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BuildingTeamingAgreements

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TEAMINGTRENDS•  SmallBusinessTeamingPilotProgram•  OnSept.27,2010,PresidentObamasignedintolawtheSmallBusinessJobsAct,themostsignificantpieceofsmallbusinesslegislaBoninoveradecade.ThenewlawisprovidingcriBcalresourcestohelpsmallbusinessesconBnuetodriveeconomicrecoveryandcreatejobs.ThenewlawextendedthesuccessfulSBAenhancedloanprovisionswhileofferingbillionsmoreinlendingsupport,taxcuts,andotheropportuniBesforentrepreneursandsmallbusinessowners

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TEAMINGAGREEMENTSLearningobjec7ves

•  Defini7ons•  TeamingagreementsVSJointVenture•  MOU,LOI,LOU•  TeamingwithPrimes•  TeamingwithSmallbusiness•  Sampleagreement•  References

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DEFINITIONS

•  Teamingagreement•  Whensmallbusinessespartnerwithothercompanies,theycanac7velyseekoutopportuni7esoutsidetheirnormalreach.Teamingagreementsareaneffec7veformofpartnershipthatallowbusinessestoopenuptheirrevenuepoten7alexponen7ally.

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DEFINITIONS

•  JointVenture•  AJointVentureisacoopera7veenterpriseinwhichtwoormorebusinessen77esentertogether.Thebusinessen77es,oncrea7onofajointventure,mayformaseparatecorpora7onorapartnership.Therearealsocaseswherethebusinessen77esretaintheirownindividuality,whileenteringintoajointventureagreementwhichisoperatedasaseparateen7tyaltogether

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DEFINITIONS

•  MOU/LOU•  Thebusinesspar7esmightagreetocreateaLeRerofUnderstanding(LOU),whichissome7mescalledaMemoofUnderstanding(MOU).Thisdocumentspellsoutthespecificsofthetermsoftheagreement.Thetwopar7estoanLOUgenerallyintendtogotothenextstepandsignaformalcontract.

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DEFINITIONS

•  LOI•  ALeRerofIntent(LOI)isusuallysignedbyonlyoneofthepar7es.TheLOIisnotgenerallythoughtofasaformalagreement.Instead,itspurposeistoputinwri7ngwhatoneorbothpar7esintend.Sinceitisnotaformalagreement,itismostoUennotconsideredalegalcontract

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FAR

•  9.601DefiniAon.•  “Contractorteamarrangement,”asusedinthissubpart,meansanarrangementinwhich—

•  (1)Twoormorecompaniesformapartnershiporjointventuretoactasapoten7alprimecontractor;or

•  (2)Apoten7alprimecontractoragreeswithoneormoreothercompaniestohavethemactasitssubcontractorsunderaspecifiedGovernmentcontractoracquisi7onprogram.

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FAR

•  9.602General.•  (a)ContractorteamarrangementsmaybedesirablefrombothaGovernmentandindustrystandpointinordertoenablethecompaniesinvolved

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FAR

•  9.604LimitaAons.•  (e)Holdtheprimecontractorfullyresponsibleforcontractperformance,regardlessofanyteamarrangementbetweentheprimecontractoranditssubcontractors

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EXPLANATION

•  Theprimecontractorisul7matelyresponsible•  Teamingisadvantagestoallinvolved

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TEAMINGWITHPRIMES

•  Advantages•  Capitalandcapability•  Exclusivity•  PrimeprefersLOI•  liability

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PRIMES

•  Pi`alls•  Exclusivity•  Protesttothecustomer(Gov.)•  Disputeresolu7on•  Second7erprovider•  Vigilance

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NEWRULING

SmallBusinessSubcontracBngPlans(76FR61626):OnOctober5,2011•  Offerormustrepresenttothecontrac7ngofficerthatitwillmakeagoodfaithefforttoawardsubcontractstothesmallbusinessesthatitusedorreferencedinitsbidorproposal.

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(76FR61626)

•  Ifanofferorfailstousethesmallbusinessesthatitreferencedorrelieduponinitsproposal,theofferormustprovidethecontrac7ngofficerwithawriRenexplana7on.Aprimecontractoralsomustno7fythecontrac7ngofficerifitpaysareducedpricetoasubcontractororpaymenttoasubcontractorismorethan90dayspastdue.

