Teaming: ing: Two or more companies coming together to pursue and fulfill a government project Each company keeps their separate identity The companies enter into a formal teaming agreement (a form a partnership agreement recognized by the government for the purpose of the project at hand) One company has to be the prime and other companies are subcontractors
Joint nt Venture ture (JV) V): Two or more companies coming together to pursue and fulfill a government project The companies form a new LLC or corporation for the specific purpose of fulfilling the contracts won Example: Company A & Company B forming a new company called AB, LLC. The new company acts as the prime.
Government Agencies Agency is the Customer with a need Program managers, buyers, procurement departments, etc Limited contracting authority-typical <$25K Example: CDC, HHS, DOD, GSA, State, Cities, Local Municipalities, etc End Large companies – sub goal 35% Users Teaming Alliances with certified Become a subcontractor to large companies: WOSB, SDVOSB, 8a, companies HUBZone, Section 3, VOSB, Required to have Small Business WBE, DBE, MBE, etc. Program Large Small SBLO = Small Bus. Liaison Officer Similar industries, goals, ethics, Diversity Manager vision, mission, etc. Primes Businesses Subcontracting Manager Mentor Protégé relationships About 70% of all contracts require Teaming/JV collaboration/teaming, subs, etc It’s about Co -opetition Cooperating with your competitors Contractors Vendors SBS = Small Bus. Specialist SADBUS = Small and Disadvantaged Bus. Utilization Small Bus Specialist Contracting CO = Contracting Officer KO = Contracting Officer Advocates OSDBU = Office of Small Officers PCO = Procurement C.O. Disadvantaged Bus. Utilization TCO = Termination C.O. ACO = Administrative C.O. SBA B.O.S. = Bus Opportunity C.S. = Contracting Specialist Build Contracting Department Gov’t Specialist (8a Program) COR = Contracting Officer Staff: Proposal writer, Capture Representative Manager, Relationship manager, Dept. COTR = C.O. Technical Representative Contracting Spec, Research team, FPO = Federal Project Officer Cost estimator/CPA, Admin. Hire former KO GSA = General Service Administration Invest in Consulting firm DLA = Defense Logistics Agency Utilize GCA Coaching Program 4
Use of carefully structured teaming agreements for subcontracts, joint ventures and strategic alliances can allow companies, especially small businesses, to expand their documented capabilities and the pursuit of projects well beyond their normal capabilities.
These hese are relat atio ionships ships betwee ween n two wo or more re parties ies to pursue sue a set of agreed eed upon on goals als or to meet et a critic ical al need eed while hile remain mainin ing g indepen dependen dent. . Format ormatio ion usua uall lly progr gres esses ses in stages ges simil milar ar to these: se: Netwo tworking king & T Target get Oppor portu tunitie ities Identific entificat atio ion Str trategy ategy Develo velopmen pment Partne ner Asses essme sment Agreed eed Assign gnmen ent t of Roles oles & Respo ponsibi ibili liti ties es Con ontract tract Negotia gotiati tion Alli lian ance ces in Opera eratio ion Termi rminat atio ion of Alli lian ance ces
If all is goin ing g well ll with th cur urren ent t busin iness ess, , why hy chan hange? ge? Are our ur core re compet ompeten encie cies compa ompatible tible with h ta targeted geted marke ket? t? Do we have e ve verifi fiable able posit itiv ive e past performa ormance ce? Do we have e the criti tica cal l oper erat atio ional al resour ources? ces? Is our r firm m adequ quat ately ely capit itali alized ed and d do we have e acce cess s to out utside side fi finan nancia cial l resourc ources as necess ecessar ary? What hat are our r con onstr train aints? s? What hat can an other hers s offer er to improve rove our ur competit ompetitive ive positio sitionin ing? g? Do we have e the right ht people ople and d commu ommuni nicativ cative e abili liti ties es needed eeded to defin initize itize our r agreem eements nts ve verball bally and d formal rmally ly in writi ting? g? Have ve we cons onsider idered ed our ur needs eeds for legal al guidan idance e and d assist stance? ance?
