor ker s concer ni ng a var i et y of per sonal andpr of ess i onal i ssues. They may be as mi nor as deci di ngwho wi l l make t he next pot of cof f ee or as maj or ast he r at i ng on your annual per f or mance eval uat i on.

At home, you ar e pr obabl y i nvol ved i n cont i nui ngnegot i at i ons wi t h your f ami l y over a wi de var i et y ofi ssues. They may be as mi nor as t he t i me f or di nner oras maj or as wher e you wi l l l i ve. A chi l d cr yi ng f or af avor i t e t oy can be a f or mi dabl e negot i at or .

You have l i kel y been i nvol ved i n numer ous negot i at i onst hat wi l l have a l ong- t er m af f ect on t he cour se ofyour l i f e, i ncl udi ng:

o The t er ms of your cur r ent empl oyment ;o An aut omobi l e pur chase cont r act or l ease

agr eement ; oro Your home mor t gage or apar t ment r ent al agr eement .

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I n f act , you must negot i at e f or most t hi ngs you want i nl i f e. You can onl y avoi d negot i at i on i f you have no desi r ef or anyt hi ng hel d or cont r ol l ed by someone el se. Regar dl essof your pr of ess i on, ski l l as a negot i at or i s essent i al t oyour success. I n Gover nment cont r act i ng, t he ski l l i spar t i cul ar l y i mpor t ant because your dai l y wor k r equi r es yout o obt ai n suppl i es and ser vi ces f r om r esponsi bl e sour ces atf ai r and r easonabl e pr i ces.

Description of Negotiation . Negot i at i on i s a pr ocess ofcommuni cat i on by whi ch t wo par t i es, each wi t h i t s ownvi ewpoi nt and obj ect i ves, at t empt t o r each a mut ual l ysat i sf act or y r esul t on a mat t er of common concer n.

I n negot i at i on, a mut ual l y sat i s f ac tor y r esul t i svi t al , because even t hough t he par t i es may have opposi ngi nt er est s t hey al so ar e dependent on each ot her . Labor andmanagement , f or exampl e, need each ot her t o pr oducepr oduct s ef f i ci ent l y and ef f ect i vel y. Li kewi se, buyer s andsel l er s need each ot her t o t r ansact busi ness. Bot h si desmust be wi l l i ng t o l i ve wi t h t he r esul t .

Negot i at i on i s not one par t y di ct at i ng or i mposi ngt er ms on anot her . When t hat happens, t he out come wi l lr ar el y pr oduce mut ual sat i sf act i on. The r esul t can onl y bemut ual l y sat i sf act or y i f bot h di f f er ences and commoni nt er est s ar e consi der ed.

To obt ai n agr eement , you must gener al l y sacr i f i ce oryi el d somet hi ng i n or der t o get somet hi ng i n r et ur n. I not her wor ds, you must gi ve t o get . But as l ong as t heant i ci pat ed benef i t i s gr eat er t han your sacri f i ce, anegot i at ed agr eement i s benef i ci al . The l i mi t on yi el di ngi s r eached when one par t y bel i eves t hat concess i ons woul dbe mor e cost l y t han t he benef i t s of agr eement .

Whi l e negot i at i on i s of t en a pr ocess of mut ualsacr i f i ce, i t shoul d al so be a pr ocess of f i ndi ng wayswher eby bot h par t i es wi l l have t hei r i nt er est s opt i mi zed

under t he ci r cumst ances. Negot i at i ons shoul d not j ust beai med at how t o spl i t t he pi e. I nst ead t hey shoul d be ai medat f i ndi ng opt i mal sol ut i ons - - ways t o make t he pi e l ar gerf or al l concer ned. For exampl e, bot h par t i es benef i t whennegot i at or s f i nd t hat a change i n buyer r equi r ement s wi l lenabl e t he sel l er t o del i ver a hi gher - qual i t y st andar dpr oduct i nst ead of a speci al l y bui l t pr oduct . The sel l err eal i zes l ower r i sks or per haps mor e pr of i t f r om t he sal e

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of a st andar d pr oduct . The buyer pays a l ower pr i ce f or apr oduct t hat meet s t he buyer ' s r eal needs.

Negotiated Contracts vs. Sealed Bidding ( FAR 14. 101( d) ,15. 000 , and FAR 52. 215- 1 ) . The Feder al Acqui si t i on

Regul at i on ( FAR) st at es t hat any cont r act awar ded usi ngot her t han seal ed bi ddi ng pr ocedur es i s consi der ed anegot i at ed cont r act .

