What’s On Your Government Contracting Organization’s GSA Teaming Agreement Checklist?

Written on August 8, 2019

The end of the fiscal year brings many opportunities to team with fellow contractors with whom you can pursue business your company might not always be able to win on its own. It’s always a good idea to have a checklist of what is needed for any prospective agreement. Obvious items such as what each company will be responsible for, how disputes will be handled, and rights in technical data, should all be a part of your agreement. Another factor is how you will get paid. The Federal Acquisition Regulations do not contain provisions under the Assignment of Claims clause for teaming agreements. You and your teammates need to specifically spell out how and when each team member will be paid. Typically, a team lead takes the role of who the government sends payment to, and then that person or entity pays the team members. Make sure this process is transparent and well-documented. This will help ensure that each teammate records the sale as a GSA Schedule sale and pays the Industrial Funding Fee (IFF) on their portion of the project. If you’re a small business team lead, you may also want to check on whether your acceptance of payments on behalf of the team could jeopardize your size status. Not all status determinations are made on gross receipts. And if your company is already close to the ceiling, ensuring that merely acting as a pass through via which the government pays team members doesn’t result in your company outgrowing their size status is important. All of this advice is based on the simple premise that you must have a team agreement in writing before you proceed with government work. Failure to do that could put your company at risk if the project does not go as intended.

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