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April 2009 - PowerPoint PPT Presentation


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Contractor Teaming Arrangements - How to Use Them . April 2009. Session Objectives. Understand what a Contract Team Arrangement (CTA) is; Understand the difference between a CTA and a Prime/Sub Relationship; Understand why a CTA is useful Understand how to use or evaluate a CTA; and

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session objectives
Session Objectives
  • Understand what a Contract Team Arrangement (CTA) is;
  • Understand the difference between a CTA and a Prime/Sub Relationship;
  • Understand why a CTA is useful
  • Understand how to use or evaluate a CTA; and
  • Gain some take-aways from Lessons Learned.
order of topics
Order of Topics
  • What is a subcontract?
  • What is a Contract Team Arrangement (CTA)?
  • CTAs vs. Prime/Sub relationships
  • What is a FAR Part 51 Letter of Authorization and is it needed under CTAs?
  • Why is a CTA useful?
  • Characteristics of Contract Team Arrangement
  • Request for Quotation (RFQ) and responses
  • Best Practices – Examples
  • Best Practices – What a CTA should include
  • Biggest Issues Under CTAs
  • Strategic Sourcing
what is a subcontract
What is a Subcontract?
  • FAR 19.701 –

“Subcontract” means any agreement entered into by a Government prime contractor or subcontractor calling for supplies and/or services required by performance of the contract, contract modification, or subcontract.

what is a contract team arrangement cta
What is a Contract Team Arrangement (CTA)?

A Contract Team Arrangement (CTA) is an arrangement between 2 or more GSA Schedule contractors to work together to meet agency requirements.

NOTE: Proposed for inclusion under re-write of GSAR Part 538.

Proposed new title “Contractor Partner Agreements”.

cta vs prime sub relationships
CTA

Each member has a MAS Schedule Contract

Specific duties assigned to each team member

Privity of Contract with all team members

Pricing is based on each team members’ contract

Socio-economic credit based on ALL members

Total solution

Prime/Sub in MAS context only

Only prime has Government contract

Prime can delegate duties but NOT contract responsibility

Privity of Contract only with prime

Pricing based on prime’s contract only

Socio-economic credit based on prime’s status only

All items are on prime’s MAS contract

CTA vs. Prime/Sub Relationships
what is a letter of authorization
What is a Letter of Authorization?

FAR 51.101 -

If it is in the Government’s interest, and if supplies or services required in the performance of a Government contract are available from Government supply sources, contracting officers may authorize contractors to use these sources.

8

why are cpas useful
Why are CPAs useful?

Contractor’s perspective

Reduce open market exposure

Protest exposure

Caps on open market found in RFQ

Strategic value

Increase GSA sales

Contract maintenance

10

why are ctas useful
Why are CTAs useful?

GSA’s perspective

Single solution for a requirement

Privity of Contract with team members

Builds relations with ordering activities

Allows expanded opportunities for small businesses

Reduces the amount of line items contractor must maintain on their contract

11

characteristics of a contractor team arrangement
Characteristics of a Contractor Team Arrangement
  • Written agreement between team members
  • Each CTA is unique
  • Privity of Contract with all team members
  • Response to an RFQ to provide a total solution
responding to a request for quotation rfq
Responding to a Request for Quotation (RFQ)
  • If using a CPA, disclose that in RFQ.
  • If requested, provide the CPA with the RFQ response.
  • Indicate which partners, labor categories and products are associated with each Schedule. List Schedule number.
  • Acknowledge that the terms of each Schedule apply to the corresponding products and services.
apples oranges

Examples: Determining Best Practices

Apples & Oranges
  • E-Buy posting to Schedule 70 holders
  • Notifying that procurement would take place under the Millennia Lite GWAC
  • And that the Schedule 70 folks could team with Millennia Lite primes
  • Can this be executed?
scope this one out

Examples: Determining Best Practices

Scope this one out
  • E-Buy RFQ posting to Schedule 70, 520, 874, and 871 holders
  • Requested contractor teaming arrangements with a team lead who would manage team members and invoicing/payments
  • Required lead contractor to provide blended rates – across team members for each labor category and resulting categories are not tied to any one Schedule
    • To get a rate for a systems engineer, lead takes the 3 team member rates of $50 (Team A – Sch 70 IT), $60 (Team B – Sch 70 IT ), and $70 (Team C – Sch 871 PES) for a blended rate of $60 for a systems engineer.
slide16

