Project Name/Description
Reference Number
Public Authority/Agency
Work Unit
Prepared by
Date
Table of Contents
1. NEGOTIATION TEAM APPROVAL AND ENDORSEMENT 3
2. PURPOSE 4
3. BACKGROUND AND CONTEXT 4
4. OBJECTIVES OF NEGOTIATION 4
5. NEGOTIATION TEAM RESPONSIBILITIES 4
6. RULES OF PARTICIPATION AND CONDUCT 5
7. LOCATION AND TIMINGS 6
8. SUPPLIER BACKGROUND 6
9. NEGOTIATION ISSUES AND PRIORITIES 7
10. PURCHASE RECOMMENDATION 7
ATTACHMENT: CODE OF CONDUCT AND CONFIDENTIALITY FORM 8
1. NEGOTIATION TEAM APPROVAL AND ENDORSEMENT
APPROVED BY:
I approve this Negotiation Plan.
Name: Enter Approving Authority
Position:
Signature: ......
Date: / /20
NEGOTIATION TEAM SIGN-OFF
I acknowledge that I will be given access to information pertaining to or in respect of negotiations for this contract and that all information that is acquired by me (whether by verbal or written means) in the course of my duties, is strictly confidential. I undertake that I shall not at any given time, disclose or reveal to any other party or person, or use or copy for any purpose other than in the discharge of my duties as a member of the negotiation team, such information without first obtaining the written consent of the Chair.
All documents, reports and information discussed within the negotiation must be treated as commercial-in-confidence. Information and documentation must be kept secure at all times and not be divulged or given to any persons not directly involved in the negotiation process. I declare that to the best of my knowledge I do not have:
· any financial interest in the project;
· any relatives or friends with a financial interest in the project;
· any personal bias or inclination which would in any way affect my decisions in relation to the project; and
· any personal obligation, allegiance or loyalty which would in any way affect my decisions in relation to the project.
I acknowledge that if I become aware of a conflict of interest I will inform the Chair.
I have read this Negotiation Plan and agree to abide by it.
Name / /20
Name / /20
Name / /20
Name / /20
2. PURPOSE
Instructions shaded in yellow are to be deleted
Following the selection of the supplier(s), negotiations will be entered into to:
· resolve any departures from the specification
· achieve improved terms and conditions
· maximise the potential value available.
Negotiation is a process by which parties starting from different positions arrive at a position acceptable to both. It is also a process of communication and can include emails, letters, facsimiles, telephone calls as well as formal and informal meetings.
Negotiations may take place on any aspect of the proposed contract.
This negotiation plan sets out the guiding principles and procedures by which the Negotiation Team will undertake the negotiations.
This document is to be read in conjunction with the following documents:
Insert document names and file reference. For example, acquisition plan, evaluation plan and invitation documents.
3. BACKGROUND AND CONTEXT
Summarise the project background in the context of the negotiations, considering issues such as:
· nature of the procurement in terms of risk, value, and complexity
· the nature of the market and any market issues
· one-off negotiation versus the need to maintain long-term relationships
· the existing relationship with the supplier
· political or community sensitivities
· skill and experience of the Negotiation Team
· the balance of power in the negotiations.
4. OBJECTIVES OF NEGOTIATION
Broadly detail the primary objectives for the proposed negotiations. Note: Do not list every item at this stage, but detail the major areas of focus.
5. NEGOTIATION TEAM RESPONSIBILITIES
In the table below, broadly detail the roles to be undertaken by each Negotiation Team member. Example roles may include chair, minute taker, principal negotiator, support negotiator, technical negotiator etc.
The members of the Negotiation Team are:
Team Member / Role/Responsibility /Update members / Chair
Minutes
6. RULES OF PARTICIPATION AND CONDUCT
The fundamental goal of the negotiation is to achieve improved outcomes while ensuring acceptable results for both parties. The Negotiation Team must not make unnecessary concessions simply to reach agreement.
Negotiations can be costly to both parties – time and effort is required in planning and conducting them, and travelling costs may be incurred too. Accordingly, formal meetings should only be called where the likely result outweighs the costs involved.
Roles and Responsibilities
The Chair is responsible for ensuring the objectives of the negotiation are met and the rules for negotiation, as detailed in this plan, are followed.
One Negotiation Team member must minute all negotiated outcomes and provide minutes to all members of both parties for agreement.
All Negotiation Team members are to be present at all negotiations, unless they have been given an ‘as required’ status.
The Chair may approve the attendance of additional advisors or subject matter experts if required. Where external assistance is required (i.e. from personnel not employed under the Public Sector Act 2009), then a Code of Conduct and Confidentiality Form must be signed (refer Attachment).
The Chair will obtain appropriate authority prior to negotiations to allow commitment to appropriate negotiated outcomes as they occur.
