Teaming Agreements Government Contracts

Where a potential subcontractor has the rank of negotiator, it should insist on a team agreement requiring it to receive a subcontract when the team leader receives the main contract. Wiley Government Contracts` lawyers regularly advise your clients on matters related to the formation of team agreements, joint venture subcontracts, strategic alliances and associate contractor relationships. Our lawyers analyze and design agreements between and between public contractors, focusing on key issues such as due diligence, protection of proprietary information, data rights and intellectual property, financing and payment, antitrust effects and traps, dispute resolution and membership issues for small businesses. Premium and subcontracting agreements in the public procurement system are probably more familiar to most people than team agreements. Under the normal principal and subcontractor relationship, prime contractors work directly with the government. You manage all subcontractors and are responsible for carrying out the work as defined in the contract. Important provisions to be taken into consideration include: •prohibitions on the robbery of personnel; •the obligation for the main contractor to exercise the option of a subcontractor when the government exercises the option of a main contractor; •restrict the right of major contractors to terminate, for convenience, to work, which have been terminated by the government under the main contract; •necessary replacement of other work where subcontracting work is excluded from the programme; •protection of property rights; • the main sponsorship of subcontracting claims against the government. A team agreement is an agreement between companies to pool resources to obtain and execute a government contract. You will usually find between a company competing for a main contract and a potential subcontractor or joint venture. Teaming agreements generally focus on the responsibilities for establishing the offer, the division of labour at the time of award, the exclusivity of the teaming agreement and the conditions applicable to subcontracts in the event of subcontracting.

A subcontract is a legally binding agreement that defines the work to be performed, prices, delivery requirements, flow-down clauses and subcontracted dispute resolution procedures. We advise clients on the legal form of joint ventures, taking into account the obligations that partner companies are willing to assume with each other, the liabilities they wish to isolate from other business activities, the way they share management responsibility and the restrictions they are willing to accept for their activities outside the company. Unlike major contractors, subcontractors do not collaborate directly with the government, but for other contractors.. . . .

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