August 11 2006 Copyright 2006 Business Research Services Inc. 301-229-5561 All rights reserved.

Features:
Defense Contract Awards
Procurement Watch
Links to Prior Issues
Teaming Opportunities
Recently Certified 8(a)s
Recent 8(a) Contract Awards
Washington Insider
Calendar of Events
Return to Front Page

Back to Basics: Subcontracting on Multiple Award Contracts

By Manny Coplit
Seneca Creek Consulting

Recent trends within the federal community point to an ever increasing number of government-wide or agency-specific multiple award contracts. Often these contracts are awarded to multiple companies in both the large and small business categories. The size and breath of services on these contracts typically limit participation to only the large tier 1 system integrators and small businesses with ample revenue, past performance and service delivery capability.

So how about small firms that have one or two niche service or product offerings that can address some of the requirements in a large procurement? These firms must secure a teaming relationship with a large or small business prime contractor or both.

Is securing a place on one or more teams enough? Definitely not. All too often we hear about small firms getting on a winning team, having provided pricing and past performance that was used in the submission, then after the contact is awarded, all discussions with the prime cease and no opportunities or revenue are ever seen.

To avoid this common problem, make sure your solution is unique so you can negotiate a teaming agreement that guarantees you participation in all task orders that involve your solution area. This assumes you will see all task orders, so picking a prime that is committed to distributing task orders is critical. Before teaming, understand how the prime contractor intends to work with its subcontractors to bring business to the contract and share in the business with its subs.

However, do not expect that business will be handed to you just because you are on a team and you negotiated a favorable teaming agreement. You must put forth effort to market the contract in conjunction with the prime as well as other team members. It is commonplace on multiple award contracts that team members “eat what they kill!”

If you are on a team, put together a marketing plan that the prime approves then work the plan. Don’t expect business without sales effort.

(For more information, visit www.SenecaCreekConsulting.com.)


*For more information about Set-Aside Alert, the leading newsletter
about Federal contracting for small, minority and woman-owned businesses,
contact the publisher Business Research Services in Washington DC at 800-845-8420