1. Top
Teaming
Tactics
Judy Bradt, CEO1

2. TRY THIS
SUPERTOOL:
MEET
YOUR
NEIGHBOR
- NAME
- COMPANY
- 5 WORDS TO DESCRIBE WHAT YOU DO
2

3. What You’ll Learn
 What Primes Really Want
 Your “Fit” Checklist
 Teaming Types
 Teaming Agreements & Beyond
 The Meeting & Briefing Toolkit
3

4. Why Team?







4

5. Why Team?
 Leverage SBA affiliation rules
 Increase competitiveness
 Reduce risks & costs
 Gain past performance
 Address licensing / certifications / bonding
 Access contract vehicles (Large & small)
 Meet small business / subcontracting goals
 Ensure local roots
5

6. Teaming By The Numbers:
76 – 54 – 4 - 62
 Large to Small
 Small to Small
 Large to Large
 Complex Teams
6

7. 2011 3-Year Bidding:
Down 50% From 2007
2011 VIP® Survey: Trends in Federal Contracting for Small Businesses 7

8. 3-Year Win Rates Down
(Prime and Subcontracts)
2011 VIP® Survey: Trends in Federal Contracting for Small Businesses 8

9. Benefits: To “Big” Businesses



9

10. Benefits: To “Big” Businesses
 Meet small business subcontracting goals.
 Access “set aside” contracts
 Project-based access to niche expertise
– Keep focused on core competencies.
– Get essential expertise @ variable cost
10

11. Benefits: To Small Businesses





11

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

13. Why Does Teaming Fail?





13

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

15. Picking Prospective Partners
Advance Research Beats Speed Dating
15

16. Your “Fit” Checklist







16

17. Register
Research
Find
Partners
Get
Sourced
System for Award Management
17

18. Where can I find a small partner?
Dynamic Small Business Search @ http://web.sba.gov/dsbs
18

19. Potential Partners Matching Your Criteria
http://web.sba.gov/dsbs
High Priority:
Veteran-Owned
19

20. Want Primes To Return Your Call?
20

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

22. Partners Look For…







22

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

25. Supplier Portal Registration
Be Selective!
25

26. Lillian Magero, Small Business Liaison Officer, IBM
“Nobody
Does
Everything.
Tell Me
Your
Specialty.”
26

27. What CanYou Bring?






27

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

29. Affiliation
& Joint Ventures
29

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

49. Steps to Teaming Agreements
49

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

54. Teaming Agreement Essentials:
What Could Possibly Go Wrong?
54

55. Teaming Agreement Essentials
What are YOUR Key Issues?














Resource: National Contract Management Association www.ncmaHQ.org
55

56. Teaming Agreement Essentials
How Will You Handle:
 Proposal Costs
 Bid & WIN
 Pricing & Payment
 Exclusivity
 Confidentiality
 Terminations
 Shared Expenses
 FAR Flow-down
 NonDisclosure
 End User Access
 Intellectual Property
 Key Resumes
 Employee Poaching!
 Liability
Resource: National Contract Management Association www.ncmaHQ.org
56

57. Rock Your Teaming Meeting
57

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

60. USASpending.gov
Schedule Sales Query
GSAAdvantage
Agency Forecasts
FOUR TOP TOOLS
60

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

62. UNIQUE VALUE
PROPOSITION
(UVP)
62

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

74. Advice on Government
Contracting
 Free
 Good
 Enough
Pick any two.
74

75. Follow Up Opportunities
Judy Bradt, CEO (703) 627 1074
Judy.Bradt@SummitInsight.com
75

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