Nationwide Help for Federal Contractors with contractor teaming agreements, joint ventures and the various forms of contractor teaming arrangements. Avoid Affiliation and getting your contract taken away.
Small businesses understand the basics about using the teaming agreement when bidding for a federal government contract. However, problems occur when one of the parties allegedly do not comply with the teaming contract or puts the other party at risk. Having the right lawyer in place can save your tens of thousands in litigation.
Contractor Teaming Agreement Consulting Services
When you are awarded the prime contract, or even during the bidding stages, our government contract joint ventures and teaming agreements lawyers can help you with:
- Avoiding improper use of exclusive teaming agreements over a long period of time
- Minimizing the chance of forfeiting an awarded contract because of a size protest
- Drafting of contractor team arrangements and review of federal independent contractor forms
- Complying with federal government subcontractor contract law under FAR 9.601
- Avoiding limitation on subcontracting violations and teaming agreement workshare language penalties
- Legal advice on new SBA affiliation rules 13 CFR 121.103 when to use a contractor team arrangement and execution of legal partnership contracts
- Consulting about teaming agreement pros and cons when you have a contract with the government
- Some prime and subcontractor team arrangement CTA and joint venture agreement disputes
- Small Business Size protest litigation and appeals to SBA Office of Hearings and Appeals (SBA OHA)
- Get teaming agreement templates that can apply to your specific capability
- Compare the teaming contract contents to SBA rules of affiliation
- Avoid generic contractor agreements
- Despite the similarly situated small business rule, get a review for a potential size protest.
Instead of just drafting generic contract teaming agreements for your upcoming government contract, your competition will try to file a small business size protest and attack your teaming arrangement with your potential subcontractor.
- Prompt turn around
- Nationwide help for all federal government contractors
- FREE Initial Consultation
AVOID GETTING YOUR CONTRACT TAKEN AWAY IN A SMALL BUSINESS SIZE PROTEST.
In Federal Contracting What is a Teaming Agreement?
A teaming agreement in federal contracting involves two or more companies that pool their resources to bid on a government contract. Small business want to avoid executing a teaming contract with large business. This causes serious problems with SBA affiliation rules. The teaming relationship under procurement laws actually form a traditional prime and subcontractor relationship. Government teaming contracts should be written for a specific contract and small businesses should avoid drafting general templates and using the agreement for multiple contract.
Over 30 years of total experience in federal government contracting: Watson & Associates’ government contract law attorneys and consultants help small businesses and large DOD contractors nationwide to navigate around the regulator landmines of contractor teaming agreements. If you are bidding on a federal government contract and are contemplating using a contractor teaming arrangement, then our procurement team can help you to understand the difference with your teaming agreement vs subcontract requirements.
For example, we help you to focus on avoiding affiliation under SBA small business regulations (causing you to lose the awarded contract), drafting the appropriate teaming agreement workshare language, prime contractor agreements with similarly situated small businesses and subcontractor agreements that comply with the Federal Acquisition Regulations.
TEAMING AGREEMENT PROS AND CONS
Understand Government contractor teaming agreement pros and cons
Many small businesses use the terms teaming agreement and a joint venture in the same breath. However, you will now know they each mean something different when using in a federal government contract. Depending on the specific contract in question ( services vs construction), using a contractor teaming agreement has its pros and cons.
Pros of Teaming Arrangements
- When using a teaming agreement on a federal government contract, your company can reach larger contracts if you utilize the teaming arrangement correctly.
- If you have a similarly situated company as your teaming partner, you may be able to get some legal benefit when it comes to the limitations on subcontracting laws.
Cons of Small Business Team Arrangments
- Your teaming agreement, by itself, may not be an enforceable contract.
- (Differences between teaming contracts and joint ventures) The teaming agreement has legal penalties and violations can originate from 13 CFR 121.103 but joint venture regulations stem from 13 CFR 124.513. Teaming agreements should primarily be used when there is a traditional prime sub relationship but you want to also use the teaming partner’s experience to improve your chances of winning the contract (you want to also be aware of the Ostensible Subcontractor Rule.)
When using a contractor team arrangement to gain larger contracts, one of the cons is that you should pay specific attention to make sure that you are not put in a position where you could not have received the contract but for the teaming partner.
- A teaming agreement still has the tradition prime and subcontractor relationship.
- A joint venture creates a separate identity as the offeror, in most cases, where the individual companies maintain their separate identities.
- Understand that when utilizing government contracts for small businesses, you cannot generally use populated joint ventures.
Joint ventures are looked at as one unit for the same of bidding on government contracts. Small businesses should be also mindful that according to the SBA’s own rules, a joint venture does not have to be a separate legal entity. This is clear in the Federal Register in 2016.
- The difference between a teaming agreements for government contracts and a joint venture also captures the distinction of the joint venture being able to merge into mentor protégé relationships where the teaming arrangement is not designed to.
HOW ENFORCEABLE IS CONTRACTOR TEAM ARRANGEMENT IN COURT?
Teaming agreement vs subcontract Impacts
Small businesses that contract with the government often find put that the teaming document may not serve as a valid contract to enforce rights between the parties. In the case of CGI Fed’l Inc. v. FCi Federal, Inc., No. 170617 (Va. June 7, 2018), the Virginia Supreme Court decision highlighted the problems that small contractors face when trying to enforce teaming agreements. The problems is that the agreement is simply an agreement to agree should the contract be awarded.
- The are other documents you should have in place besides the mere teaming contract
- Teaming agreements are primarily used at the bidding and evaluation stages
CONTRACTOR TEAMING AGREEMENT WORKSHARE LANGUAGE
Knowing when to use a teaming agreement also means knowing what level of work to pass on to the subcontractor /teaming partner. For example, you teaming agreement workshare language cannot violate the limitations on subcontracting regulations. If you are drafting a federal government teaming contract, your first goal should be to avoid affiliation and the Ostensible Subcontractor Rule. They both can be the kiss of death to losing millions of dollars in government contracts.
Additional Teaming Arrangement Information
Find out whether your contracts are enforceable in Court.
Call Our Contractor Teaming Agreement Lawyers
For help assessing the award of a subcontract with your contractor teaming agreements for government contracts (CTA) structure, teaming agreement pros and cons, joint venture agreements, or compliance with federal subcontractor teaming arrangement regulations, call Watson’s government contractor team arrangement attorneys or call 1-866-601-5518 for a FREE Initial Consultation.