Top Teaming Tactics: From “In” to “Win”

Judy Bradt, CEO

INTRODUCING:

NAME, COMPANY

5 WORDS TO DESCRIBE WHAT YOU DO

Tools For Each Steps

Strategy Focus Process Competition Teaming Relationships Marketing

3

What You’ll Learn

Defining Fit: What Primes Really Want

Determining Fit:Creating Your Checklist

Teaming Types Teaming Agreements & Beyond Building Fit:

The Meeting & Briefing Toolkit

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.

Why Size Matters Affiliation

– Can disqualify companies for “set asides” due to partners’ combined size.

– Locations / industries irrelevant.– One business has real/apparent power/control

over another. 13 C.F.R. § 121.103.– Prime is an Ostensible Subcontractor

Ostensible subcontractor– Subcontractor performs primary/vital

requirements of prime contract. Business are considered to be affiliated.

Why Team?

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

Teaming By The Numbers:76 – 54 – 8 - 62

Large to Small Small to Small

Large to Large Complex Teams

2011 3-Year Bidding: Down 50% From 2007

2011 VIP® Survey: Trends in Federal Contracting for Small Businesses

3-Year Win Rates Down(Prime and Subcontracts)

2011 VIP® Survey: Trends in Federal Contracting for Small Businesses

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

Benefits: To Small Businesses

Access set asides and niche expertise. Contracts are becoming more complex, larger

(“bundling”) and geographically dispersed. A small business by itself may not have the resources to do the whole job.

Build past performance & reputation by association

Economies of scale: More purchasing power Easier access to capital and bonding.

Why Does Teaming Fail?

Pre-Teaming: Gap Analysis

Can you go it alone? Go for it! Requirements exceed your core

competencies? Gap analysis to pick partners.

= +

RFPAgency Needs:

A.B.C.D.E.

My CapabilitiesI Have:

A.B.c.DE.

My PartnerMust Have:

a.b.C.d.e.

Clues To Poor Fit

WORKING GROUPS:FIT CHECKLIST

Determining Fit

Determining Fit Between Partners

Unqualified

(Coaching)

Basic Fit

(Connection)

Exceptional Fit

(Introduction)

Picking Prospective Partners

Advance Research Speed Dating

Register,

Search for Partners,

Get Sourced

Central Contractor Registrationwww.ccr.gov

Where can I find a small partner? Dynamic Small Business Search @ www.ccr.gov

Potential Partners Matching Your Criteria www.ccr.gov

High Priority: Veteran-Owned

Want Primes To Return Your Call?

Partners Look For…

Chireda Gaither, Computer Sciences CorporationManager, Supplier Diversity Program for North American Public Sector

“Bring opportunity.

Do your homework.

Know what we do.”

Supplier Portal Registration

Be Selective!

Lillian Magero, Small Business Liaison Officer, IBM

“NobodyDoesEverything.

Tell Me YourSpecialty.”

Avoid The Kiss of Death

“We Do Everything”

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

What Can You Bring?

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

Affiliations & Joint Ventures

Relationships Without Dirty Dancing

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);

– Entered into prior to the submission of a proposal in response to an RFP; and

– Must be recognized if disclosed in a proposal, or after contract award if approved before becoming effective.

– Temporary, not permanent

Other Key Teaming Concepts

Project-specific is typical

Mentor – Protége: Expanding!– Contingent & Non-Contingent

8(a) & MP Programs under review

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

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.

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.

Prime Contractor/Subcontractor

A Small Business must perform a minimum work percentage for set-asides:– Service: > 50% of the cost of the work.– Supplies: > 50% of the manufacturing

costs, excluding materials– General construction: > 15% of the costs,

excluding materials.– Specialty construction: > 25% of the

costs , excluding materials.

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

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

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

“Give MeYour Car Keys.”

John Long, VP Business Development, Civil Systems Division, Northrop Grumman

A Word On Mentor-Protégé

Joint Venture Limited purpose partnership. Each

party liable to government & 3rd parties.

Can be JV agreement or new legal entity– e.g. LLP/LLC/Corp, DUNS, CCR, ORCA,

banking– JV partners “affiliated” for size

classification. Qualified SDVOB, 8(a) and Mentor –

Protégé JV’s may be exempt from affiliation, based on size of contract and sizes of participants

Joint Venture Must be approved before proposal

submitted– Size eligibility: FAR 19.101(7)(i) – Defines how partners share work, risk,

responsibility, profits Each party has privity with the

government 3/2 rule: JV can do up to 3 proposals in 2

years Agencies may have preferred

JV arrangements / forms. Ask!

