federal govt contracting - teaming agreements: good, bad & the enforceable

US Federal Government Contracting Webinar Series - 2016

Presented By:David Dempsey

JUNE 3, 2016

DEMPSEY | FONTANA PLLC

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2016 US Federal Government Contracting Webinar Series



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AGENDA







AGENDA:

• Introduction – HOST

•Introduction - GUEST

• Presentation

•Conclusions

• Q & A






INTRODUCTIONHost







Jennifer SchausAbout The Host


* Approx 20 Yrs in Gov Contracting

* Career: D&B (Govt Division)

Federal Sales & GSA Scheds

* Frequent Speaker: Chambers, NCMA, AFCEA, etc

* Member: WIPG

* Education: Towson University – B.A.

UC Berkeley - Leadership Accelerator

Cornell University - Exec Leadership





Jennifer SchausJennifer Schaus & Associates


* DC Based Consulting Firm

* Over 10 Yrs in Business

* Support Services for Gov Cons

Proposal Writing / Contract Vehicles (GSA)

Sales & Biz Dev

Certifications – SBA 8(a); SDVO; etc.

Events





INTRODUCTIONGuest








David DempseyABOUT OUR SPEAKER


39 years experience in government procurement law and related matters

Experience covers formation, administration and litigation of government contracts in US and Europe

Focus on IT contracts, service contracts, small business issues, government accounting, intellectual property rights, export controls





David DempseyDempsey Fontana, PLLC


Dempsey Fontana founded in 2012 by two lawyers with + 70 years experience in government procurement law and related matters

Firm provides value to small or large companies from collective expertise and experience in virtually all areas of procurement law at rates significantly lower than those with equivalent experience






PRESENTATION


Teaming Agreements – the Good, the Bad and the Enforceable








Procurement Context of Teaming Agreements

•Non-disclosure agreement

•[Memorandum of Agreement]

•Teaming Agreement

•Subcontract with Prime Contractor

2016 US Federal Government Contracting Webinar SeriesTeaming Agreements







Non-disclosure Agreement:

First Rule: Do no harm to yourself - protect disclosed Intellectual Property and Proprietary Information

♥ Specifically incorporate “system” of security controls from FAR 52.204-21(b) into the NDA (effective 6/15/2016)♥ Mark disclosed information with trade secret or proprietary markings

Second Rule:Trust but verify

♦ Information exchanges through one person♦ Identify users (esp. third party users)♦ View / verify existing NDAs executed by users♦ Audit rights Jennifer Schaus & Associates DEMPSEY | FONTANA PLLC



Purpose of NDA and Teaming Agreement:

1.Collaborate to meet government requirements as a “Team”► learn what the government wants – if known► identify contributions to the proposal (experience, past performance, expertise, key personnel, government contacts)

► identify contributions to contract performance (% of work)

2.Objective of both parties is a subcontract relationship for duration of the prime contract

► conduct due diligence of the prime contractor or the subcontractor

Jennifer Schaus & Associates DEMPSEY | FONTANA PLLC



Enforceability of Teaming Agreement

Seeking to enforce the expectation that upon award of the prime contract:

1. the prime contractor will award a subcontract and 2. the subcontractor will perform the subcontract

Circumstances:

● When and where in the procurement process – MOA or TA- exclusivity / non-compete (when and why)- exchange of (NDA) information

● Do you want the teaming agreement enforced?- execute NDA; begin proposal preparation- go direct to subcontract negotiations Jennifer Schaus & Associates DEMPSEY | FONTANA PLLC



Enforceability of Teaming Agreement

Federal and State court decisions may deem a teaming agreement an “agreement to agree” unless certain provisions are clearly present

Cyberlock Consulting, Inc. v, Information Experts, Inc. – Teaming Agreement unenforceable (E.D.Va decision, appeal denied)(2013)

X Technologies, Inc. v. Marvin Test Systems, Inc. – exclusivity provision enforced (5th Cir. decision)(2013)

Advance Telecom Process LLC v. DSFederal, Inc. – Teaming Agreement unenforceable (Md. 2015)

A-T Solutions Inc. v. R3 Strategic Support Group, Inc. (exclusivity not enforced after RFP cancellation then reinstatement) (E.D.Va. 2016)




Enforceability of Teaming Agreement (cont.)

Beware of or avoid language indicating:

1.Agreement only to “negotiate in good faith”

2.Non-exclusivity or ambiguous intent to award

3.Termination by teaming agreement’s own terms

e.g.: ●failure to agree on price● government disapproval without verified explanation● unilateral withdrawal● award of a subcontract (let the subcontract terminate the teaming agreement)● duration of [specific] number of months



CONCLUSIONS








CONCLUSIONS1. Review existing NDAs and teaming agreements for consistency with the preceding suggestions and then amend where possible

2. Assess whether another form of agreement is more suitable (CTA or joint venture) and confirm validity of such other agreement







Q & A








CONTACT DETAILS

Ms. Jennifer L. SchausWashington DC

+ 1 - 2 0 2 – 3 6 5 – 0 5 9 [email protected]

www.JenniferSchaus.com

------------------------------

David DempseyTysons Corner, Virginia

(703) 880-9171 [email protected]

www.deftlaw.com


mailto:[email protected]

http://www.jenniferschaus.com/

http://www.deftlaw.com/



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federal govt contracting - teaming agreements: good, bad & the enforceable

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