WBE / MBE / DBE / SBE CERTIFIED COMPANY
Teaming and Joint Venture
Partnerships
500 Horizon Drive, Suite 540, Robbinsville, NJ 08691
609.890.7277
www.parsenviro.com
ABOUT PARS
 Established in 1984 in Robbinsville, NJ
 Innovative solutions to a broad range of
environmental, engineering, health & safety and industrial
hygiene issues
 Clients include the Federal, State and Local Governments;
Utilities; Public and Private Sector Companies
 Award-winning Woman-Owned, Minority-Owned,
Disadvantaged, Small Business Enterprise
(WBE/MBE/DBE/SBE)
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Teaming Agreement Vs. Joint Venture
Teaming Agreement - An Agreement between
companies to pool resources to obtain and perform a
contract. Does not require forming a new legal entity.
Joint Venture (JV) - A business agreement in which the
parties agree to develop, for a finite time, a new entity
and new assets by contributing equity. They exercise
control over the enterprise and consequently share
revenues, expenses and assets.
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Teaming Agreements
Teaming Agreement Terms
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Statement of Work
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Proposal Preparation Responsibilities
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Exclusivity
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What Happens if Prime Contract Awarded
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Duration of Agreement
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Teaming Agreements
Negotiate Up Front
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Negotiate Favorable Subcontract Terms as Part of the
Teaming Agreement
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A Potential Subcontractor Loses Negotiating Leverage
Once Prime Contract Awarded
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Bring Something Unique to the Table
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Negotiate With the Decision Maker
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Teaming Agreements
Provisions to be considered:
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Prohibition against employee raiding
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Requirement to exercise subcontract option if prime
contract option exercised
•
Limiting primes right to terminate for convenience to
work terminated by the Government/client
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Joint Ventures
Typical Reasons to form a Joint Venture
• Expand Service Area
• Enhance Capabilities and Experience
• Complementary products/service areas
Experience of both firms will be evaluated as
together as the Prime’s experience in the review
process.
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Joint Ventures
Elements of a Joint Venture Agreement:
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Business Operations
Management Committee
Program Manager and Key Positions
Capital Contributions
Financial Matters
Property
Liability and Indemnification
Reimbursement for Services and Expenses
Insurance
Term and Termination
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Joint Ventures
Duration – Setting up the Entity
• DUNS Numbers usually take up to 48 hours to process
• EIN numbers are immediate
• Joint Bank accounts generally require business formation
documents, an operating agreement, and personal
information of both JV partners.
• It is generally a good idea to get a legal review of the
agreement so time should be allotted for this review
period.
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Joint Ventures
Selecting Teaming Partners
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Previous work history together
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Complementary Capabilities
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Similar values/corporate culture
•
Suggest partnering on projects in a Prime/Sub
relationship prior to establishing a Joint Venture
*In a joint venture you are legally tied to the other entity,
therefore either firms performance on the contract will
reflect on the other company.
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Joint Ventures
Building Successful Relations with Teaming
Partners
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Communication
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Frequent meetings
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Make sure that there is a clear understanding of the
division of work/profits prior to starting work.
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Be very clear as to lines of project communication and
client communication.
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY
Questions?
PARS Environmental, Inc.
A EDWOSB / WBE / MBE / DBE / SBE CERTIFIED COMPANY