Negotiation Plan Template

 

Negotaton plan emplae $100,000 and above Agency instrucons  

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This is intended forthis procurements NZ$100,000 upwards. # especially ourtemplate agency may customise template template tovalued re!ectfrom its pracce and re"uirements the approvals secon. hen customising, consider including user instrucons li%e the e&le given 'elow 'elow.. Note that the yellow highlighted areas specify where to customise.

(&le of user instrucons  

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This template is intended for any procurement valued from NZ$100,000 upwards. )lanning for negoaon is crical to achieving a successful result. Areas that the agency*s negoaon team needs to concentrate on include+ deciding on the nature of the agency* agency *s relaonship with the supplier and how to esta'lish that idenfying all of the points to 'e negoated priorising the agency* agency *s needs and wants and the supplier*s needs and wants idenfying alternave posions and the point at which the agency will e&it negoaons deciding on the approach to achieving the agency* agency *s most desired outcome ancipang the supplier*s moves and how to counter them wor%ing with the supplier to esta'lish a realisc contract delivery or implementaon implementaon plan addressing transional arrangements from the current supply arrangement, if relevant esta'lishing what sustaina'ility will loo% li%e economic, social and environmental environmental impactsidenfying what 'est pu'lic value will loo% li%e. A negoaon plan choose+ should / must 'e completed and approved 'efor 'efore e iniang negoaons with the recommended supplier. ou will need approvals from+ e.g. procurement manager conrms that the plan meets the agency*s re"uiremen re"uirements ts e.g. pro2ect sponsor gives authority to proceed to negoaons with a view to contract. 3f your agency would li%e assistance in preparing this plan or a construcve peer review of its -

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dra4, please contact enter contact details for the procurement team.

 

3nsert agency logo

[Name of agency] Negotaton plan Name of procurement pro2ect

5ocument development control Prepared by: Positon / tle: Bsiness ni: 3nsert+ 'usiness division or group g roup !ocmen version: 1.0 !ae of las revision: "as:

6hoose+ dra4 / nal for peer review / nal for approvals / nal as approved

 

#onens cronyms 1 pprovals 1 Bac%grond 1 7usiness o'2ecves............................................................................................................................1 &'e parameers( The negoaon.................................................................................................................................8 The supplier.......................................................................................................................................8 9upply history....................................................................................................................................8 Transioning to new supplier............................................................................................................8 6ontract.............................................................................................................................................: 7udget...............................................................................................................................................: &'e eams ) The agency*s team.............................................................................................................................: The supplier*s team...........................................................................................................................: *ogistcs + ;ocaon.............................................................................................................................................< Timeline.............................................................................................................................................< Positoning + 3mportance of the goods/services to the agency...............................................................................< The agency*s value as a customer......................................................................................................= )ower and dependency.....................................................................................................................= 5esired supplier relaonship.............................................................................................................> Negotaton po poins  (valuaon panel recommendaons..................................................................................................> ?pening statements..........................................................................................................................> 6ontract.............................................................................................................................................> )rice...................................................................................................................................................@ ey delivera'les.................................................................................................................................@ 9tandards and "uality........................................................................................................................@ ntci ntcipa patng tng -esto -estons ns . !enin !ening g needs needs  The agency*s needs............................................................................................................................B The supplier*s needs..........................................................................................................................B hat the agency could trade.............................................................................................................B 5eal 'rea%ers.....................................................................................................................................C Dis%s

C

 

cronyms The following acronyms are used in this document. Acronym 3 3ns nser ert+ t+ e.g. e.g. D?3 D?3 3 3ns nser ert+ t+ e. e.g. g. DE) DE)

Term Degi Degist stra rao on n of inte intere rest st De"u De"ues estt for for te tend nder er

pprovals Approval of the negoaon plan )rocurement manager / procurement team leader )rocurement pproval: The negoaon plan is comprehensive comprehensive with suFcient detail for the nature and siGe of the procurement. Name: Positon / tle: "ignare:

!ae:

Approval of the budget 5elegate 5elegated d nancial authority holder &oal cos: 3nsert+ esmated $ total costs over wholeHofHlife I9T e&cl inancial year: inancial year mon 801 $amount I9T e&cl 801>/1@ $amount I9T e&cl Name: Positon/tle: "ignare: !ae:

#os code: insert code: insert nding ype ?pe& / 6ape& ?pe& / 6ape& ?pe& / 6ape&

Authority to proceed to contract 7usiness unit / owner / team leader pproval o: Negoate with the preferred supplier 'ased on this plan. Name: Positon / tle: "ignare: !ae:

Bac%grond 7usiness o'2ecves   



The 'usiness needs that the procuremen procurementt will address are insert. The %ey 'enets of successfully meeng these 'usiness needs are insert. The procurement will help the agency achieve its choose+ shortHterm / mediumHterm / longHterm goals 'y insert. Jeeng these 'usiness o'2ecves is choose+ crical / urgent / important to the success of the agency. Page 1 of 10

 

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3f these 'usiness o'2ecves are not met the conse"uences are insert. The following elements are out of scope insert.

