Presentation Transcript

1. Implementing Teaming and Partnering Strategies Daniel Price Red Team Industries, Inc.
2. Course Objectives Provide a comprehensive overview of many common and some unique teaming and partnering methods Outline the key facets of prime, subcontracting, joint ventures, and other unique teaming arrangements Review primary agreements required and when they should be implemented Provide best practices and tips for successfully working with newly formed teams
3. Topics Why Team? Prime Contractor Considerations Subcontractor Considerations The Joint Venture Leveraging Socio-Economic Set-Asides Unique Teaming Arrangements Painful Lessons Learned
4. Why Team?
5. Why Team? Gap Analysis/SWOT analysis Team to fill shortfalls Capability Past Performance Customer Relationship Team to enhance competitive standing Team to build past performance Team to access new market space/customers Team to build new capabilities Team to bid on the cheap Team to build name recognition Complementary Capabilities
6. Prime Contractor Considerations
7. Prime Contractor Considerations When to Prime a Team: Past Performance Supports Credibility to Meet SOW Requirements and Manage a Team Socio-Economic Status is Advantageous 51+% SOW is in Your Capability “Sweet Spot” Customer Wants You (Still must have one of the above) Infrastructure Supports It Credit rating Bonding Certifications and Licenses Processes Geographical Footprint Subcontract management capability “We could self-perform this contract, if only…”
8. Subcontractor Considerations
9. Subcontractor Considerations When to Support a Team as a Subcontractor: Limited Past Performance Limited Experience with this Customer Unknown to the customer Rocky relationship with the customer Limited Internal Capability – Cannot Accomplish 51% of the SOW Niche Capability Offering Insufficient Corporate Infrastructure to Manage the Team Effort Exclusive vs. Non-Exclusive Agreements “Our core competency is a perfect fit for 20% of this SOW.”
10. The Joint Venture
11. The Joint Venture Establishes a New Corporate Entity That Becomes the Bidding Entity for a Specific Contract Populated vs. Unpopulated Joint Ventures Potential G&A Advantages Liability Advantages Past Performance Carries Over to the JV from the Founding Members Socio-Economic Status is Not Preserved (Except in Mentor-Protégé Programs) 8a + Large Business = Large Business JV HUB Zone status does not transcend Rule is Affiliation: 13 CFR 121.103(h): In joint ventures, the joint venture partners are affiliated with regards to that procurement, and the revenue/employees will be combined to determine size, unless….
12. Rule for Exclusion from Affiliation 13 CFR 121.103(h)(3): JV Partners Will Not be Found Affiliated if: Each Concern is Small and (1) The procurement is a bundled procurement (2) The procurement is not bundled but is a large procurement: Revenue based size standard: the dollar value of the procurement, including options, exceeds half the size standard of the procurement Employee based size standard: dollar value of the procurement, incl. options, is over $10M
13. Leveraging Socio-Economic Set-Asides
14. Leveraging Socio-Economic Set-Asides 8a, HUB Zone, WOSB, SDVOSB, VOSB, SB, Others Know the market. Priorities shift every few years. Procurement Officials are Motivated to Set-Aside Bids Less work Less risk of protest Performance metric to meet annual goals Performance Risk is a sleep-loss issue Aggressively Sell your Capability and Your Socio-Economic Status Respond to the Sources Sought Know your customer, and your customer’s SB Advocate Build your name recognition by participating in conferences, study groups, boards, committees Be the “small business expert” in your field Recent Example: Fiji Embassy Security
15. Unique Teaming Arrangements
16. Unique Teaming Arrangements Public-Private Partnerships (P3) An agreement between a government entity and one or more private industry, or other, entities to perform work or utilize facilities and equipment. The Public-Private Partnerships initiative is directed toward improving the output and performance of DoD organic activities through increased participation by the private sector via industrial partnering. Resources National Council for Public-Private Partnerships: http://www.ncppp.org/ DAU website for Depot P3s: https://acc.dau.mil/CommunityBrowser.aspx?id=22413 Handbook of Army P3: http://www.commercecenterseiowa.com/P3Handbook.pdf FEMA’s P3 Site: http://www.fema.gov/privatesector/ppp.shtm Most base websites – especially Depots
17. Unique Teaming Arrangements Historically Black Colleges and Universities and Minority Institutions (HBCU/MI) Law: 10 U.S.C. 2323 DFAR subpart 226.3 Set-Asides Authorized in Some Cases HBCU/MI Count Toward Socio-Economic Utilization Metrics Federally Funded Research & Development Center (FFRDC) Can Include Non-Profit, For Profit, and Academic Institutions Designed for Firms With Strong R&D Capability (example Dynetics, SAIC, etc.) Difficult to Win, but Prestigious Subcontracting Opportunities Possible
18. Unique Teaming Arrangements Mentor-Protégé Agreement Numerous Options: DoD, SBA, DLA, DoE, Others Establishes a Long-term, Mutually Beneficial Relationship Aimed at Growing the Protégé Company Best Matches Occur when Motivated Mentor Companies Team With Aggressive Protégés Offering Complementary Capabilities Lockheed and a precision manufacturer CH2MHill and a specialty roofing company 8(a) Joint Venture Under Mentor Protégé Agreement Managed by SBA Unique Feature: Joint Venture Under Mentor-Protégé Program Assumes the Size Status of the 8(a) – Can be Awarded 8(a) Set-asides and Sole-Source Awards
19. Painful Lessons Learned
20. Lessons Learned Check the Excluded Parties (aka “Debarred”) list: www.epls.gov Get the Full D&B Report Check 3 Credit References Check with Their Contracting Officers Ask Their Other Partners – Contract Performance Does Not Mean Team-Player Check With Clients (Includes Commercial Clients) Visit Them in Person: G&A Too High? Hole in the Wall? Due Diligence is Not a Check in the Box Due Diligence Is a Virtue
21. Lessons Learned (Continued) Get a Demonstration – See Their Product or Service First-Hand Schedule Meetings Up the Chain Don’t ask your boss to go sign the agreement, ask him/her to meet them and form an opinion BD  BD Ops  Ops President  President Get All Agreements in Writing Require access to 2nd Tier Subs in the event of issues Flow Down All FAR Clauses, Regardless of Whether Required by the RFP Performance Metrics to Subs That Support Overall Contract Metrics Schedule Formal Reviews at Different Milestones Have an emergency fall-back plan at each stage Know the Point of No Return
22. Lessons Learned (Continued) Look for Competitive Tactics at Work Personal Example: MCLOGSS Personal Example: Djibouti BOS Don’t Forecast Your Competitive Strategy Too Early Rehearsal of Concept (ROC) Drill Upon Award With All Stakeholders In Execution, Inspect Early and Often Personal Example: Spain Manufacturing Success as a Sub Depends on Persistence and Willingness to “Work for Free” Personal Example: CNTPO
23. Questions?