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Posted on Friday, June 22, 2012

Consider a CTA to Increase Your Profits

Government contractors may be missing out on new business opportunities available under the GSA Federal Supply Schedule (FSS). A recent decision shows how to take advantage of a teaming opportunity unique to the GSA Federal Supply Schedule: the GSA FSS CTA.

Although teaming in government contracting is common among vendors, it can take a variety of forms. FAR Subpart 9.6, covering “Contractor Team Arrangements,” describes partnerships, joint ventures, and prime-subcontractor arrangements as CTAs.  A unique type of CTA is the GSA Schedule CTA, a particularly useful approach because it allows vendors who have an FSS contract for some but not all of the work the government needs under a particular solicitation to team with another vendor to fill in that gap with its own FSS contract.

Litigation highlighting the rights of CTA team members is rare. However, the Civilian Board of Contract Appeals recently concluded that an individual member of a GSA Schedule CTA, as opposed to the CTA’s team leader, can file and recover a payment claim for work that it did under its own FSS contract as part of the CTA.  Lockheed Martin Aspen Medical Services v. Dept. of Health and Human Services.
Companies need to be aware of this important development and learn more about its business options including CTAs, which present a unique opportunity to directly generate and get paid for work without relying on any assistance from a prime or team leader.