Overview
FAR 9.601 defines a "Contractor team arrangement" (CTA) as a collaborative effort between two or more companies to pursue and perform government contracts. It recognizes two distinct organizational structures: a formal joint venture/partnership acting as the prime contractor, or a traditional prime-subcontractor relationship established for a specific program.
Key Rules
- Two-Model Framework: A CTA is limited to two specific types of arrangements:
- Joint Venture/Partnership: Two or more companies forming a single entity to act as the potential prime contractor.
- Prime-Subcontractor Tie-in: A potential prime contractor entering into an agreement with one or more companies to serve as its subcontractors.
- Specific Scope: The arrangement must be tied to a "specified Government contract or acquisition program."
- Uniformity: The definition ensures that both formal legal mergers (JVs) and informal contractual agreements (prime-sub) are recognized under the umbrella of "teaming" within FAR Subpart 9.6.
Practical Implications
- Enhanced Competition: This definition allows companies to pool complementary financial resources, technical expertise, and management capabilities to compete for contracts they could not perform individually.
- Government Recognition: By formalizing these definitions, the FAR provides a framework for the government to evaluate the combined capabilities of a team during the source selection process while identifying which party holds legal privity of contract.