Maximizing Strategic Partnerships and Relationships George Murray Business Development Specialist U.S. Small Business Administration Philadelphia District Office

Agenda Subcontracting Opportunities Teaming Agreements vs. Joint Ventures Mentor/Protégé Agreements Selling with the “Channel” Questions? 2

Why Subcontract? Business-to-business relationships Building past performance qualifications Not permanent –Once the contract ends, the relationship can, too Optimizes opportunities –In many cases, can be a subcontractor on multiple teams 3

Subcontracting Opportunities  Directory of Large Prime Contractors **  System for Award Management (  Search by NAICS  Use this list to search Federal Procurement Data System (  FPDS identifies companies winning contracts  SUB-Net 4

Teaming vs. Joint Ventures Teaming Agreements –Prime/subcontractor relationship –Usually more formal –Usually used for more than one opportunity Joint Ventures –New business entities –Own tax ID number, DUNS number, SAM registration –“Responsibility” issues 5

Teaming Agreements Benefits –Flexibility – prime and sub can switch roles to accommodate opportunity –Position of strength – two (or more) companies working together Limitations –Prime must perform required percentage of work on the contract –Typically, only the prime’s past performance is considered 6

Joint Ventures Benefits –Resources of all companies combined Financial Past Performance Employees –Joint venture entity performs required percentage of work –Exclusion from affiliation for bundled requirements Limitations –Only three opportunities in a two-year period 7

Mentor Protégé Agreements Formal agreements between two businesses –Sponsored by federal agencies –Sponsored by large primes Focus is on business development –Management and Technical assistance (HR, accounting, etc.) –Financial assistance (loans, bonding, ownership equity) –Business Development assistance (developing sales leads, proposal support, etc.) –General assistance 8

Mentor Protégé Agreements Benefits –Vary according to the specific program –All designed to provide developmental support to the protégé –Most include a favorable credit to the mentor and its subcontracting plan –Reimbursement to mentor for costs incurred providing support (in some cases) –Most will allow a mentor to have partial access to small business contracts 9

Mentor Protégé Agreements Limitations –Developmental needs = weaknesses –Agency-specific agreements only recognized by that agency –Unlikely that an agency will select your mentor for you 10

SBA – 8(a) only Department of Defense Department of Homeland Security Department of State Department of Energy Department of the Treasury GSA EPA FAA NASA Department of Veterans Affairs 11 Federal M/P Programs

Channel Sales Value-added services Manufacturer’s Partner levels –Combination of factors Tapping into manufacturer resources –Sales leads –Marketing material –Support for demos –Competitive pricing –Training/Certification resources Non-Manufacturer Rule 12

Questions? 13

George Murray Business Development Specialist U.S. Small Business Administration