Understanding and Avoiding the Contract Negotiation Impasse

Negotiation is an integral part of everyday life. It is a process whereby parties come together and attempt to reach an agreement that is of mutual benefit and that sets the framework for future dealings. While the goal of any contract negotiation is to reach an agreement, there are instances when, for various reasons, negotiations reach an impasse. The consequences can be serious for both DOD and industry. If a negotiation associated with developing andor fielding a major weapon system breaks down, DODs ability to meet mission goals is adversely affected. Likewise, the impasse can threaten the financial health of the prospective prime contractor and associated subcontractors, weakening the defense industrial base. This thesis developed an understanding of the factors which contribute to the occurrence of a contract negotiation impasse, and how a knowledge of these factors may be utilized to avoid the impasse and improve the negotiation process. The research focused on DOD and defense industry practicing contract negotiators. Negotiations, Contract negotiation impasse, DOD Negotiators, Defense industry negotiators