Pr ocedur es f or cont r act i ng by seal ed bi ddi ng r equi r et he Gover nment t o eval uat e bi ds wi t hout di scussi onsand awar d t o t he r esponsi bl e bi dder whose bi d,conf or mi ng t o t he i nvi t at i on f or bi ds, wi l l be mostadvant ageous t o t he Gover nment consi der i ng onl y pr i ceand pr i ce r el at ed f act or s. Negot i at i ons ar e notper mi t t ed pr i or t o cont r act awar d.

Pr ocedur es f or cont r act i ng by negot i at i on per mi tnegot i at i ons pr i or t o cont r act awar d. However , asol i ci t at i on under pr ocedur es f or cont r act i ng bynegot i at i on may or may not act ual l y r equi r enegot i at i ons. For exampl e, t he I nst r uct i ons t oOf f er or s - - Compet i t i ve Acqui si t i on:

o St andar d pr ovi si on st at es t hat t he " Gover nmenti nt ends t o eval uat e pr oposal s and awar d wi t houtdi scussi ons. " When t hat pr ovi si on i s used, act ualnegot i at i ons ar e not per mi t t ed unl ess t hecont r act i ng of f i cer det er mi nes i n wr i t i ng t hatt hey ar e necessar y.

o Al t er nat e I , st at es t hat t he "Gover nment i nt endst o eval uat e pr oposal s and awar d a cont r act af t erconduct i ng di scussi ons wi t h of f er or s whosepr oposal s have been det er mi ned t o be wi t hi n t hecompet i t i ve r ange. " Her e negot i at i ons ar er equi r ed wi t h any of f er or ( s) i n t he compet i t i ver ange.

In Government contracting: ( FAR 15. 306( d) ) . Negot i at i onsar e exchanges, i n ei t her a compet i t i ve or sol e sour ceenvi r onment , bet ween t he Gover nment and of f er or s, t hat ar e

under t aken wi t h t he i nt ent of al l owi ng t he of f er or t or evi se i t s pr oposal . These negot i at i ons may i ncl udebar gai ni ng. Bar gai ni ng i ncl udes per suasi on, al t er at i on ofassumpt i ons and posi t i ons, gi ve- and- t ake, and may appl y t opr i ce, schedul e, t echni cal r equi r ement s, t ype of cont r act ,or ot her t er ms of a pr oposed cont r act . When negot i at i onsar e conduct ed i n a compet i t i ve acqui si t i on, t hey t ake pl ace

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af t er est abl i shment of t he compet i t i ve r ange and ar e cal l eddi scuss i ons .

The key wor d i n t hi s def i ni t i on i s " bar gai ni ng. " TheGover nment ant i ci pat es t hat bar gai ni ng wi l l occur i n

compet i t i ve as wel l as noncompet i t i ve negot i at i ons.Satisfactory Negotiation Results ( FAR 15. 101 , 15. 402( a) ,43. 103( a) , and 49. 201( a) ) . What i s a sat i s f ac tor y r esul t i na Gover nment cont r act negot i at i on? That depends on whet hert he negot i at i on i s compet i t i ve or noncompet i t i ve and wheni t t akes pl ace i n t he cont r act i ng pr ocess.

Compet i t i ve di scussi ons may t ake pl ace ei t her bef or econt r act awar d or bef or e awar d of a t ask/ del i ver yor der under an i ndef i ni t e- del i ver y i ndef i ni t e- quant i t ycont r act . The di scussi ons wi t h each of f er or i n t hecompet i t i ve r ange shoul d be di r ect ed t o f aci l i t at i ngpr epar at i on of a f i nal pr oposal r evi s i on t hat wi l lpr ovi de t he best val ue f or t he Gover nment , gi ven t heawar d cri t er i a, t he of f er or ' s pr oposal , and exi st i ngconst r ai nt s wi t hi n t he of f er or ' s or gani zat i on. Thent he Gover nment can eval uat e t he avai l abl e pr oposal s t odet er mi ne whi ch pr oposal of f er s t he over al l bestval ue.

