Ever wanted to pursue an opportunity only to
realize that your company can’t fulfill all the obligations on your own? Contractor
Teaming Arrangements (CTA) might be your way forward to large opportunities
and big money! CTAs are a formalized agreement between two companies that could
fall into two different categories.
The first one is the establishment of Joint
Venture between two companies. A joint venture is when two companies combine to
form a single company with a separate bank account and legal name for the
purpose of a specific opportunity and/or time period. These are best used when
both companies are the same size and possess a GSA schedule. Both companies wanted to
go after an opportunity that neither can do on their own so they join forces
and try to win it together.
The second type of arrangement is a
Prime/Subcontractor relationship. In this instance, only the GSA Schedule of
the Prime is used. The Prime then subcontracts out work they cannot perform to
other companies. It’s best to consider this arrangement when you are trying to
gain experience on a federal level. In this case most solicitations require
that the Prime contractor must be able to perform 51% of the work and there is
no guarantee as a subcontractor you will receive any of the work.
CTAs can be confusing and to this end the GSA
has created a series of videos
to help GSA contractors set up these agreements in a fair and reasonable way.
There’s also a list of FAQs
that help you determine whether this is the right approach for you company. Reach out to us and we help determine of
the CTA is right for your company.
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