The OTA Consortium Model for Prototype Development

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In preparing this blog post we benefitted from support from the Army Contracting Command-New Jersey to make sure the descriptions were correct.

Other transaction agreements (OTAs) and their underlying authorities allow for more flexible, commercial–like, and novel business solutions than the Federal Acquisition Regulation. In fact, Office of the Secretary of Defense (OSD) guidance states that contracting officers should not use specific templates for designing such structures. The intent, rather, is for the government to structure business arrangements that are most appropriate for each specific scenario.

However, there are OTA structures that have been effectively demonstrated and can be replicated. One such structure was implemented by Army Contracting Command-New Jersey (ACC-NJ) and involves the use of a consortia of companies interested in working with the Army within a given subject area.

The OTA consortium model has existed for more than a decade and has cumulatively resulted in the award of over $1B for prototype development. While there are several variants between OTA consortia, the general premise is that ACC-NJ executes an OTA not with a single entity but an organized group of entities that agree to participate under a common rule set.

The consortia typically employ a management organization to address administrative needs and manage the flow of information between the Army to the consortia. Typically, these consortia are designed to minimize barriers for new companies to participate.

In several cases, the application to become a consortium member is a one-page form that can be completed online with a $500 annual consortium membership fee. Prospective members must agree to the terms of the consortium and the OTA, but these terms are much more flexible than standard FAR-based contracts (e.g., intellectual property issues may be negotiated on a case-by-case basis).

Once the consortium self-forms the Government may negotiate and award a base OTA. Once the base OTA is awarded, the Government may issue calls for white papers to the consortium in lieu of full-up proposals, thereby cost effectively separating good ideas from those that are less desirable.

The Government may then select a small number of companies to submit a more formal proposal based on the evaluation of the white papers. Ultimately, the Government selects one or more awardees and delivers funding to the selected consortium member(s) – typically through the consortium management organization.

In any instance, OTA provides for flexibility to alter the solicitation, evaluation and award process. However, once the process is established, government compliance is extremely important to maintain fairness in determining contract awards.

The OTA consortium model provides tremendous flexibility, streamlined processes and procedures, and access to the broadest possible pool of prospective vendors.


Bonding Basics

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This is a guest post by Donna Porch, former program director for MO PTAC-Kansas City.

Q: What are bonds and when are they required?

According to the Federal Acquisition Regulations (FAR), a bond is a written document between a bidder or contractor (the principal) and a second party (the surety) to ensure fulfillment of the principal’s obligations to a third party (the obligee or government) identified in the bond. If the principal’s obligations are not met, the bond ensures payment, to the extent stipulated, of any loss sustained by the obligee. Put simply, bonding protects the government from financial losses.

The bonding process

Contractors seeking bonding must be prepared to prove to a surety that their company has the capacity, character and capital to perform the project(s) on which they are seeking to be bonded. Sureties want to be sure that entering into a bond relationship with a contractor is a good business decision.

Prior to issuing a bond, a surety will analyze a contractor’s capacity to perform (necessary equipment), financial strength (good credit history and line of credit), past performance in similar contracts, and organizational structure.

Types of bonds

In construction projects, it is typical for the federal government to require bid, performance and payment bonds.

bid bond provides financial assurance to the government that a contractor has submitted the bid in good faith, that the contractor will not withdraw a bid and that if awarded the contract, the contractor intends to enter into the contract at the bid price. A bid bond also ensures that the contractor will provide the required performance and payment bonds.

performance bond protects the government from financial loss should the contractor fail to perform the contract in accordance with the terms and conditions of the contract documents.

payment bond guarantees the contractor will make payments to all subcontractors supplying labor and material in performing the government contract.

An ancillary bond guarantees other factors incidental but often essential to perform a contract.

When are bonds necessary?

Unless waived, bid bonds are only required when performance bonds or performance and payment bonds are required. In such cases, all bidders must submit a bid bond with the offer. The bid bond amount shall be at least 20 percent of the bid price but shall not exceed $3 million.

The Miller Act requires a successful bidder to submit performance and payment bonds for any construction contract exceeding $100,000. This requirement may be waived in limited circumstances. Unless the contracting officer determines that a lesser amount is adequate for the protection of the government, performance and payment bonds shall be 100 percent of the original contract price. If the contract price increases, the performance and payment bonds must also increase by the same amount.

