Becoming a Prime: How Foundries and Forgers can take the lead in government contracting
When it comes to government procurement, the prime contractors take the lead. But rarely do they go it alone. Instead, they set up a supply chain that helps them deliver on the requirements. Large vertically integrated companies have established suppliers. But smaller companies can also compete through Teaming Arrangements.
The Federal Acquisition Regulation (FAR) are the procurement rules for selling to the federal government. The Defense Federal Acquisition Regulation Supplement (DFARS) covers rules specific to the Department of Defense. In both cases, the rules that govern teaming fall into FAR Subpart 9.6 – Contractor Team Arrangements.
FAR 9.601 defines teaming arrangements as:
- Two or more companies for a partnership or joint venture to act as a potential prime contractor; or
- A potential prime contractor agrees with one or more other companies to have them act as its subcontractor under a specified Government contract or acquisition program.
Teaming arrangements complement each party’s unique capabilities; and it offers the Government the best combination of performance, cost, and delivery for the system or product being acquired. Teaming arrangements are a standard operating procedure for many government contractors. DoD contracting officers rely on FAR 9.6 when evaluating Contractor Team Arrangements. DFARS does not duplicate this standard since this is a supplement.
Evaluating Past Performance in Teaming Arrangements
When selecting a teaming partner, past performance is critical since contracting officers will evaluate your entire team's ability to deliver. According to FAR 15.305(a)(2)(iii), agencies must consider the past performance of subcontractors performing major or critical aspects of the requirement. This means your subcontractor's track record directly impacts your proposal's competitiveness.
For joint ventures, FAR 15.305(a)(2)(vi) requires agencies to evaluate the joint venture's own past performance. If the joint venture has no performance history, contracting officers will assess each party's individual past performance. This provision recognizes that newly formed partnerships may lack a collective track record but can still demonstrate capability through their members' proven experience.
The key takeaway: pick partners who excel in their specific scope of work. A subcontractor with strong past performance in a critical area strengthens your overall proposal, while a partner with performance issues, even on their portion of work, can sink your entire bid. Build relationships with reliable performers early and document their capabilities to present the strongest team possible when opportunities arise.
Plan ahead
You can find potential teaming partners on ICON, the web-based procurement and bid management platform that connects qualified U.S. casting, forging, and precision machining suppliers directly with Department of Defense buyers. Built in partnership with the Defense Logistics Agency (DLA), ICON solves a critical challenge: finding the right domestic manufacturer for mission-critical metal components, fast.
The Buck Stops with You
Ultimately, the prime contractor is fully responsible for contract performance, regardless of any team arrangement between the prime and its subcontractors. Make sure you pick the right partners.
The Federal Acquisition Regulation (FAR) is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds.
The FAR also contains standard solicitation provisions and contract clauses and the various agency FAR supplements.
The Department of Defense (DoD), GSA, and the National Aeronautics and Space Administration (NASA) jointly issue the FAR.
To learn more about Contractor Team Arrangements, visit https://www.acquisition.gov/far/subpart-9.6 and https://www.acquisition.gov/far/15.305