12. 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
12
14. Pre-Teaming: Gap Analysis
Can you go it alone? Go for it!
Requirements exceed your core competencies?
Gap analysis to pick partners
= +
RFP
Agency Needs:
A.
B.
C.
D.
E.
My Capabilities
I Have:
A.
B.
c.
D
E.
My Partner
Must Have:
a.
b.
C.
d.
e.
14
21. Chireda Gaither, Computer Sciences Corporation
Manager, Supplier Diversity Program for North American Public Sector
“Bring
opportunity.
Do your
homework.
Know what
we do.”
21
23. Mini Panel With Our Primes
Deloitte Services LP
Joyce Harris
Small Business
Liaison Officer,
Federal Practice
Booz Allen Hamilton
Diane Marsden
Manager
Small Business Office
23
24. 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 start
24
28. 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
28
30. 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
30
31. Other Key Teaming Concepts
Project-specific is typical
Mentor – Protége: Expanding!
– Contingent & Non-Contingent
8(a) & MP Programs under review
31
32. 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
32
33. 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
34. 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 Reject
Understand compliance & costs
Get Legal Advice, Early & Often
34
35. 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
35
36. NDAA of 2013 Section 1651
Pending 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
37. Exceptions for HUBZone
General & 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
37
38. 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
38
39. 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 standing
39
40. New Provisions: NDAA 2013
Section 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
41. 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-only
41
42. “Give Me
Your Car
Keys.”
John Long, VP Business Development,
Civil Systems Division, Northrop Grumman
A Word On Mentor-Protégé
42
43. 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).
43
44. 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
45. 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 small
Non-schedule holders can’t do a CTA, but may subcontract
to schedule holders using traditional subcontracts.
More
:
45
46. 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
47. Why Size Matters
Affiliation
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. § 121.103
OR
– Prime is an Ostensible subcontractor:
Subcontractor performs primary/vital requirements of
prime contrac
47
48. 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
48
50. 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
50
51. 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
52. 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
52
53. 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?
53
58. Building Fit:
The Meeting & Briefing Toolkit
1. 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 Spot
58
59. 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 √
Other
Shows, publications,
matchmaking, prime
websites, industry days
√ √
59
61. 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
63. Unique Value Proposition
Concise appeal
In your audience’s language,
Focused on their needs, problems, issues
"Our interactive 3D maintenance training aids allow
people who maintain and repair military equipment
to accelerate learning in complex equipment, thus
enabling first-time-right repairs and
optimizing operational readiness
at a lower cost."
What solution
Helps who
Do what
To solve what
problems?
63
64. 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 Information
64
65. 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
65
66. Tailored Capability Statement
Reflect Knowledge of the buyer’s
organization
Your Contact’s Top Needs
Relevant Past Performance, UVP
Suitable Contract Vehicles
Project-Specific References
66
67. Capability Briefing:
Six Simple Slides
Who You Are
Basic Company Info
Core Capabilities
1.
2.
3.
4.
The Opportunity
Specific
agency, project
Unique Value
Proposition
Past Performance
Show where you’ve
done it before
Meeting Objectives
67
68. 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
68
69. Avoid Five Top Teaming Traps
Be selective
Do your homework
Read rules & seek SBA guidance
Use teaming agreements
Bring business
69
70. 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 Code
http://en.wikipedia.org/wiki/Uniform_Commercial_Code
70
71. Teaming Agreement Resources
DOD Guidebook for Facilitating Small Business Teaming Arrangements
www.acq.osd.mil/osbp/docs/dod_OSBP_Guidebook_for_Facilitating_Sm
all_Business_Team_Arrangements.pdf
SBA Table of Small Business Size Standards
www.sba.gov/sites/default/files/Size_Standards_Table.pdf
Teaming Agreement Enforceability
http://www.whaylaw.com/Teaming_Agreement_Enforceability.htm
Non-Disclosure Agreements
http://www.bitlaw.com/forms/nda.html
http://www.wipo.int/sme/en/documents/disclosing_inf.htm
71
72. Mentor-Protégé & CTA Resources
SBA Mentor – Protégé Program
www.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 Arrangement
http://www.gsa.gov/portal/content/200553
72
73. What You Learned
What Primes Really Want
Your “Fit” Checklist
Teaming Types
Teaming Agreements & Beyond
The Meeting & Briefing Toolkit
73
76. Structured Networking Logistics
11:00 -11:25 – Break
11:25 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 76
9
PRIME
2
B2B
7
OMWI
77. 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
77