For any construction contract between $25,000 and $100,000, the government contracting officer shall require two or more of the following payment protections from the successful bidder:

  • A payment bond
  • An irrevocable letter of credit, a written commitment by a federally insured bank to pay a stated amount until the expiration date of the letter
  • A tripartite escrow agreement, in which the government makes payments to the contractor’s escrow account, and the escrow agent distributes the payments to the contractor’s suppliers of labor and material
  • A certificate of deposit from a federally insured financial institution, executable by the contracting officer
  • A deposit of the amount of the bond in U.S. bonds or notes, certified or cashier’s checks, bank drafts, postal money orders or currency

Generally, federal government agencies do not require performance and payment bonds for contracts other than construction contracts. However, they may require performance bonds when a contract exceeds the simplified acquisition threshold ($100,000) and government property/funds are provided to the contractor for use in performing the contract; when substantial progress payments are made to the contractor; or if the contract is for dismantling, demolition or removal of improvements.

A payment bond is only required when a performance bond is required and if its use is in the government’s interest. Annual bid bonds and annual performance bonds might be used in lieu of individual bonds for each project.

Reference the FAR Part 28 Bonds and Insurance for further guidelines on bonding for federal government contracts. State and local government agencies may also use bonds for their financial protection. However, they may use them in different contracting situations and with different dollar values.

For more information on bonding, consult your local Missouri Procurement Technical Assistance Center (MO PTAC). A list of MO PTAC training seminars is available online.

Donna Porch was a former program director for MO PTAC-Kansas City. This article originally appeared at https://missouribusiness.net/article/bonding-basics/ (with permission from the Kansas City Small Business Monthly) and was reprinted with permission.


H.R. 3019 – Promoting Value Based Procurement Act of 2017

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The Promoting Value Based Procurement Act was forwarded by House Oversight lawmakers in September 2017. Its purpose is to require executive agencies to avoid using lowest price technically acceptable source selection criteria in certain circumstances, and for other purposes.

This is an important change that has been coming down the pike for several years. Increasingly, government procurement officials and their customers, the actual government activities, have noticed again and again, that “lowest price technically acceptable” contracts are a problem – especially after award.

LPTA was originally designed to give the contracting officers a tool to force lower prices and make easier bid decisions. They could assess the technical response on a pass-fail, then just award the lowest price bidder. Yet the end result has been disastrous, such companies who’ve lowered their labor prices so much that they’re unable to hire at those low rates.

These practices have already led to the decline of LPTA contracts, but this legislative initiative codifies that effect and makes it extremely difficult to use LPTA.

I discussed this with my favorite experienced (now retired) contracting officer (CO), and he did raise one interesting side effect: he postulated that we’ll see ‘better’ proposals. I disagreed, but we do agree that we’ll see more technology and innovation proposed in best value procurements; people will look for where they can get discriminators and have the right technical outcome.

In conclusion – we’ll see! In the meantime, for more insights on this legislation, see this NextGov article: House Panel Moves Bill Urging Federal Buyers to Consider Quality, Not Just Cost.


NDAA FY18 H.R. 1774 – Next Generation of Small Biz

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We’ve been taking a look at the biggest changes affecting small businesses in the National Defense Authorization Act for FY 2018. In a previous post we looked at H.R. 1773, meant to clarify terminology and improve uniformity, and today we’ll move on to H.R. 1774.

H.R. 1774, Developing the Next Generation of Small Businesses Act of 2017

This act aims to expand the entrepreneurial development programs to further the important work being done by the House Armed Services Committee on procurement reform, by ensuring that SBA is effectively introducing the next generation of entrepreneurs to the opportunities afforded by federal procurement contracts.

Within H.R. 1774, the following bills are found:

  1. H.R.1702 – Small Business Development Centers Improvement Act of 2017 – This bill amends the Small Business Act with respect to the authority of the Small Business Administration (SBA) to use certain SBA programs, including the small business development center (SBDC) program, to provide grants, financial assistance, loans, export assistance, and subcontracting opportunities on federal contracts to specified small businesses, organizations, state governments, universities, companies, and other entities that assist smaller enterprises.
  2. H.R.1680 – Women’s Business Centers Improvements Act of 2017 – The bill revises the duties of the Office of Women’s Business Ownership and declares it is the Office’s mission to assist women entrepreneurs to start, grow, and compete in global markets by providing quality support with access to capital, access to markets, job creation, growth, and counseling.
  3. H.R.1700 – SCORE for Small Business Act of 2017 – This bill amends the Small Business Act to reauthorize the SCORE program (Service Corps of Retired Executives) for FY2018-FY2019. The program is renamed as simply the SCORE program.