&'e parameers The negoaon  



The proposed contract will deliver the following 'usiness needs insert. The o'2ecves for the negoaon are+ e.g. H to close the deal H get 'est 'est valu valueH eHfor forHmo Hmone neyy ove overr wh whole ole of life life H min minimi imise se tr trans ansaco acon n cos costs ts and and  me me and drive drive sa savin vings gs H to 'u 'uild ild medium medium to long long term term relao relaonship nship with the suppl supplier ier and and see% see% connuous connuous improvement improveme nt and innovaon H to se sett cle clear ar and and rea reali lis scc e e&p &pec ecta tao ons ns.. The negoaon outcomes are insert .

The supplier  



The negoaon is with the preferre preferred d supplier+ insert  insert name and address. The preferred preferred supplier is insert informaon a'out the supplier e.g. the siGe of the organisaon, annual turnover, turnover, num'er of employees, types of products or services, other governmentt customers governmen customers etc. e have no history of using this supplier. OR ?ur history of using this supplier is insert.

9upply history  





  

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There is no e&isng supplier or arrangement in place to provide these needs. OR The current supplier is insert name of current supplier. The term of the contract is insert. The contract is due to e&pire on insert. The wholeHofHlif wholeHofHlife e costs for the current c urrent contract are $ insert. Aspects of the current delivery that are going well and that we want to retain are insert details. Aspects of the current delivery that we are not sased with and we want to improve are insert details. 3mprovements 3mproveme nts presented 'y this supplier*s proposal include insert details. ?pportunies to innovate that we would li%e to e&plore include insert details. ?ver the term of the contract there are opportunies to provide for connuous improvement and supplier development improvement development which include insert details. ?pportunies to improve how well we manage the contract and the relaonships with the supplier and %ey sta%eholders include insert details.

Transioning to new supplier )lease add this secon if applica'le # modify to suit. This new contract will result in a transion from the previous supplier supplier.. A transion plan will 'e developed to acvely manage the changeover. The transion will have a choose+ minor / moderate moderate / signicant impact on ongoing service delivery. Aspects of the transion that need to 'e addressed in the negoaons are listed 'elow. Negoang these points will help inform the development of the transion plan. H e.g. w who ho from from the the agency agency and and the the new new supplier supplier-- will 'e respon responsi'le si'le for managi managing ng the the 





transion

Page 2 of 10

 

H H H H

e.g. en ensure sure that the new new contra contract ct start start date date aligns aligns / overlaps overlaps with with the the previous previous contract contract compleon date e.g. n nd d out what what the new supplier supplier needs needs from the agency agency and the the previou previouss supplier supplier in order to transion eKecve eKecvely ly e.g. as ascert certain ain the new supplie suppliers rs rre"uir e"uiremen ements ts for informa informaon, on, access access to to premises premises / les / transfer transf er of assets etc. during the transion phase e.g. cus custome tomerr engageme engagement nt stra strategy tegy # how and and when when the new new supplie supplierr will 'e 'e introdu introduced ced to sta%eholders sta%eholders and what will 'e done to 'uild these new relaonships.

6ontract

The proposed length of the contract is insert proposed term e.g. three years with the opon to e&tend twice for one year i.e. :L1L1.

7udget The approved 'udget for the wholeHofHlifewholeHofHlife- for this contract is $ insert. This is 'ased on total capital costs of $ insert and total operaonal costs of $ insert.

&'e eams The agency*s team Negotiating Negotiatin g on behalf of the agency Name

Title

Area of e&perse

Dole in negoaon ;ead negoator 9ummariser ?'server Jinute ta%er 9u'2ect maMer e&pert Einancial analyst ;egal advisor

The supplier supplier**s team Try Try to nd this out 'efore the negoaons 'egin. our agency will need to ensure that it tal%s to the right people e.g. you do not want to negoate implementaon implementaon details with the sales and mar%eng rep-.

Negotiating Negotiatin g on behalf of the supplier Name

Title

Area of e&perse

Page 3 of 10

 

Logistics ;ocaon Negoaons will 'e conducted at our oFces at insert locaon.

Timeline 

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Negoaons will commence on insert date and aim to 'e completed 'y insert date. The contract is due to start on insert date. 3t is ancipated that there will 'e insert+ one/two/three/four one/two/three/four meengs over the course of insert+ one/two/three/four wee%s 23 wee%s  23 one/two/  one/two/ months.

