Teaming Arrangements

Alliance South ConferenceAtlanta, GA

April 17, 2012

Dinora GonzalezDG Federal Procurement Advisors, LLC

. . .your connection to federal contractsdgsmallbusiness@gmail.com

614-434-6672

DG Federal Procurement Advisors, LLC

Dannie JamesGovernment 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 OpportunitiesPrime 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 capabilitiesFor 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 ProgramsProtégé 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 ProtégéMentor and Protégé firms are responsible for selecting each

other as a Mentor or Protégé.Additional Available Business ResourcesSubcontracting 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 contractAre responsible for their respective offeringsAre responsible for tracking sales and remitting IFF for their portionAre governed by their respective GSA contract pricing, terms, and conditionsHave privity of contract with the governmentCan interact directly with the government 13

MAS/FSS

http://www.gsa.gov/portal/cta

Contractor Team Arrangements

Team lead is typically the company initiating the CTATeam lead typically serves as buyer’s main POCIf one invoice is issued for the team, the team lead

responsible for distributionBuyers can be responsible for submitting separate payments

directly to each team memberSales 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

MAS/FSS

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 contractThey 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 ChecklistPositive reputationsSuccessful contractsAccessible location (services more than products)Appealing nicheCertificationsMembershipsPast performanceSteady growth

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Summary of Small Business Set AsidesSmall Business Category Definition 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 19.5

8(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 19.13

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 19.14

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

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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

21Pacific 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.

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International Partnership Benefits o Geographical Representationo Complementary Services o Support Federal Government Efforts o Support International Needso Financial Gain

Concerns o Vetting Process o Trust Factor o Unknown Variableso Financial Lost