If you’ve attended my workshops or seminars, you already know that successful teaming and sub-contractor relationships should be established well in advance of bid opportunities. That said, there are going to be times where as a small business you may get a call from a large prime for an immediate opportunity. Here are some quick tips on how to respond to request for MWBE sub-contractor:
- Obtain a copy of the entire solicitation (not just one section or statement of work) and read the entire document from beginning to end. This may sound obvious, but I see a lot of situations were potential sub-contractors only read the statement of work, or skim through documents when making decisions about whether or not to pursue an opportunity. Thisis a huge mistake as sub-contractors need to know and understand all contract terms, conditions and contract clauses.
- Get clear on your capacity: avoid common time wasters by advising potential prime contractors on your capacity up front. The conversation might go something like this. “Yes, we are interested in a potential teaming/sub-contracting relationship; we can provide 5 Trainers in the NYC Metro Area for projects up $ 1 million dollars annually.”
- If you choose to move forward, before exchanging confidential information both parties should sign a mutual Non-Disclosure Agreement “NDA”. The agreement should be reviewed by your attorney.
- Documents to have on hand; targeted capability statement, past performance history, proof of financial capacity and certification documents. In addition to providing prime contractors with this information, you should be requesting and checking it, as well.
- Ask potential prime contractors for references of other small, minority and women owned firms that they have done business with in the past. Check all references. If you choose to enter into an agreement with a Prime Contractor, it should be in the form of a teaming/sub-contracting agreement prepared by an experienced attorney. You want to be sure that agreement includes responsibilities of both parties, delivery timelines, payment terms and remedies to address performance issues/disputes.
Bottom line is teaming/sub-contractor relationships should fit into your overall business strategy for expansion and growth. That said, the relationship needs to be a good fit; in addition to all the aforementioned items, a sharing of core values, corporate philosophy and culture is very important.
