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Federal Government Contracting:
SUBCONTRACTING
2022 Webinar Series
Washington DC – hello@JenniferSchaus.com – 202-365-0598
ABOUT US:
Washington DC - hello@JenniferSchaus.com – 202-365-0598
➢Washington DC based
➢Professional services for established federal government
contractors
➢Market intel reports – GSA Schedule – Marketing – Contract Admin
➢Events – Webinars - Conferences
ADVERTISING OPTIONS:
➢Over 570+ Complimentary GOV CON Videos on our YouTube Channel
With almost 5K Subscribers
➢24,100+ Newsletter Subscribers
➢ 25,000+ Linkedin Followers
➢Sponsorship / Advertising Opportunities hello@JenniferSchaus.com
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Monday, December 12
5.30pm - 7.30pm
The John F Kennedy Center
-------------------------------
SPONSOR OPPORTUNITIES AVAILABLE
REGISTER / SPONSOR: https://holiday1212.eventbrite.com
Federal Government Contractors
HOLIDAY SOIREE
Thank You To Our Webinar Sponsors
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Webinar Sponsors
✔ Full training calendar: virginiaptac.org & useful links
✔ Register for free counseling:
https://virginiaptac.org/services/counseling/
✔ Your “one stop” shop for Government Contracting assistance
✔ Reach us at ptac@gmu.edu or 703-277-7750
THIS PROCUREMENT TECHNICAL ASSISTANCE CENTER IS FUNDED IN PART THROUGH A COOPERATIVE AGREEMENT WITH THE DEFENSE LOGISTICS AGENCY.
DECEMBER 1ST
THE WATERMARK
HOTEL
TYSONS CORNER, VA
HTTPS://EVENTS.BIZZABO.COM/DOJ
On December 1st, join your peers at the
WT Power Breakfast: Doing Business
with the Department of Justice.
Washington Technology provides a
direct line to the contractor executives
who need cutting-edge IT systems and
solutions to serve the largest customer
in the world – the government market.
Attendees will:
• Hear from Justice Department
leaders
• Learn how to leverage IT to
modernize operations
• Engage in discussions about
upcoming initiatives
• Analyze how contractors can best
support their department’s mission
Secure your spot today!
FOR MORE INFO CONTACT THE EVENTS TEAM AT
GEMG.EVENTS@GOVEXEC.COM
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
AGENDA:
➢ Panelist Introductions
➢ Mission Statement / History
➢ Bureaus, Agencies & Offices
➢ Important Links
➢ Top Vendors
➢ Trends & Opportunities
➢ Marketing Best Practices
➢ Legal Considerations
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
LEGAL SPEAKER:
James Fontana
Fontana Law Group
jfontana@fontanalawgroup.com
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
MISSION STATEMENT & HISTORY:
Washington DC - hello@JenniferSchaus.com – 202-365-0598
The mission of the Department of Justice is to uphold the rule of law,
to keep our country safe, and to protect civil rights.
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
BUREAUS / AGENCIES / OFFICES:
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Antitrust Division
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Bureau of Prisons
Civil Rights Division, Department of Justice
Community Oriented Policing Services
Drug Enforcement Administration
Elder Justice Initiative
Executive Office for Immigration Review
Federal Bureau of Investigation
Foreign Claims Settlement Commission
Office of Justice Programs
Office of the Pardon Attorney​
Office on Violence Against Women
U.S. Marshals Service
U.S. National Central Bureau - Interpol
U.S. Parole Commissions
U.S. Trustee Program
Office of Immigrant and Employee Rights
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
LINK TO DEPARTMENT:
https://www.justice.gov/
LINK TO OSDBU/OSBP:
https://www.justice.gov/osdbu
LINK TO PROCUREMENT FORECAST:
https://www.justice.gov/osdbu/find-contracting-opportunities
LINK TO SBA SCORECARD:
https://www.justice.gov/osdbu/find-contracting-opportunities
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
TOP 10 VENDORS
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
1. CoreCivic, Inc.
2. Metropolitan Security Service
3. The Geo Group, Inc.
4. Centerra Group, LLC.
5. Thundercat Technology, LLC.
6. McKesson Corporation
7. Naphcare, Inc.
8. CGI Federal, Inc.
9. NTT Data Federal Services, Inc.
10.Minburn Technology Group, LLC.
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
TOP 5 VENDORS - PROFILE
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
#1 - CORECIVIC, INC.
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
https://www.corecivic.com/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
CORECIVIC, INC.
SBLO (SMALL BUSINESS LIAISON OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.corecivic.com/partnership
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
#2 - METROPOLITAN SECURITY SERVICES, INC.
