Welcome ! Important  Considerations In  Teaming  Arrangements
Teaming Considerations <ul><li>Definitions </li></ul><ul><ul><li>Prime – Sub </li></ul></ul><ul><ul><li>Teaming Partners <...
Definitions
Prime – Sub  <ul><li>A  Prime – Sub  Relationship is – </li></ul><ul><ul><li>The traditional relationship most commonly fo...
Teaming Partnerships  <ul><li>A  Teaming  Partnership  Relationship  is – </li></ul><ul><ul><li>Essentially,  a Prime – Su...
Joint  Venture <ul><li>A joint venture  – </li></ul><ul><ul><li>Represents Formation  of  a  New  Legal  Entity </li></ul>...
Competing  As  a  Small  Business  JV <ul><li>Total  Revenues  or  Employees  Determine  Size  </li></ul><ul><li>Exception...
Affiliation
“ Affiliation”   <ul><li>Others have power to control your business through: </li></ul><ul><ul><li>Common management  </li...
<ul><li>Basis for Exceptions:  </li></ul><ul><li>Procurement  too  large  for  </li></ul><ul><li>small  business  to  comp...
Ostensible  Subcontracting
<ul><li>Who will manage the contract? </li></ul><ul><li>Who will provide Program Management? </li></ul><ul><li>Which party...
Summary <ul><li>Joint Ventures  Are  A  Separate,  New Legal  Entity  </li></ul><ul><ul><li>(CCR,  DUNS, CAGE, etc.) </li>...
Thank You ! Teaming  Considerations
Ed Kurtz PCR / CMR / Size Specialist  US Small Business Administration Office of Government Contracting Colorado Springs O...
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9. sba important_considerations_in_teaming_arrangement

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  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • &amp;quot;Joint Ventures and Subcontracting&amp;quot; Dwight.Johnson@sba.gov Hubert.J.Carter.Jr@nwo02.usace.army.mil
  • 9. sba important_considerations_in_teaming_arrangement

    1. 1. Welcome ! Important Considerations In Teaming Arrangements
    2. 2. Teaming Considerations <ul><li>Definitions </li></ul><ul><ul><li>Prime – Sub </li></ul></ul><ul><ul><li>Teaming Partners </li></ul></ul><ul><ul><li>Joint Venture </li></ul></ul><ul><li>Affiliation </li></ul><ul><li>Ostensible Subcontracting </li></ul><ul><li>Summary </li></ul>Agenda
    3. 3. Definitions
    4. 4. Prime – Sub <ul><li>A Prime – Sub Relationship is – </li></ul><ul><ul><li>The traditional relationship most commonly found </li></ul></ul><ul><ul><li>“ Privity of Contract” </li></ul></ul><ul><ul><ul><li>– exists ONLY between Prime and Govt </li></ul></ul></ul><ul><ul><li>Subs have a relationship ONLY with the Prime </li></ul></ul><ul><ul><li>Good way to “Break In” to Government Contracting </li></ul></ul><ul><ul><li>Less “Secure” than Other Forms of Relationships </li></ul></ul>
    5. 5. Teaming Partnerships <ul><li>A Teaming Partnership Relationship is – </li></ul><ul><ul><li>Essentially, a Prime – Sub relationship </li></ul></ul><ul><ul><li>Partnership is “warranted” in Some Form </li></ul></ul><ul><ul><li>Govt Approval Normally Needed to Dissolve </li></ul></ul>
    6. 6. Joint Venture <ul><li>A joint venture – </li></ul><ul><ul><li>Represents Formation of a New Legal Entity </li></ul></ul><ul><ul><li>Formed to Pursue A Specific Contract </li></ul></ul><ul><ul><li>Can Be Populated or Un-Populated </li></ul></ul><ul><ul><li>JV Agreement </li></ul></ul><ul><ul><ul><li>– Spells out ALL Aspects of the “Arrangement” </li></ul></ul></ul><ul><ul><ul><li>– Reviewed by Contracting Officer, not SBA [Except 8(a)] </li></ul></ul></ul>
    7. 7. Competing As a Small Business JV <ul><li>Total Revenues or Employees Determine Size </li></ul><ul><li>Exceptions Exist For Large Procurements </li></ul><ul><li>JV’s May Compete As A Small Business, IF… </li></ul><ul><ul><ul><li>Affiliation Is Not An Issue </li></ul></ul></ul><ul><ul><ul><li>Ostensible Subcontracting Is Not An Issue </li></ul></ul></ul><ul><li>Offer Small Businesses Opportunity to Compete For Larger or More Complex Contracts </li></ul>Key Points
    8. 8. Affiliation
    9. 9. “ Affiliation” <ul><li>Others have power to control your business through: </li></ul><ul><ul><li>Common management </li></ul></ul><ul><ul><li>Identical business interests </li></ul></ul><ul><ul><li>Common stockholders </li></ul></ul><ul><ul><li>Ownership of multiple businesses </li></ul></ul><ul><ul><li>Contractual relationships </li></ul></ul><ul><ul><li>Joint venture arrangements </li></ul></ul><ul><ul><li>(“new” small business) </li></ul></ul>You are not viewed as being totally independent
    10. 10. <ul><li>Basis for Exceptions: </li></ul><ul><li>Procurement too large for </li></ul><ul><li>small business to compete. </li></ul><ul><li>Conditions for Exceptions: </li></ul><ul><li>Large procurement – size standards: </li></ul><ul><ul><ul><li>Greater than half the size of revenue-based size standard; OR </li></ul></ul></ul><ul><ul><ul><li>Over $10 million for employee-based size standard </li></ul></ul></ul>Affiliation Exceptions <ul><ul><ul><li>Size Standard Regulations: 13 CFR 121.103(h)(3) </li></ul></ul></ul>
    11. 11. Ostensible Subcontracting
    12. 12. <ul><li>Who will manage the contract? </li></ul><ul><li>Who will provide Program Management? </li></ul><ul><li>Which party possesses background and expertise to perform contract? </li></ul><ul><li>Who “chased” the contract? </li></ul><ul><li>What degree of collaboration was there on the bid? </li></ul><ul><li>Are there discrete tasks to be performed or is there a commingling of personnel and materials? </li></ul><ul><li>What is the relative amount of work to be performed by each? </li></ul><ul><li>Which party performs the most complex and costly contract functions? </li></ul>Ostensible Subcontracting Does the subcontractor have control? Here are the factors:
    13. 13. Summary <ul><li>Joint Ventures Are A Separate, New Legal Entity </li></ul><ul><ul><li>(CCR, DUNS, CAGE, etc.) </li></ul></ul><ul><li>Joint Ventures Offer Partners Most “Security” </li></ul><ul><li>Affiliation Rules Affect Size </li></ul><ul><li>Ostensible Subcontracting Rules Affect Size </li></ul><ul><li>Choose Your Partners Carefully ! </li></ul>
    14. 14. Thank You ! Teaming Considerations
    15. 15. Ed Kurtz PCR / CMR / Size Specialist US Small Business Administration Office of Government Contracting Colorado Springs Office [email_address] (719) 556 – 7935 / (719) 333 – 2546 Contact Information

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