The Boeing Company

Outcomes

        The large group negotiation is difficult and confusion. The role of me and Lee Sanghyeon are the representatives of The Boeing Company. Other classmates’ roles are Kelly Hwang and Pulum Hwang represent NASA, Alejandra Jutinico and Regan Jones represent European Space Agency (ESA), Alec Kelly and John Kim represent RSA, and Minchol Kim and Kuvinov represent JNSDA.

        Although, the beginning of negotiation was confusion. We still reach an agreement finally. The Annual Founding Cap is US$ 3.2 billion, JNSDA will design and build The Pressurized Module (PM) at US$ 6.4 billion and RSA assist, The Mobile Servicing System (MSS) will design and build by NASA at US$ 230 Million, and The First Payload will be French Telescope of ESA and also assist by Physics Experiments of RSA. This is the best result which we can achieve, although it may not satisfactory to some parties. But it is satisfactory to me.

Process

        At the beginning of the negotiation, all the parties wants to determine the Annual Funding Cap. All of us thought this is the most important to the ISS. As the Lead Contractor, I hope the funding will enough for the project. We shared the expect Funding Cap of each, JNSDA and RSA expect $1 billion, $2.5 billion for ESA, and I given them about $3.5 billion. It is a little above Boeing’s expected. However, NASA wants $4 billion as Annual Funding Cap. It is surprises all the parties. Then, as the representative of Boeing Company, I asked NASA’s representatives to side negotiation and ask cooperation. After that the negotiation process start to confusion. All the other parties thought the Boeing Company and NASA have conspiracy and try to mutual alliance between each other. It seems like any organization wants to alliance with NASA. Because NASA contributes the most funding cap. Fortunately, ESA suggested to making decisions though vote. Then the Annual Funding Cap was finally set at US$3.2 billion.

At the second negotiation, because of the achievement of Boeing Company on funding cap and the high cost on PM and MSS, Boeing were not allowed to competing other programs, but still have the right to vote. Then the next processes are orderly and easy. JNSDA got the PM with the cost advantage at $6.4 billion. And although RSA have the lowest cost on MSS ($200), but RSA is not interesting on that. NASA got that at $230 million. The First Payload is belong to French Telescope of ESA.

Learning

        From this negotiation, I realized the important of power. NASA is the most powerful party in this negotiation, because it contribute the highest percentage of funding cap. Also, based on Boeing currently has a contract with U.S. government. When NASA and Boeing went to side negotiation, other parties start to worry about lost control of negotiation, and try to cooperate with NASA. After side negotiate with NASA, I found that Boeing does not have advantage on the cost of PM and MSS. Then my strategy move from the PM and MSS to the AFC. And convince other parties to believe that higher AFC could reduce the cost, and that worked. When RSA ask why need that much AFC, I did not tell them the reason is a financial freedom to “do the job right.” It just necessary, and I also got the support from NASA and ESA. That cause I win in vote about AFC.