Noncompet i t i ve negot i at i ons can t ake pl ace ei t herbef or e or af t er awar d. I n noncompet i t i ve negot i at i onsf o r :

o Awar d of a new cont r act or a t ask/ del i ver y or derunder an exi s t i ng i ndef i ni t e- del i ver y i ndef i ni t e-quant i t y cont r act , t he sat i s f ac tor y r esul t i s acont r act or or der t hat pr ovi des f or t he pur chaseof t he r equi r ed suppl i es or ser vi ces f r om ar esponsi bl e sour ce at a f ai r and r easonabl epr i ce.

o A bi l at er al cont r act modi f i cat i on, t hesat i s f ac tor y r esul t i s a cont r act modi f i cat i ont hat r ef l ect s t he agr eement of t he par t i es aboutany modi f i cat i on of cont r act t er ms, i ncl udi ng any

necessar y equi t abl e adj ust ment r el at ed t o t hemodi f i cat i on.o A f i xed- pr i ce t er mi nat i on f or conveni ence

set t l ement , t he sat i s f ac tory resul t i s aset t l ement t hat f ai r l y compensat es t he cont r act orf or t he wor k done and t he pr epar at i ons made f ort he t er mi nat ed por t i ons of t he cont r act ,i ncl udi ng a r easonabl e al l owance f or pr of i t .

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The Other Party in Government Contract Negotiation . I npr eawar d Gover nment cont r act negot i at i ons, a pot ent i alr eci pi ent of t he Gover nment cont r act i s nor mal l y r ef er r edt o as an "of f er or . " I n post - awar d si t uat i ons, t hecont r act or may st i l l be consi der ed an of f er or , because t henegot i at i on cent er s on t he of f er submi t t ed by t hecont r act or . However , most cont r act i ng pr of essi onal s use t het er m cont r act or af t er cont r act awar d. I t woul d bepar t i cul ar l y conf usi ng t o r ef er t o a f i r m submi t t i ng acont r act t er mi nat i on pr oposal as an of f er or .

To avoi d conf usi on, t hi s t ext wi l l consi st ent l y use t het er m " cont r act or " i n r ef er r i ng t o t he non- Gover nment par t yi n a Gover nment cont r act negot i at i on.

Negotiation Success. A successf ul negot i at i on i s a pr oductof many f act or s. Fact or s t hat cont r i but e t o success i n anynegot i at i on al ways i ncl ude:

The specific circumstances surrounding eachnegotiation. Thi s may be vi ewed as t he bar gai ni ngl ever age avai l abl e t o each par t y i nvol ved. Forexampl e, t he ci r cumst ances of t en f avor t he cont r act orwhen t he Gover nment i s bar gai ni ng f or a hi gh- demandpr oduct i n shor t suppl y. Si mi l ar l y, t he ci r cumst anceswi l l gener al l y f avor t he Gover nment when sever al f i r msar e vyi ng t o pr ovi de a pr oduct onl y demanded by t heGover nment .

The skill of the negotiators. Hi ghl y ski l l ednegot i at or s wi l l have a gr eat er pr obabi l i t y ofnegot i at i on success t han negot i at or s who do not havet he r equi si t e ski l l s . Good negot i at or s can of t enobt ai n f avor abl e deal s under adver se ci r cumst ances.Conver sel y, negot i at or s wi t h poor bar gai ni ng ski l l ssomet i mes f ai l t o obt ai n sat i sf act or y agr eement s evenwhen t he ci r cumst ances f avor t hei r bar gai ni ngpos i t i on.

The motivation and fairness of each party. The gr eat ert he mot i vat i on and f ai r ness on each par t y, t he mor e

l i kel y i t i s t hat t he negot i at i ons wi l l end wi t h asat i sf act or y agr eement .o Successf ul out comes ar e mor e l i kel y when one or

bot h par t i es ar e wi l l i ng t o make f ai rconcessi ons.

o The l i kel i hood of succes sf ul negot i at i ondecr eases when ei t her par t y i s poor l y mot i vat edor unf ai r . Achi evi ng negot i at i on success becomes

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par t i cul ar l y di f f i cul t when one par t y i sunwi l l i ng t o compr omi se or show any f l exi bi l i t y.

Negotiator Abilities . The best negot i at or s exhi bi t t heabi l i t y t o:

Plan carefully. Pl anni ng begi ns wi t h r equi r ementdevel opment and cont i nues t hr ough negot i at i on. I ti ncl udes mar ket r esear ch, sol i ci t at i on pr epar at i on,and pr oposal eval uat i on. You must know t he pr oduct ,

, and your al t er nat i ves.t he r ul es of negot i at i on Gain management support. Management suppor t i s vi t al

t o your success as a negot i at or . I f cont r act orper sonnel know t hat management does not suppor t yourobj ect i ves, t he cont r act or ' s negot i at or s may si mpl yt ol er at e you unt i l t hey can escal at e t he negot i at i ont o management .

