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Installment
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Teaming to Win Government IT Sales
By
Richard White
Government buyers often look for "complete solutions" off of multiple award schedule contracts, such as the General Service Administration's Federal Supply Schedules (FSS). In shopping through FSS, buyers often hope to find complete solutions through a single purchase, rather than multiple ones. They want to satisfy complex agency needs with a minimum of effort. And because most companies can't do everything, they have to team up to satisfy such demands.
Teaming arrangements can involve two or more schedule contractors seeking schedule work as a team. In such cases, each participating team member pays the one-percent industrial funding fee, and the relationship must be disclosed. FAR 9.603. GSA schedule holders also may bring in non-schedule holders as subcontractors under task or delivery orders (commonly referred to as "riding someone's schedule").
Benefits
What are the potential benefits of teaming from the vendor's perspective? GSA lists the following:
- Satisfies the customer with a single solution
- Increases competitive edge
- Increases market share
- Increases visibility
- Focuses on core capabilities
- Obtains complementary capabilities
- Integrates different skills
- Offers additional opportunities with customers
- Builds direct relationships with customers
- Maximizes use of one or more schedule solutions
- Shares risks and rewards
- Increases small business participation
Structuring Deals
GSA does not approve team arrangements. Contracts are between the team members. The only real restriction is that they cannot conflict with the underlying terms and conditions of the GSA Federal Supply Schedule contract.
GSA lists some common elements found in teaming contracts:
- Identifies participants, schedules, and services and products covered by the arrangement and how additions/deletions will occur
- Defines terms
- Sets forth each participant’s roles, responsibilities, and obligations
- Identifies scope, period of performance (for specific, limited purposes or longer periods covering several transactions), and termination of the arrangement
- Identifies remunerations for functions performed, if any
- Identifies the process that will be used to quote, accept, and administer orders. This may include prices, terms and conditions, invoicing, payment, taxes, reports, etc.
- Establishes scope and limitations of any licenses or proprietary rights
- Establishes representations and warranties among the parties
- Identifies confidentiality requirements, obligations, disclosures, and remedies
- Identifies damages, liability/limitation of liability, and any indemnification requirements among the parties
- Addresses administrative requirements (e.g., assignments, how notices will be conveyed and recognized, how changes or amendments will occur)
- Identifies any terms that survive the arrangement or termination
- Identifies governing laws, venues, etc.
- Establishes how disputes will be addressed and resolved
- Addresses force majeure
It's important to remember that teaming contracts need to be tailored for individual situations. It's often helpful, however, to have something to use as a starting point. A sample GSA teaming contract is hosted at the ACQWeb site: http://www.acq.osd.mil/bmdo/barbb/downloads/team.doc. You might find it useful.
Teaming means flexibility and agility. In the right teaming arrangement, you can go after complex projects that would otherwise be beyond your capabilities. Take, for example, a large IT project requiring multiple types of products and expertise. A contractor with a GSA schedule for integration services might team up with other schedule-holders that supply computer hardware, software and network operations and maintenance services. The prime contractor would manage the project, submit invoices, receive payment, and pay team members (i.e., subcontractors).
In deciding which firm is the prime, team members should consider, among other things, which one in the best position to generate government business for particular anticipated projects.
More Information
FAR Subpart 9.6 - Contractor Team Arrangements
http://www.arnet.gov/far/current/html/Subpart_9_6.html
Contractor Team Arrangements
http://www.gsa.gov/Portal/content/offerings_content.jsp?contentOID=116432&contentType=1004
ACQWeb Site Sample GSA Teaming Agreement
http://www.acq.osd.mil/bmdo/barbb/downloads/team.doc
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