Contract Negotiation Support

contract negotiation support

ACT I provides technical and business analysis and negotiation strategy support on major defense ACAT I acquisition programs for the U.S. Government and several allied countries across the globe. Our detailed analysis, Should Cost assessments, and strategic insights provide customers with defendable rationale to justify major program savings and cost avoidance during contract negotiations. Our services include:

  • Detailed requirements assessment comparing customer requirements against industry proposed solutions.
  • Requirements-based Should Cost estimate using industry best practices.
  • Innovative ideas and strategies to close the gap between industry proposal price and Should Cost estimate.
  • Special advisory support to the customer during negotiating sessions with industry.
  • Post-negotiation documentation and reporting.

ACT I’s expertise in negotiation strategy support on F-35 SDD, Production, Sustainment/Logistics, and FMS/DCS Cases has delivered a collective cost savings exceeding $1B for the 3 U.S. Services, 8 International Partners and 3 FMS Nations.

 

Case Study: ACT I Prime Contract supporting Japan Final Assembly and Check-Out (FACO) Facility Contractor Support Services

“Support to the Japan Ministry of Defense (JMoD) continued to be well-received and has established ACT I as a proven, reliable source of best-value cost and support analysis recommendations. ACT I’s development of accurate cost models and thorough documentation of lessons learned from past negotiation cycles will enable the JMoD to self-leverage this knowledge to attain further cost and support efficiencies in their direct commercial sales (DCS) negotiations.”

 

— Contractor Performance Assessment Report (CPAR)

some of the customers we serve

F-35 Lightning II Joint Program Office (JPO)

ACT I supports the annual F-35 cost estimating process with budget planning and execution, contract negotiations, and program decision making. Specifically, ACT I supports contract negotiations with pricing; technical analysis; and documentation creation for the System Design and Development (SDD) contracts, the Production contracts, the annual and non-annual Sustainment and logistics contracts, and a multitude of Foreign Military Sales (FMS) cases.

Italian Ministry of Defense (IMOD) F-35 Final Assembly and Check-Out (FACO) Facilities

ACT I provided direct support to the Italian MOD for requirements analysis, cost estimating, contract terms and conditions development, and contract negotiations for the Direct Commercial Sales (DCS) contract for the F-35 FACO in Cameri, Italy. After successful contract negotiation and award, ACT I supported the Italian MOD with strategic advice at major program milestones and supported successful negotiations for Engineering Change Proposals (ECPs).

Japan Ministry of Defense (JMOD) F-35 Program Final Assembly and Check-Out (FACO) and Maintenance/Repair and Overhaul and Upgrades (MRO&U) Facilities

ACT I provided planning and coordination for Final Assembly and Check-Out (FACO) Stand-Up, Low Rate Initial Production (LRIP)/Production Lots, Japanese Industrial Participation, and Maintenance/Repair and Overhaul and Upgrades (MRO&U) to support Japan’s F-35 requirements. Areas of support include: performance based logistics; contract negotiations and monitoring; cost, schedule, and risk assessments; reviewing, validating, and negotiating Engineering Change Proposals (ECPs); capability analysis support; and industrial participation analysis support.