NATIONWIDE HELP TO DRAFT LEGALLY SOUND GOVERNMENT CONTRACTOR AGREEMENTS AND AVOID AFFILIATION. FREE INITIAL CONSULTATION. CALL 1-866-601-5518.
Small businesses often find that contractor teaming agreement templates found on the internet offer more problems than they resolve. When you find another company that you want to do business with on a future government contract, you must also assess the risk of potential affiliation and violation of limitations on subcontracting rules.
A failure in any one of these areas can cause the government to take the contract away or even criminal penalties.
- Avoid violations of the Ostensible Subcontractor Rule
- Have you proposed your teaming partner to avoid limitations on subcontracting violations?
- Assess whether your subcontractor is similarly situated
- Take a proactive approach that can reduce the chances of your contract being taken away
GET HELP TO MINIMIZE THE CHANCES OF GETTING YOUR CONTRACT TAKEN AWAY BECAUSE OF AFFILIATION!
A small business prime contractor cannot comply with the ostensible subcontractor rule merely by supervising subcontractors in their performance of work. Size Appeal of Shoreline Services, Inc., SBA No. SIZ-5466 (2013); Size Appeal of Competitive Innovations LLC, SBA No. SIZ-5369 (2012), recons. denied, SBA No. SIZ- 5392 (2012).
GET PROFESSIONAL LEGAL HELP – THE LANGUAGE IN YOUR TEAMING AGREEMENT CONTROLS
SBA OHA has held that, in assessing compliance with the ostensible subcontractor rule, “[a]n area office must give ‘great if not controlling weight’ to statements in the proposal (such as the contractor teaming agreement) and other contemporaneous documentation, as opposed to any subsequent representations.” Size Appealof Iron Sword Enterprises, LLC, SBA No. SIZ-5503, at 7 (2013) (quoting Size Appeal of SmartData Solutions, LLC, SBA No. SIZ-5071, at 20 (2009)).
Government Contractor Legal Services
When it comes to business partnership contracts and helping with government subcontractor teaming agreement, our government small business attorneys provide a wide array of services including:
- Draft contractor teaming arrangements and review of federal independent contractor forms
- Federal government subcontractor contract law under FAR 9.601
- Avoiding limitation on subcontracting violations and penalties
- Legal advice on new SBA affiliation rules 13 CFR 121.103 and execution of legal partnership contracts
- Assessment of similarly situated businesses in each subcontractor agreement
- Application of joint venture arrangements and SBA affiliation rules to independent contractor forms.
- Meeting government contracts and CTA small business requirements
- Understanding the difference between and teaming contract vs joint venture statutory allowances
- Some prime and subcontractor team arrangement and joint venture agreement disputes
- Help with legally binding contract terms
- Small Business Size protest litigation and appeals to SBA Office of Hearings and Appeals (SBA OHA)
At Watson & Associates, LLC our federal subcontractor attorneys and FAR 9.601 subcontractor contract law consultants provide our clients with detailed guidance and aggressive legal representation that can reduce corporate liabilities while safeguarding company revenues.
We provide over 30 years of combined experience to companies that focus on proactive legal solutions and thinking out of the box.
Although the SBA has since initiated new rules that relax the old affiliation regulations by introducing the theory of similarly situated small businesses in contractor agreements, business partnership contracts, and teaming contracts can still be a dangerous undertaking. At Watson & Associates, our contractor government contract lawyers can help to avoid some of the costly legal pitfalls. See more information about joint venture affiliation under new rules.
IS YOUR CONTRACTOR TEAMING AGREEMENT ENFORCEABLE IN COURT?
During which stage in team formation does compliance matter?
From the initial stage of bid planning, you should be aware of the statutory requirements under FAR 9.601 and whether or not you contractor teaming agreements are, by themselves, enforceable in court. Knowing the difference between a teaming agreement vs subcontract is essential when forming a prime-sub relationship under FAR 9.6.
When a bidder represents to the agency that it has entered into a subcontractor agreement, the executed independent contractor form serves to let the agency know that a specific offeror has a valid commitment to perform the project.
- Courts have ruled that a subcontractor contract does not have the substantive terms of an enforceable teaming agreement. Instead, it is only an agreement to enter into a contract upon the award by the government.
- Bidders on federal contracts should seriously consider drafting an independent subcontract.
- This would meet the legal requirements of a contract and the parties’ rights would be enforceable under the subcontract in court.
- Although FAR 9.601 allows for general contractor agreements, there are crucial limitations
- A prime contractor can face harsh affiliation penalties from a bid protest.
POTENTIAL ISSUES WITH TEAMING ARRANGEMENTS
Contractors should be aware that unlike joint venture rules, teaming agreements are contract specific and should be negotiated per solicitation.
- Be aware that the prime contractor may decide not to go through with the teaming contract after the award.
- Recent rules suggest that there is now a remedy for such behavior. Contact our lawyers for help moving forward.
Although required, small business should proceed with having a subcontract drafted at the same time as the contractor teaming agreement. Without, this document, it becomes a more difficult process to litigate actions by the prime for not honoring the teaming agreement contents.
Prime contractors should make sure that their teaming contracts and subcontractors have solid provisions for non-performance and any damages flowing from the non-performance of the teaming contract.
The risk that after the prime contractor receives the prime contract, the prime contractor and the proposed subcontractor will be unable to reach an agreement on the terms of a subcontract.
- Understand that there is no privity of contract with the teaming subcontractor and the federal government. Direct communication to the federal government by the teaming subcontractor can be problematic.
- Make sure that no parties to the teaming arrangement is under suspension and debarment proceedings.
Additional CTA Enforceability and Teaming Contract Information
Find out whether your agreements are enforceable in Court.
Call Our Federal Teaming Contract Lawyers
For help with your federal government contractor teaming agreements (CTA), joint venture agreements, or compliance with federal subcontractor teaming arrangment regulations, call Watson’s government contract attorneys or call 1-866-601-5518 for a FREE Initial Consultation.