(AKA WALDEN SECURITY)
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
https://www.waldensecurity.com/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
METROPOLITAN SECURITY SERVICES, INC.
SBLO (SMALL BUSINESS LIAISON OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.waldensecurity.com/contact
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
#3 - THE GEO GROUP, INC.
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
https://www.geogroup.com/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
THE GEO GROUP, INC.
SBLO (SMALL BUSINESS LIAISON OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.geogroup.com/vendors
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
#4 - CENTERRA GROUP (AKA CONSTELLIS)
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
https://www.constellis.com/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
CENTERRA GROUP (AKA CONSTELLIS)
SBLO (SMALL BUSINESS LIAISON OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.constellis.com/contact/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
#5 - THUNDERCAT TECHNOLOGY, LLC.
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
https://www.thundercattech.com/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
THUNDERCAT TECHNOLOGY, LLC.
SBLO (SMALL BUSINESS LIAISON OFFICE) INFO /
LINK TO REGISTER AS SMALL BUSINESS VENDOR:
https://www.thundercattech.com/partners/
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
MARKETING BEST PRACTICES
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
MARKETING BEST PRACTICES
Washington DC - hello@JenniferSchaus.com – 202-365-0598
1 – Know your Customer (Department and Primes) BEFORE you engage! Do your homework!
2 – Register on the Prime’s website as a Small Business Vendor. Ensure your information is complete and
accurate and matches your SAM registration.
3 – Connect on Linkedin with the key players and follow the company to stay abreast of news and relevant
information. Sign up for Google alerts.
4 – Attend events and join associations where the company is active.
5 - Provide value - bring an opportunity and a custom Capability Statement geared to an Opportunity
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Reference - Department of Justice FAR Supplement
https://youtu.be/U0NJSCVyuuU
Subcontracting – LEGAL PERSPECTIVE
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Subcontracting – LEGAL PERSPECTIVE
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
James Fontana
Fontana Law Group
jfontana@fontanalawgroup.com
Three Basic Issues:
1. Teaming Arrangements
2. Subcontracts
3. Compliance
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Washington DC - hello@JenniferSchaus.com – 202-365-0598
• DOJ procurement activities governed by CICA, FAR, JAR
• Various OBDs may issue supplemental procurement guidance (e.g., USMS Policy Directive
(Procurement), BOP Acquisition Policy)
Acquisition Regulations
• FAR defines a teaming arrangement in terms of both prime-sub (vertical) and joint venture (horizontal)
⮚ See FAR 9.601
• Enforceable or just an agreement to agree?
• Subcontract vs. Joint Venture Agreement (aka Operating Agreement)
• Use the Right Agreement:
⮚ Different Terms for a Prime and Subcontractor
⮚ Terms may differ for IDIQ vs. definite quantity/requirements
⮚ Recognize that one size does NOT fit all
Teaming Agreements: Generally
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Teaming Agreements: Comparing Prime and Sub Versions
As a Prime As a Sub
Performance: No mandated quantities/workshare
(all IDIQ); agree only to negotiate a
subk upon award (risk of
unenforceability)
Require specific
quantities/workshare; definite
language to assure a subcontract
upon award
Exclusivity: Keep Sub off street Keep other teaming options open
Prices: Subject to change No adjustments (except upwards)
Payment: Due on Government payment Net-30 or similar
Termination: Discretionary (prime may T4C) Limited (only if USG T4Cs)
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
• The Agreement and/or SOW is indefinite, ambiguous and/or misleading
• Sub assigns work according to undefined percentages - Percentages of what?
• You promise what you can’t deliver – (workshare/term/pricing)
• Parties violate Limitation of Subcontracting clause
• Prime bids key personnel (prime and sub) that may be unavailable to perform
• You act in bad faith while negotiating the agreement
Teaming Agreements: You’re more likely to get sued if. . .
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
• FAR does not define Subcontract or subcontractor
• USG is not a party and will rarely interfere with the prime/sub relationship
• Though not the same as a government prime contract, they are somewhat regulated
• Considered a commercial agreement with commercial terms plus mandated and non-mandated Prime/FAR “flow-
down” clauses
• Key terms: work-share, pricing, invoicing/payment, IP, SLA/warranties, indemnification/limitation of liability
• Can subcontractors protest?
• Can subcontractors file claims/appeals?