So this NDAA is a little less “bold” – more has been packed into other versions of NDAAs over the years that had a material impact. The items here in H.R. 1774 focus on SBA programs, which are impacting the overall health of small businesses, but do not address the really punishing occasional prejudice that can occur during and after contract procurement.

Remember, too, that the hurricanes will have some material impact on how SBA sees their mission, as they struggle to help small businesses in SE Texas/Louisiana, then Florida and the Gulf Coast, and finally the Caribbean.

Stay tuned, more will be coming in the budget, in the NDAA for FY19, and as tax reform/tax cuts hit the legislative calendars.


A Servant Leader

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This is a guest post from Tonya Buckner of BucknerMT Management & Technology, Inc.

“The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant.” – Max De Pree

Servant leaders not only have to focus on what’s happening today, but what is happening in the future. Yes, today’s problems must be solved, profits must be made and bills must be paid, but a great leader must focus on the future and transforming the culture. It is more than checking items off a checklist. A great leader has a vision and a roadmap to successfully get there. This requires being inspired to achieve it, communicating it, and guiding the company from where it is to where it needs to be!

The top spot is not the only leader. Every level has leaders, whether positive or negative. Doomsayers can be leaders, too. They challenge the vision with their need to combat. Eighty percent of a company’s problems comes from twenty percent of its people. People will rise or fall to the level you set for them. It is important to foster a culture of optimism and the desire to succeed. If not challenged or motivated people will fall.

The key to leadership is to be fair, firm and consistent. Discipline starts with the leader; people will follow the lead you set. To master leadership you need to know what you are doing, find your inner voice, be creative, enjoy the process, and share that joy with others. Successful leaders are selfless, put others first, and look for other people’s 15 minutes of fame – not their own.

A servant leader supports others. This requires praising them in public and critiquing in confidence, driving out fear, and learning from mistakes. Most importantly, as a great leader you make those you lead successful, and as a result you become successful.

Leadership is directly related to character. Character is determined by your behavior, which is reflective of the value system that is in place. When people perceive you as a strong leader, they will believe in you, even if they don’t agree with you.

Despite the myth, leaders are not born nor is leadership innate for everyone. The good news is there are various programs to assist in developing leadership skills. The key is finding the program that best suits your needs. For instance, there is the Women President Educational Organization (WPEO), which develops and mentors presidents of women-owned businesses, the Montgomery County’s Veterans Institute of Procurement (VIP), which assists veteran leaders to foster success as businesses and employers, and the Goldman Sachs 10K Small Business Program, which is aimed at business growth and job creation, just to name a few.

Servant leaders also understand the importance of mentorship. Mentors assist in navigating through the obstacles that are not taught in leadership programs. By sharing best practices and lessons learned, mentees are able to build on their experience and avoid pitfalls.

Lastly, the bottom line as a leader is to ask yourself, do my actions represent who I believe I am? Remember that it is not about the position, it is about your actions; thoughtful actions with leadership in mind, drive and sculpt companies to new heights.

BucknerMT Management & Technology, Inc. (BucknerMT, Inc.) is a verified service-disabled veteran-owned small business (SDVOSB) and woman-owned small business (WOSB). Since 2007, BucknerMT have supported the Department of Defense (DoD) and the Defense Information Systems Agency (DISA) by providing services that include engineering, integrating, and sustaining critical military platforms and systems.


NDAA FY18 H.R. 1773 – To Clarify Terminology and Improve Uniformity

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As we shared in a previous post, on July 14, 2017 the House passed H.R. 2810, the FY2018 National Defense Authorization Act.

Focusing on small businesses, the NDAA is comprised primarily of two main pieces of legislation. We’ll cover one in this post, and follow up with a separate post about the other.

H.R. 1773, the Clarity for America’s Small Contractors Act of 2017

This act amends the Small Business Act to improve reporting on small business goals, achieve uniformity in procurement terminology, clarify the role of small business advocates, and for other purposes.

It modernizes the Small Business Act to ensure that the language used is clear and consistent across federal procurement programs. Heaven knows that the lingo used in legislation is designed for lawyers and lobbyists, and certainly not for the actual small businesses they are addressing.

It strengthens the small business advocates within the Small Business Administration (SBA), who routinely work with Department of Defense contracts by promoting competition and making sure laws are followed, including the NDAA. We know that some small business advocates are not as strong advocates, and legislation that empowers them can only improve things for everyone involved.

