Subcontractor team arrangement and government contracts

  • Learn how teaming agreement vs joint venture rules apply to your government contracts.
  • Did you know that your teaming agreements by themselves may not be enforceable in court?
  • Avoid costly legal mistakes with SBA affiliation.

Knowing whether or not your teaming agreement template or other generic subcontractor agreements can withstand allegations of SBA affiliation in a bid protest should always be a major concern for small businesses and large contractors.

Although SBA affiliation rules have significantly changed,  teaming contracts and other types of contract arrangments and independent contractor forms are still being challenged as violation SBA regulations.

  • Using a generic subcontractor agreement template causes substantial grief when the competition launches a small business size protest.
  • Templates that do consider the new SBA rules may lead to affiliation.

Companies can avoid this headache early in the bidding phase or simply get professional help from government contract attorneys that understand the problems associated with simply copying and pasting generic teaming agreements.

Government Contracts Teaming Agreement Services

When it comes to business partnership agreements and helping with government subcontractor teaming agreements, our government small business attorneys provide a wide array of services including:

  • Draft subcontract agreement documents 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 agreements
  • Assessment of similarly situated businesses in each subcontractor agreement
  • Application of joint venture agreements and SBA affiliation rules to independent contractor forms.
  • Meeting government contracts and CTA 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 agreement terms
  • Small Business Size protest litigation and appeals to SBA Office of Hearings and Appeals (SBA OHA)

At Watson & Associates, LLC our federal subcontractor agreement 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.

When it comes to your government contract subcontractor agreement, we provide over 30 years of combined experience to companies that focus on proactive legal solutions and thinking out of the box. 

FAR 9.601 SBA rules have not eliminated affiliation with contract agreement and business partnership arrangements:  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 agreements, and CTA teaming arrangements 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.

Teaming Arrangements & Team Definition

Under FAR 9.6, there is no actual team definition or description of contract agreement. Instead, companies entering into small business subcontracts or CTA arrangements should apply the definition of teaming with the relevant rules to also apply to teaming partnership agreements. This includes 13 CFR 121.103 and federal contracts FAR limitations on subcontracting rules.

Is Your Subcontractor Agreement Enforceable in Court?

During which stage in team formation does teaming agreement 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 CTA team arrangements are, by themselves, enforceable contractual agreements in court. 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 agreement 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.

Initial bidding stage through contract closeout: We also provide legal advice and consulting from the initial bidding stage through the performance stage of the contract regarding team agreements and joint venture agreements. Our government small business attorneys also provide litigation assistance when a small business size standard protest is filed.

CTA Subcontractor Agreements and SBA Affiliation – Ostensible Subcontractor Rule

When companies fall astray from the definition of ostensibly under FAR 9.601 or 13 CFR 124.103, there are harsh consequences for drafting an exclusive teaming agreement for unidentified bids. Our Federal subcontractor agreement lawyers help federal government contractors to avoid costly legal mistakes under the Ostensible Subcontractor Rule.

  • We also review each contractor agreement for compliance with the Limitation on Subcontracting Rule under FAR Part 52.219.9.
  • Learn more about similarly situated small businesses and new rule.
  • Be mindful of executing an exclusive teaming agreement

Additional CTA Enforceability and Contractual Agreement Information

Avoid Costly Legal Mistakes With Hiring Incumbent Personnel Under the Ostensible Subcontractor Rule.

Is your business team partner providing the primary and vital parts of the contract?

Find out whether your agreements are enforceable in Court.

Call Our Federal Teaming Agreements Lawyer

For help with your federal subcontractor agreements (CTA), joint venture agreements, or compliance with federal subcontractor teaming agreement regulations, or to make sure that you meet the statutory team definition and new SBA rules, call Watson’s government contract attorneys or call 1-866-601-5518 for a FREE Initial Consultation.