In a GSA Federal Supply Schedule Contractor Team Arrangement (CTA), who is responsible for reporting sales and remitting the industrial funding fee?
Each GSA Federal Supply Schedule contractor is responsible for reporting its GSA Schedule contract sales and remitting the appropriate industrial funding fee.
Is a formal contract between GSA Federal Supply Schedule contractors required to establish a Contractor Team Arrangement (CTA)?
No. However, to prevent misunderstandings between team members, CTAs should identify each team member’s responsibilities.
No. Arrangements are made between team members and will vary from one CTA to another. The following are common elements of a CTA:
- Identifies participants, GSA Schedule contract numbers, and services and products covered by the arrangement;
- Defines terms;
- Sets forth each participant’s roles, responsibilities, and obligations;
- Identifies scope, period of performance (for specific, limited purposes or longer periods covering several transactions), and termination of the arrangement;
- Identifies remunerations for functions performed, if any;
- Establishes scope and limitations of any licenses or proprietary rights;
- Establishes representations and warranties among the parties;
- Identifies confidentiality requirements, obligations, disclosures, and remedies;
- Identifies damages, liability/limitation of liability, and any indemnification requirements among the parties;
- Addresses administrative requirements (e.g., assignments, how notices will be conveyed and recognized, how changes or amendments will occur);
- Identifies any terms that survive the arrangement or termination; Identifies governing laws, venues, etc.;
- Establishes how disputes will be addressed and resolved; and
- Addresses force majeure; i.e., addresses how an unexpected or uncontrollable event will impact a team member’s obligation under the CTA.
How do GSA Federal Supply Schedule Contractor Team Arrangements (CTAs) differ from Prime Contractor/Subcontractor Arrangements?
|Contractor Team Arrangement (CTA)||Prime Contractor/Subcontractor Arrangement|
|Each team member holds a GSA Schedule contract.||Only prime contractor has a government contract.|
|Any team member may be designated the team leader. Team leader is only responsible for duties addressed in the CTA.||Prime contractor cannot delegate responsibility for performance to subcontractors.|
|Any team member can interact directly with the government.||Only prime contractor can interact with the government.|
|Responsibility of each team member is described in the CTA.||Prime contractor is totally responsible for performance.|
|Each GSA Schedule contractor’s prices have been determined fair and reasonable.||Prime contractor determines price reasonableness of its subcontractors.|
|Each contractor has privity of contract with the government.||Only prime contractor has privity of contract with the government.|
|Ordering agency is invoiced at each GSA Schedule contractor’s prices.||Ordering agency is invoiced at the prime contractor’s prices.|
|Total solutions can be put together quickly and easily.||N/A|
Since each contractor in a GSA Federal Supply Schedule Contractor Team Arrangement (CTA) has a GSA Federal Supply Schedule contract, each team member is held accountable under the terms and conditions of its contract for any problems such as those described.
To whom does the customer agency communicate in a GSA Federal Supply Schedule Contractor Team Arrangement (CTA)?
Points of contact should be spelled out in the CTA.
Can team members still use subcontractors and if so, would the subcontractors be considered team members of the GSA Federal Supply Schedule Contractor Team Arrangement (CTA) if the subcontractors did not hold individual GSA Schedule contracts?
Team members may still use subcontractors as allowed by their GSA Federal Supply Schedule contracts and as may be addressed in the CTA. Subcontractors, however, would not be considered members of the “team” in this specific instance; responsibility would rest with the applicable GSA Schedule contractors.
My team member's rates/prices are much higher than mine. Can I charge my team member's rates/prices instead of mine?
No. A contractor may only charge the rates/prices that have been awarded under the company’s GSA Federal Supply Schedule contract. The same holds true for other team members.
Please visit Schedules e-Library to find GSA Schedule contractors who match the service or product criteria.
In providing a total solution to an agency’s requirement under a Contractor Team Arrangement (CTA), the services and products proposed should be identified under each team member’s GSA Schedule contract. Any proposed services and products that are not part of a GSA Schedule contract (i.e., open market items) may be included only after all applicable acquisition regulations have been followed (see Federal Acquisition Regulation 8.401(d)) and must be clearly labeled as such.
GSA Federal Supply Schedule contractors are responsible for crafting the CTA. The government is not involved in this process.
GSA Federal Supply Schedule contractors may establish a CTA in advance of any known requirement or after requirements are defined and the Request for Quotation (RFQ) issued. The CTA should include the names of the team members, their respective GSA Federal Supply Schedule contract numbers, and a description of the responsibilities of each team member. Agencies should review CTAs to ensure that the CTAs clearly delineate team member responsibilities and provide for coordination and cooperation between team members, thus diminishing the risk for all parties involved.
A GSA Federal Supply Schedule Contractor Team Arrangement (CTA) is an arrangement between two or more GSA Schedule contractors to work together to meet agency requirements. A CTA permits contractors to complement each other’s capabilities to compete for orders for which they may not independently qualify. A customer benefits from a CTA by buying a solution rather than making separate buys from various contractors.
Invoicing and payment are areas that should be addressed in the CTA. Many times, an agency will want to receive one invoice. In such cases, the team leader may submit a single invoice for all team members, provided that the invoice indicates each team member’s GSA Schedule contract number, the applicable services/products provided, and the corresponding dollar value attributable to that team member. In accordance with the Assignment of Claims Act (31 U.S.C. 3727), a contractor may only assign moneys due under a contract if the assignment is made to a bank, trust company, or other financing institution. Thus, in a CTA, although the team leader may submit a single invoice on behalf of all team members, each team member must be paid separately; the team leader cannot accept payment on behalf of the entire team.
- Satisfies the customer with a single solution; Increases competitive edge;
- Increases market share; Increases visibility; Focuses on core capabilities;
- Obtains complementary capabilities; Integrates different skills;
- Offers additional opportunities with customers;
- Builds direct relationships with customers;
- Maximizes use of one or more GSA Schedule solutions;
- Shares risks and rewards; and
- Increases small business participation.
A contractor holding multiple GSA Federal Supply Schedule contracts may offer a solution that crosses those contracts. Such a solution would not be considered a Contractor Team Arrangement (CTA).
How can an ordering agency ensure that the responses it receives to its Request For Quotation (RFQ) are, in fact, Contractor Team Arrangements (CTAs) and not simply Prime Contractor/Subcontractor Arrangements?
GSA strongly recommends that an ordering agency’s RFQ indicates that all CTAs must be specifically identified as such. Do not be confused, for example, by a “Team ABC” response; the response should clearly identify that the GSA Schedule contractors are proposing a “Contractor Team Arrangement.” The CTA should designate all team members, their corresponding GSA Schedule contract numbers, and describe the tasks to be performed by each team member, along with the associated proposed prices (e.g., unit prices, labor categories and rates). If applicable, the team leader should also be identified. The ordering agency should then be able to verify that any proposed prices do not exceed the prices awarded under each team member’s GSA Schedule contract and avoid any misunderstandings regarding each team member’s responsibilities and prices.
There is a cost involved for my company to participate in a GSA Federal Supply Schedule Contractor Team Arrangement (CTA). How do I recoup these costs under my GSA Schedule contract?
The CTA should spell out any costs associated with the arrangement. Each team member should consider such costs when the team develops its price quote for the total solution. The benefits of a CTA may more than compensate for a contractor’s costs by expanding the firm’s capabilities and broadening its customer base.
No. The CTA is solely between the team members and cannot conflict with the underlying terms and conditions of each team member’s GSA Federal Supply Schedule contract. In their review of quotations, however, agencies may identify deficiencies in the CTA in order to enhance the probability of successful performance.