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 agreement 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.
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 contractor teaming arrangements
- 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)
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 businesses want to avoid executing a teaming contract with large businesses. See FAR 9.6. This causes serious problems with SBA affiliation rules. The teaming relationship under procurement laws actually forms 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 contracts.
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.
CTA 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 arrangement 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 teaming 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 arrangements 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.
How Enforceable is Your CTA Teaming Agreement in Court?
Teaming agreement vs subcontract Impact
Small businesses that contract with the government often find put that the teaming contract 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 problem is that your contractor agreement is simply an agreement to agree should the contract be awarded.
- The are other documents you should have in place beside 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, 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.
Help with Pre-Teaming Agreement Due Diligence
If you are contemplating doing business with the government or using a teaming partner to submit a federal bid, you want to conduct your due diligence on your potential teaming partner. Failure to properly conduct your pre-teaming agreement investigations can potentially lead to criminal consequences later in the performance stage or even a termination for default.
Additional Contractor 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 regulations, call Watson’s government small business contract attorneys or call 1-866-601-5518 for a FREE Initial Consultation.