Top Teaming Tactics
Judy Bradt, CEO1
TRY THISSUPERTOOL:
MEET YOUR NEIGHBOR
- NAME- COMPANY - 5 WORDS TO DESCRIBE WHAT YOU DO 2
What You’ll Learn
What Primes Really Want Your “Fit” Checklist Teaming Types Teaming Agreements & Beyond The Meeting & Briefing Toolkit
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Why Team?
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Why Team? Leverage SBA affiliation rules Increase competitiveness Reduce risks & costs Gain past performance Address licensing / certifications /
bonding Access contract vehicles (Large &
small) Meet small business / subcontracting
goals Ensure local roots
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Teaming By The Numbers:76 – 54 – 4 - 62
Large to Small Small to Small
Large to Large Complex Teams
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2011 3-Year Bidding: Down 50% From 2007
2011 VIP® Survey: Trends in Federal Contracting for Small Businesses 7
3-Year Win Rates Down(Prime and Subcontracts)
2011 VIP® Survey: Trends in Federal Contracting for Small Businesses 8
Benefits: To “Big” Businesses
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Benefits: To “Big” Businesses
Meet small business subcontracting goals.
Access “set aside” contracts Project-based access to niche
expertise– Keep focused on core competencies.– Get essential expertise @ variable cost
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Benefits: To Small Businesses
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Benefits: To Small Businesses
Access set asides and niche expertise Combined assets, experience, location enable
small firms realistic competitors on complex requirements
Build past performance & reputation by association
Economies of scale: More purchasing power Easier access to capital and bonding
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Why Does Teaming Fail?
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Pre-Teaming: Gap Analysis
Can you go it alone? Go for it! Requirements exceed your core
competencies? Gap analysis to pick partners
= +
RFPAgency Needs:
A.B.C.D.E.
My CapabilitiesI Have:
A.B.c.DE.
My PartnerMust Have:
a.b.C.d.e.
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Picking Prospective Partners
Advance Research Beats Speed Dating
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Your “Fit” Checklist
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Register
Research
Find Partners
Get Sourced
System for Award Management
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Where can I find a small partner? Dynamic Small Business Search @ http://web.sba.gov/dsbs
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Potential Partners Matching Your Criteria http://web.sba.gov/dsbs
High Priority: Veteran-Owned
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Want Primes To Return Your Call?
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Chireda Gaither, Computer Sciences CorporationManager, Supplier Diversity Program for North American Public Sector
“Bring opportunity.
Do your homework.
Know what we do.”
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Partners Look For…
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Mini Panel With Our Primes
Deloitte Services LP
Joyce Harris
Small Business Liaison Officer, Federal Practice
Booz Allen Hamilton
Diane Marsden
ManagerSmall Business Office
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Partners Look For… What business you bring Where can you take them? Buyer
contacts Core capabilities & differentiation Past performance & reputation Price, financial strength Personnel experience & low turnover Location Dependable, responsive team player Timeliness in all things – from the
start24
Supplier Portal Registration
Be Selective!
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Lillian Magero, Small Business Liaison Officer, IBM
“NobodyDoesEverything.
Tell Me YourSpecialty.”
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What CanYou Bring?
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What Can You Bring?
