CON 290 Exam Review Questions with Verified Solutions

CON 290 Exam Review Questions with Verified Solutions What is the difference between Negotiations and Fact-Finding Fact-finding: to obtain a clear understanding of the contractor's proposal, Government requirements, and any alternatives proposed by the contractor In a non-competitive procurement it is tempting to NEGOTIATE DURING FACT-FINDING. However, you should NEVER DO so because this causes the Gov't to lose in two ways: i. Issues are negotiated before analysis is completed so may be based on inaccurate or incomplete information ii. Once fact-finding turns into negotiation, it becomes less likely that any remaining fact-finding issues will be clarified What is Position-Based negotiation (PBN)? PBN involves each party taking a position and arguing for it without learning the interests of the other party. It focuses on obtaining your position through the use of power and adversarial tactics and techniques without consideration of the other side's interests or needs. What is Interest-Based negotiation? Interest-based negotiation (IBN) is a step-by-step approach used to identify common interests of the parties. Identifying common interests promotes solutions that satisfy the needs of both parties. What is your BATNA? Best alternative to a negotiated agreement - your absolute bottom line. If an agreement isn't better than your BATNA, it actually makes you worse off. Your BATNA may be an alternative that doesn't involve a contract w/the current offeror What is your reservation price? Reservation Price is the value below which you would rather accept impasse and settle for your best alternative. You must sometimes show willingness to walk away from marginal agreements in order to achieve excellent ones. What is an anchor? An initial number or position offered, purposely or inadvertently, by one party. When a second anchor is set, a range for negotiation is establish Contract financing payments include - i. Advance payments ii. Performance-based payments (preferred method) iii. Commercial advance and interim payments iv. Progress payments based on cost v. Progress payments based on a percentage or stage of completion vi. Interim payments under a cost reimbursement contract Difference between FPIF and CPIF Contract FPIF Contract Target Cost Target Profit Profit Adjustment Formula Ceiling Price Point of Total Assumption CPIF Contract Target Cost Target Fee Fee Adjustment Formula Minimum Fee Maximum Fee