Subcontracts: General
• A flow-down basically means transferring prime contract clauses/requirements into the subcontract
• Typically overdone by the prime: “Just flow it all down”
• For the prime it’s risk mitigation and consistency
• For the sub its increased potential liability and expense
• Divided into mandatory vs. non-mandatory clauses
• Key mandatory clauses: commercial items, compliance, EEO, SCA (see FAR 52.244-6(c)(1))
• Key non-mandatory clauses: termination, changes, stop work, OCI, disputes
• If commercial item (FAR 52.212) then fewer mandatory flow-downs
• Other prime provisions (e.g., SOW, SLAs, etc.) are also often flowed down
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Subcontracts: Flow-Down Clauses
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
• Miscommunications in the teaming process can result in partner disputes, costly litigation, business
disruption and reputation damage
• Most disputed matters: SOW/workshare, pricing/payment, enforceability (TA), T4C costs
• Mandatory arbitration vs. non-binding mediation vs. court vs. lawyers
• Choice of law/forum (what state, county, court jurisdiction)
• Sponsored claims clauses
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Subcontracts: Disputes Resolution
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
• False Claims Act (FCA
• Service Contract Labor Standards (SCA)
• Whistleblower Protection
• Suspension/Debarment
• Subcontractor Kickbacks
Washington DC - hello@JenniferSchaus.com – 202-365-0598
Subcontracts: Top 5 Subcontractor Compliance Risk Issues
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
THANK YOU FOR ATTENDING
SUBCONTRACTING OPPORTUNITIES AT
Department Of Justice
Washington DC - hello@JenniferSchaus.com – 202-365-0598
THANK YOU TO OUR SPEAKER
James Fontana
jfontana@fontanalawgroup.com

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  • 24. Washington DC - hello@JenniferSchaus.com – 202-365-0598 #2 - METROPOLITAN SECURITY SERVICES, INC. (AKA WALDEN SECURITY) Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice https://www.waldensecurity.com/
  • 25. Washington DC - hello@JenniferSchaus.com – 202-365-0598 METROPOLITAN SECURITY SERVICES, INC. SBLO (SMALL BUSINESS LIAISON OFFICE) INFO / LINK TO REGISTER AS SMALL BUSINESS VENDOR: https://www.waldensecurity.com/contact Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 26. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 27. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 28. Washington DC - hello@JenniferSchaus.com – 202-365-0598 #3 - THE GEO GROUP, INC. Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice https://www.geogroup.com/
  • 29. Washington DC - hello@JenniferSchaus.com – 202-365-0598 THE GEO GROUP, INC. SBLO (SMALL BUSINESS LIAISON OFFICE) INFO / LINK TO REGISTER AS SMALL BUSINESS VENDOR: https://www.geogroup.com/vendors Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 30. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 31. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 32. Washington DC - hello@JenniferSchaus.com – 202-365-0598 #4 - CENTERRA GROUP (AKA CONSTELLIS) Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice https://www.constellis.com/
  • 33. Washington DC - hello@JenniferSchaus.com – 202-365-0598 CENTERRA GROUP (AKA CONSTELLIS) SBLO (SMALL BUSINESS LIAISON OFFICE) INFO / LINK TO REGISTER AS SMALL BUSINESS VENDOR: https://www.constellis.com/contact/ Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 34. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 35. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 36. Washington DC - hello@JenniferSchaus.com – 202-365-0598 #5 - THUNDERCAT TECHNOLOGY, LLC. Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice https://www.thundercattech.com/
  • 37. Washington DC - hello@JenniferSchaus.com – 202-365-0598 THUNDERCAT TECHNOLOGY, LLC. SBLO (SMALL BUSINESS LIAISON OFFICE) INFO / LINK TO REGISTER AS SMALL BUSINESS VENDOR: https://www.thundercattech.com/partners/ Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 38. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 39. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 40. Washington DC - hello@JenniferSchaus.com – 202-365-0598 MARKETING BEST PRACTICES Washington DC - hello@JenniferSchaus.com – 202-365-0598 SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 41. Washington DC - hello@JenniferSchaus.com – 202-365-0598 MARKETING BEST PRACTICES Washington DC - hello@JenniferSchaus.com – 202-365-0598 1 – Know your Customer (Department and Primes) BEFORE you engage! Do your homework! 2 – Register on the Prime’s website as a Small Business Vendor. Ensure your information is complete and accurate and matches your SAM registration. 3 – Connect on Linkedin with the key players and follow the company to stay abreast of news and relevant information. Sign up for Google alerts. 4 – Attend events and join associations where the company is active. 5 - Provide value - bring an opportunity and a custom Capability Statement geared to an Opportunity SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 42. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 Reference - Department of Justice FAR Supplement https://youtu.be/U0NJSCVyuuU Subcontracting – LEGAL PERSPECTIVE SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 43. Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 Subcontracting – LEGAL PERSPECTIVE SUBCONTRACTING OPPORTUNITIES AT Department Of Justice James Fontana Fontana Law Group jfontana@fontanalawgroup.com
