NEGOTIATION PLAN
Project Name/Description
Reference Number
Public Authority/Agency
Work Unit
Prepared by
Date
State Procurement Board Negotiation Plan
Page 1
Version 1.0
Issue Date: August 2013
Review Date: August 2015
Table of Contents
NEGOTIATION TEAM APPROVAL AND ENDORSEMENT .............................................. 3
1.
PURPOSE .................................................................................................................. 4
2.
BACKGROUND AND CONTEXT ............................................................................... 4
3.
OBJECTIVES OF NEGOTIATION ............................................................................. 4
4.
NEGOTIATION TEAM RESPONSIBILITIES .............................................................. 4
5.
RULES OF PARTICIPATION AND CONDUCT ......................................................... 5
6.
LOCATION AND TIMINGS ........................................................................................ 6
7.
TENDERER BACKGROUND ..................................................................................... 6
8.
NEGOTIATION ISSUES AND PRIORITIES ............................................................... 7
9.
PURCHASE RECOMMENDATION ............................................................................ 7
ATTACHMENT: CODE OF CONDUCT AND CONFIDENTIALITY FORM ......................... 8
State Procurement Board Negotiation Plan
Page 2
Version 1.0
Issue Date: August 2013
Review Date: August 2015
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]
.................................................
/
State Procurement Board Negotiation Plan
Page 3
/20
Version 1.0
Issue Date: August 2013
Review Date: August 2015
1. PURPOSE
[Instructions shaded in yellow are to be deleted]
Following the selection of the tenderer(s), negotiations will be entered into to:



resolve any departures from the specification;
achieve improved terms and conditions; and/or
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
tender documents.
2. 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 tenderer;
political or community sensitivities;
skill and experience of the Negotiation Team; and
the balance of power in the negotiations.
3. 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.
4. 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:
State Procurement Board Negotiation Plan
Page 4
Version 1.0
Issue Date: August 2013
Review Date: August 2015
Team Member
[Update members]
Role/Responsibility
Chair
Minutes
5. 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
State Procurement Board Negotiation Plan
Page 5
Version 1.0
Issue Date: August 2013
Review Date: August 2015
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 tenderer(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 tenderer(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.
6. 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]
7. TENDERER BACKGROUND
For the tenderer, broadly detail:
 market position;
 attractiveness and relative value of the contract to the tenderer;
 tenderer’s strengths and weaknesses;
 tenderer’s likely approach and strategies;
 likely team members and roles; and
 their likely position on key issues.
State Procurement Board Negotiation Plan
Page 6
Version 1.0
Issue Date: August 2013
Review Date: August 2015
8. 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 description
Priority 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)
9. 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 tender risks identified and any management strategies developed;
concessions agreed to or negotiated which vary the approved acquisition plan; and
a summary of final tender 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 State Procurement Board’s Supplier Selection Guideline).
State Procurement Board Negotiation Plan
Page 7
Version 1.0
Issue Date: August 2013
Review Date: August 2015
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.
..............................................................
Signature
……../ ……../ 20…
..............................................................
Name
..............................................................
Witness Signature
……../ ……../ 20…
..............................................................
Witness Name
State Procurement Board Negotiation Plan
Page 8
Version 1.0
Issue Date: August 2013
Review Date: August 2015