Subcontracting, Joint Ventures, and Strategic Alliances

What do subcontracting, joint ventures, and strategic alliances entail, and which laws and rules apply?

Subcontracting, joint ventures, and strategic alliances are essential to government procurement and bid protest legal services in Florida. Subcontracting is an arrangement where a prime contractor contracts a portion of its work to a subcontractor. Joint ventures occur when two or more businesses come together to work on a specific project. In comparison, strategic alliances occur when two or more companies agree to collaborate long-term.

In Florida, the laws and rules that govern subcontracting, joint ventures, and strategic alliances in government procurement and bid protest legal services include the Florida Statutes, Federal Acquisition Regulation (FAR), and Small Business Administration (SBA) regulations.

Need help regarding government procurement, including bid and contract protests? Schedule your consultation today with a top government procurement attorney.

How can businesses effectively navigate subcontracting, joint ventures, and strategic alliances?

Businesses should consider the following strategies:

Do your research: Conduct due diligence before entering any subcontracting, joint venture, or strategic alliance agreement. Effective due diligence requires researching potential partners, assessing their capabilities and experience, and evaluating their financial stability.
Develop a clean, concise agreement: Put the agreement in writing and include clear provisions regarding the scope of work, compensation, and dispute resolution. It is also essential to ensure that all agreements comply with applicable laws and regulations, including those related to small business subcontracting and joint venture agreements.
Reflect on and rethink operations: Establish effective communication and management processes to ensure all parties work together efficiently and effectively. This integration includes defining roles and responsibilities, establishing regular check-ins and progress updates, and promptly addressing issues or concerns.
Take ownership of the applicable law: Businesses should clearly understand their legal rights and obligations under any subcontracting, joint venture, or strategic alliance agreement. Ownership entails understanding the termination and exit provisions and any intellectual property or confidentiality agreements.
Consult with an attorney: An experienced attorney can provide guidance and advice on compliance with applicable laws and regulations, as well as help resolve any disputes that

What issues regarding subcontracting, joint ventures, and strategic alliances commonly lead to litigation?

The following issues commonly lead to litigation:

Failure to meet contracting requirements: A common issue that leads to litigation is the failure of subcontractors, joint venture partners, or strategic allies to meet the criteria outlined in the contract. Examples include noncompliance with specific terms and conditions, inadequate performance, and failure to adhere to the procurement process.
Breach of Contract: A breach of contract is another frequent issue that leads to litigation. This occurs when one party fails to fulfill its contractual obligations, resulting in a loss for the other party. It can include failing to complete work on time, substandard work, or failure to deliver goods or services as agreed upon.
Noncompliance with small business requirements: The government has established set-aside programs for small businesses, which can lead to litigation. Subcontractors, joint venture partners, or strategic allies may not meet the eligibility requirements or allocate the required percentage of work to small businesses, as mandated by the contract.
Disagreements overpayment and pricing: Disputes over payment and pricing can arise when one party believes it has not been paid fairly or when there are disagreements about pricing for services or goods delivered.

When a set of facts is appropriate for litigation, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

Frequently Asked Questions

What are the benefits of forming a joint venture instead of subcontracting?

Forming a joint venture instead of subcontracting can be beneficial when the work requires the expertise of two or more companies. A joint venture allows the parties to combine their resources, knowledge, and expertise to perform the work more efficiently and effectively. Additionally, forming a joint venture may enhance a company’s chances of winning a government contract, as the joint venture’s combined experience and resources may be more competitive than those of individual companies.

2. Can a subcontractor participate in a bid protest if the prime contractor is awarded the contract?

A subcontractor may participate in a bid protest if the prime contractor is awarded the contract. However, the subcontractor must demonstrate that it has a direct economic interest in the procurement and has been adversely affected by the award decision. The subcontractor must also show that it is an interested party under the applicable procurement regulations and has standing to protest the award decision.

3. What is the process for subcontractors to get paid on a government contract?

The process for subcontractors to get paid on a government contract varies depending on the contract terms and the payment procedures established by the contracting agency. Typically, subcontractors must submit invoices to the prime contractor, who then submits invoices to the government for payment. However, the timing and amount of payment may be subject to various conditions, such as the satisfactory completion of work and the availability of funds.

Have more questions about a government procurement-related situation?

Crucially, this overview of subcontracting, joint ventures, and strategic alliances does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.