When most people think of GSA Schedule Contractor, they regard it as a solo endeavor for a company. Most people believe that one company has one specialization. After they receive the contract, they stay in their lane with that contract. However, there is the opportunity to set up a GSA Schedule Contractor Team Arrangement (CTA), which offers a world of different possibilities.
A CTA enables GSA Schedule contractors to supplement each other’s capacities to compete for orders for which they may not be eligible independently. This opportunity allows customers to buy a complete solution instead of making additional purchases from multiple contractors. It also addresses issues that cause both contractors and customers inconvenience.
A Contractor Team Arrangement (CTA) is a collaboration between two or more GSA Schedule contracts to suit the needs of a government agency.
The CTA enables the contractor to meet the government’s demands by providing a holistic solution incorporating the products or services from each team member’s separate GSA Schedule contracts. Moreover, it allows GSA Schedule contractors to complement one another’s products or services to compete for orders they might not qualify for without this collaboration. On the other hand, a customer benefits from a CTA since it allows them to buy a solution rather than make multiple purchases from different contractors.
The CTA document is created entirely by the team members and submitted to the buyer as a component of the solicitation response. As the team may include other items, later on, the following basic elements should get addressed in the agreement, according to GSA:
● Duration of the Agreement. Define the term of the partnering agreement, any possibilities, and how they will get implemented.
● Team Leader. Include a clear description of the Team Leader’s responsibilities and the contractor who will function as Team Leader. If the Team Leader changes within the order execution term, the document should explain why and choose the Team Leader during the order execution period.
● Team Members. Outline each Team Member’s responsibilities, as well as any constraints on those obligations.
● Communications. Everyone should have access to each Team Member’s contact information in the CTA. The buyer may engage directly with CTA Team Members because the government has access to all Team Members.
● Invoicing and Payments. Assign invoicing and payment tasks to the team. You should clearly state the manner of payment in the CTA document by all Team Members. The CTA Agreement shall state that any dispute over payment distribution between the Team Leader and the Team Members will get resolved by the Team Members without the government’s intervention.
● Legal Relationship. The CTA document must not create a joint venture or independent subsidiary. Each Team Member serves as a “prime” for the work for which they are responsible.
● Delivery Responsibility. Declare if the Team Leader or each member is in charge of a certain aspect of the project to clear the delivery responsibilities.
● Confidential Information. Describe any proprietary information and indicate how it will get managed, as well as any relevant rights.
● Identification of Parties. Specifically, the CTA should:
○ Be documented in writing and signed by each GSA Schedule contractor who participates.
○ Identify the name, address, GSA Schedule contract number, and Point of Contact for each member of the CTA (POC).
○ Indicate the ordering activity’s name and address.
○ Declare that the agreement is purely between the members of the team.
Moreover, the CTA document must also contain and address the following points:
● Conflicting Terms
● Specific Team Activities
● Independent Contractors
● Team Member Replacements
● Performance Evaluation
● Report of Sales and Industrial Funding Fee (IFF)
● Payment Responsibility
● Ordering Procedures
Function and Features of CTA
Many MBEs discover that they have the necessary capabilities, technical expertise, or historical performance documentation to submit a viable offer as a prospective prime contractor while responding to an RFQ disseminated to schedule holders or other types of solicitations.
As a result, the GSA supports establishing contract teams, particularly among small enterprises, to provide “total” solutions to federal buyers. Two or more GSA Schedule contractors operate together in a Contractor Team Arrangement to complement one other’s strengths.
This structure allows team members to compete for scheduling orders they might otherwise not be eligible to obtain. A Contractor Team Arrangement improves a GSA Schedule contractor’s competitive advantage by permitting them to pool their expertise with those of other team members, encouraging the contracting officer to focus on their collective core strengths.
Non-schedule holders may also work as subcontractors on GSA schedule assignments utilizing more standard subcontractor arrangements. Unlike a GSA schedule contractor teaming agreement, although the contractor, or schedule holder, will have all of the conventional contractor privileges, such as billing, payments, and customer communication, tendered to the prime.
Benefits of CTA
The CTA offers a slew of advantages to both Government Customers and especially among GSA Schedule Contractors.
For one, Government buyers can use a CTA to satisfy socioeconomic procurement goals by obtaining a holistic solution from contractors who work together to complement one another.
Additionally, by forming a CTA, GSA Schedule contractors can:
- Compete for Schedule orders that they would not otherwise be eligible for;
- Gain a larger part of the market and become more competitive;
- Share duties with other team members to reduce risk;
- Concentrate on the supplies and services that are most compatible with their company’s resources and capabilities;
- Find greater success as a small or disadvantaged business;
- Provides a single solution to the customer;
- Gains a competitive advantage;
- Expands market share;
- Boosts visibility;
- Concentrates on core competencies;
- Provides customers with extra opportunities;
- Establishes direct contact with customers;
- Utilizes one or more GSA Schedule solutions to the fullest extent possible; and
- Reduces the number of goods Schedule contractors must carry on their contracts, resulting in lower inventory and tracking expenses
A GSA Schedule Contractor Team Arrangement (CTA) collaborates between two or more GSA Schedule contractors to deliver a comprehensive solution to a customer’s demands. By using a CTA, government buyers enjoy the availability of a holistic solution to their needs. On the other hand, GSA Schedule Contractors benefit most from CTAs as they leverage the products and services they offer, establishing a good name by providing a holistic approach to contracting products and services.
Find out if you qualify for GSA contracts!