Teaming Approaches for Alliant 2 Small Businesses

The Alliant 2 Small Business (A2 SB) final RFP is expected to liberalize the requirements for qualify under a teaming arrangement. Two types of teams may be formed:

  • Joint Venture (JV): a legal entity comprised of a several small businesses
  • Contractor Teaming Agreement (CTA): a prime contractor/subcontractor agreement.

The A2 SB RFP specifies a set of requirements each of these two types of teaming approaches must meet. Fedmarket's model Alliant 2 SB JV and CTA agreements incorporate the A2 SB requirements.

Advantages of Joint Ventures:

  • Enable companies to spread risks of prime-contracting
  • Permit companies to leverage their combined capital
  • Allow all parties to have a voice and control over how the contract is performed and managed
  • Enable parties to share in profits of the entire project
  • Enable parties to develop direct relationships with the government agency contracting officials
  • Enable small businesses to offer bonding capacity of larger companies

In a CTA only the prime contractor has privity of contract. The prime contractor (and not any of the subcontractors) is a party to the contract with the government agency and only the prime contractor has an enforceable right against the government for the benefits under the government contract. A subcontractor, in turn, typically only has privity of contract under a subcontracting agreement with the prime contractor. Therefore, when a subcontractor has a dispute with a prime contractor over payment for services, the subcontractor usually cannot seek payment directly from the federal government.

Joint ventures, however, enable all teaming partners to have "privity" of contract with the contracting government agency. Accordingly, a JV approach is easier to sell to other small businesses when assembling a JV.

Under A2 SB, the joint venture partners may enjoy all the benefits of the joint venture arrangement, and still compete for A2 SB; even though the combined size of the joint venture parties exceeds the small business size standard for the procurement.

Disadvantages of Joint Ventures:
JV must be legally registered as a legal entity. A lawyer is not required for registration but most companies use legal assistance in registering as an entity and reviewing the JV agreement.

Advantages of Contractor for Teaming Agreement:
CTAs are cheaper and easier to form than a JC. A CTA favors the prime contractor although this apparent disadvantage to the subcontractors can be offset by a tight subcontracting agreement with safeguards for the subcontractors.

Disadvantage Contractor for Teaming Agreement
A CTA is harder to sell to a small business that brings a lot of experience to the team.

Our Alliant 2 Small Business Services include:

  • A draft Alliant 2 Model Proposal that allows companies to start now on their teaming arrangements and proposal development.  The model includes: Teaming guidance, and model JV and CTA agreements; both compliant with RFP requirements.
  • A guarantee to change the draft proposal and teaming agreement models to incorporate any changes in the final Alliant 2 RFP.
  • Alliant 2 Model proposal and Full-Service Proposal Writing (purchases made prior to release of FINAL RFP will be updated at no extra cost.)
  • A complimentary Quick Alliant 2 Eligibility Tool (Call (888) 661-4094, Ext. 2 for your copy)
  • A complimentary copy of Vets 2 Teaming Requirements.
  • Complimentary expert advice of any aspect of bidding Alliant 2.

>> Call (888) 661 - 4094, Ext. 2, for Alliant 2 assistance and advice

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