NNDDIIAA SSmmaallll BBuussiinneessss CCoonnffeerreennccee TThhee NNuuttss, BBoollttss && SSccrreewwss OOff TTeeaammiinngg AAggrreeeemmeennttss Jerry Gabig SSiirotte && PPermutttt 509-0279 Slide 1 © Jerome Gabig 2010 OOuuttlliinnee II. BBiigg PPiiccttuurree IIII. WWhhyy TTeeaamm?? IIIIII.. TThhee NNuuttss && BBoollttss IV. The Screws V. Sub Not Getting Paid Slide 2 © Jerome Gabig 2010 II. BBiigg PPiiccttuurree FFAARR §§ 99.660011 TTeeaammiinngg aaggrreeeemmeennttss ccaann bbee:: 1. a subcontract 22. a partnershhip 33. aa jjooiinntt vveennttuurree Slide 3 © Jerome Gabig 2010 II. BBiigg PPiiccttuurree ““AA survey bby tthhe CCenttre ffor GGllobball Corporate Positioning of estimates by bbuussiinneessss aannaallyyssttss iinnddiiccaatteess 5500%% ttoo 7700%% of joint alliances fail. A Columbia UUnniivveerrssiittyy ssttuuddyy ffoouunndd ccrroossss-bboorrddeerr joint ventures have similarly dismal cchhaanncceess:: oonnllyy 4433%% bbeeccoommee vviiaabbllee.” The Deal, January 26, 2004 at 32 Slide 4 © Jerome Gabig 2010 II. BBiigg PPiiccttuurree TThhee ddooccttrriinnee ooff pprriivviittyy iinn contract law provides that a contract cannot confer rights or iimmppoossee oobblliiggaattiioonnss aarriissiinngg uunnddeerr it on any person or agent except thhe parties to it. en.wikipedia.org/wiki/Privity Slide 5 © Jerome Gabig 2010 IIII. WWhhyy TTeeaamm?? 11. SSppeecciiaall eexxppeerrttiissee 2. Performance risk reduction 33. MMeett custtomer prefferences 4. Geographic/political balance 5. Meet socio-economic goals 6. Convert comppetitor into team member Slide 6 © Jerome Gabig 2010 11. SSppeecciiaall EExxppeerrttiissee “TThhee GGoovveerrnnmmeenntt wwiillll rreeccooggnniizzee the integrity and validity of contractor team arrangements; pprovided,, the arranggements are identified and company rreellaattiioonnsshhiippss aarree ffuullllyy ddiisscclloosseedd….” FAR § 9.603 Slide 7 © Jerome Gabig 2010 11. SSppeecciiaall EExxppeerrttiissee TThhee GGAAOO hhaass ssuussttaaiinneedd aa pprotest where the ppast experience of a subcontractor wwaass nnoott aaccccrreeddiitteedd ttoo aann offeror’s ppropposal. KIC Development, LLC, B-297425.2, JJaannuuaarryy 2266, 22000066 Slide 8 © Jerome Gabig 2010 IIII. WWhhyy TTeeaamm?? 11. SSppeecciiaall eexxppeerrttiissee 2. Performance risk reduction 33. MMeett custtomer prefferences 4. Geographic/political balance 5. Meet socio-economic goals 6. Convert comppetitor into team member Slide 9 © Jerome Gabig 2010 22. PPeerrffoorrmmaannccee RRiisskk RReedduuccttiioonn TThhee CCoommppttrroolllleerr GGeenneerraall ssuussttaaiinneedd aa contracting officer's conclusions that a newlly fformedd tteam off tthhree companies posed a "great risk" because the three companies had never worked toggether before. AIA-Todini-Lotos, B-294337, October 15, 2004 Slide 10 © Jerome Gabig 2010
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