Effectively apply bargaining techniques. Goodnegot i at or s ar e capabl e of empl oyi ng bar gai ni ngt echni ques whi ch f aci l i t at e negot i at i on success.

Communicate effectively. Good negot i at or s:o Sel l ot her s on t hei r bar gai ni ng posi t i on by

speaki ng i n an ar t i cul at e, conf i dent , andbusi nessl i ke manner .

o Di sagr ee wi t h ot her s i n a cor di al and non-ar gument at i ve manner .

o Li st en ef f ect i vel y. Many ot her wi se goodnegot i at or s begi n t o concent r at e on t hei r answeral most as soon as t he ot her par t y begi nsspeaki ng. As a r esul t , t hey mi ss t he t r ue meani ngof t he communi cat i on.

Tolerate conflict while searching for agreement. Mostcont r act negot i at i ons i nvol ve some conf l i ct . Af t eral l , no t wo peopl e on ear t h agr ee on ever yt hi ng al lt he t i me. Negot i at or s who:

o Can agr ee t o di sagr ee i n a pol i t e and r espect f ulmanner wi l l be abl e t o sear ch f or ways t o achi evea mut ual l y sat i sf act or y out come.

o Wi l l gi ve anyt hi ng t o avoi d conf l i ct ar e of t en

not abl e t o secur e sat i sf act or y r esul t s f or t hei rs i de.o Who di spl ay a t endency f or ar gui ng wi l l i ncr ease

t he conf l i ct and make a sat i sf act or y out come al lt he mor e di f f i cul t t o at t ai n.

Project honesty. Good negot i at or s ar e honest and t heymake ot her s bel i eve t hat t hey ar e honest . Secur i ngt r us t i s vi t al t o secur i ng a mut ual l y sat i s f ac tor y

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out come. Concessi ons ar e di f f i cul t t o obt ai n whenot her do not t r ust you.

Foster team cooperation. Al l member s of t henegot i at i on t eam may not agr ee on ever y i ssue.Di sagr eement s must be r esol ved i n a manner t hatf ost er s t eam cooper at i on and t he appear ance of t eamuni t y dur i ng cont r act negot i at i ons.

Apply good business judgment. Good negot i at or s ar eabl e t o eval uat e ever y change i n a negot i at i ngposi t i on based on i t s over al l ef f ect on at t ai ni ng amut ual l y sat i s f ac tor y r esul t .

1.2 Recognizing Possible Negotiation Outcomes And Styles

Negotiation Outcomes . I n gener al , t her e ar e t hr ee possi bl eout comes t o ever y negot i at i on. These out comes ar e known as"wi n/ wi n, " " wi n/ l ose, " and "l ose/ l ose. " Any negot i at i on canconcei vabl y r esul t i n any of t hese out comes, but di f f er entnegot i at i on st yl es can make one or t he anot her mor e l i kel y.

Win/Win Outcomes ( FAR 15. 101 , 15. 402( a) , 43. 103( a) , and49. 201( a) . A wi n/ wi n out come ( al so known as a bot h- wi nout come) occur s when bot h si des achi eve l ong- t er msat i s f ac t i on wi t h negot i at i on r esul t s . Negot i at i onsemphasi ze devel opi ng a mut ual l y benef i ci al agr eement . Forexampl e, awar di ng a cont r act at a f ai r and r easonabl e pr i cei s i n t he best i nt er est of bot h t he cont r act or and t heGover nment .

Commer ci al busi nesses ar e emphasi zi ng wi n/ wi nnegot i at i ons because of t he i ncr easi ng i mpor t ance of l ong-t er m busi ness r el at i onshi ps. Each si de has a vest edi nt er es t i n mut ual l ong- t er m sat i s f ac t i on. Any shor t - t er madvant age achi eved by wr i ngi ng out ever y l ast concess i on i susual l y not as i mpor t ant a l ong- l ast i ng busi nessr el at i ons hi p.

Ther e ar e sever al i mpor t ant r easons why Gover nmentnegot i at or s shoul d al so st r i ve f or wi n/ wi n out comes.

FAR gui del i nes emphasi ze a mut ual l y sat i sf act or yr esul t by usi ng negot i at i on gui del i nes such as bestval ue, f ai r and r easonabl e pr i ce, equi t abl eadj ust ment , and f ai r compensat i on f or wor k per f or med.

