A 2013 Virginia case, Cyberlock Consulting, Inc. v. Information Experts, Inc., is particularly revealing on this point. The applicant, Cyberlock Consulting, Inc. (“Cyberlock”) entered into two separate and distinct team agreements with the defendant and the potential lead contractor Information Experts (“IE”). In the first agreement, the parties contained very specific conditions that showed the parties` intention to be related and defined the structure of the parties` relationship and their performance in relation to the acquisition. The agreement had provided a very detailed breakdown of the extent of the work to be carried out by each party in the event of an award. There was also a formal subcontract. The team agreement made it clear that if IE was awarded the main contract, IE “within five (5) business days from the date of award. conclude the sub-treaty annexed to this Agreement. Finally, the first team agreement identified a number of bases that could lead to its end. None of these bases included the failure to agree on the terms of a subcontract agreement. How can this be avoided? With an exclusivity clause.

As a small business, it`s important that your team agreement prohibits your team partner from entering into multiple team agreements. Make sure they work alone with you and you and that you are the only competitor to receive that “boost” from your team partner`s experience or skills, etc. Sometimes, especially in the case of multiple award contracts, the exclusivity rules are even at the limit. You can prohibit team members from entering into team agreements for a mac/MATOC assignment. In any case, this is an important provision that must be negotiated before entering into a team agreement. Here are eight principles to follow when negotiating a team agreement: Edward T. DeLisle co-president of the Federal Contracting Group at Cohen Seglias Pallas Greenhall & Petman PC. He focuses on his practices in the areas of federal contracts, construction law, construction litigation, and the acquisition and management of small businesses. He has designed and negotiated construction contracts, team contracts and joint venture contracts for subcontractors, contractors, developers and owners. Ed also actively monitors the progress of his client`s construction projects to protect the rights and remedies to which they are entitled….