Contract Price & Cost Analysis and Contract Negotiation Strategies – Advanced Public Purchasing
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Contract Price & Cost Analysis
Public buyers are responsible for determining the best value for the goods and services they procure. Depending on the complexity of the procurement, it can be a simple calculation or it may require analytical evaluation of market conditions, competitive pricing, and cost data. A comprehensive look at the individual cost and price elements, including future costs and escalation trends, will assist in determining the reasonableness of an offer and minimize the risk of the overall cost.
Contract Negotiation Strategies
Negotiation is the process of give and take to reach an agreement. Frequently government buyers are reluctant to embark on a full-fledged negotiation against the highly trained corporate world, but understanding the importance of planning for a complex negotiation will provide the confidence needed to succeed. First, it is important to develop a contract negotiation strategy that includes assessing the potential liabilities and risks of both parties and identifying the acceptable target for each critical issue. This session will explore how to identify negotiable priorities and alternatives, establish targets, develop effective communication skills and implement a strategy that leads to a successful contract.
At the conclusion of the Contract Price & Cost Analysis session, participants will be able to…
- Identify the differences between cost and price and techniques used to analyze each;
- Determine the evaluation method of price prior to specification development to enhance price analysis of offers; and,
- Apply objectives to case studies to determine best value analysis in a competitive situation.
At the conclusion of the Contact Negotiation Strategies session, participants will be able to…
- Comprehend negotiation terms and best practices and know how and when to apply them;
- Assess priorities and risks within a potential contract and establish target points; and,
- Apply techniques learned in a group mock negotiation exercise.
Who should attend
This program is targeted towards individuals involved in purchasing/procurement activities such as buyers/purchasing agents, buyers and contract administrators. The first day will take an in-depth look at Contract Price and Cost Analysis, then the second day will focus on Contract Negotiation Strategies.