1. Leveling the Negotiation Playing Field
The RFx
Leveling the Negotiation Playing Field
Stephen R. Guth, Esq.

2. Negotiation Objectives The Great Equalizer
WHAT WE’LL COVER
A Little Bit About You
Your Worthy Adversary
Negotiation Objectives
The Great Equalizer

3. FACTORS AFFECTING (YOUR) NEGOTIATION LEVERAGE
Skills
Physical
Condition
Knowledge
Emotional
State
Timing
(YOU)
Positional
Power
Culture /
Upbringing
Make the Deal Happen

4. Significant Resources Time Will “Get the Deal” from Someone
YOUR WORTHY ADVERSARY
Trained to Sell
Deal-After-Deal
Compensated to Sell
Significant Resources
Time
Will “Get the Deal” from Someone

5. Influence Leverage Retrospectives VENDOR SALES SECRETS
Paid if paid is illusory. Paid when paid has better odds and still allows for “due process” in pursuing a claim.

6. Schedule Criticality Budget THREE THINGS TO NEVER TELL A SUPPLIER
(Survey Says…)
Schedule
Criticality
Budget
Oh yeah, and don’t give ‘em an org chart…

7. Equalize Leverage Skin in the Game Be A Good “Partner” Get a Fair Deal
NEGOTIATION OBJECTIVES
Equalize Leverage
Skin in the Game
Be A Good “Partner”
Get a Fair Deal
Get What You Paid For
GOOD
First objective—ALWAYS—is to equalize leverage to level the playing field. Win-win? Give me a break! The only way to get there is to have the same amount of power the other party has.
Skin – Meaning commitment.
FAST
CHEAP

8. Creates Competitive Leverage Process-based Procurement
THE GREAT EQUALIZER – THE RFX
Creates Competitive Leverage
Process-based Procurement
Documents Your Needs
Communicates That You’re Professional
Explains Procurement Process
Helps To Qualify Suppliers
Makes Evaluation Easier
Serves As Historical Record

9. Request for Information
RFx TYPES
Request for Information
Information gathering tool
No or limited understanding of the marketplace
Unable (or unwilling) to develop robust scope of work
Very little effort
Request for Proposal
Evaluative tool
Better knowledge of the marketplace and sellers
More time and effort
Request for Quotation
Price comparison tool
Very detailed understanding of marketplace and sellers
Focus of quantity and price (usually commodity focused)
Very little effort (but lots of knowledge needed)

10. THE SOURCING CONTINUUM
PMI
and NCMA
Pre-award Phase
Award Phase
Post-Award Phase
Competitive
Bidding
Proposal
Evaluation
Price and Business
Negotiations
Contract
Management
Corporate
Contract
Drafting
Contract
Drafting
Dispute Resolution
We Want to
Be Your “Partner”
Wooo hooooo!
Sorry, That Wasn’t
Part of the Deal…
Vendor-
Speak

11. FELINE SERVICES CONTRACT
YOUR “PAPER”
Favorable Conditions!
Shifts Burden of Review
Avoids “Weasel Words”
P.S. PDF Files are Poor Sport
FELINE SERVICES CONTRACT
You (“Food Bringer”) agree to worship me and meet all of my demands. Food Bringer acknowledges and agrees that I am superior to Food Bringer in all regards.
Just sign here __________
And here __________

12. Write with the Future Proposal Evaluation and Contract in Mind
SUGGESTIONS FOR WRITING RFP REQUIREMENTS
Have a “Theme”
Ask Combined Closed / Opened Questions (“Do you…? If so, how do you…?”)
Write with the Future Proposal Evaluation and Contract in Mind
Avoid Lumping Requirements Together
Define Terms of Art, Abbr., and ACRNYMS
Be Specific—Avoid Ambiguity and Assumptions
Be Clear and Concise—More Isn’t Better
Check for Typos, Grammer, and Other Errers

13. TRADITIONAL SELECTION / NEGOTIATION MODEL
100%
Customer
Supplier 0%
RFP
Issued
Proposals
Submitted
Vendor
Selected
Negotiations
Contract
Award

14. PRE-NEGOTIATION MODEL
100%
Customer
Supplier 0%
RFP
Issued
Proposals
Submitted
Vendors
Shortlisted
Request
for
BAFOs
Vendor
Selected
Contract
Award

15. Apples-to-Apples and Quantitative Comparisons Strength of Proposal
PROPOSAL EVALUATION FACTORS
Apples-to-Apples and Quantitative Comparisons
Strength of Proposal
Adherence to Requirements
Ability to Perform / Deliver
Time / Position in Marketplace + Innovation
Financial Stability
Willingness to Contract Commitments
References (Good and Bad)
Price (Not Always a Factor)

16. Many Different Methods (and Tools) Exist Qualitative
PROPOSAL EVALUATION METHODS
Many Different Methods (and Tools) Exist
Qualitative
“Word” Ratings (e.g., Unacceptable, Acceptable)
Flaws: More Subjective, May Be Inefficient
Quantitative
Rating
Scoring (Weighting)
Bottom Line
Don’t Over-complicate
Use What You’re Comfortable With
Eval Method in RFX?

17. QUANTITATIVE EVALUATION METHOD EXAMPLES
Rating
Weighting / Rating