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These gui del i nes emphasi ze t hat t he Gover nment shoul dnot wi n at t he expense ( or l oss) of t he cont r act or .

The Gover nment has a vest ed i nt er est i n t he l ong- t er mcont r act or success and sur vi val .

o Wel l - st ocked good- qual i t y suppl i er s pr ovi di nggoods and ser vi ces at r easonabl e pr i ces ar eessent i al t o Gover nment oper at i ons.

o Cont r act or success enhances compet i t i on byencour agi ng mor e f i r ms t o do busi ness wi t h t heGover nment , and i ncr eased compet i t i on r educescont r act pr i ces and i mpr oves qual i t y.

Wi n/ wi n negot i at or s of t en achi eve bet t er out comes. Anegot i at or i s l ess l i kel y t o be gi vi ng and t r ust i ngwhen t he ot her negot i at or di spl ays sel f i shness andmi st r ust . The genui ne concer n demonst r at ed by wi n/ wi nnegot i at or s i s f r equent l y reci pr ocat ed by t he ot herpar t y.

Wi n/ wi n negot i at i ons ar e t ypi cal l y much l essconf r ont at i onal and t end t o f ost er bet t er l ong- t er mr el at i onshi ps .

Wi n/ wi n negot i at i ons ar e char act er i zed by much hi gherl evel s of t r ust and cooper at i on whi ch f aci l i t at e t henegot i at i on pr ocess.

Win/Lose Outcomes . When a negot i at i on r esul t s i n a wi n/ l oseout come, one si de i s per cei ved as havi ng done si gni f i cant l ybet t er at t he expense of t he ot her . Thi s t ype ofnegot i at i on t ends t o be hi ghl y compet i t i ve, wi t h a l ar gedegr ee of mi st r ust on bot h si des.

I n commer ci al busi ness , wi n/ l ose out comes of t en occurwhen t he negot i at or s do not ant i ci pat e addi t i onal busi nessbeyond t he i ni t i al t r ansact i on. Ther e i s no mot i vat i on t oensur e l ong- t er m sat i sf act i on f or t he ot her si de. Exampl esof wi n/ l ose out comes abound i n ever yday l i f e, such aspr i vat e home and aut o sal es wher e t he negot i at or s gener al l ydo not ant i ci pat e addi t i onal negot i at i ons wi t h t he ot herpar t y.

Bot h si des of t en f eel t hat t hey ar e t he l oser s i n awi n/ l ose negot i at i on because of t he compet i t i venessand mi st r ust t hat char act er i zed t he negot i at i on.

The l osi ng si de mi ght f eel good at t he concl usi on oft he wi n/ l ose negot i at i on because of t hei r i mmedi at eper cept i on t hat t hey obt ai ned t he best deal possi bl eunder t he ci r cumst ances.

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I n t he l ong r un, t he l osi ng par t y of t en r egr et s t heagr eement af t er di scover i ng t hat t he deal was not agood one af t er al l .

The l osi ng par t y becomes even mor e mi st r ust f ul of t heot her par t y and r el uct ant t o cont i nue any sor t ofbusi ness r el at i onshi p.

I n a monopsony si t uat i on, wher e t he Gover nment i s t heonl y buyer , t he Gover nment coul d achi eve many shor t - t er mwi ns t o t he det r i ment of cont r act or s by di ct at i ng cont r actt er ms. But wi n/ l ose out comes may have t he f ol l owi ngnegat i ve l ong- t er m consequences:

Suppl i er s on t he l osi ng end of wi n/ l ose negot i at i onsmay be f or ced out of busi ness .

Hi gh- qual i t y suppl i er s may no l onger be wi l l i ng t o dobusi ness wi t h t he Gover nment .

Cont r act s wi t h t he r emai ni ng suppl i er s may have agr eat er r i sk of poor - qual i t y or over pr i ceddel i ver abl es .

Lose/Lose Outcomes . When t her e i s a deadl ock, t henegot i at i ng out come i s known as a l ose/ l ose out come. Adeadl ock occur s when f i nal agr eement cannot be obt ai ned.Si nce bot h par t i es had a st ake i n a successf ul out come oft he negot i at i on ( or t hey woul d not have been negot i at i ng i nt he f i r st pl ace) , bot h si des l ose when negot i at i onsst al emat e and deadl ock occur s.

