SBTeamingArrangements.ppt
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Ben R. Manzano Procurement Analyst/PCR US Small Business Administration Office of Government Contracting Area I Tel (617) 565-5587 Fax (617) 565-8186 E-fax (202) 481-6552 E-mail Ben.Manzano sba.gov
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Small Business Teaming Arrangements Ben R. MANZANO SBA Procurement Center Representative Boston, MA
Does the FAR Recognize 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)
What Types of Contractor Teams Does the FAR Recognize?
FAR 9.601 Reads:
“Contractor team arrangement,” as used in this subpart, means an arrangement in which—
| Two or more companies form a partnership to act as a potential prime contractor |
| A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program. |
What are the Advantages of Small Business Teaming?
| The JV or team is able to compete for larger more technically complex contracts by combining the capabilities and assets of various team members. |
| Relaxed affiliation rules for SB joint ventures and prime/sub teams on procurements that meet certain requirements |
| Relaxed performance of work requirements on procurements that meet certain requirements |
What are Performance of Work Requirements?
| Included in contract only if contractor must be small to be eligible for award |
| FAR clause 52.219-14, “Limitations on Subcontracting” |
| Specifies per cent of contract work that must be performed by the small business prime contractor. |
| Addressed in detail at 13 CFR 125.6 |
What is a SB Prime/Sub Team?
| SB prime contractor agrees with one or more subcontractors to submit an offer on a SB set-aside procurement that meets certain requirements. |
| The prime/sub team is small if each member of the team qualifies as small for the procurement |
| Performance of work requirements apply to the cooperative effort of the team. |
SB Prime/Sub Team – cont’d
| SB prime contractor agrees with one or more subcontractors to submit an offer on a SB set-aside procurement that does not meet certain requirements. |
| the team is small only if the combined annual receipts or employees of all firms in the team meet the size standard for the procurement |
| Performance of work requirements must be met solely by the SB prime contractor. |
| Prime/sub teaming not particularly beneficial |
| Usually the teaming agreement is executed prior to submission of offer and included with offer. |
| FAR allows a team to be formed after contract award |
| Contract is awarded to the SB prime contractor who is solely responsible for contract performance |
| Government has privity of contract only with the SB prime contractor. |
| A business concern that is not small under the size standard for the procurement (a large business) cannot be a member of the prime/sub team. |
| However – a large business can be a subcontractor on the contract so long as the prime/sub team meets the performance of work requirement. |
Where Can I Find the CFR’s
| Federal Regulations (CFR) on-line: |
| http://ecfr.gpoaccess.gov |
Size regulations -- 13 CFR Part 121 8(a) & SDB regulations -- 13 CFR Part 124 Government Contracting Programs – 13 CFR Part 125.6 HUBZone Program – 13 CFR Part 126
Ben R. Manzano Small Business Administration Procurement Center Representative Area I (MA, RI, CT) Ben.manzano@sba.gov
(617) 565-5587 (voice)
(202) 481-6552 (fax)
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