Managing your GSA Schedule can be an arduous task. As a contractor, you are required to stay on top of constantly changing regulations, to understand and navigate difficult restrictions, and most importantly, to find and win procurement opportunities so you can meet your contract’s minimum sales requirement.
However, depending on the size of your business and the scope of your contract, it can be difficult to win these opportunities. If you want to turn a profit in the federal marketplace, it’s essential you are educated about all the options GSA contractors have.
GSA has several avenues through which contractors can increase their competitiveness and qualify for new opportunities. One of these avenues is a Contractor Teaming Arrangement (CTA), a unique type of arrangement which allows two or more contractors to pair up, compete for, and win federal procurement opportunities. By joining a CTA, you may have a way to improve your success in the federal marketplace.
What is a Contractor Teaming Arrangement (CTA)?
A Contractor Teaming Arrangement (CTA) is an arrangement between two or more GSA Schedule contractors who work together to compete for and fulfill schedule orders. The terms of the arrangement are negotiated between the contractors, so it’s not dictated by GSA.
In order to create a CTA, the team members who comprise the CTA must establish several key elements in their agreement. They must appoint a team leader who will serve as the main Point of Contact (POC) throughout the duration of the agreement, and they must clearly define the duties and responsibilities of each individual team member. The team members must also agree on pricing and payment terms and ensure that the CTA agreement does not conflict with the terms and conditions of each of the team member’s GSA Schedule.
How Are CTAs Different from Other GSA Partnerships?
A CTA is an agreement that is very distinct from other types of partnerships that GSA contractors may elect to participate in. Unlike a joint venture, a CTA is not a separate legal entity. And unlike a subcontracting agreement, all parties involved in a CTA need to have a GSA contract.
Essentially, every contractor in a CTA is considered to be a “prime contractor.” This means that every member in a CTA has privity of contract and can interact directly with the government (not just the team leader). This also means that every team member will be held fully accountable for the duties assigned to them in the CTA agreement. If a team member does not fulfill these duties, then they may face penalties.
Another major item that distinguishes CTAs from other agreements is that CTAs allow contractors to compete for opportunities outside of their awarded SINs.
In a CTA, team members are not limited to selling services or products under their individually awarded SINs but can sell under any SIN that is listed on any of the team members’ individual contracts. These goods or services will be invoiced at a rate that is consistent with each team member’s unit prices or hourly rates as agreed in the task or delivery order, rather than just the awarded rates of the prime contractor’s contract.
What Benefits Do CTAs Offer?
The ability to sell services or products outside of the scope of an individual contractor’s awarded contract gives contractors involved in CTAs a high degree of flexibility and competitiveness. Participating in a CTA can give individual contractors a huge advantage in the federal marketplace. By participating in a CTA, GSA contractors can:
- Compete for Schedule orders for which they wouldn’t otherwise qualify
- Increase their market share and become more competitive
- Reduce risk by sharing responsibilities with other team members
- Focus on providing the supplies and services that best match their company’s resources and strengths, reducing the risk of nonperformance
- Find greater success as a small and/or disadvantaged business by pairing up with larger businesses
Another benefit of CTAs is that they can compete for small business set-aside contracts. These are contracts that the government reserves specifically for small businesses to compete for and win. If each team member qualifies as a small business, CTAs can compete for and win small business set-asides.
Government buyers also benefit a great deal by doing business with a CTA. Instead of seeking out multiple individual contractors, buyers can purchase a singular, total solution through a CTA.
Is a CTA Right for Your Business?
CTAs offer many benefits for both government buyers and sellers. They allow GSA contractors to be more flexible and competitive by allowing them to focus on each team member’s individual strength and get access to new opportunities. Considering the benefits that CTAs offer, it’s an option that may be worth exploring for your business.
Navigating the federal marketplace can be a difficult process. Fortunately, Winvale is here to help. If you want to know if a CTA is right for your business or want to find out how to seize more opportunities in the federal marketplace, contact us today.
