1. Contracting Officer Podcast Slides
Knowledge & Insights From Contracting Officers

2. Subcontracting and Teaming
Episode 029
Subcontracting and Teaming
Original Air Date: June 1, 2015
Hosts: Kevin Jans & Paul Schauer

3. Formatting notes
Hyperlinks: Blue font indicates hyperlinks – presentation must be in ‘Slide Show’ mode to activate the link
Red bold font indicates a point of emphasis
Green bold font indicates CO’s personal comment or perspective

4. Introduction Purpose of this podcast:
Explain some of the delicate balance companies play as they compete, then team, then compete again

5. When does Subcontracting & Teaming happen?
Acquisition Time Zones
(from Podcast Episode 003)
Requirements Zone
Market Research Zone
RFP Zone (proposal zone)
Source Selection Zone
Execution Time Zones
(from Podcast Episode 084)
Kick Off Zone
Performance Zone
Re-compete Zone
Wrap-up Zone

6. Different Types of Contracting ‘Teams’
Competitors
For an effort
For an agency
For key people
For access to limited resources
For everything (This is the stereotype; like many stereotypes, it’s hyperbole.)

7. Different Types of Contracting ‘Teams’
Forced Teams
Teammate
Work together for these same resources, opportunities, etc.
“Co-opetition”
When companies compete one day and team the next
They are all subcontractors to the Government team

8. Teaming Partner vs. Subcontractor
Book answer:
Just for Fun: Neither “teammate” nor “subcontractor” are listed in FAR Part – Definitions
BUT …subcontracting has its own part of the FAR: Part 44 – Subcontracting Policies & Procedures
FAR – Definitions.
This applies when “consent to subcontract” is required (on many acquisitions over $150,000)

9. FAR 44 – Subcontracting Policies & Procedures
“Subcontract” means any contract to furnish supplies or services to a prime contract or subcontract.
“Subcontractor” means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor.
CO considerations when offerors use subcontractors: FR , such as
Was adequate price competition obtained?
Is the proposed subcontract type appropriate for the risks involved?

10. Why are Teaming arrangements important?
Why companies team?
They NEED to …
Share costs, capabilities, risk, etc.
Meet set-aside requirements in order to win the contract

11. Why are Teaming arrangements important?
Why not team?
Do not have to share …
Profit, credit, past performance, etc.
Loss of control – must compromise and defer to partner requirements
NOTE: Everyone must understand the unintended consequence of the partnership
Ex: must demonstrate capability of managing subcontractors

12. Why Should Government Care?
Contractors are not all enemies all the time
They are not all friends all the time either
The evaluators must decide if the teams can work together; is the subcontracting effort:
Required (Large Business criteria, etc.)?
Preferred?
Value added?

13. Why Should Government Care?
If the Government team wants a real vote on this…
Put it in the evaluation criteria
Even better, make it part of your market research!
RFI
Industry Day
Seek feedback for the best approach!

14. Why Should Industry Care?
Government team needs to really understand your relationship
What’s in it for them?
What do your subcontractors bring?
They are likely to only see a ‘pass through’ (see FAR – Limitations on Pass-Through Charges (Oct 2009) )
NOTE: Everyone but the prime is a “subcontractor”
Government still wants only one ‘belly button’

15. Summary
Government needs to plan for subcontracting plans when devising the Acquisition Strategy
Market research, RFIs, etc.
Government needs to understand ‘co-opetition’
Contractors need to understand Government’s intent for subcontracting, and articulate their plan effectively in the proposal

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