The cont r act or si de may l ose mor e t han j ust t he pr of i tpr oj ect ed f or t he l ost Gover nment cont r act .

Any cont r i but i on i ncome ( i . e. , t he di f f er ence bet weenr evenue and var i abl e cost ) t hat coul d have been usedt o hel p absor b cont r act or f i xed cost s may be l ost . Asa resul t , al l f i xed cost s must be absor bed by t heot her busi ness of t he f i r m. The r esul t i ng costi ncr eases f or t hose i t ems may r educe company pr of i t sand may even cont r i but e t o over al l company l osses.

The di r ect l abor associ at ed wi t h t he pr oposed cont r actmay no l onger be needed by t he cont r act or . As ar esul t , t he cont r act or may be f or ced t o l ay of fempl oyees. A l ay- of f may af f ect l abor managementr el at i ons. I t may al so i ncrease di r ect l abor cost s f orot her cont r act s , because l ay- of f s typi cal l y af f ectl ower - pai d empl oyees f i r st .

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When a deadl ock occur s, t he Gover nment si de al sosuf f er s a consi der abl e l oss because t he desi r ed suppl y orser vi ce of t en cannot be pr ocur ed i n a t i mel y manner . Thi si s par t i cul ar l y t r ue when t he Gover nment i s negot i at i ngwi t h a si ngl e f i r m under an except i on t o f ul l and opencompet i t i on. When deadl ock occur s wi t h a sol e sour cecont r act or , t he uni que pr oduct or ser vi ce cannot beobt ai ned.

FAR 15. 405( d) . Somet i mes, avoi di ng a deadl ock i s ver ydi f f i cul t when t he ot her par t y i s unf ai r or uncompr omi si ng.

The Gover nment must deci de on t he bet t er al t er nat i ve:deadl ocki ng or bei ng on t he l osi ng end of a wi n/ l oseout come. Consi der abl e ef f or t shoul d be made t o avoi d adeadl ock because t he Gover nment si de wi l l suf f er a l osswhenever one occur s.

I f t he cont r act or i nsi st s on an unr easonabl e pr i ce ordemands an unr easonabl e pr of i t / f ee, take all authorizedactions to resolve the deadlock . Det er mi ne t he f easi bi l i t yof devel opi ng an al t er nat i ve sour ce. Consi der ot heravai l abl e al t er nat i ves ( e. g. , del ayi ng t he cont r act ,r evi si ng r equi r ement s, or Gover nment per f or mance) . I f t hecont r act i ng of f i cer cannot r esol ve t he deadl ock, t hecont r act act i on must be r ef er r ed t o hi gher - l evelmanagement . Management i nvol vement ass ur es a uni f i edGover nment appr oach t o r esol vi ng or accept i ng t he deadl ock.

Win/Win Negotiation Style . The wi n/ wi n negot i at i on st yl e i st o negot i at e based on t he mer i t s of t he si t uat i on t o obt ai na sat i s f ac tor y r esul t . Gener al l y, you wi l l f i nd t hatwi n/ wi n negot i at or s:

Attack the problem not each other. The di f f er encesbet ween t he t wo si des ar e a mut ual pr obl em. I n awi n/ wi n negot i at i on, di scussi ons cent er on i dent i f yi ngand r esol vi ng t hese di f f er ences, not at t acki ng t hemessenger . Negat i ve per sonal comment s can add not hi ngt o at t ai ni ng a mut ual l y sat i s f ac tor y r esul t . I deal l y,

negot i at or s s houl d t hi nk of t hemsel ves as wor ki ngsi de- by- si de t o r esol ve di f f er ences i n a cor di al andbusi nessl i ke manner .

Focus on long-term satisfaction and common interests.Many negot i at or s become so i nvol ved wi t h t hei robj ect i ves i n a par t i cul ar negot i at i on t hat t hey l oses i ght of t he bot t om l i ne - - l ong- t er m s at i s f act i on.Wi nni ng a par t i cul ar poi nt i n a negot i at i on may mean

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l osi ng a chance t o achi eve a mut ual l y sat i sf act or yr esul t .

Consider available alternatives. Your sol ut i on may notbe t he onl y r i ght sol ut i on t o a par t i cul ar poi nt i nt he negot i at i on. The same may be t r ue of t hecont r act or ' s posi t i on. At t empt t o i dent i f y ot hersol ut i ons f or consi der at i on. The f i nal sol ut i on maynot be any bet t er t han t he or i gi nal sol ut i on of f er edby one si de or t he ot her . However , i t i s per cei ved asbet t er , because i t was r eached t hr ough mut ualcooper at i on.