The bill implements common sense reforms to ensure transparency and accountability by requiring that important information be provided that clearly shows where taxpayer dollars are being spent on which small business programs. This has always been an issue – small business impact is not easy to track, and then you have complications like mid-tier businesses and sometimes active opposition from the large businesses. Again these are good things – not fixing legislative issues, but strengthening the processes.

Within H.R. 1773, the following bills are found:

  1. R.1597 – Commercial Market Representatives Clarification Act – This bill amends the Small Business Act to specify the principal duties of Commercial Market Representatives, government contracting staff stationed at area Small Business Administration (SBA) offices and reporting to specified senior SBA officers.
  2. R.1641 – To amend the Small Business Act to clarify the responsibilities of Business Opportunity Specialists, and for other purposes. – This bill amends the Small Business Act to declare that the exclusive duties of a Business Opportunity Specialist reporting to the senior official (or designee) appointed by the Small Business Administration (SBA) with certain SBA loan responsibilities, including the procurement program for small business concerns owned and controlled by service-disabled veterans and the Historically Underutilized Business Zone (HUBZone) program, shall be to implement specified SBA loan programs, and complete other duties related to contracting programs.
  3. R. 1693 – Improving Contract Procurement for Small Businesses through More Accurate Reporting Act of 2017 – This bill amends the Small Business Act to require the Small Business Administration to report to the President and Congress an analysis of the number and dollar amount of prime contracts awarded by federal agencies each fiscal year to small business concerns.
  4. R.1640 – To amend the Small Business Act to ensure uniformity in procurement terminology, and for other purposes. While this might seem the least important, fixing definitions so everyone is on the same page is a big deal.

All told, these changes are mostly about the processes that govern our small business management, but truly do make incremental improvements that will make a difference.

Stay tuned for a separate post about the other important NDAA FY18 act that affects small businesses.


SBA’s Agenda Anticipates Significant Rule Changes To WOSB, SDVOSB, And HUBZone Programs

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This is a guest post from Mark Amadeo, principal at Amadeo Law Firm, PLLC.

Last week the SBA published its semiannual Regulatory Agenda (the “Agenda”), which is a summary of current and projected regulatory actions and completed actions. The Agenda (which can be downloaded here) highlights several anticipated changes to regulations that impact small business government contractors, including women-owned small businesses (WOSB’s), service-disabled veteran owned small businesses (SDVOSB’s) and HUBZone small businesses. Below are several of the anticipated changes that government contractors should look out for in the very near future.

WOSB & EDWOSB certification procedures

As we wrote about in a prior edition of The GovCon Bulletin™ (here), the National Defense Authorization Act for Fiscal Year 2015 (NDAA 2015) imposed several mandates on the SBA’s WOSB program, including a requirement that a firm be certified as a WOSB or economically-disadvantaged women owned small business (EDWOSB) under one of four options: By a federal agency, by a state government, by the SBA, or by a national certifying entity approved by the SBA.

The SBA subsequently issued an advanced notice of proposed rule-making on December 18, 2015, again described in the same edition of the The GovCon Bulletin,™ in which the SBA raised several pointed questions and sought public input on each of the four proposed certification options. The comment period ended on February 16, 2016 and now the SBA intends to issue a new rule that will propose certification standards and procedures.

In addition, the new rule will revise procedures for continuing eligibility, program examinations, protests and appeals. Although not much is known about the specific changes, the SBA did make clear that the new certification procedures will include an electronic WOSB and EDWOSB application and certification process.

NDAA 2016 & 2017 mandated rules

The Agenda also anticipates that in the near future the SBA will implement a variety of rule changes required under the National Defense Authorization Act for Fiscal Year 2016 (NDAA 2016) and National Defense Authorization Act for Fiscal Year 2017 (NDAA 2017), including requirements concerning SDVOSB ownership and control, a pilot program granting past performance ratings to subcontractors, and subcontracting report compliance.

1. SDVOSB ownership and control rules

The Agenda indicates that the SBA will issue a proposed rule establishing a uniform definition of a “small business concern owned and controlled by service-disabled veterans” that will be used for SDVOSB procurements by both the Veterans Administration (VA) and by non-VA agencies. Before NDAA 2017, the definition for purposes of VA SDVOSB procurements was contained in VA statutes under former 38 U.S.C. 8127(l), while a different definition for non-VA procurements was contained in SBA legislation under 15 U.S.C. 632(q)(2). Meanwhile, regulations fleshing out the SDVOSB definitions for purposes of VA procurements are under the VA’s regulations in 38 CFR Part 74 and, for purposes on non-VA procurements, under the SBA regulations in 13 CFR Part 125.

