bad! "Jargon expressions like "hit the ground running"or buying. All other imports were paid in dollars, especially pushing the envelope"are likely to mean nothing to fuel and lubricants. Our team knew that the negotiations many non-native English speakers. And remember that would be extremely delicate as compared to previous ne- since acronyms universally understood within the De- gotiations because the reduction in the price of the next partment of Defense aren,'t comprehensible even to most contract-the result of no standby helicopter and fewer non-DoD Americans, foreigners certainly won 't under- missions-would be unpalatable to the contractor. stand them We needed to employ a unique, creative strategy for the Advance preparation with regard to knowledge of the cul- impending negotiations. I met with the PM in Bangkol ture, customs, and language of a given country cannot be to discuss and implement a plan for negotiations. The stressed enough. The Department of State is a source of strategy would include educating the Vietnamese con- literature on aspects of culture and customs in different tractor to understand and use capitalist approaches and countries. Another excellent resource is Do's and Taboos Western business practices. The previous contracts were around the World, published by the Parker Pen Company priced per mission, based on continuous use of two he- and edited by Roger E. Axtell, who has authored several licopters, as indicated above. Because most of the sites books on the subjects of do's and taboos of international as likely areas for MIA remains had been identified, we trade, hosting international visitors, public speaking, and could determine with certitude the exact number of mis- body language sions required per year. Each mission lasted between 30 and 45 days. The JTF support personnel to assist in the Creative Negotiations Make for a Win-Win searches were available for six-week periods, and the PM Situation could identify the specific dates for each mission. We Once the cultural aspects of negotiations have been con- worked closely with the customer to identify the exact sidered, the next concept is bargaining, which provides requirements. We structured the pricing section of the so- the parties with an opportunity for a win-win situation in licitation like a menu in a restaurant. Cost of aircraft op- negotiations. Trade-offs made in lieu of prices or cost con- eration per hour, fuel, maintenance, standby, and other siderations need to be part of the negotiation strategy To price elements were specifically covered in the proposed illustrate, I will use a personal bargaining experience. contract I was the technical director for contracting and procure- During our negotiations, we stressed with the Vietnamese ment for an office in Singapore that supported the joint contractor that we encouraged use of the helicopters when Task Force for Full Accounting (TF-FA)program in Viet- there was no scheduled search mission. We suggested nam, Cambodia, and Laos. The jTF-FA mission was to lo- they contact oil exploration and mining companies that cate the remains of missing in action(MIA)pilots, air- might be interested in using their helicopters, and we men, and soldiers. The contractor was affiliated with the gave the contractor the names of companies and points Vietnamese Air Force and had completed two contracts. of contact. Although the Vietnamese firm would receive The program had been in existence before the United a contract worth $5 million dollars less than the previous States and the People's Socialist Republic of Vietnam had contracts, the opportunity for greater revenue was sig. nificantly increased. As further incentive, we suggested that their team come to Singapore for a formal contract As a result of budgetary cutbacks and the diminishing signing ceremony, and eight corporate officials did so number of likely sites for the MIA remains, the program We scheduled a formal luncheon with photo opportuni- funding was cut by approximately 20 percent, or more ties for the attendees. The ceremony was a great success than $5,000,000, over the period of the contract. Our and was repeated when each option on the contract was dilemma was compounded by the fact that the contrac- exercised tor had been encouraged by the program manager(PM) to buy newer, larger-capacity helicopters, replacing the In conclusion, the importance of understanding culture, Soviet MI 8 with the MI 17 model. The newer helicopters history, language, bargaining, and business practices in were more expensive to maintain than the older model. foreign negotiations cannot be overstated. Advance prepa The two previous contracts had contained a requirement ration and awareness of the differences in the non-Amer that one helicopter be available on a 24/7 schedule to ex- ican environment will lead to success and a win-win out tract our personnel in the event of civil unrest. Since diplo- come for all parties matic relations had been formalized with vietnam that requirement would not be included in the next contract The Vietnamese relied on the payment in U.S. dollars since the helicopters and their parts were purchased from Editor's note: The author welcomes comments and the Russians with U.S. dollars. The Vietnamese dong cur- questions. He may be contacted at bruno. wengrowski rency had no international standard to leverage overseas Defense AT&L: September-October 2004buying. All