GSA Contractor Teaming Arrangement (CTA)

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 is formed.

Note: Non-schedule holders can’t do a CTA, but may subcontract to schedule holders using traditional subcontracts.

More:

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 GCME: p 115

Steps to Teaming Agreements

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

Post 2010, 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.

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:

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

Mini-Case #1 Agency publishes RFP Your past performance covers 4 out

of 6 mandatory requirements Your company holds a GSA Schedule 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?

Teaming Agreement Essentials:

What Could Possibly Go Wrong?

Teaming Agreement Essentials

How Will You Handle: Proposal Costs Bid & WIN Pricing & Payment Exclusivity Confidentiality Terminations Shared Expenses

FARS Flow-down NonDisclosure End User Access Intellectual

Property Key Resumes Employee

Poaching! Liability

Resource: National Contract Management Association www.ncmaHQ.org

Rock Your Teaming Meeting

Building Fit:The Meeting & Briefing

Toolkit1. 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

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 √

OtherShows, publications, matchmaking, prime websites, industry days

√ √

Key Market Research Tools

USASpending.gov & FFATA.org

GSAAdvantage.gov

SSQ.GSA.gov

CCR.gov

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?

UNIQUE VALUE PROPOSITION

Unique Value Proposition

Concise appeal In your audience’s language, Focused on their needs, problems,

issues."Our interactive 3D maintenance training aids allowpeople who maintain and repair military equipment to accelerate learning in complex equipment, thusenabling first-time-right repairs and optimizing operational readiness at a lower cost."

What solutionHelps who

Do what

To solve what problems?

Basic Capability Statement

Core Competencies Past Performance

– Prime, Sub, or Commercial– Relevant Projects, Value, POC – Contract Vehicles

Unique Value Proposition / Differentiators

Company Data– Revenue, Employees, Locations, DUNS, Certifications,

NAICS

Contact Information61

Tailored Capability Statement

Your Contact’s Top Needs

Relevant Past Performance, UVP

Suitable Contract Vehicles

Project-Specific References

Capability Briefing:Six Simple Slides

Who You Are

Basic Company Info

Core Capabilities

1. 2.3. 4.

The Opportunity

Specificagency, project

Unique Value Proposition

Past Performance

Show where you’ve done it before

Meeting Objectives

GCME p. 128

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

Avoid Five Top Teaming Traps

Be selective.Do your homework.Read rules & seek SBA

guidance.Use a teaming agreement.Bring business.

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 System https://www.epls.gov/

D&B PAYDEX https://www.dnb.com/product/ptpsampl.htm

Uniform Commercial Code

http://en.wikipedia.org/wiki/Uniform_Commercial_Code

Teaming Agreement Resources

DOD Guidebook for Facilitating Small Business Teaming Arrangementswww.acq.osd.mil/osbp/docs/dod_OSBP_Guidebook_for_Facilitating_Small_Business_Team_Arrangements.pdf

SBA Table of Small Business Size Standards www.sba.gov/sites/default/files/Size_Standards_Table.pdf

Teaming Agreement Enforceabilityhttp://www.whaylaw.com/Teaming_Agreement_Enforceability.htm

Non-Disclosure Agreementshttp://www.bitlaw.com/forms/nda.htmlhttp://www.wipo.int/sme/en/documents/disclosing_inf.htm

Mentor-Protégé & CTA Resources

SBA Mentor – Protégé Programwww.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 Arrangementhttp://www.gsa.gov/portal/content/200553

What You Learned

Defining Fit: What Primes Really Want

Determining Fit:Creating Your Checklist

Teaming Types Teaming Agreements & Beyond Building Fit:

The Meeting & Briefing Toolkit

Advice on Government Contracting

Free Good Enough

Pick any two.

Effective Teaming ResourcesBook & Workbook

OnSite Sessions:“Strategy In A Day”“Awesome Market Research”

www.GovernmentContractsMadeEasier.com

Judy Bradt, CEO (703) 627 1074 Judy.Bradt@SummitInsight.com