NOTE: FAR 9.6, Contractor Team Arrangements, does not apply to GSA Schedules Teaming. As part of GSA Schedules, teaming allows contractors to use their individual GSA calendars to develop a solution for the government. In a Prime/Subcontractor agreement, the practice of the contract belongs exclusively to the main contractor. The main contractor is therefore responsible for all products and services provided by the subcontractor. In this scenario, government purchasing agencies are often asked to indicate that the contract agent (CO) authorizes the use of subcontractors before they can do so. There are provisions that need to be described in your team agreement to ensure they are valid. This includes: According to the CTAs schedule, contractors complement each other, and it allows teams to compete for contracts for which they might not otherwise qualify. GSA encourages the use of CTAs to meet the buyer`s requirements. Two of the most commonly used methods for creating a successful partnership are the Contractor Teaming Arrangement (CTA) and an Accord Prime Subcontractor/Agreement. However, these two methods can be very confusing, as GSA contractors attempt to distinguish between the two. Although a team agreement is used for public tenders, it is not considered a government contract, but a contract between two parties, which would fall under the Single Code of Commerce.
The agreement is unlikely to contain any state procurement rules, as they will be negotiated later in the sub-contract. When setting up a team in response to the land freeze for small businesses, all team members must respect socio-economic status for land freezes and subcontracting restrictions (FAR 52.219-14). That is, members of the small business team must do at least 50% of the value of the work to be done. A subcontractor may benefit from sending a copy of the team agreement with the government`s offer. Essentially, a team agreement will serve as a bridge until the final contract is concluded. It is important to remember that all team agreements must be replaced by a fully negotiated sub-contract. It is important to note that even in the event of a team agreement, the principal contractor will be the one who will take full responsibility for the work done. The Schedules CTA does not create a separate legal entity, but allows Schedule contractors to meet the buyer`s requirements by combining deliveries and/or separate schedule contract services from each team member in response to a buyer`s bid requirement. In a Prime/Subcontractor agreement, only the main contractor needs a GSA calendar. The principal contractor would consider the transaction to be a direct sale of GSA, while the subcontractor would consider that it made a commercial sale to the principal contractor. Team agreements are sometimes beneficial for small businesses that would otherwise not be competitive enough to make an offer.
The tool is also beneficial for a major contractor, as it allows for better cost control. In the meantime, GSA Small Business` retail delivery program requires companies designated as “other than small” to submit outsourcing plans that set targets and strategies to achieve outsourcing rates.