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When government contractors enter into teaming agreements, (Contractor Teaming Agreement or CTA) they are usually trying to use the teaming partner’s resources in an effort to secure a larger contract.
Although FAR 9.6 allows these types subcontractor arrangements, there are still certain pitfalls that companies must be aware of. Failure to adhere to these regulations can still cause a small business to lose the contract award.
Watson & Associates, LLC provides legal assistance to companies seeking to enter into a subcontractor teaming agreement but want to make sure they are legally compliant with federal regulations.
Our contractor teaming agreement (CTA) lawyers have litigated numerous disputes including new SBA affiliation rules, violation of the Ostensible Subcontractor Rule and other issues raised with small business size protests.
Teaming Agreement Services — Subcontractor Agreements (CTA)
When it comes to helping with government contract teaming agreements, our government small business attorneys provide a wide array of services including:
- Teaming agreements drafting and review
- Consulting on bid strategy and developing government proposals
- Legal advice on new SBA affiliation rules 13 CFR 121.103
- Assessment of similarly situated businesses in each subcontractor agreement
- Meeting government contracts small business requirements
- Understanding the difference between and teaming agreement vs joint venture
- Some prime and subcontractor teaming arrangement and joint venture agreement disputes
- Help with legally binding contract terms
- Small Business Size protest litigation and appeals
To speak to a government contractor agreement attorney, call 1-866-601-5518 for a FREE Initial Consultation.
Benefits of subcontractor agreement and arrangements: The biggest benefit of entering into small business contractor agreement is to position your company to take advantage of larger federal projects. However, you want to avoid certain legal mistakes. Although FAR 9.6 allows for the use of teaming agreements, prime small business contractors want to make sure that they do not fall into affiliation traps. Although the SBA has since initiated new rules that relax the old affiliation rules by introducing the theory of similarly situated small businesses, teaming arrangements can still be a dangerous undertaking. At Watson & Associates, our contractor teaming agreement lawyers can help to avoid some of the costly legal pitfalls.
Contractor Agreement Team Definition FAR 9.6
There various types of team arrangements and subcontractor agreements | CTAs allowed under FAR 9.6. The arrangement between the prime contractor and its subcontractors develops the statutory relationship.
In Federal contracting, a contractor teaming agreement (CTA) is a subcontract between a potential prime contractor and another company under a specific federal government contract. Other forms of developing a teaming arrangement include forming a regular prime/sub relationship or a joint venture See 48 CFR 9.601.
Under FAR 9.6, teaming agreements can either be through a traditional prime contractor and subcontracting agreement, a joint venture agreement or a subcontractor that also meets the requirements of 13 CFR 121.103. In other situations, two or more companies form as one. This type of teaming arrangement is considered to be a joint venture under 13 CFR 124.513. See more information about joint venture affiliation under new rules.
In Your Teaming Contract Enforceable?
As a practical matter, your teaming agreements are not, by themselves, enforceable contracts in court. When a bidder represent to the agency that it has a teaming partner, the executed teaming agreement serves to let the agency know that a specific offeror has a valid commitment to perform the project.
- Courts have ruled that a teaming agreement does not have the substantive terms of an enforceable contract. Instead, it is only an agreement to enter into a contract upon the award by the government.
- Bidders should seriously consider drafting an independent subcontract in addition to the teaming agreement. This would meet the legal requirements of a contract and the parties’ rights would be enforceable under the subcontract in court.
Avoid Canned Templates: Simply copying and pasting canned contractor teaming agreements (CTA) templates into a government bid can prove to be fatal if teaming partners do not understand their respective obligations under the arrangement.
- Although FAR 9.6 allows for general contractor and subcontractor agreements, there are crucial limitations
- A prime contractor can face harsh affiliation penalties from a bid protest.
Initial bidding stage: We also provide legal advice and consulting from the initial bidding stage through the performance stage of the contract. Our government small business attorneys also provide litigation assistance when a small business size standard protest is filed.
Teaming Arrangement and SBA Affiliation – Ostensible Subcontractor Rule
When companies fall astray from the team definition under FAR 9.6 or 13 CFR 124.103, there are harsh consequences. Our contractor teaming agreements lawyer help federal government contractors to avoid costly legal mistakes under the Ostensible Subcontractor Rule.
- We also review each teaming arrangement for compliance with the Limitation on Subcontracting Rule under FAR Part 52.219.9.
- Learn more about similarly situated small businesses and new rule.
Watson’s government contractor teaming agreement lawyers represent federal contractors in all states regarding SBA affiliation and compliance matters. We help federal small businesses and large DoD contractors in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, and Wyoming.
Cities in which our federal government subcontractor agreement lawyers and consultants include Anchorage, AK; Atlanta, GA; Austin, TX; Chicago, IL; Colorado Springs, CO; Dallas, TX; Denver, Colorado; Indianapolis, IN; Las Vegas, NV; Los Angeles, CA; Miami, FL; Philadelphia, PA; San Antonio, TX; San Diego, CA; San Francisco, CA; San Jose, CA; Santa Clara, CA; and Tampa, FL.
Additional CTA Enforceability Information
Find out whether your teaming agreements are enforceable in Court.
Call Our Government Contract Teaming Agreement Lawyers
For help with your government contract teaming agreements (CTA), the arrangement of teaming partners, or to make sure that you meet the statutory team definition and new SBA teaming rules, call Watson’s government contract attorneys or call 1-866-601-5518 for a FREE Initial Consultation.