Team OUR Strengths & Share Status Benefits
Kingdomware Technologies, Inc., v. United States, No. 14-916 (2016) (Court Ruling)
The U.S. Supreme Court’s unanimous decision in Kingdomware Technologies, Inc. vs. the United States is a huge win for Veteran-Owned Small Businesses as well as any qualified company that partners with a VOSB such as Bertotti, Frank! In a nutshell, this SCOTUS ruling has removed all major marketplace obstacles for VOSBs by “clarifying” the laws pertaining to their special status.
Thanks to the SCOTUS decision the days of frustrating government red tape are drawing to a swift end. A viable solution is to become a VOSB/SDVOSB (Veteran Owned 51% and Controlled) if possible or simply qualify as a partner with a VOSB like Bertotti, Frank. This is NOT an offer or invitation to be your Manufacturer's Rep or Distributor. My preferred VOSB teaming methods are described below.
I support these entities to the Fed/Gov Marketplace& Bertotti, Frank
Partnering Options
There are multiple ways for Small and Large Companies to maximize their chances of selling to GSA. The Office of Small Business Utilization (OSBU) provides guidance on the process of forming a partnership but does not provide direct oversight. The Office of Small Business Utilization's (OSBU) mission is to promote increased access to GSA’s nationwide procurement opportunities. GSA monitors and implement small business policies and supports Small Business Administration programs, including:
Joint Venture
Teaming Agreement
Mentor-Protege Program
Contractor Team Arrangement
Subcontracting
When mentor and protégé are the joint venture partners?
*** An exception to the requirement that all partners to the joint venture must be small may occur when there is a mentor protégé agreement approved by the SBA and the mentor and protégé are the joint venture partners.
***Joint Venture
A joint venture can be a powerful tool to help a small or large business improve its odds of winning a federal contract. It allows two or more companies to combine their best attributes and develop a plan for potentially winning work.
38 C.F.R. § 74.1 provides that a “joint venture is an association of two or more business concerns for which purpose they combine their efforts, property, money, skill, or knowledge in accordance with 13 CFR part 125. A joint venture must be comprised of at least one veteran-owned small business. For VA contracts, a joint venture must be in the form of a separate legal entity.”
At the outset, a joint venture may be organized as a partnership or any other separate legal entity. For purposes of the Veterans First Contracting Program (Program), joint ventures may be either a VOSB or an SDVOSB. However, at least one VOSB or SDVOSB joint venture partner must be verified in accordance with 13 CFR part 125 and 38 CFR part 74 and designated as the managing venturer. An employee of the managing venturer must serve as the project manager. In general, each joint venture partner must be a small business in the NAICS Code(s) identified on the applicant’s Vendor Information Pages (VIP) application profile. In addition, the twelve provisions identified in 13 CFR § 125.18(b)(2) must be contained in the joint venture agreement. An exception to the requirement that all partners to the joint venture must be small may occur when there is a mentor protégé agreement approved by the SBA and the mentor and protégé are the joint venture partners.
The regulations governing joint ventures are explained in detail in 13 CFR 125.8.
Applies to Large and Small Business
***Teaming Agreements
Some contracts with the federal government may be complex in the scope of work and may require interested vendors to partner with another company to perform the work to the government’s specifications.
One of these partnerships is called a teaming agreement, which is also known as a teaming arrangement. Teaming agreements are temporary business arrangements involving two or more independent companies that join together for the specific purpose of obtaining and performing a competitive bid contract.
In these arrangements, one company is determined to be the lead contractor known as a Prime vendor while the other company will be in a supporting role called a subcontractor.
Not every partnership is eligible for a teaming agreement. When creating a potential partnership, both vendors must make sure they are not violating any Small Business Administration (SBA) affiliation rules. The following are some rules to follow to avoid any potential speculation on affiliation:
- The two companies should not share common ownership or control of either a respected party.
- The two parties must not have identical businesses.
- The two parties shall not present evidence that suggests a false prime and subcontractor relationship exists based on the tasks to be performed by each party.