Teaming ing Agr greements ents in in ge general al happen pen when n part rtie ies s enter r in into arr rrangem gement ent in in wh whic ich: h: Two or or m more compani anies es form m a p partnershi ership p or join int vent ntur ure e to a act as a p potent ntia ial l prim ime* * contracto tor; ; or A po potential tial pri rime* e* co contra ract ctor or agr grees s wit ith one or r more other companies anies to ha have e them act as it its subc bcontr ntrac actors ors unde der r a sp specifie ified d commer ercia ial l or go govern rnment ment co contra ract ct or a r acq cquisitio isition n pro rogr gram. m. *O *Or a a hi high gher er tie ier subc bcontr ntrac actor or
Cri ritical tical issues ues ma may in y include: clude: Conf nfidentia identiality lity Exclusivity clusivity Good od-faith faith negoti gotiations ations Wi Withdrawal hdrawal fr from m the e team am Documen cument t ownership wnership Fina nancial ncial Respo ponsibilities nsibilities Post st-Award Award Responsib sponsibilities ilities
Formal maliz izes es the relatio tionshi nship p between een the team members bers an and normall mally y shoul uld d ad address: ess: Proposal posal prepar aration ation & s & submi bmittal ttal responsibi onsibiliti lities es Purpose, pose, Requireme rement(s) nt(s) Pursui rsuing ng or Solicita citatio tion( n(s) s) SOW OW/Deliver Delivery y tas asks ks iden entifi tified ed upon on co contra tract ct aw awar ard Protection of team members’ proprietary information Adheri ring ng to terms ms and co condi ditio tions ns Re Responsibil nsibilitie ities s for dai aily y man anage agement ment af after erawar award Ob Obligati gations ons to negotia otiate te in good od faith h after r award Excl clusiv usivity ity prote tections ctions for all partie ies s to ensur ure e no team m membe embers rs will ac act as as both h tea eam m membe embers rs an and co compe mpetit titor ors s utiliz izing ing other her firms ms on the same e targe get(s t(s)
Some e things ngs to look k for when ch choosing osing a tea eami ming ng par artne ner: Clarity ity of Communicati mmunication on & & Commi mmitment tment Proposa oposal l skills lls Positiv sitive e cl client ent stan anding ding Compl mplimentar imentary y not co compe mpetit titive ive Busine iness ss acu cumen men & e & ethic ics Due e diligen ence ce ev eval aluation uation - “Trust, but Verify” Strengthen ngthens s our presentation ntation to Client Adds s ca capabili bilitie ties s to deliver iver on time me within in budget get
Jo Joint t Ventu ture re (JV JV) “An agreement between an eligible 8(a) participant and one or more other business concerns to establish a new entity solely for the purpose of performing no more than three contracts over a two year period.” CAPACITY PACITY “The overall ability of a business to meet the quality, quantity and time requirements of the contract.”
8(a) ) firm m lacks ks the capacity city to perform form the contract ntract in indepe dependently ndently Joint nt Venture ture (JV) V) arrangement gement is fair and equita uitable ble JV will ll be of substant tantial ial bene nefit fit to the 8(a) ) firm 8(a) a) fir irm m brings ings some mething thing of va valu lue e to the JV othe her r than n 8(a) ) certification tification
Adequate bonding Adequate financing Technical expertise Experience in similar requirements Access to specialized/required equipment Access to appropriate facilities Appropriate management Adequate Labor
Size Counts: ◦ Small Business Set-Asides and 8(a) Procurements JV must meet applicable size standard of the solicitation A large business cannot be a JV participant on a Small Business or 8(a) Procurement ◦ One exception: 8(a) Mentor Protégé Program
Each concern must be small for the procurement The size of at least one 8(a) participant to the JV must be less than one half the size standard of the size standard for the applicable NAICS code for the procurement; and Revenue based size standard – procurement must exceed half the size standard for the applicable NAICS Code; or or Employee based size standard – procurement exceeds $10.0 Million
Jo Joint nt Ve Vent ntur ure = Af = Affil filiation iation 13 CFR 121.103(h)(2) In joint ventures, the joint venture partners are affiliated with regards to that procurement, and the revenue/employees will be combined to determine size, unless….
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