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(76FR61626)

•  PrimecontractorscannotprohibitasubcontractorfromdiscussingmaRerspertainingtopaymentoru7liza7onofsmallbusinessconcernsdirectlywiththeGovernment

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TEAMINGWITHSMALLBUSINESS

•  Buildingrela7onships•  ARendingworkshops,matchmakingevents,tradeassocia7onmee7ngs

•  Missionistoenhanceorexpandcapabili7es•  Cer7fica7onsandpastperformance

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SMALLBUSINESS

•  Considera7ons•  Primeandsubcontractroles•  Liabilityofroles•  Bonding,insurance,laborhoursandmarke7ng

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SMALLBUSINESS

•  Consor7ums•  Compe7ngagainstprimes•  Establishprime•  Federaltrendinteaming

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BREAK

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SAMPLEAGREEMENT

•  TeamingAgreement•  ThisTeamingAgreement,enteredintothisdayof,20--,byandbetween(hereinaUercalled"TeamLeader"),acorpora7on,withprincipalofficesat,and(hereinaUercalled"TeamMember"),acorpora7on,withprincipalofficesat,

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SAMPLE

•  I.ProposalPreparaAon•  A.ThePar7esshallusetheirbesteffortstoprepareacompe77veproposalinresponsetotheSolicita7onforsubmissiontotheCustomer

•  Establishteamleader•  Keepallpar7esapprisedofcommunica7ons

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SAMPLE

•  II.DivisionofResponsibiliAes•  TechnicalProposalResponsibili7es:•  TeamLeaderwillprovide:•  Proposalmanagement.•  Facili7esforproduc7onoftheproposal.

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SAMPLE

•  III.ApplicabilityandRelaAonshipoftheParAes

•  ThePar7esherecreateateamtoprepareacompe77ve,cost-effec7veproposalinresponsetotheSolicita7on.NothinginthisTeamingAgreementshallbeconstruedtogranteithertheTeamLeaderortheTeamMembertherighttomakecommitmentsofanykindfororonbehalfoftheotherParty,withoutthepriorwriRenconsentoftheotherParty

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SAMPLE

•  IV.ResponsibiliAesoftheParAes•  UPONAWARD,ISSUESUBCONTRACTTOTEAMMEMBER

•  FurnishtoTeamMembertheSolicita7onandanyamendmentstheretoissuedbytheCustomer

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SAMPLE

•  V.ProprietaryInformaAon•  ThePar7esshalliden7fyinwri7ng,byappropriatestamp,legend,orotherwise,allsuchProprietaryInforma7ontransferredpursuanttothisTeamingAgreement.AllsuchProprietaryInforma7ondisclosedunderthisTeamingAgreementshallremainthepropertyof,andbedeemedproprietaryto,thedisclosingParty

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SAMPLE

•  VI.TerminaAons-Timeline•  VII.LawsandRegulaAons•  VIII.Publicity-markeAngtootherPrimes•  IX.Disputes-resoluAonprocess•  X.Severability-whatwillcausethisteamingagreementtobevoid

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SAMPLE

•  XI.ChangeinFinancialCondiAon•  XII.Assignment•  NeitherPartyshallassign,sell,transfer,orinanywayencumberitsinterestunderthisTeamingAgreementwithoutobtainingpriorwriRenconsentoftheotherPartyhereto

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SAMPLE

•  XIII.Amendment•  ThisTeamingAgreementshallbesubjecttoamendmentatany7meuponthemutualassentofthePar7es.Anysuchamendmentshallbeinwri7ng,shalliden7fytheprovisionsofthisTeamingAgreementthataretobeamended,andshallbesignedbyauthorizedsignatoriesofthePar7es

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SAMPLE

•  XIV.NoAces•  Forpurposesofestablishingandmaintainingeffec7vedirectcommunica7onbetweenthePar7esandprovidinganyno7cecontemplatedhereby,thepointsofcontactforanyno7cesrequiredhereunderare:

•  Whoarethepointsofcontact

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SAMPLE

•  XV.LimitaAonofLiability•  EachPartyshallmaintainpublicliabilityandpropertydamageinsuranceinreasonablelimitscoveringtheobliga7onssetforthaboveandshallmaintainproperworkmen'scompensa7oninsurancecoveringallemployeesperformingunderthisTeamingAgreement

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SAMPLE

•  XVI.CorporateAuthority•  ThatithasfullcorporatepowerandauthoritytoenterintothisTeamingAgreementandtoperformitsobliga7ons

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SAMPLE

•  XVII.EnAreAgreement•  ThisTeamingAgreementistheen7reagreementbetweenthePar7eswithrespecttothesubjectmaRerhereofandsupersedeswithrespecttotheSolicita7onanypriororalorwriRenagreements,commitments,draUsofagreements,understandings,memoranda,orothercommunica7onswithrespecttothesubjectmaRerofthisTeamingAgreement

•  Signatures

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WHY

•  Implementteamingagreementsintomarke7ngplans

•  Establishconsor7umstomarkettoprimes•  Teamsmarketasatotalsmallbusinessprimetothegovernment

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REFERENCES

•  teamingusa.com•  www.sba.gov•  PTAC-hWp://www.aptac-us.org/new/Govt_ContracAng/find.php•  SBDC-hRp://californiasbdc.org/•  www.aRny.com•  www.dawnbreaker.com

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THANKYOU