New Task Orders on Incumbent Business
New Projects You Can Help Them Win Solutions to Known Problems Contacts You Can Offer Benefits For Their Clients Track Record On Relevant Past
Projects Cleared Staff Location
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Affiliation & Joint Ventures
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Teaming in Federal Contracting
FAR Subpart 9.6
– An agreement between two or more companies to form a joint venture or
partnership to act as a potential prime contractor (JV model) or between a prime contractor and one or more companies
proposed to act as subcontractors under a particular Government contract or acquisition program (prime/sub model)
– Created before proposal submission; and – Must be recognized if disclosed in a proposal, or after
contract award if approved before becoming effective– Temporary, not permanent
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Other Key Teaming Concepts
Project-specific is typical
Mentor – Protége: Expanding!– Contingent & Non-Contingent
8(a) & MP Programs under review
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The Big Four Teaming Types
Prime Contractor / Subcontractor Joint Venture Mentor – Protégé General Services Administration (GSA)
Contractor Teaming Agreement (CTA)
Others: Licensing, distribution, coop R&D
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Prime Contractor/Subcontractor
Most common Prime has direct contact and
responsibility (privity) with the government
Prime is in control – Wants flexibility (vs. subcontractor desire
for guarantees) Subcontract might require review by
contracting officer and/or finalization prior to the final offer to the government. 33
Prime Contractor/Subcontractor
FAR clauses that can “flow down” to the sub:
Mandatory: FAR requires these. Often public policy (e.g. equal opportunity, drug-free workplace)
Advisory: Included to protect the prime. (e.g., termination for convenience, changes)
Negotiable: Situational usage / Discretionary
Read, Review, Reflect…and be ready to Revise or RejectUnderstand compliance & costsGet Legal Advice, Early & Often 34
Small Business Set Aside:Prime Contractor % Share
Small Business prime must perform:– Service: > 50% of the cost of the work.
– Supplies: > 50% of the manufacturing costs, excluding materials.
– General construction: > 15% of labor costs
– Specialty construction: > 25% of labor costs
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NDAA of 2013 Section 1651Pending Changes
Services & Supply Contracts Prime Contractor >50% share but… Based on contract price, not labor
cost
Construction & Specialty Trade Contracts Work share % basis under review
Implementing Regulations Pending 36
Exceptions for HUBZoneGeneral & Special
Construction > 50% cost of contract performance is to
pay HubZone employees and/or HUBZone SB subs
OR (via waiver) the HUBZone prime can ensure: General construction: > 15% percent of
the cost of the contract performance cost pays HUBZone prime’s employees; or
Special Trade: > 25% percent of the cost of the contract performance cost pays HUBZone prime’s employees
FAR Subpart 19.1308
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Mentor - Protégé Experienced contractor assists a less
experienced small business. Mentors benefits can include:
– Management, financial and/or technical assistance
– Loans and/or equity (40% limit) investments.
– Cooperation on joint venture projects– Opportunities to subcontracts under its
prime contracts
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Mentor - Protégé Mentor benefits can include:
– Credit toward subcontracting goals– Financial reimbursement
Common Mentor Requirements– Might be large or small– Capability & commitment to assist
Protégé– Profitable the last two years– Knowledgeable in government contracting
and in good standing39
New Provisions: NDAA 2013Section 1641
SBA-Approved Mentor Rules To Change
New SBA programs for WOSB, SDVOSB, HUBZone pending (late 2013)
Parallel to 8(a) MPP rules
Mentors: up to 3 proteges at one time. 40
Mentor - Protégé
Protégé requirements vary by program:– Must be a small business– Some require socio-economic designation.– MP programs include: SBA , Army, DHS,
DOE, FAA, NASA, HHS, State Department, Treasury Department, DOD, GSA
Cost Reimbursement / Credit Varies– DoD Programs often cost-reimbursed– Civilian agency programs usually credit-
only41
“Give MeYour Car Keys.”
John Long, VP Business Development, Civil Systems Division, Northrop Grumman
A Word On Mentor-Protégé
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Joint Venture Limited purpose partnership. Each
party liable to government & 3rd parties.
Partner agreement or new legal entity– e.g. LLP/LLC/Corp, DUNS, SAM, banking– JV partners “affiliated” for size
classification
SBA & DoD provide some affiliation exemptions for Mentor-Protégé JV’s of SDVOSB & 8(a).
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Joint Venture Must be approved before proposal
submitted– Size eligibility: FAR 19.101(7)(iii) – Defines how partners share work, risk,
responsibility, profits Each party has privity with the
government 3/2 rule: JV can do up to 3 contracts in 2
years Agencies may have preferred
JV arrangements / forms. Ask! 44
GSA Contractor Teaming Arrangement (CTA)
RFQ issued via Schedules Program GSA schedule contractors create joint
turnkey offering that neither could provide alone
Not a subcontract or JV– Each contractor has privity– No new legal entity formed
Set-Aside? Both CTA Partners must be smallNon-schedule holders can’t do a CTA, but may subcontract to schedule holders using traditional subcontracts.