NDAA 2017, however, requires a government-wide uniform definition by amending 38 U.S.C. 8127 to refer back to 15 U.S.C. 632 for one controlling definition. Moreover, NDAA 2017 clears the way for the SBA to provide the sole and definitive guidance on what it means to be owned and controlled by a service-disabled veteran by prohibiting the VA from issuing regulations relating to either small business status or the ownership and control of a small business.

As for the new uniform definition of “small business concern owned and controlled by service-disabled veterans,” NDAA 2017 provides three categories of businesses that will meet the definition:

First, a small business concern (i) not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more service-disabled veterans; and (ii) the management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran;

Second, a small business concern (i) not less than 51 percent of which is owned by one or more service-disabled veterans with a disability that is rated by the Secretary of Veterans Affairs as a permanent and total disability who are unable to manage the daily business operations of such concern; or (ii) in the case of a publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more such veterans; and

Third, a small business concern that met either of the two requirements described above immediately before the death of a service-disabled veteran who was the owner of the concern, the death of whom causes the concern to be less than 51 percent owned by one or more service-disabled veterans, if (i) the surviving spouse of the deceased veteran acquires such veteran’s ownership interest in such concern; (ii) the veteran had a service-connected disability rated as 100 percent disabling by the VA or such veteran died as a result of a service-connected disability; and (iii) immediately prior to the death of such veteran and during the period it is otherwise an SDVOSB the small business concern is included in the VA’s VetBiz database.

A surviving spouse in the third category can only continue to operate the SDVOSB until the tenth anniversary of the veteran’s death, the date he or she remarries, or the date he or she relinquishes ownership, whichever comes first. As for the small businesses in the first two categories, small business owners should take note of the exclusion of stock owned by an ESOP in the determination of whether ownership requirements are met for a publicly owned business.

2. Pilot program for qualified subcontractors to obtain past performance ratings

NDAA 2017 also authorized the SBA to establish a pilot program that would enable first tier small business subcontractors without any past performance rating to, nevertheless, obtain past performance ratings for work done as subcontractors.

Under the proposed pilot program a subcontractor must submit to a designated official an application for a past performance rating for work done under a government contract within either 270 days of the completion of the subcontractor’s work or 180 days after the completion of the prime contractor’s work, whichever is earlier.

The subcontractor is required to include with the application evidence of the past performance factors that it seeks to be rated on, as well as its own suggested past performance ratings. The designated official must then forward the application to the covered contract agency’s Office of Small and Disadvantaged Business Utilization (OSDBU), as well as to the prime contractor. Thereafter, the OSBDU and the prime contractor must submit a response to the subcontractor’s application.

NDAA 2017 provides procedures if there is agreement or disagreement over proposed past performance ratings, as well as a procedure for a small business subcontractor to respond to any disagreements by the OSDBU or a prime contractor over proposed past performance ratings.

3. Failure to act in good faith in submitting timely subcontracting reports will be a material breach of the contract

NDAA 2017 also makes changes to the Small Business Act that makes a failure to act in good faith in providing timely subcontracting reports a material breach of a government contract. NDAA 2017 requires the SBA to provide examples of activities that would be considered a failure to make a good faith effort to comply with requirements.

Comprehensive changes to the HUBZone program

Lastly, the SBA Agenda anticipates significant changes to the SBA’s HUBZone program. Although short on any specifics, the Agenda indicates that “comprehensive” revisions will be made to the HUBZone program and regulations under Part 126 of the SBA’s regulations.

The SBA indicates that its focus will be to make it easier for participants to comply with program requirements and to maximize program benefits, to determine if regulations should be modified, streamlined, expanded or repealed to make the HUBZone program more effective and/or less burdensome on small business concerns, and to maintain a framework that identifies and reduces waste, fraud, and abuse in the program.

The SBA has invited the public to comment on any aspect of its Agenda. (Note from Bill: Look for contact information under each specific section of SBA’s Agenda summary.)

This article was originally posted on LinkedIn at https://www.linkedin.com/pulse/sbas-agenda-anticipates-significant-rule-changes-wosb-mark-amadeo/ and was reprinted with permission.

