Teaming Arrangements
Alliance South Conference
Atlanta, GA
April 17, 2012
Dinora Gonzalez
DG Federal Procurement Advisors, LLC
. . .your connection to federal contracts
dgsmallbusiness@gmail.com
614-434-6672
DG Federal Procurement Advisors, LLC
Dannie James
Government Business CoachSultants LLC
“Where government and business meet”
djames@govbiz.us
404-557-0027
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Workshop Objective:
By the end of this workshop, participants will be
able to:
Use their knowledge of forming teams
to strategically build and position a
strong team in the federal space.
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Finding a partner for achieving your
federal contracting goals
What does the FAR say about Teaming?
The Government will recognize the integrity and
validity of contractor team arrangements; provided,
the arrangements are identified and company
relationships are fully disclosed in an offer or, for
arrangements entered into after submission of an
offer, before the arrangement becomes effective.
(FAR 9.603)
Sub-Contracting Opportunities
Prime contractors for goods/services $650,000+ and $1.5
million+ for construction must subcontract a percentage
of the contract to Small Business
Prime Contractor must submit contracting plan and
demonstrate good faith effort.
Subcontracting
Risk Free
Good Way to Get “your foot in the door”
Allows focus on core capabilities
For young business: good way to learn about federal
contracting
For mature businesses: Increases competitive edge,
market share, & visibility
Subcontracting Tips
Register with the CCR to be easily identified as a potential
subcontractor or to find companies to create subcontracting
relationships – www.ccr.gov.
Seek talents that compliment your company’s expertise
Review a detailed list of subcontracting opportunities around
the nation - http://www.sba.gov/subnet
Subcontracting Tips. . .
Small Business Liaison Officer (SBLO)
Program Administrator:
General overall responsibility for the contractor’s
subcontracting program to include:
Developing, preparing, and executing the Prime’s
subcontracting plan;
Monitoring vendor performance.
http://www.sba.gov/subnet
Mentor-Protégé Programs
 Protégé developmental assistance can Include:
 Management guidance relating to:
 Financial management
 Organizational management
 Overall business management/planning
 Business development
 Loans
 Engineering and other technical assistance
 Rent-free use of facilities and/or equipment
 Temporary assignment of personnel to the protégé for purpose of training
Identifying a Mentor or Protégé
Mentor and Protégé firms are responsible for selecting each
other as a Mentor or Protégé.
Additional Available Business Resources
 Subcontracting Directory – www.gsa.gov/smallbusiness
 GSA e-Library – www.gsaelibrary.gsa.gov
 Central Contractor Registration (CCR): www.ccr.gov
 FedBizOpps: www.fbo.gov
 Existing Business Relationships
Contractor Team Arrangements (CTAs)
Allow for two or more
GSA Schedule contract
holders to “combine”
products and/or services
into one offering,
enabling them to
compete for an order
they would not have
qualified for individually
 All CTA members:
 Hold a GSA contract
 Are responsible for their respective
offerings
 Are responsible for tracking sales and
remitting IFF for their portion
 Are governed by their respective
GSA contract pricing, terms, and
conditions
 Have privity of contract with the
government
 Can interact directly with the
government
http://www.gsa.gov/portal/cta
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Contractor Team Arrangements
 Team lead is typically the company initiating the CTA
 Team lead typically serves as buyer’s main POC
 If one invoice is issued for the team, the team lead
responsible for distribution
 Buyers can be responsible for submitting separate payments
directly to each team member
 Sales tracking is important – each team member is
responsible for reporting and remitting IFF on their provided
products and services
 Cannot charge more than the GSA-approved price list
Writing A Good Agreement:
1. Make the terms and conditions clear and simple so that all parties
understand the agreement.
2. Make sure to identify each party. Legal names are an important aspect
of a quality document.
3. Be specific, clear and detailed. Modifications should be treated with
the same effort as the original agreement.
4. Money or other compensation should be clarified with due dates, late
consequences, and method of payment.
5. Decide together what is fair and make sure to identify who has the
authority to cancel or terminate the agreement. Make sure to specify
what reasons are fair or if there has to be a reason at all.
6. Disputes often arise. How will you settle issues between the partners?
Perhaps a neutral party like a lawyer
Joint Ventures
 “A business enterprise in which two or more companies enter a
temporary partnership”
 In a joint venture both firms share, in some proportion, the
responsibility and the profits or loss on a contract
 They are considered affiliated for the purpose of that contract:
Extensive rules by SBA on “affiliations”
 Normally, the revenues or the employees of both firms are added
together to determine the size of a joint venture
 On some large federal procurements, a joint venture comprised of
only small businesses would qualify as a small business joint
venture
 Check with the agency or the SBA if unsure
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Partnership Value Add Checklist
 Positive reputations
 Successful contracts
 Accessible location (services more than products)
 Appealing niche
 Certifications
 Memberships
 Past performance
 Steady growth
Summary of Small Business Set Asides
Procurement Method Eligibility & Dollar
Thresholds
FAR Reference
Independently owned and operated, for
profit, not dominant in its field according
to NAICS Code
Automatically set aside for procurements $3K $150K
FAR 19.3, FAR
19.5
51% owned and controlled by a socially
and economically disadvantaged
individual, includes automatic SDB
Certification
Competitive: If > $4mil / $6.5 (Mfr)
51% owned and controlled by U.S.
citizens, principal office located in
HUBZone, 35% of employees must live in
HUBZone
Full & Open with a price evaluation preference of
10%
Small Business Category
Definition
Small Business
8(a)
Historically Underutilized
Business (HUB) Zone
Small Business
Set aside based on “Rule of Two” if >$150K
Sole Source: If < $4mil /$6.5. CO may accept –
OR if only one source available that can perform.
FAR 19.12, FAR
19.8
FAR 19.13
Competitive: If > $4mil / $6.5 (Mfr)
Sole Source: : If < $4mil /$6.5 OR if only one
source available that can perform.
Service Disabled VeteranOwned Small Business
51 % owned and controlled by one or more Competitive: If > $3.5mil / $6 (Mfr)
service-disabled veterans
Sole source: If < $3.5mil / $6mil (Mfr). OR if
only one source available that can perform.
FAR 19.14
Woman-Owned Small
Business / EDWOSB
51% owned and controlled by one or more
women / Economically Disadvantaged
women
FAR 19.15
Only eligible NAICS / NO Sole Source
Competitive: If > $4mil / $6.5 (Mfr)
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Government Agencies Operating International
 US Department of Commerce and USAID
 2011 Spending $17,155,195,551
 2011 Afghanistan $1,444,598.30
 US Department of State
 2011 Spending $10,633,142,886
 2011 Afghanistan $745,470,868
 US Corp of Engineers
 2011 Spending $381,416,755,524
 2011 Afghanistan $16,357, 359, 128
 US Department of Agriculture
 General Services Administration
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USAID plays an active and critical role in the promotion of U.S. foreign policy interests.
Asia, Afghanistan/Pakistan, Europe and Eurasia, Latin America and the Caribbean and Middle East
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The U.S. Army Corps of Engineers (USACE) supports war fighting and disaster relief operations by responding to local,
national and global disasters with contract construction support capabilities.
Pacific Ocean Davison, Transatlantic Division, Europe District
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International Partnership
 Benefits
o Geographical Representation
o Complementary Services
o Support Federal Government Efforts
o Support International Needs
o Financial Gain
 Concerns
o Vetting Process
o Trust Factor
o Unknown Variables
o Financial Lost
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