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4 Tips for Using Contractor Teaming Agreements, Subcontractor Agreement Application and SBA Joint Ventures to Win Federal Government Contracts. Learn about the ground rules, work share language and how to avoid SBA Affiliation for small businesses.

Many federal contractors find out too late that the executed subcontractor agreement does not meet procurement laws. Therefore, when the competition files a size protest, the small business often finds itself in a bad position. Our government contract small business teaming agreement lawyers can help. Call us to make sure that your contractor teaming arrangement is legally sound and compliant with SBA affiliation rules. Many government contractors understand the using teaming agreements and joint ventures can increase your chances of getting federal government contractors. However, 31% of those companies are not quite familiar with the nuances and landmines that the competition can use to try to get the contract revoked in a bid protest.

Here are 5 tips to keep in mind when using teaming agreements and joint ventures.

1. Be careful not to violate the limitations on subcontracting rules with your teaming contract.

Despite the new SBA rules In 2016, small businesses can still forfeit the contract award by not complying with the limitation on subcontracting rule. Generally, the prime has to perform at least 51% of the contract cost. But depending on your industry classification code, it could be less.

2. The new SBA rules published in 2016 that address federal teaming agreements are not intended to completely eliminate small business size protests.

As many of you may already know, the SBA revamped its small business teaming agreement and joint venture contract rules to arguably minimize the possibility of affiliation litigation. However, despite the more relaxed requirements, your company can still be found affiliated with the other company if that company exercises too much control over the contract.
3. Similarly situated small business rules are still relatively new. You should be familiar with them. As the prime contractor, you can still avoid affiliation if your contractor teaming agreement or joint venture partner is considered a similarly situated small business. These are very fact-based relationships and should be approached with caution.
4. Contractor Teaming Arrangement or Joint Venture relationships not Part of the SBA 8(a) Program must still meet the statutory requirements
Narrative – Many companies mistakenly believe that if your company is not an 8(a) company that any joint venture agreement will suffice. This is far from the truth. Your joint venture is still subject to review and must still meet all contractor teaming arrangement statutory requirements.

In addition to the above, your government contractor teaming agreement should avoid any language of exclusivity agreement for services services clauses over a long period of time. In addition, when bidding on a specific contract, you should include a clear level of effort clause.

FAR Subpart 9.6 allows great latitude for applying business relationships when bidding on government contracts. Your teaming agreement, however, must still comply with SBA rules and regulations.

These are only a few of the key points that arise with teaming agreements and joint venture arrangements when it comes to federal government contracting. To keep your teaming contract or if you have grounds to challenge an award, call our government contract lawyers at Watson & Associates, LLC. We help federal government contractors with their small business teaming arrangements in all states.