Unlike JVs, it is not considered that the members of the team agreement are bound on the basis of their agreement alone. However, small businesses should ensure that they only associate with parties that do not give a meaningful appearance of belonging. Therefore, small businesses should avoid entering into agreements with parties that: As mentioned above, far recognizes two different types of team agreements – joint ventures and team agreements. These agreements can be mutually beneficial for small business and government, but also for small businesses and their hopeful partners. Teaming, however, is another concept. FAR Subpart 9.6 defines a contractor team contract as an agreement in which; 1. create a partnership or joint venture with two or more companies to become a potential prime contractor, or 2. A potential prime contractor is agreed with one or more other companies to act as subcontractors under a specific contract or acquisition programme. It is essentially an agreement for the development of a subcontract for the specific acquisition, once it has been awarded. Agencies encourage applicants to consider subcontracting. NSF writes that “the proposing companies. encourages the use of experts and research facilities at their disposal in universities, universities, national laboratories and other research organisations.
Such cooperation may include research subcontracts or advisory contracts. And the abbey. Of Agriculture (USDA) says, “The involvement of the university, government, or other external personnel in the planning and research phases of the project as consultants or through subcontracting agreements is permitted and may be particularly useful for small businesses that have not previously received federal research awards.” Team agreements can be a valuable tool for small businesses, allowing companies to pool resources, management capabilities and technical knowledge. All these elements contribute to making a small business more competitive in the tendering procedure. However, if not executed correctly, the application of team agreements can have a negative impact on their ability to meet the size standards of dismantling contracts.