Contract Pricing and Negotiation

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You are part of an Integrated Program Team (IPT) assigned to manage the Firm Fixed Price Contract awarded to build 100 Multi-functional Hyperwidget Packages (MHP) with Options for an additional 200.

In the second quarterly Program Review, a major Subcontractor, providing a critical part in the MHP, disclosed that the downstream obsolescence of a critical part will increase the cost of their original estimates by an estimated 25 percent, and impact the lead time by an additional 6 months to the planned delivery schedule.No other vendors are available to meet the critical part requirement currently.

A very tense business relationship has existed with the Subcontractor, from as far back as the solicitation phase of the MHP, attributed to negotiation styles, and indefinite dynamic requirements by the Warfighter end user. Negotiations have been difficult, gone through a series of impasses, and even a walk-away.The obsolescence issue was unanticipated, and requires more planning and negotiating to finalize any changes in cost or schedule for implementation.Under this scenario you must begin preparations for negotiations, with the goal of improving both the relationship and outcome between the parties.

The focus in Paper 3 shall be for you to demonstrate the capacity to address the presumed conflict, and propose a path forward using a distinct negotiation style, based on your readings to date.As such, Paper 3 shall include a discussion, which identifies TWO distinct styles of negotiation, and your reason for selecting the one that will address the assumed strategic goals of the IPT in managing the MHP Contract.It must also include FOUR key principles, within the negotiation style that you will employ, with a clear explanation for why they will help support the Subcontract negotiation objectives. In all cases, be specific and as objective as possible based on your justification and assumptions used for your deliverable.

Your Paper 3 should explicitly cover the requirements above, and be thematic to the Scenario above, coherent, with relevant chronology, and smooth transitions. In all cases, provide SUPPORT with minimum, but sufficient and convincing detail for its implementation. Research these items for additional support as needed for support and credibility.

Keep your thoughts organized by using good writing mechanics.Place a space between paragraphs, and please use double spacing and HEADINGS to match the requirements, and major points of your Paper 3, for a clear flow of your responses to the Assignment requirements.Abstracts are not required, and should not be included.

Your exposition should reflect considerable thought, and go beyond restating verbatim passages from the readings.A minimum of four credible sources are required. You are expected to follow the APA guidelines for citations.This means that statements of “facts” supported by references must be cited both within the text and be listed in the references section of at the paper’s end for information traceability.

Your total response should be the equivalent of no less than 3 and no more than 5 typed, double-spaced pages not counting the Cover Page and Reference List. This paper is worth 25 points. You are required to observe and pay strict attention to the Academic Integrity Policies and Guidelines in your writing.

The information above is all that you need for completing this Assignment. However, you are allowed to make reasonable assumptions to support additional information that you need to sufficiently justify your narrative. Detailed cost or price analysis is not specified as an explicit requirement for this Final Paper.

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