Teaming arrangements are not mentioned in 13 CFR (SBA Regulations) because teaming is regulated by the contracting officer. Joint Ventures are governed by the Small Business Regulations. Given this overlap in the regulations, it is quite possible to confuse these two different contracting tools. However, while this may seem inconsequential, the effects of mixing the two van be devastating to you and your teaming partners. Failure to properly constitute a team and adhere to the rules can create a joint venture thereby affiliating (joining) the businesses. If the team is under the helm of a small business to pursue a small business set aside, or some other set aside based on status. this can lead to a protest and finding of other than small.
“Contractor Team Arrangement,” as used in this subpart, means an arrangement in which—
Two or more companies form a partnership or joint venture to act as a potential prime contractor.
A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program.
Moser Rose Law Firm is well versed in drafting teaming agreements and properly constituting teams to avoid charges of affiliation and ostensible subcontractor issues.
Call us to assist you with your next teaming arrangement.