Scope this one out

  • What happens when they invoice $60 for Team A’s work?
        • Is there a False Claims Act violation?
        • What does the Lead pay Team A? – the $60 less Leads compensation, or the $50.
        • If Team C performed the work – what would the Lead pay?
  • What happens when Team C (which has a PES Schedule) performs IT related work?
slide17
A Veterans Affairs RFQ provides the right answer:

Contractor may propose appropriate labor categories from their other GSA FSS contracts or contractors may team with another GSA Schedule holder to offer a blended solution. When proposing multiple schedules, please identify and group labor categories by their respective schedule contracts.

Scope this one out

17

who s in charge

Examples: Determining Best Practices

Who’s in charge
  • Agency established a multiple award BPA with performance-based incentives
  • Lead was asked to establish CPA’s with small businesses, large businesses could subcontract to the lead. Agency intent was to increase small business utilization numbers.
  • Lead with input from members develops task order proposals, award of task orders is made directly to the team member responsible for the work, team members are then responsible for invoicing their own portion of the work
who s in charge1
Who’s in charge
  • RFQ “requires that the Contractor Team Leader, at a minimum, be responsible for coordinating the submission of the proposal under this RFQ and any subsequent proposals after award. …and
  • Contractor Team Leader has overall responsibility for planning, programming, coordinating,and managing the performance of work required in all task orders issued, including those task orders issued directly to team members. The Contractor Team Leader is responsible for overseeing the quality and timeliness of the work performed (including all associated deliverables).”
who s in charge2
Who’s in charge
  • How is Team Lead compensated for planning, programming, coordinating,and managing the performance of work required in all task orders issued, including those task orders issued directly to team members and overseeing the quality and timeliness of the work performed (including all associated deliverables)?
    • It takes man-hours to manage
    • When issued directly to team members no revenue passes through Lead
    • Would require TO award to be issued to both Lead and Team Member(s); CO gets multiple invoices, makes multiple payments
who s in charge3
Who’s in charge
  • But, in this case, the agency is discouraging direct program management hours
      • this is in conflict with the contract requirements
  • From a business perspective,
      • Where is the incentive for the Lead to provide adequate resources to manage the task orders?
      • CPA’s usually contain a provision for “project management fees” to compensate Lead for this work. Works well when the cash flows through the Lead – but harder to structure when Team Members operate independently.
      • How to make work severable for performance incentives
      • Who gets the C/PAR when there is a problem?
      • Past performance
best practices what a cta should include
Best Practices: What a CTA should include
  • Some basic points that the CTA should include:
    • In writing and signed by all members
    • Identification of the team lead and team members
        • Management Plan
        • Socio-economic status of members
        • Past performance
    • Specific responsibilities of each team member
    • Duration of the CTA including options
best practices what a cta should include1
Best PracticesWhat a CTA should include
  • Important areas that should be addressed:
    • Pricing including project management fees
    • Other Direct Costs or Open Market Items
      • FAR 8.4
    • Independent Contractors
    • Legal Relationship
    • Replacement of Team Members
  • Delivery, Invoicing and Payment
biggest issues under ctas for government contracting officers
Biggest Issues Under CTAs for Government Contracting Officers
  • Make sure the CTA covers:
    • Warranty - who is responsible for warranty issues?
    • Delivery - single vs. multiple locations
    • Invoicing - team lead vs. team members
    • Payment - team lead vs. team members
  • How to handle disputes between team members
links for more information
Links for More Information
  • http://www.gsaelibrary.gsa.gov
    • This site list all MAS Schedule contractors
  • http://www.gsaadvantage.gsa.gov
    • This site provides a pricing tool.
  • http://www.gsa.gov/contractorteamarrangements
    • This site contains frequently asked questions and answers on CTAs
questions
Questions???

Deborah LagueGeneral Services AdministrationPhone: 703.605.2780E-mail: deborah.lague@gsa.gov

Kitty Klaus

EDS, an HP companyPhone: 703.742.1825E-mail: kitty.klaus@eds.com