More:
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What Is a Small Business? SBA Size classifications:
– Small– Other Than Small
Varies by NAICS– Average annual receipts over 3 years or– average number of employees over 12
months.– You pick your NAICS, but . . .– . . . The Contracting Officer (CO) assigns
the NAICS that sets the size criteria for that procurement. 46
Why Size MattersAffiliation
Can disqualify companies for set-aside awards due to partners’ combined size
– One business has real/apparent power/control over another. 13 C.F.R. § 121.103OR
– Prime is an Ostensible subcontractor:Subcontractor performs primary/vital requirements of prime contrac
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When Teaming Becomes Affiliation
FAR & SBA Definitions Key Concept: Control
– direct or indirect; actual or potential; mutual or third party
– Ownership (eg voting, stock, options, trusts)– Management or common facilities– Contracts (JV, franchise, licensing, teaming)
References: FAR Subpart 19.1 & SBA 13 C.F.R 121.103
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Steps to Teaming Agreements
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The Teaming Agreement (TA)
Private contract between two or more parties governed by contract law & Uniform Commercial Code – Interim agreement – Superseded by negotiated post-award contract
Law requires:– Bid-win-perform on subcontracting plans– 90 day payment accountability to subs
Terms & obligations govern relationship of the parties
Enforceability requires specificity & clear statements
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Nondisclosure Agreement (NDA)
Precursor / support for teaming– Defines proprietary or confidential
information and exclusions– Provides the purpose for disclosure– Limits use by teammates and disclosure
to 3rd parties– Protects existing client and vendor
relationships– “One-way” or “two-way”
Read theirs. Draft yours. Get Legal Help.
More:51
Other Potential Non-Binding TA Precursors
On-Ramps from discussions to a TA Letter of Intent (LOI) Memorandum of Understanding (MOU) Memorandum of Agreement (MOA) Agreement to “explore the
relationship”.E.G.: issues to be addressed in TA, minimum binding terms, key points
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Mini-Case Agency publishes RFP Your past performance covers 4 out
of 6 mandatory requirements Contract is set aside for HUBZone Your company is WOSB/SDVOB
Would you bid solo, or team?If team, what kind & why?What else would you want to know?
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Teaming Agreement Essentials:
What Could Possibly Go Wrong?
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Teaming Agreement Essentials
What are YOUR Key Issues?
Resource: National Contract Management Association www.ncmaHQ.org
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Teaming Agreement Essentials
How Will You Handle: Proposal Costs Bid & WIN Pricing & Payment Exclusivity Confidentiality Terminations Shared Expenses
FAR Flow-down NonDisclosure End User Access Intellectual
Property Key Resumes Employee
Poaching! Liability
Resource: National Contract Management Association www.ncmaHQ.org
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Rock Your Teaming Meeting
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Building Fit:The Meeting & Briefing
Toolkit1. Market Research Essentials
2. The Unique Value Proposition
3. The Tailored Capability Statement
4. Six Simple Slides in 600 Seconds
5. The Follow-up Sweet Spot58
Pre-Teaming: Find The Business
Example Notes Reactive Proactive
>$25K open/awarded & pre-solicitation info √ √
Prime subcontracting needs √
Procurement forecasts √
Subcontracting directory & procurement forecast √ √
DOD subcontracting plans √ √
Procurement histories √
OtherShows, publications, matchmaking, prime websites, industry days
√ √59
USASpending.gov
Schedule Sales Query
GSAAdvantage
Agency Forecasts
FOUR TOP TOOLS
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Typical Research Questions
Which agencies’ problems do I solve? When do current contracts expire? What contract vehicles do they like? What set-asides do they favor? Who are the incumbents /
competitors? How soon do I position for teaming? Who are “small” partners /
competitors?61
UNIQUE VALUE PROPOSITION(UVP)
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Unique Value Proposition
Concise appeal In your audience’s language, Focused on their needs, problems,
issues"Our interactive 3D maintenance training aids allowpeople who maintain and repair military equipment to accelerate learning in complex equipment, thusenabling first-time-right repairs and optimizing operational readiness at a lower cost."
