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So You Think That’s Fair and Reasonable? . Felicia Cannon and Shirley Rohmer Procurement Analysts Procurement Management Review Division, OGP. May 15, 2012. Value to the Customer. Value: Efficient offer analyses Example : Makes the most of available dollars
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So You Think That’s Fair and Reasonable? Felicia Cannon and Shirley RohmerProcurement Analysts Procurement Management Review Division, OGP May 15, 2012
Value to the Customer • Value: Efficient offer analyses • Example: Makes the most of available dollars • Example: Reduces risks to the Government • Value: Effective negotiations • Example: Reduces costs • Example: Encourages positive working relationships with desirable contractors
So You Think That’s Fair and Reasonable? • Define Requirements • Analyze Proposals • Establish Pre-negotiation Objectives • Conduct Negotiations • Document Negotiations and Results • So WHY do you Think That’s Fair and Reasonable?
Define Requirements • Customer Intimacy: Engage customers in defining contract deliverables in order to serve with integrity, creativity and responsibility. • Operational Excellence: Recognize and leverage your influence in obtaining the best products and services at competitive and reasonable cost.
Analyze Proposals • Objective: Agree to fair and reasonable price for supplies or services that meet or exceed the Government’s requirements. • Technical analysis • Price analysis • Cost analysis
Establish Pre-Negotiation Objectives • Technical Objectives: • Schedule • Quality • Volume • Price/Cost Objectives: • Counter Offer • Target • Maximum Position
Conduct Negotiations • Participants • Setting • Format • Techniques • Goal
Document the Negotiations and Results • Incorporate technical, price and cost analyses by reference • Address all 11 elements in FAR 15.406-3 • Explain deviations from Prenegotiation Objectives • Explain trade-offs and concessions • Benefits to the Government • Associated risks • Goal • Fair and Reasonable Pricing Determination
So You Think That’s Fair and Reasonable? • THIS IS THE YEAR OF NEGOTIATIONS • Do your homework. • Establish your objectives and goals. • Dive in and be successful.
So You Think That’s Fair and Reasonable? • Procurement Management Review Division: • Director: David Kimbro, 404-331-3223 • PBS: Shirley Rohmer, 817-850-5568 • PBS: Frank Sharshel, 816-926-5535 • PBS: Carol Lautzenheiser, 817-978-6165 • PBS: Paul Floyd, 202-306-9691
So You Think That’s Fair and Reasonable? • Procurement Management Review Division: • Director: David Kimbro, 404-331-3223 • FAS: Gil Avanzado, 202-821-9867 • FAS: Suzanne Winnard, 202-208-7279 • FAS: Felicia Cannon, 253-347-9701