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Teaming Arrangements Alliance South Conference Atlanta, GA April 17, 2012.

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Presentation on theme: "Teaming Arrangements Alliance South Conference Atlanta, GA April 17, 2012."— Presentation transcript:

1 Teaming Arrangements Alliance South Conference Atlanta, GA April 17, 2012

2 Dinora Gonzalez DG Federal Procurement Advisors, LLC...your connection to federal contracts DG Federal Procurement Advisors, LLC

3 Dannie James Government Business CoachSultants LLC “Where government and business meet”

4 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. 4

5 Finding a partner for achieving your federal contracting goals

6 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)

7 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.

8 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

9 Subcontracting Tips Register with the CCR to be easily identified as a potential subcontractor or to find companies to create subcontracting relationships – Seek talents that compliment your company’s expertise Review a detailed list of subcontracting opportunities around the nation -

10 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.

11 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

12 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 –  GSA e-Library –  Central Contractor Registration (CCR):  FedBizOpps:  Existing Business Relationships

13 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 13

14 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

15 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

16 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 16

17 Partnership Value Add Checklist  Positive reputations  Successful contracts  Accessible location (services more than products)  Appealing niche  Certifications  Memberships  Past performance  Steady growth

18 18 Summary of Small Business Set Asides Small Business CategoryDefinition Procurement Method Eligibility & Dollar Thresholds FAR Reference Small Business Independently owned and operated, for profit, not dominant in its field according to NAICS Code Automatically set aside for procurements $3K - $150K Set aside based on “Rule of Two” if >$150K FAR 19.3, FAR (a) 51% owned and controlled by a socially and economically disadvantaged individual, includes automatic SDB Certification Competitive: If > $4mil / $6.5 (Mfr) Sole Source: If < $4mil /$6.5. CO may accept – OR if only one source available that can perform. FAR 19.12, FAR 19.8 Historically Underutilized Business (HUB) Zone Small Business 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% Competitive: If > $4mil / $6.5 (Mfr) Sole Source: : If < $4mil /$6.5 OR if only one source available that can perform. FAR Service Disabled Veteran- Owned Small Business 51 % owned and controlled by one or more service-disabled veterans Competitive: If > $3.5mil / $6 (Mfr) Sole source: If < $3.5mil / $6mil (Mfr). OR if only one source available that can perform. FAR Woman-Owned Small Business / EDWOSB 51% owned and controlled by one or more women / Economically Disadvantaged women Only eligible NAICS / NO Sole Source Competitive: If > $4mil / $6.5 (Mfr) FAR 19.15

19 19 Government Agencies Operating International  US Department of Commerce and USAID  2011 Spending $17,155,195,551  2011 Afghanistan $1,444,  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

20 20 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

21 21 Pacific Ocean Davison, Transatlantic Division, Europe District 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.

22 22 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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