Beyond the Table: Insights on Negotiated Terms, Synthetic Scenario Simulations, and Future Competencies in Contract Management

Abstract

This paper examines the critical disconnect between heavily negotiated contract terms and those that actually drive successful performance outcomes. Through a comprehensive 2024 study involving over 600 contracting professionals, we demonstrate that government procurement practices remain overly focused on administrative details rather than performance-based terms, potentially costing $100 billion annually in inefficiencies. We present findings from an exploratory study comparing AI-generated versus human-authored negotiation training scenarios, revealing that generative AI can produce comparable quality materials in minutes rather than hours. Finally, we outline essential competencies for modern contract managers, emphasizing the need for skills in strategic negotiation planning, performance-focused drafting, risk management, and AI-augmented decision-making. This research underscores the importance of aligning negotiation practices with operational realities to foster adaptive, collaborative business relationships that create sustainable value.