Positoning 3mportance of the goods/services to the agency The 'usiness impact and ris% in the delivery of the goods/services, 'ased on the following supply posioning matri&, is insert+ taccal ac"uision / taccal prot / strategic security / strategic crical.  9upply posion

alue

3mpact/r

9trategic security 9trategic crical

;ow Oigh

is% Oigh Oigh

Taccal ac"uision Taccal prot

;ow Oigh

;ow ;ow

Diagram: Supply positoning marix

7uyer *s priority

5escripon ;owHcost



goods/services

9trategic security security of supply-



9trategically

Approach (nsure

Arrangement

supply

contracts 

important 

relia'le suppliers 9trategic crical security of supply at a good price-







Taccal ac"uision purchasing eFciency-





7uild reserve

of stoc% 9hortage of



;ong term



Oigh costs specialist goods/services ;imited num'er of suppliers Doune purchases ;owH value/lowHris% value/low Hris% goods/services Jany

Janage suppliers





Jinimal aMenon



 

6onsider alternave products Jed/long term contract 6onngency planning ?neHoK contracts/purchase contracts/pur chase orders (Hpurchasing )rocurement cards

potenal suppliers Taccal prot

 



OighH

5rive



9hort term Page 4 of 10

 

improving prot through costs savings-



cost/lowHris% cost/low Hris% goods/services Jany potenal suppliers

savings

contracts 

?ngoing acve sourcing for compeve price

Supply positoning marix explained 

The agency*s value as a customer 

  

The value of the agency*s account and the aMracveness of our 'usiness to this supplier have 'een assessed through the supplier preferencing matri& 'elow 'elow.. This matri& indicates the level of willingness or reluctance of this supplier to meet our needs. 7ased on the matri& we are seen as choose+ nuisance / e&ploita'le / development / core. This means insert. 9trategies to address this include insert.

9upplier*s

alue

AMracveness

view Nuisance 5evelopment (&ploita'le 6ore 'usiness

$;ow ;ow Oigh Oigh

;ow Oigh ;ow Oigh

Diagram: Supplier preferencing marix 

Puadrant Nuisance

5escripon ;owHvalue

 



;iMle prot ;owHvalue

Iet further 'usiness

7ut sll aMracve OighHvalue

Ja&imise prots



7ut not aMracve OighHvalue

Detain and e&pand



Oighly aMracve



9upplier*s core 'usiness



5evelopment

 





(&ploita'le

 





6ore

 

Acon ithdraw

Supplier preferencing marix explained 

)ower and dependency 

 

The power and dependency matri& 'elow assesses the levels of power and dependency 'etween us and this supplier. supplier. This matri& shows that choose+ the 'uyer and supplier are independent / the supplier is dominant / the 'uyer is dominant / the 'uyer and supplier are interdependent. This means insert. 9trategies to address this include insert.

Page 5 of 10

 

Diagram: Power and dependency marix 

5esired supplier relaonship Iiven the proposed length of the contract, the level of desired trust and communicaon with the supplier and the approach to managing ris% # the agency will see% a choose+ short term / medium term / long term relaonship with the supplier 'ased on a choose+ strategic colla'orave / taccal compeve relaonship. relaonship. ?ur o'2ecve is to choose+ ensure relia'le supply / manage the supplier to achieve opmum results / streamline the supply to minimise transacon cost and me / drive savings. 3n the negoaons, this means that we will insert the strat strategy egy and taccs to develop the desired supplier relaonship.

Negotaton poins (valuaon (valua on panel recommenda recommendaons ons The evaluaon panel recommended that the following points are addressed in the contract negoaons+ insert the point/s and descri'ed how they will 'e addressed in the negoaons.

?pening statements 3n opening the negoaons the following %ey posion statements will 'e made to the supplier insert.

6ontract  

The proposed contract terms and condions were aMached to the tender documentaon. The recommended supplier accepts all of the proposed condions of the contract. OR

Page 6 of 10

 

Negotaed conditions of contract 6ontract clause

9upplier *s posion

?ur desired posion and why

9upplier *s posion

?ur desired posion and why

9upplier *s posion

?ur desired posion and why

)rice Negotaed pricing 3ssue

ey delivera'les Negotaed %ey deliverables 3ssue

9tandards and "uality Negotaed sandards and -aliy   3ssue

9upplier *s posion

?ur desired posion and why

ntcipatng -estons 4ey -estons o open 'e negotatons 5i' Pueson 1. Oow do do you you diKer diKer from from your your comp compet etors orsQ Q 8. hy hy iiss you yourr pri price ce so highQ highQ :. Oow will will you you ensur ensure e that that you you can can deliv deliver er

)erson who will as% the "ueson

successfullyQ . ho will will 'e the the %ey %ey accou account nt manag manager er fo forr this

Page 7 of 10

 

Pueson contractQ Possible -estons from 'e spplier

)erson who will as% the "ueson

Pueson 1. hy hy is the the mefra meframe me for for deliv delivery ery so so short shortQ Q 8. hat hat are the the pro'l pro'lems ems you you e&per e&perien ienced ced in the the

?ur response

previous delivery of the goods / servicesQ :. hat hat scope scope is ther there e tto o innov innovat ateQ eQ