Team up with other MAS contractors
Two or more Multiple Award Schedule contractors can team up to be able to compete for orders that they may not qualify for on their own. These are called contractor team arrangements.
FAR Subpart 9.6 does not apply here
A MAS CTA does not create a separate legal entity.
Benefits of CTAs
With CTAs you can
- Compete for MAS orders that you otherwise wouldn’t qualify for
- Increase your market share and become more competitive
- Reduce your risk and share responsibilities
- Focus on supplies and services that best match your resources and strengths
- Be more successful as a small business
Definitions
Contractor team arrangement: An agreement between two or more MAS contractors who work together to meet agency requirements.
CTA agreement: A written agreement between team members detailing the responsibilities of the team and each team member.
Team leader: The MAS contractor who has been designated as the leader with responsibilities outlined in the CTA agreement.
Team member: Each MAS contractor offering a portion of the solution with responsibilities outlined in the CTA agreement.
Differences between CTAs and prime-subcontractor arrangements
| Topic | CTAs | Prime contractor and subcontractor arrangement |
|---|
| Who has a contract | Each team member must have a MAS contract. | Only the prime contractor must have a MAS contract. |
| Who has responsibility | Each team member is responsible for duties outlined in the CTA document. | The prime contractor cannot delegate responsibility for performance to subs. |
| Who interacts with us | Each team member has privity of contract with the government and can interact directly us. | Only the prime contractor can interact with us. The prime contractor is responsible for subcontracting activities. The government buyer probably specifies in the request for quotation that they must approve using subcontractors ahead of time. |
| How do invoices work | Each team member invoices the government buyer at unit prices or hourly rates as outlined in the task or delivery order, or blanket purchase agreement. | Prime contractors invoice the government buyer according to its MAS contract, which may include price reductions. |
| What is the scope | Team members can offer total solutions quickly and easily. | Prime contractors can only provide the supplies or services that were awarded on its MAS contract. |
CTA agreements
The CTA members submit their CTA agreement in response to requests for quote. Government buyers do not approve the agreements, but the elements below are what government buyers typically are interested to know.
- Duration of the agreement. Define the duration of the partnering agreement, identify any options, and describe how each option will work.
- Team leader. Who will be the team leader, their corresponding MAS contract number, the tasks they will perform. Also include associated proposed prices such as unit prices, labor categories, or hourly rates. List potential reasons to change team leader and how you will do so.
- Team members. Who are the team members, their corresponding MAS contract numbers, the tasks they will perform, and their unit prices, labor categories, or hourly rates. Also address any limitations of team members’ responsibilities.
- Communications. How to contact each team member, since the government can interact directly with all CTA team members.
- Invoicing and payments. Who is responsible for invoicing and receiving the agreed-on method of payment. Include the team’s intention to resolve any dispute involving the distribution of payments among team members without any government involvement.
- Legal relationship. Your CTA agreement must not create a joint venture or separate subsidiary. This means each team members will operate as a prime contractor for the portion of work they perform.
- Delivery responsibility. Who is responsible for which part of the project. Clearly establish who is responsible for delivering what.
- Confidential information. Identify any proprietary information and specify how such proprietary information and related rights will be managed.
- Identification of parties. All participating MAS contractors should sign the document. Include their names, addresses, MAS contract numbers, and ways to contact them. Include the name and address of the government buyer, but include a statement that the agreement is solely between the team members.
- Conflicting terms. The agreement must not conflict with the terms and conditions of each team member’s MAS contract. If there is a conflict, the MAS contract takes precedence.
- Specific team activities. State the various types of activities that will be incorporated into the team arrangement and identify who is primarily responsible for each identified activity.
- Independent contractors. State that all team members will remain independent contractors and be responsible for their own employees.
- Replacement of team members. List potential reasons to change team members and how you will do so. Include a statement that you will get approval from the government buyer before replacing team members after you receive an order.
- Performance evaluation. Clarify under whose name the government should evaluate performance in Contractor Performance Assessment Reporting System, which is a requirement for all orders over the simplified acquisition threshold.
- Reporting of sales and Industrial Funding Fee payment. Specify that each team member is responsible for tracking and reporting its own sales according to the terms and conditions of the MAS contract and for paying the related IFF.
- Pricing. Specify unit prices or hourly rates and how prices are calculated. List the supplies or services and pricing, including any team lead task management pricing, if applicable. All prices must be at or below the applicable contractor’s MAS contract prices. Explain how any order incentives or fees will be divided within the team, if applicable.
- Liabilities. Document each team member’s responsibilities and performance requirements, so that liability is clearly established.
- Ordering procedures. Document how the team will handle processing orders from the government.
Small business set-asides
If you are competing for a contract set aside for small businesses, all team members must meet the socioeconomic status and the limitations on subcontracting at FAR 52.219-14 apply. This means small business team members must perform at least 50% of the value of the work to be completed.
