Teaming Agreements & Advanced Subcontracting Issues Course Curriculum
Subcontracting
1. Subcontracting and Company Profits
a. Company Motivation
b. Controlling the Expenses
c. The Subcontract Agreement
1. Specific terms
2. Profit/Loss shifting
3. Administration after award
2. A Systems Approach
a. Preparing Terms and Conditions
b. A Negotiator’s Manual
1. Company policies
2. Trade-off issues
3. Harm assessment
4. Obtaining deviations
5. Management by exception
6. Policing during performance
7. Examples
3. Pitfalls in Source Selection of Subcontractors
a. Federal Rules
b. State Rules
c. Risks of Inclusion of Subcontractor's Material in Prime's Proposal
d. Fraud Suit Potentials
e. Protests At GAO
f. Other Court Actions
g. Subcontract Approval by Federal Government
1. High risk areas-avoidance techniques
2. How to comply
3. Examples
4. Contractor Procurement System Reviews (CPSRs)
a. The Regulations
b. The Government's Track Record
c. How to Prepare and Conduct Them
d. Taking Corrective Action
e. Appealing Negative Findings
5. Subcontract Types and Uses
a. The Key Decisions
b. Fixed Price
1. Whys use
2. Risks
c. Cost Type
d. Time and Material
e. Successive Targets
f. Incentives
g. Award Fees
h. Indefinite Quantity
i. Going Too Far
6. Major Terms and Conditions: Problems and Solutions
a. Ending the Battle of the Forms
b. Changes Clauses
c. Payments Clauses
d. Default/Delay Clauses
e. Termination for Convenience Clause
f. Liquidated Damages Provision
g. Inspection Clauses
h. Warranty Clauses
i. Technical Data Clauses
7. Key Performance Problems
a. Controlling Change Orders
1. Notice of claims
2. Written agreement before proceeding
3. Eliminating constructive change doctrine
4. Simple clauses
5. Primes who do not issue changes
b. Delay Controls
1. The contract language
2. Liquidated damages-prime vs. subcontractor
3. Schedule analysis
4. Notice provisions
5. Going too far
6. Right of prime to stop subcontractor's work
8. Sole or Designated Source Subcontractor
a. Federal Rules
b. The Problem
c. State Rules
d. Case Decisions
e. The Prime’s Protection
1. Pre-bid survey
2. Negotiating with agency
3. Special clauses
4. High risk approaches
9. Other Performance Issues
a. The Breach Problem
b. Clauses to Solve Work Stoppage
c. “Scope” Changes
d. Right to Performance Assurances
e. Close Out of Contract Performance
f. Managing Subcontract Documentation
10. Defective Cost or Pricing Data
a. The Subcontractor's View
b. The Prime’s View
c. Statutory Requirements
d. Subcontractor's Defective Pricing
1. Audits
2. Government suit
3. Prime liabilities
e. A “Defective Pricing Proof” Prime or Subcontractor Transaction
f. Certification Problems
g. Indemnity Clauses
11. Dispute Resolution Techniques
a. Minimizing Litigation
b. Close-End vs. Open-Ended Arbitration
c. Prime vs. Subcontractor-Analysis of Goals
d. The Three Basic Choices
e. Subcontractor Remedies
f. Cost of Dispute Resolution
g. Joint Appeal Agreement
TEAMING AGREEMENTS
12. Purposes
- The Prime’s Perspective
- The Subcontractor's Perspective
13. Preliminary Considerations
- Advance Confidentiality Agreements
- Exclusivity vs. Non-Exclusivity
- Intended Effect of Agreement
- Agreements to negotiate in good faith
- Agreements to agree
- Absolute duty to place subcontract
d. Anti-Competition Issues
- Horizontal Restraints
- Vertical Restraints
14. The Teaming Agreement
a. Recitals
b. Definitions
c. Structure
d. Scope
e. Proposal Efforts and Content
- Areas of responsibility
- Preparing the drafts
- Decision authority
- Duty to submit
- Timing
- Negotiations with customer
- Relationship to subcontract price
f. Termination
- Convenience
- Default
g. Expiration
- Survival
- Precedence
h. Effecting the Subcontract
- Price
- Schedule
- Structure
- Workshare
- Flowdown clauses
- Termination
- "Boilerplate"
- Precedence
- Options
- Data Rights
i. Intellectual Property
- Contribution to team
- Patents and data
- Use of intellectual property
- Licensing
- Field of use restrictions
- Derivative property
j. Publicity
k. Raiding