He`s taking a village here in the land of GovCon. We all know that much of the contracting work is rarely done by a company. Premium/subcontractor relationships are the norm, often due to a requirement in the FAR or the need for additional functions. During the proposal phase, it is important to have an effective cooperation agreement that protects both parties, promotes mutual participation and sometimes includes participation in work and (in some cases) rates. Team agreements deserve the attention of both parties, with key managers paying attention to their business risk, as well as the performance objectives of the contract and subcontractors who assess their role and the terms of the agreement. one. For the prime number – Be prepared to limit the scope of the team agreement to a specific element of the Prime contract, for example. B a mission. This assumes that an IDIQ, GWAC or other vehicle is at stake, which is a popular type of government purchase. The applicability of team agreements in Virginia was recently challenged by a decision in a U.S. district court in Virginia, which involved a situation very familiar to most contractors in the state.
Two companies entered into a team agreement, in which they established their relationship as principal and subcontractor for some possibility of contracting with the U.S. government. The parties agreed, among other things, to negotiate and enter into a subcontract when the principal contractor received a distinction from the government. If the parties were unable to agree on the terms of the subcontracting within a reasonable time, the equipment contract would be terminated by both parties without further commitment. Although the cooperation agreement establishes the relationship between the parties to participation in the work, the role of the subcontractor in the execution of the contract has not been defined. In the end, the parties were unable to agree on a subcontracting agreement. Team agreements give the already complex provisions of the federal treaty a layer of responsibility and responsibility. A lawyer who helps you design, negotiate or verify contracts is an important resource in the team agreement process. While these are some basic tips that you should keep in mind, remember that there are often rights and duties after attribution. Subs want non-negotiable details that are identified in subcontracting.
Premiums wants the flexibility to take into account potential changes (state requirements or price changes). Always try to be reasonable in these negotiations, good partnerships and agreements lead to good performance and long-term joint efforts. After all, it`s a small industry, and the reputation of both parties is the key to long-term success. B. For the pennies – Be prepared to invest in your teammates by using exclusivity to negotiate some work sharing.