Teaming Presentation ISWM 18 Sep 09.pdf

Develop America's Airmen Today ... for Tomorrow

The First Command

Teaming Arrangements

Patricia Barber

Sep 18, 2009

Purpose

Make you aware of several Small Business

Administration (SBA) rules that affect the small business’s eligibility for contract awards

Why We have Rules

• To keep integrity in the small business program

• So “true” small business receive benefits of small business program

• Prevent “fronts”

WHAT IS A TEAMING AGREEMENT?

An arrangement pursuant to which . . .

Two or more companies form a partnership or joint venture to act as a potential prime contractor; or

A potential prime contractor agrees with one or more other companies to have them act as its subcontractor under a specified government contract or acquisition program

FAR 9.601

WHEN THE SMALL BUSINESS

IS THE PRIME

Issue to Avoid:

An SBA Determination of Being “Other Than Small” by virtue of:

• Affiliation

• Ostensible Subcontractor Rule

AFFILIATION

• When one firm controls or has the power to control another

• SBA considers factors such as ownership, management, previous relationships with or ties to another concern

• “Totality of Circumstances” Test

• Consequences of SBA Finding of Affiliation

EXCEPTIONS TO AFFILIATION FOR

NATIVE AMERICAN TRIBES

• Business concerns owned and controlled by Indian Tribes or wholly-owned entities of Indian Tribes are not considered to be affiliates of such entities

• Business concerns owned and controlled by Indian Tribes are not considered to be affiliated with other concerns owned by these entities because of their common ownership or common management.

• Affiliation will not be found based upon the performance of common administrative services, such as bookkeeping or payroll, so long as adequate payment is provided for such services.

OSTENSIBLE SUBCONTRACTOR RULE

• Subcontractor performs primary and vital requirements of a contract

• Small Prime is unusually reliant on Subcontractor

• Subcontractor was Prime but is no longer eligible because it has outgrown size

Factors Considered by SBA Ostensible Subcontracting Rule

• Contract management

• Expertise

• Marketing

• Degree of collaboration on proposal writing

• Relative amount of work performed by each party

• Discrete tasks subcontracted or work commingled?

• Who has complex tasks & costly functions?

• Sharing of profits

OTHER EXCEPTIONS TO AFFILIATION AND

OSTENSIBLE SUBCONTRACTOR RULE

• SBA-Approved Mentor Protégé Relationships

• SBA-Approved 8(a) Joint Ventures

• Unapproved SBA 8(a) Mentor Protégé Joint Ventures on non-8(a) procurements

Contact Information

Patricia Barber

Small Business specialist

AETC CONS, Randolph AFB TX

210.652.7084

Email: patricia.barber@randolph.af.mil mailto:patricia.barber@randolph.af.mil

Develop America's Airmen Today ... for Tomorrow

The First Command

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