What solutionHelps who
Do what
To solve what problems?
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Basic Capability Statement Core Competencies Past Performance
– Prime, Sub, or Commercial– Relevant Projects, Value, POC – Contract Vehicles (e.g. GWAC, GSA
Schedule) Unique Value Proposition /
Differentiators Company Data
– Revenue, Employees, Locations, DUNS, Certifications, NAICS
Contact Information64
Capability Statement Some Do’s & Don’ts
Do… Use vertical / portrait
orientation Focus on key words Tailor for who you’re
meeting Use Bullet Points
Don’t Use meaningless stock
photos / graphics Cut promotional /
marketing copy Eliminate distractions
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Tailored Capability Statement
Reflect Knowledge of the buyer’s organization
Your Contact’s Top Needs
Relevant Past Performance, UVP
Suitable Contract Vehicles
Project-Specific References66
Capability Briefing:Six Simple Slides
Who You Are
Basic Company Info
Core Capabilities
1. 2.3. 4.
The Opportunity
Specificagency, project
Unique Value Proposition
Past Performance
Show where you’ve done it before
Meeting Objectives
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The Follow-up Sweet Spot Were these the right people?
– Today?– Referral to someone else?
What questions remain?– Yours– Theirs
When & how to follow-up? Need more materials? Got everyone’s card?
Apathy Pestilence
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Avoid Five Top Teaming Traps
Be selectiveDo your homeworkRead rules & seek SBA
guidanceUse teaming agreementsBring business
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Due Diligence Resources Open (Victory In Procurement) Forum: Government Contracts
www.openforum.com/governmentcontracting
Past Performance Information Retrieval System http://www.ppirs.gov/
Open Ratings http://openratings.com/
Excluded Parties List: Now part of www.SAM.gov
D&B PAYDEX https://www.dnb.com/product/ptpsampl.htm
Uniform Commercial Codehttp://en.wikipedia.org/wiki/Uniform_Commercial_Code
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Teaming Agreement Resources
DOD Guidebook for Facilitating Small Business Teaming Arrangementswww.acq.osd.mil/osbp/docs/dod_OSBP_Guidebook_for_Facilitating_Small_Business_Team_Arrangements.pdf
SBA Table of Small Business Size Standards www.sba.gov/sites/default/files/Size_Standards_Table.pdf
Teaming Agreement Enforceabilityhttp://www.whaylaw.com/Teaming_Agreement_Enforceability.htm
Non-Disclosure Agreementshttp://www.bitlaw.com/forms/nda.htmlhttp://www.wipo.int/sme/en/documents/disclosing_inf.htm
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Mentor-Protégé & CTA Resources
SBA Mentor – Protégé Programwww.sba.gov/content/mentor-prot%C3%A9g%C3%A9-program
DoD Mentor-Protégé Program http://www.acq.osd.mil/osbp/mentor_protege/
GSA Contractor Teaming Arrangementhttp://www.gsa.gov/portal/content/200553
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What You Learned
What Primes Really Want Your “Fit” Checklist Teaming Types Teaming Agreements & Beyond The Meeting & Briefing Toolkit
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Advice on Government Contracting
Free Good Enough
Pick any two.
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Follow Up Opportunities
Judy Bradt, CEO (703) 627 1074
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Structured Networking Logistics
11:00 -11:25 – Break11:25 AM – Be Seated!
– Name Badge: 3 Numbered Dots– Your Tables: Match Number and Color– 3 rounds: 11:30, 11:50, 12:20– Order for 3 rounds is the dots left to right– 5 minute notice: wrapup & change
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9PRIM
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2B2B
7OMWI
Structured Networking Process
Hosts:– Lead Table Discussions– Provide Requirements, Process, Tips
Participants:– Name, Company, Five Words– Provide Capability Statements (if not
provided in advance as requested) & Business Cards
– Answer Host questions & note any follow up
Facilitators: Available throughout room to assist
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