Avoid costly legal pitfalls and know the rules about SBA teaming agreements versus subcontracts and affiliations. At the same time, cooperation with another contractor also carries risks. In many cases, teammates share confidential and proprietary information during the presentation and implementation of the offer. It is important to protect this information from disclosure. Teammates may also be involved in disputes regarding bid-setting, exclusivity and work share even before an offer is submitted. Although some contractors are reluctant to spend time and money negotiating a team agreement and would prefer to move to the subcontract or joint venture contract, the relatively small investment can be profitable. Negotiating and approving a comprehensive team agreement prior to the preparation and submission of a proposal can protect a contractor`s interests and reduce the likelihood of problems. The challenges of using government teaming contracts often arise when an unsuccessful bidder files a complaint with the contract agent or the SBA to protest the size of a small business. This puts the general contractor in a defensive attitude, because he must then try to explain a posteriori the intention of the business relationship. The new SBA rules introduced the concept of similar small businesses. This should reduce the number of claims submitted where the main contractor applies the rule appropriately.
Case law and court decisions continue to show that this is still an ongoing problem. It depends on the circumstances and what you want. A team agreement template can take different forms and be structured differently. It often takes the form of a master-teaming agreement signed in advance with team commitments (or opportunity calendars or project sheets) that are signed for each resulting occasion. We can help you find what`s right for you. You can use a team agreement if you are working with a partner on proposals that will be jointly prepared and submitted. A written agreement defines the rights and obligations of each party and clarifies the services that each party must provide. When it comes to public contracts, small businesses are sometimes unclear about the difference between a team agreement and a joint venture agreement.
While any deal may seem simple, the legal pitfalls are numerous and can be seen in many of the SBA`s protest and appeal decisions. The SBA has recently introduced new rules applicable to both agreements. . . .