Probity
The negotiation process must be transparent, documented and undertaken in a fair and equitable manner.
Negotiation Team members must notify the Chair of any possible conflicts of interest. Where a conflict of interest exists, the team member should be excluded from the decision-making processes which concern the relevant matter and from any aspect of the project where the team member has the ability to influence the result.
All negotiation matters are confidential and must be treated as commercial-in-confidence and must not be divulged to any other person who has not been authorised by the Chair to receive that information.
The Negotiation Team will not, for themselves or others, seek or accept gifts or benefits. The Negotiation Team will comply with the Code of Ethics for the South Australian Public Sector and any policies of their public authority in relation to accepting, declaring and/or recording the receipt of gifts or benefits.
Negotiation proceedings must be documented to provide a clear audit trail.
Process
The Negotiation Team will meet prior to each negotiation to:
· reaffirm the negotiation objectives;
· understand the negotiation approach, in accordance with this Plan; and
· understand the roles and responsibilities of each Negotiation Team member including confidentiality and probity principles.
Prior to the negotiation, the Chair shall advise the supplier(s) of the agenda of items to be discussed in the negotiation.
Conduct During Negotiations
It is important when conducting negotiations that the following conduct is maintained:
· Maintain confidentiality;
· Do not give the supplier(s) the impression that they have secured the contract;
· Maintain an ethical approach at all times;
· Resolve internal differences away from the negotiation room;
· Retain an open mind at all times;
· Look for long term results;
· Negotiation Team members must conduct themselves ethically at all times;
· Ensure that negotiations being undertaken are ‘subject to contract’; and
· Ensure that essential terms have been actually agreed to when proposing to enter into a contract
The list is not exhaustive.
7. LOCATION AND TIMINGS
The negotiations will take place at insert location. Negotiations are expected to take insert expected duration.
The following schedule of negotiations is proposed:
Specify date(s) and time(s) of negotiations
8. SUPPLIER BACKGROUND
For the supplier, broadly detail:
· market position;
· attractiveness and relative value of the contract to the supplier;
· supplier’s strengths and weaknesses;
· supplier’s likely approach and strategies;
· likely team members and roles; and
· their likely position on key issues.
9. NEGOTIATION ISSUES AND PRIORITIES
Negotiation Issues and Priorities - Summary
Detail the issues to be negotiated and prioritise them (low, medium or high).
Issue / Priority /Issues to be negotiated are detailed below. Duplicate this table for each negotiation issue
Issue: Enter descriptionPriority of this issue
Our minimum outcome
Our target outcome
Our strengths and weaknesses in negotiating this issue
Our points of leverage and possible concession points
Our best alternative to a negotiated agreement (BATNA)
10. PURCHASE RECOMMENDATION
At the conclusion of negotiations, the Chair will prepare a Purchase Recommendation which should include the following information relating to the negotiations:
· all negotiations undertaken, and the outcomes of these;
· any variations to specifications resulting from negotiations, and any required management strategies for these variations;
· post invitation risks identified and any management strategies developed;
· concessions agreed to or negotiated which vary the approved acquisition plan; and
· a summary of final offer costs and benefits (for example, cost reductions or value adds) achieved by negotiations.
(Note: This list relates only to negotiation elements to be included in the Purchase Recommendation. Further guidance on the preparation of Purchase Recommendations is provided in the Supplier Selection Policy).
ATTACHMENT: CODE OF CONDUCT AND CONFIDENTIALITY FORM
Code of Conduct and Confidentiality Form
Subject: Project Title
Name:………………………………….………
Organisation:…………………………………
Position:…………………………………….….
Telephone:……………………………………..
Address:………………………………………………………………………….
…………………………………………………………………………..
I acknowledge that I will be given access to information pertaining to or in respect of negotiations for the contract named above and that all information (whether acquired by verbal or written means) that is provided to me or acquired by me in the course of my duties is strictly confidential. I undertake that I shall not at any time give, disclose or reveal to any other party or person, or use or copy for any purposes other than in the discharge of my duties as a member of the negotiation team, such information without first obtaining the written consent of the Chair.
All documents, reports and information discussed within the negotiation must be treated as commercial-in-confidence. Information and documentation must be kept secure at all times and not be divulged or given to any persons not directly involved in the negotiation process.
I declare that to the best of my knowledge, I do not have:
· any financial interest in the Project;
· any relatives or friends with a financial interest in the Project;
· any personal bias or inclination which would in any way affect my decisions in relation to the Project; and
· any personal obligation, allegiance or loyalty which would in any way affect my decisions in relation to the Project.
I acknowledge that if I become aware of a conflict of interest I will inform the Chair.
...... ……../ ……../ 20…
Signature
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Name
...... ……../ ……../ 20…
Witness Signature
......
Witness Name
Negotiation Plan Page 5 of 8
Version 1.1