Avoid costly legal mistakes with contractor teaming agreements, joint ventures and the various forms of teaming arrangements. Our government contract small business lawyers help federal contractors in all states to develop sound legal relationships that can minimize the chances of affiliation and lose out on millions in government contracts.
Many small businesses attempt to use generic teaming templates. However, they may not quite understand the underlying regulations that can cost them a lucrative government contract for failure to comply with the rules. The contract teaming agreement lawyers at Watson & Associates, LLC help clients to comply with the rules and minimize the chances of getting adverse results from small business size protests or SBA affiliation rules.
Federal government contractors may choose to execute a teaming agreement for government contracts or joint venture agreements in order to get larger contracts and to increase past performance scores in the future. Having an attorney that understands the dos and don’ts is essential to surviving challenges to your teaming arrangement.
As government contract attorneys, we help you to align your prime and subcontractor relationships based on the fact that disputes may occur. Our clients are aware that the teaming agreement is not by itself enforceable in court. There are other potential documents needed to protect your rights.
The FAR and other procurement regulations create several advantages to government contractor teaming agreements. Not only does it help small businesses to develop enough experience to secure future contracts. The rules now allow for similarly situated small business to avoid most challenges to the limitations on subcontracting rules and avoid most aspects of affiliation under SBA regulations.
Teaming agreement construction is critical. How you form the relationship and articulating the roles of the teaming partners are also essential to avoid criminal liability for procurement fraud and avoid the backlash of criminal investigations.
- The terms of the contractor teaming agreement by themselves are generally unenforceable in court.
- Without the proper formation and business arrangement in place, small businesses can be targets and end up losing their contracts.
- Workshare language must be clear and concise
Government Contractor Teaming Agreement Attorney 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:
- Minimizing the chance of forfeiting an awarded contract because of an SBA size protest
- Drafting and review of teaming agreements
- Addressing disputes about
- Complying with federal government subcontractor contract law under FAR 9.601
- Avoiding limitation on subcontracting violations between teaming members
- Legal advice on new SBA affiliation rules 13 CFR 121.103 when to using teaming contracts
- Some prime and subcontractor teaming arrangement CTA and joint venture agreement disputes
- Small Business Size protest litigation and appeals to SBA Office of Hearings and Appeals (SBA OHA)
Teaming Agreement Pros and Cons
Understand Government contractor teaming agreement pros and cons: Many small businesses use the terms teaming agreements and joint ventures in the same breath. However, you will now know they each mean something different when using a federal government contract. Depending on the specific contract in question ( services vs construction), using a contractor teaming at has its pros and cons.
Pros of Contractor Teaming Arrangements ( CTA)
- When deciding your approach to bidding on a federal government contract, your company can reach larger contracts if you utilize a contractor teaming arrangement (CTA) 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 Teaming Arrangements
- Your CTA agreement, by itself, may not be an enforceable contract.
- (Differences between teaming contracts and joint ventures) The teaming contract has legal penalties and violations can originate from 13 CFR 121.103 but joint venture regulations stem from 13 CFR 124.513. Contractor 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 contract 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 traditional prime and subcontractor relationship.
- The prime contractor and subcontractor must negotiate in good faith
- 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 arrangement for federal government contracts and a joint venture also captures the distinction of the joint venture being able to merge into mentor protégé relationships where a contractor team arrangement is not designed to.
GSA Contractor Teaming Arrangements CTA
A GSA Schedule Contractor Teaming Arrangement (CTA) is where two or more GSA Schedule contractors team work together to develop a solution yo meet the agency’s requirements. With GSA CTAs each contractor complements the other’s resources and better provides with each team to qualify together when one could not qualify on its own. FAR 9.6 does not apply to GSA CTAs.
The Schedules CTA does not create a separate legal entity, but allows GSA contractors to meet customer’s requirements by combining the supplies and/or services from each team member’s separate Schedule contract in response to a buyer’s RFQ.
Benefits for GSA CTA Schedule Contractors
By using a GSACTA, government customers can:
- Get a total solution by contractors who form a teaming relationship
- The Agency can meets its small business goals
By forming a CTA, GSA Schedule contractors can:
- Compete for Schedule orders for which they wouldn’t otherwise individually qualify
- Reduce risk by sharing responsibilities with other CTA team members
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, your CTA teaming agreement workshare language cannot violate the limitations on subcontracting regulations.
- Avoid mistakes with workshare language issues when there is no similarly situated small business
- Understand that although your company may be a valid subcontractor under the rules that there can be still a violation of the Ostensible Contractor Rule.
Find out whether your contracts are enforceable in Court.
Call Our Government Contractor Teaming Agreement Lawyers
For help assessing the award of a subcontract with your contractor teaming arrangement for government contracts (CTA) structure, teaming agreement pros and cons, joint venture agreements, or compliance with federal subcontractor regulations, call Watson’s government small business contract attorneys or call 1-866-601-5518 for a FREE Initial Consultation.