Base results on objective standards whenever possible.Negot i at or s ar e mor e l i kel y t o be sat i sf i ed wi t h apar t i cul ar r esul t , when i t i s based on an obj ect i vest andar d. Do not r ef use t o compr omi se s i mpl y because" t hat ' s t he audi t or ' s r ecommendat i on. " What was t hest andar d used by t he audi t or i n devel opi ng t hatr ecommendat i on? Ther e may be many st andar ds t oconsi der i ncl udi ng:

o Hi st or i cal exper i ence;o I ndust r y pr act i ce; oro Pr oj ect i ons devel oped usi ng quant i t at i ve

anal ys i s . Focus on positive tactics to resolve differences. Do

not r el y on decept i ve behavi or or bar gai ni ng pl oys. Tr i cki ng anot her negot i at or may wi n an appar ent l yf avor abl e r esul t , but t he r esul t s dur i ng cont r actper f or mance or i n t he next negot i at i on may bedevast at i ng.

Emphasize the importance of a win/win result. Remai nposi t i ve dur i ng and af t er t he negot i at i on. Never gl oatabout wi nni ng t he negot i at i on, even as a j oke.

o The per cept i on of t he r esul t by each si dedet er mi nes whet her an out come i s wi n/ wi n orwi n/ l ose. I n ot her wor ds, t he same cont r act ualr esul t coul d be vi ewed as bei ng ei t her wi n/ wi n orwi n/ l ose dependi ng on t he eyes of t he behol der .For exampl e, a $700, 000 cont r act pr i ce coul d beconsi der ed a wi n/ wi n or wi n/ l ose out come

dependi ng on how t he cont r act or vi ews t hat pr i ce.o The negot i at or ' s behavi or dur i ng and af t ernegot i at i on i s of t en t he pr i mar y i nf l uence on t heot her si de' s per cept i on.

o Regar dl ess of t he negot i at i on r esul t , t hecont r act or i s mor e l i kel y t o per cei ve a wi n/ wi nout come when t he Gover nment negot i at or exhi bi t swi n/ wi n behavi or .

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o The cont r act or i s mor e l i kel y t o per cei ve awi n/ l ose r esul t when t he Gover nment si de appear st o have a wi n/ l ose at t i t ude.

o You shoul d exhi bi t a wi n/ wi n at t i t ude bef or e,dur i ng, and af t er negot i at i on.

Win/Lose Negotiation Style . The wi n/ l ose negot i at i on st yl ei s t o negot i at e based on power and usi ng t hat power t of or ce one negot i at or ' s wi l l on t he ot her . That power coul dbe r eal or onl y per cei ved by t he ot her negot i at or .Gener al l y, wi n/ l ose negot i at or s t end t o:

Use deceptive negotiation tactics to increase oremphasize their relative power in the negotiation.

These decept i ve t act i cs may wor k, but once i dent i f i edby anot her negot i at or , t hei r use can act ual l y

j eopar di ze t he poss i bi l i t y of a mut ual l y sat i sf act or yr esul t . Sever al of t he mor e commonl y used t act i cs wi l lbe descr i bed l at er i n t hi s t ext .

Focus on negotiating positions rather than long-termsatisfaction. Focusi ng on t he l egi t i macy of a si ngl eposi t i on ( r at her t han t he r easons f or di f f er encesbet ween posi t i ons) emphasi zes di sagr eement r at her t hanagr eement .

Be argumentative. Focusi ng on posi t i ons l eads t oar gument s over whose posi t i on i s bet t er , i nst ead ofhow t o r each agr eement .

Show reluctance to make any meaningful concessions.Focusi ng on posi t i ons al so makes t hem unwi l l i ng t omake meani ngf ul concessi ons. Any concessi on mi ght l eadt o quest i ons about t he l egi t i macy of t hei r posi t i on.Such quest i ons may weaken t hei r act ual or per cei vedpower i n t he negot i at i on.

Be highly competitive and mistrustful of othernegotiators. They do not shar e i nf or mat i on unl ess i ti s absol ut el y necessar y. Al t er nat i vel y, t hey may t r yt o hi de rel evant i nf or mat i on by over l oadi ng t he ot hernegot i at or wi t h i r r el evant i nf or mat i on.

