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Analyze


This image defines the four key phases of the best value process (Gather, Analyze, Strategize and Negotiate). It identifies the phase in which the user has selected. Gather Strategize Negotiate

Starting with the data that has been gathered, we need to assess the current opportunity in comparison to existing contracts, acceptable terms and conditions, pricing information, and relative value compared to similar transactions. This is performed in the Analyze Phase, and is discussed in detail in the table below.

By following these guidelines, we greatly improve our knowledge of the value of our pending opportunity by analyzing the details using market based comparison points. While each opportunity is unique and may require special analysis, the information covers common issues and greatly improves the confidence that best value will be achieved.

Step
Description
Who
Tools / Links
Price Factors Overview Become familiar with the factors that drive price. KO, PMO, BFM Best Value Price Factors Guide
Comparison on Proposed Deal to Contract Vehicles Determine the price available under DoD contract vehicle(s) and the anticipated discounts that can be secured through further discussions and based on benchmark data. KO, BFM  
After obtaining all data presented by the vendor, if an existing contract is in place, review the license offerings, license pricing, Terms and Conditions, maintenance/support pricing, and discounting structure in the contract. Compare it to the vendor data and quotes. KO  
Benchmarking Become familiar with benchmarking principles. KO, PMO Benchmark Data Gathering Checklist
Gather data about past transactions entered for similar products and solutions in similar circumstances. KO, PM SPM Benchmark Elements Table

TCO Workbook
Enter the vendor’s proposed pricing into the TCO Workbook KO, PMO Proposed Deal Points Checklist

TCO Workbook
Determine the contract vehicle that best fits the acquisition. KO, BFM  
Terms and Conditions Establish a list of the Terms and Conditions that appear most favorable to your pending acquisition. Use the Strategic Terms Checklist as a starting point for your basis for Ts & Cs position, and the Best Value Terms and Conditions Guide as your detailed reference source. Compare the Ts & Cs in the existing contract to your position. Perform trade-off analysis on any differences – what do you need to add, and at what cost? KO, BFM  
TCO Define the anticipated Total Cost of Ownership over 5 years and 10 years. Include costs for implementation, maintenance and support, education and training, and anticipated consulting services). BFM, KO TCO Workbook
Analyze the pricing proposed by the vendor against the benchmarks gathered on similar transactions and the impact on total cost of ownership (TCO). KO, BFM TCO Workbook

Price Analysis Checklist
Establish a range of target price that you expect for your transaction. Use the Price Analysis Checklist as your starting point. Estimate cost of Terms and Conditions trade-off analysis using the guide. KO, SPM