Mark Amadeo has served as outside counsel to Fortune 200, medium, small, and non-profit companies, local government entities, and government contractors. A skilled advocate who has vigorously pursued and defended claims on behalf of clients in federal and state courts throughout the country, Mr. Amadeo offers a unique litigation perspective that helps government contracting clients avoid traps and pitfalls that can lead to time-consuming and expensive litigation. Sign up for the Amadeo Law Firm’s The GovCon Bulletin™ to receive new insights and announcements by email.


National Defense Authorization Act FY 2017 – Small Business Overview

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What is the status of the National Defense Authorization Act (NDAA)?

As of July 14th, 2017 the House passed H.R. 2810, the FY2018 National Defense Authorization Act.

Ranking Member Nydia M. Velázquez commented:

“The NDAA bill contains a package of bipartisan, small business legislative proposals that will help small firms win their share of federal contracts, strengthen entrepreneurial development programs and assist cutting edge firms as they bring new technologies and products to market.”

What is the purpose of the NDAA?

This bill aims to authorize appropriations for fiscal year 2018 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes.

Nine members of the Small Business Committee introduced contracting and entrepreneurial development bills this year, which are included in the final draft of the NDAA.

Chairman Steve Chabot of the Small Business Committee commented:

“I am proud that many of the bipartisan bills the House Small Business Committee has worked on were included in the bill. I thank Chairman Thornberry for his hard work putting together this year’s National Defense Authorization Act and for recognizing the vital role small business reforms play in our nation’s security. These provisions will ensure small businesses have a greater opportunity to compete for federal contracts, and bring entrepreneurial development programs up-to-date to better equip our small federal contractors.”

Stay tuned for our follow-up posts about the biggest changes affecting small businesses in NDAA FY18.


Disaster Relief for Small Businesses Affected by Hurricane Harvey and Hurricane Irma

Did you know that SBA provides low-interest disaster loans to businesses of all sizes, as well as other organizations and individuals?

Check out this page for more information: https://www.sba.gov/disaster-assistance


Is It About Winning Or Fulfilling Your Interest?

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This is a guest post from Tonya Buckner of BucknerMT Management & Technology, Inc. 

Every day we find ourselves in situations that require us to negotiate. Whether it is for business or personal reasons, it is critical to understand that there is more to negotiation than just simply winning. In preparation for negotiations with our clients, team members, partners, or even friends or acquaintances, the key criteria to determine is “How do we bring value together?” The mindset has to be on finding a way to innovate and create.

It is important to understand that when someone says “no” we don’t need to feel alarmed; it is just the beginning of the conversation. It is critical to remember that negotiation is problem-solving. The only way to solve problems is to have key information. The exchange of information allows us to get there together.

Further, it is vital to understand that value and quality don’t always align with cost. When we focus on the bottom-line and cost, we may lose quality. For example, many government contracts are based on “Lowest Price Technically Acceptable (LPTA).” This leaves little room for creativity or innovation. Contracting officers are governed by the Federal Acquisition Regulations (FAR), which in most cases focuses on lowest cost, but often the FAR fails to consider that it costs to add value.

We must dig deep, be honest with ourselves, and decide what we really want. Every situation requires its own strategy. It is imperative that we play to our strengths. The more passionate we are about our own goals but also the more clear we are about our limits, the more clarity and enthusiasm we will have to negotiate until the best possible agreement that can be reached, has been reached.

It is also important to understand what drives us and what got us to the table. While our goal or target should never change, the interest is never money for its own sake and the financial gain is just the path.

Ultimately, the conversation should be centered on adding value. We must see the bigger picture beyond the dollars and the technical baseline. Once we do that creatively, we can enter a world of much greater possibilities. There are many paths to success. By observing sober limits decided upon in advance, we can be clear enough to calmly walk away from a bad deal but also be open enough to negotiate good deals (even if they require more time and complexity).

Additionally, it is dangerous to get caught up in our own interest or our egos. This is the difference between a deal and no deal. There is the interest (our underlying motivation), and the position (the what, in this case financial gain). Negotiation is never about winning just for winning’s sake.

Lastly, the goal is to maintain a good relationship with your client. Creating a win/win situation for both parties results in a long-term relationship and the possibility of more contracts. So don’t lose sight, the end result should be value on both sides!

This post was originally published on the TAPE blog at http://tape-llc.com/2017/07/winning-fulfilling-interest/ and was reprinted with permission.


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