other imports were paid in dollars, especially fuel and lubricants. Our team knew that the negotiations would be extremely delicate as compared to previous ne￾gotiations because the reduction in the price of the next contract—the result of no standby helicopter and fewer missions—would be unpalatable to the contractor. We needed to employ a unique, creative strategy for the impending negotiations. I met with the PM in Bangkok to discuss and implement a plan for negotiations. The strategy would include educating the Vietnamese con￾tractor to understand and use capitalist approaches and Western business practices. The previous contracts were priced per mission, based on continuous use of two he￾licopters, as indicated above. Because most of the sites as likely areas for MIA remains had been identified, we could determine with certitude the exact number of mis￾sions required per year. Each mission lasted between 30 and 45 days. The JTF support personnel to assist in the searches were available for six-week periods, and the PM could identify the specific dates for each mission. We worked closely with the customer to identify the exact requirements. We structured the pricing section of the so￾licitation like a menu in a restaurant. Cost of aircraft op￾eration per hour, fuel, maintenance, standby, and other price elements were specifically covered in the proposed contract. During our negotiations, we stressed with the Vietnamese contractor that we encouraged use of the helicopters when there was no scheduled search mission. We suggested they contact oil exploration and mining companies that might be interested in using their helicopters, and we gave the contractor the names of companies and points of contact. Although the Vietnamese firm would receive a contract worth $5 million dollars less than the previous contracts, the opportunity for greater revenue was sig￾nificantly increased. As further incentive, we suggested that their team come to Singapore for a formal contract￾signing ceremony, and eight corporate officials did so. We scheduled a formal luncheon with photo opportuni￾ties for the attendees. The ceremony was a great success and was repeated when each option on the contract was exercised. In conclusion, the importance of understanding culture, history, language, bargaining, and business practices in foreign negotiations cannot be overstated. Advance prepa￾ration and awareness of the differences in the non-Amer￾ican environment will lead to success and a win-win out￾come for all parties. Editor’s note: The author welcomes comments and questions. He may be contacted at bruno.wengrowski @dau.mil. 29 Defense AT&L: September-October 2004 bad!” Jargon expressions like “hit the ground running” or “pushing the envelope” are likely to mean nothing to many non-native English speakers. And remember that since acronyms universally understood within the De￾partment of Defense aren’t comprehensible even to most non-DoD Americans, foreigners certainly won’t under￾stand them. Advance preparation with regard to knowledge of the cul￾ture, customs, and language of a given country cannot be stressed enough. The Department of State is a source of literature on aspects of culture and customs in different countries. Another excellent resource is Do’s and Taboos around the World, published by the Parker Pen Company and edited by Roger E. Axtell, who has authored several books on the subjects of do’s and taboos of international trade, hosting international visitors, public speaking, and body language. Creative Negotiations Make for a Win-Win Situation Once the cultural aspects of negotiations have been con￾sidered, the next concept is bargaining, which provides the parties with an opportunity for a win-win situation in negotiations. Trade-offs made in lieu of prices or cost con￾siderations need to be part of the negotiation strategy. To illustrate, I will use a personal bargaining experience. I was the technical director for contracting and procure￾ment for an office in Singapore that supported the Joint Task Force for Full Accounting (JTF-FA) program in Viet￾nam, Cambodia, and Laos. The JTF-FA mission was to lo￾cate the remains of missing in action (MIA) pilots, air￾men, and soldiers. The contractor was affiliated with the Vietnamese Air Force and had completed two contracts. The program had been in existence before the United States and the People’s Socialist Republic of Vietnam had diplomatic relations. As a result of budgetary cutbacks and the diminishing number of likely sites for the MIA remains, the program funding was cut by approximately 20 percent, or more than $5,000,000, over the period of the contract. Our dilemma was compounded by the fact that the contrac￾tor had been encouraged by the program manager (PM) to buy newer, larger-capacity helicopters, replacing the Soviet MI 8 with the MI 17 model. The newer helicopters were more expensive to maintain than the older model. The two previous contracts had contained a requirement that one helicopter be available on a 24/7 schedule to ex￾tract our personnel in the event of civil unrest. Since diplo￾matic relations had been formalized with Vietnam, that requirement would not be included in the next contract. The Vietnamese relied on the payment in U.S. dollars since the helicopters and their parts were purchased from the Russians with U.S. dollars. The Vietnamese dong cur￾rency had no international standard to leverage overseas