  • 44. Three Basic Issues: 1. Teaming Arrangements 2. Subcontracts 3. Compliance SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598
  • 45. SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598 Washington DC - hello@JenniferSchaus.com – 202-365-0598 • DOJ procurement activities governed by CICA, FAR, JAR • Various OBDs may issue supplemental procurement guidance (e.g., USMS Policy Directive (Procurement), BOP Acquisition Policy) Acquisition Regulations
  • 46. • FAR defines a teaming arrangement in terms of both prime-sub (vertical) and joint venture (horizontal) ⮚ See FAR 9.601 • Enforceable or just an agreement to agree? • Subcontract vs. Joint Venture Agreement (aka Operating Agreement) • Use the Right Agreement: ⮚ Different Terms for a Prime and Subcontractor ⮚ Terms may differ for IDIQ vs. definite quantity/requirements ⮚ Recognize that one size does NOT fit all Teaming Agreements: Generally SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598
  • 47. SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598 Teaming Agreements: Comparing Prime and Sub Versions As a Prime As a Sub Performance: No mandated quantities/workshare (all IDIQ); agree only to negotiate a subk upon award (risk of unenforceability) Require specific quantities/workshare; definite language to assure a subcontract upon award Exclusivity: Keep Sub off street Keep other teaming options open Prices: Subject to change No adjustments (except upwards) Payment: Due on Government payment Net-30 or similar Termination: Discretionary (prime may T4C) Limited (only if USG T4Cs)
  • 48. SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598 • The Agreement and/or SOW is indefinite, ambiguous and/or misleading • Sub assigns work according to undefined percentages - Percentages of what? • You promise what you can’t deliver – (workshare/term/pricing) • Parties violate Limitation of Subcontracting clause • Prime bids key personnel (prime and sub) that may be unavailable to perform • You act in bad faith while negotiating the agreement Teaming Agreements: You’re more likely to get sued if. . .
  • 49. SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598 • FAR does not define Subcontract or subcontractor • USG is not a party and will rarely interfere with the prime/sub relationship • Though not the same as a government prime contract, they are somewhat regulated • Considered a commercial agreement with commercial terms plus mandated and non-mandated Prime/FAR “flow- down” clauses • Key terms: work-share, pricing, invoicing/payment, IP, SLA/warranties, indemnification/limitation of liability • Can subcontractors protest? • Can subcontractors file claims/appeals? Subcontracts: General
  • 50. • A flow-down basically means transferring prime contract clauses/requirements into the subcontract • Typically overdone by the prime: “Just flow it all down” • For the prime it’s risk mitigation and consistency • For the sub its increased potential liability and expense • Divided into mandatory vs. non-mandatory clauses • Key mandatory clauses: commercial items, compliance, EEO, SCA (see FAR 52.244-6(c)(1)) • Key non-mandatory clauses: termination, changes, stop work, OCI, disputes • If commercial item (FAR 52.212) then fewer mandatory flow-downs • Other prime provisions (e.g., SOW, SLAs, etc.) are also often flowed down Washington DC - hello@JenniferSchaus.com – 202-365-0598 Subcontracts: Flow-Down Clauses SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 51. • Miscommunications in the teaming process can result in partner disputes, costly litigation, business disruption and reputation damage • Most disputed matters: SOW/workshare, pricing/payment, enforceability (TA), T4C costs • Mandatory arbitration vs. non-binding mediation vs. court vs. lawyers • Choice of law/forum (what state, county, court jurisdiction) • Sponsored claims clauses Washington DC - hello@JenniferSchaus.com – 202-365-0598 Subcontracts: Disputes Resolution SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 52. • False Claims Act (FCA • Service Contract Labor Standards (SCA) • Whistleblower Protection • Suspension/Debarment • Subcontractor Kickbacks Washington DC - hello@JenniferSchaus.com – 202-365-0598 Subcontracts: Top 5 Subcontractor Compliance Risk Issues SUBCONTRACTING OPPORTUNITIES AT Department Of Justice
  • 53. Washington DC - hello@JenniferSchaus.com – 202-365-0598 THANK YOU FOR ATTENDING SUBCONTRACTING OPPORTUNITIES AT Department Of Justice Washington DC - hello@JenniferSchaus.com – 202-365-0598 THANK YOU TO OUR SPEAKER James Fontana jfontana@fontanalawgroup.com