Vendor negotiations are an integral aspect of program and contract management.  They provide a forum for the government to work across the table from its commercial partners to establish or modify pricing, expand or alter service offerings, and discuss performance.  While important, these negotiations can be difficult and extensive, requiring intimate understanding of the contract terms and pricing elements.  Without the appropriate supporting data, these negotiations can end up exposing the program team to significant cost inflation. 

CEXEC provides government clients direct negotiation support for a range of ongoing and complex programs and provides side-by-side negotiation support as Contract Line Items or technical services are added to a contract.  Upon receipt of solicited or unsolicited proposals for Engineering Change Proposals, Task Orders or Delivery Orders, our personnel conduct qualitative and quantitative analyses to assess the reasonableness of vendor pricing for associated labor, materials, fee, profit and Cost of Service.  When technical services are ordered as time and materials, CEXEC develops independent government cost estimates for comparison to labor categories and hours proposed by the contractor.  Negotiation support may also entail verifying prices proposed for materials using comparisons of commercially available prices.  We prepare draft negotiating positions and assist during negotiations by developing cost models containing the vendor pricing and government’s position.  CEXEC also validates cost proposals submitted by contractors, ensuring that formulas used are accurate and that overhead rates are applied correctly according to the terms of the contract.

CEXEC negotiation support results in sound and precise negotiating positions, built around comprehensive program data.  Our cost models provide an immediate sensitivity analysis regarding the impact of any proposed pricing change. They also provide immediate verification that the vendor has appropriately applied contract pricing mechanisms for alterations in scope.  This support leads to efficient and productive negotiations, and ultimately a better partnership with the vendor community.  If you are struggling with adversarial or inefficient vendor negotiations, contact CEXEC today.