Spectrum of Negotiation Styles . Negot i at i on st yl es ar er ar el y pur e wi n/ wi n or wi n/ l ose. I nst ead, t hey cover a wi despect r um bet ween t he t wo ext r emes. You shoul d st r i ve f or apur e wi n/ wi n st yl e, but many negot i at or s exhi bi t acombi nat i on of wi n/ wi n and wi n/ l ose t r ai t s dur i ng t hecour se of a negot i at i on.

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pr opor t i on t o t he wi n/ l ose behavi or exhi bi t ed by t henegot i at or s.

Negotiation Style Comparison . The f ol l owi ng t abl e compar eswi n/ wi n and wi n/ l ose negot i at i on st yl es:

Characteristic Win/Win Style Win/Lose Style

Negot i at i onGoal

Obt ai n a resul tt hat i ssat i s f ac tor y tobot h si des,i ncl udi ng a f ai rand r easonabl epr i ce.

Obt ai n t he bestpossi bl e deal f oryour si der egar dl ess ofconsequences t ot he ot her si de.

Focus Sol ve mut ualpr obl ems.

Def eat t he ot herpar t y.

Envi r onment Cooper at i on andt r u s t

Mi st r ust andgamesmanshi p

Negot i at i onChar acter i s t i cs

Negot i at or sat t ack t hepr obl em noteach ot her

Focus onl ong- t er ms at i s f act i on

Avai l abl eal t er nat i vesconsi der ed

Resul t s basedon obj ect i vest andar ds

Focus onpos i t i vet act i cs t or esol vedi f f er ences

Emphasi s on awi n/ wi nr esul t .

Tact i csdesi gned t oi ncr ease oremphasi zer el at i vepower .

Focus onnegot i at i ngposi t i onsr at her t hanl ong- t er ms at i s f act i on.

Ar gument at i ve Rel uct ance t o

make anymeani ngf ulconcess i ons

Hi ghl ycompet i t i ve

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1.3 Describing Attitudes That Lead To Successful Negotiations

Overriding Negotiation Themes . Gover nment negot i at or sshoul d al ways keep i n mi nd t he f ol l owi ng basi c at t i t udes

when negot i at i ng Gover nment cont r act s: Thi nk wi n/ wi n; Sel l your posi t i on; Wi n r esul t s not ar gument s; Ever yt hi ng i s negot i abl e; and Make i t happen.

Think Win/Win . A wi n/ wi n out come i s t he par amount obj ect i vei n a Gover nment cont r act negot i at i on. Consequent l y, youshoul d consci ousl y di spl ay a wi n/ wi n at t i t ude andnegot i at i ng st yl e t hr oughout t he negot i at i on pr ocess. Usewi n/ wi n negot i at i on t act i cs and avoi d t act i cs t hat mi ghtl ead t he cont r act or t o per cei ve t hat you ar e usi ng awi n/ l ose s ty l e.

Sell Your Position . Dur i ng negot i at i ons, you ar e act i ng asan agent of t he Gover nment t r yi ng t o sel l your posi t i ons t ot he cont r act or ' s t eam. Accor di ngl y, you shoul d st r i ve t o beper suasi ve whi l e bei ng r espect f ul and pol i t e. I nnegot i at i ons as i n ot her f or ms of sal es, i t i s easi er t osel l a pr oduct when t he pr ospect i ve cust omer l i kes andr espect s you.

Win Results Not Arguments . Tr yi ng t o wi n t he ar gument i st oo of t en a si gn of a wi n/ l ose negot i at i on. Whenar gument at i ve behavi or char act er i zes negot i at i ons, one orbot h si des ar e l i kel y t o per cei ve a wi n/ l ose out come evenwhen t he f i nal out come coul d ot her wi se appear bal anced andf ai r . Remember t hat per suasi on i s not onl y a mat t er ofl ogi c and cont ent , but al so si gni f i cant l y depends on t hemanner of pr esent at i on.

Everything Is Negotiable . No negot i at i on posi t i on i s sacr ed

and of f l i mi t s i f i t pr event s t he mor e i mpor t ant goal of amut ual l y sat i sf act or y out come. Consequent l y, you mustal ways be pr epar ed and wi l l i ng t o negot i at e al l i ssues.

Make It Happen . To achi eve l ong- t er m sat i sf act i on, you mayneed t o di spl ay cr eat i vi t y, i ni t i at i ve, and even cour age.

Your goal i s a mut ual l y sat i sf act or y out come. Fi nd a way t omake i t happen.

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