The Strategic Equipment Deal: A Multi-Issue Negotiation in Government Procurement - Role of Seller

This two-party, multi-issue role-play simulates a government procurement negotiation between a Director from Singapore's Ministry of Home Affairs (MHA) and the CEO of Global Tactical Solutions (GTS), a defence technology firm. MHA seeks to acquire a command simulation system critical to national crisis response training, while GTS aims to secure a prestigious government contract as a foothold in the Southeast Asian market. Participants must navigate a distributive price issue, an integrative trade-off between a maintenance package and future upgrade discounts, and a shared interest in a long-term partnership. The case is designed to teach foundational negotiation concepts—BATNA, reservation price, the Zone of Possible Agreement, and logrolling—within a realistic public-sector context that introduces institutional constraints such as budget ceilings and procurement accountability. All characters, organisations, and figures are fictitious and created solely for educational purposes.

By the end of this session, students will be able to:
1. Distinguish between distributive, integrative, and compatible negotiation issues and adapt their strategy accordingly.
2. Identify their BATNA and use it to set a principled reservation price.
3. Map the Zone of Possible Agreement (ZOPA) from both parties' reservation prices.
4. Create joint value by packaging issues and exploiting differences in priorities (logrolling).
5. Apply anchoring and concession strategies to claim value within the ZOPA.
6. Negotiate effectively under public-sector constraints such as fixed budgets and procurement accountability.