Consider being a Mentor to a Protege VOSB like Bertotti, Frank?
***Mentor-Protégé Program
The Mentor-Protégé program is designed to motivate and encourage large business prime contractor firms to provide mutually beneficial developmental assistance to a veteran-owned small business like Bertotti, Frank. This program is also designed to
- Improve the performance of contracts and subcontracts.
- Foster the establishment of long-term business relationships between large prime contractors and small business subcontractors.
- Strengthen subcontracting opportunities and accomplishments through three incentives. (see Section 1.5 of Program Details).
All firms must be in good standing in the federal marketplace. The program excludes firms that are on the Federal List of Debarred or Suspended Contractors. A protégé may have two mentors at the same time — as long as those relationships don't conflict or compete with each other. However, a protégé can have no more than two mentors over the life of the businesses.
Mentor Firm – open to any large business firm that demonstrates the commitment and capability to assist in the development of small business protégés.
Protégé Firm - All small businesses that meet the definition of small business concern at FAR 19.001, based on their primary NAICS code, are eligible to be protégé firms like Bertotti, Frank.
Mentor-protégé timeline The first term of a mentor-protégé agreement may last up to three years. At the end of those first three years, the agreement may be extended for another three years. Businesses who have a mentor-protégé relationship can form a joint venture and can compete together for government contracts reserved for small businesses. A joint venture can also bid on contracts that are set aside for service-disabled veteran-owned, women-owned, or HUBZone businesses — as long as the protégé qualifies for the contract.
Mentor-protege with Joint Venture. Your joint venture agreement must be in writing and follow SBA requirements. When writing your joint venture agreement, use the agreement guide and the agreement template. A joint venture can also bid on contracts that are set aside for veteran-owned small businesses as long as the protégé qualifies for the contract. Your joint venture agreement must be in writing and follow SBA requirements. The protégé must provide a joint venture compliance certificate to the SBA and the contracting officer. The joint venture must be separately identified with its name, DUNS number, and CAGE number with SAM. At SAM, define the entity type as a joint venture, with individual partners listed.
***Prime & Sub-contracting
Please contact me to discuss this.
CTA Benefits
***Contractor Team Arrangements
A GSA Schedule Contractor Team Arrangement (CTA) is an arrangement in which two or more GSA Schedule contractors team together to provide a total solution to meet a customer's needs. Under Schedule CTAs, contractors complement each other and it allows teams to compete for orders for which they may not qualify independently. GSA encourages the use of CTAs to meet buyer’s requirements.
NOTE: FAR 9.6, Contractor Team Arrangements, does not apply to GSA Schedules teaming. Under GSA Schedules, Teaming allows contractors to use their individual GSA Schedules to develop a solution for the government.
The Schedules CTA does not create a separate legal entity, but allows Schedule contractors to meet buyer’s requirements by combining the supplies and/or services from each team member’s separate Schedule contract in response to a buyer’s Request for Quote.
Benefits for Schedule Contractors and Government Buyers
By using a CTA, government buyers can:
- Get a total solution by contractors who team together to complement each other
- Satisfy socioeconomic procurement goals.
By forming a CTA, GSA Schedule contractors can:
- Compete for Schedule orders for which they wouldn’t otherwise qualify
- Increase their market share and become more competitive
- Reduce risk by sharing responsibilities with other team members
- Focus on the supplies and services that best match their company’s resources and strengths
- Find greater success as a small and/or disadvantaged business
This is NOT an offer or invitation to be your Manufacturer's Representative, Distributor, or Contracting Consultant. My preferred VOSB teaming methods are described herein.
Manufacturer's; OEM's; VAR's; Master Distributor; Installer Teams ... I can help YOU significantly by Teaming
Subpart 819.5—Set-Asides for Small Business
819.501-70 General principles for setting aside VA acquisitions.
819.502 Setting aside acquisitions.
819.502-2 Total small business set-asides.
819.502-3 Partial set-asides.
819.502-4 Multiple-award contracts and small business set-asides.