Government Teaming Agreements
Government Teaming Arrangements
As the economy becomes more challenging to small business owners, government contracting is also becoming more challenging. There are mixed reactions as to whether the amount of federal contracts will increase or decrease in 2009 – 2010. However, survivors are aggressively finding teaming partners to perform those federal projects that are left.
The focus on teaming agreements in federal contracts is becoming more popular in that companies are reducing overhead by teaming with other businesses when submitting bids to the federal government. A few things that companies should be aware of include:
- Having a clear and concise teaming agreement that spells out the terms and conditions of the agreement
- The teaming agreement must articulate the percentage of work that each party will complete
- Who is responsible for what critical part of the project
Approval of 8a Teaming Agreements
When it comes to 8a teaming agreements, the Small Business Administration (SBA) generally approves the relationship. However, this does not force the contracting officer to accept. More specifically, if there is a question concerning one or all party’s ability to perform the project, the challenge should be raised with the SBA.
For non 8a teaming arrangements, then the agency contracting officer will make a final determination and request supplemental information if necessary.
Forming teaming agreements suggests that business owners must know the other party’s background. Performing due diligence is key to forming this type of relationship.
Have Your Teaming Agreement Drafted by a Professional
Drafting a teaming agreement is a very crucial aspect of the relationship. A lot of companies purposely copy and paste teaming agreements simply to avoid legal fees. However, the more successful companies turn to a government contract attorney to draft a joint venture agreement or teaming agreement. As the relationship sours, then many contractors find that the agreement did not cover the critical areas to protect their rights.
Teaming Agreement Templates
Having a template from an agency website does not equate to a legally sound document. At best, these sites show the basic guidelines to pass muster with the SBA or agency for purposes of contract award.
It is always advisable to have a government contract lawyer review or draft your teaming agreement or joint venture agreement for soundness and whether or not the document addresses the parties’ rights.
If you are seeking help with a teaming agreement, contact Watson & Associates, LLC at 720.941.7200 or 1866-601-5518.
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