It’s time to kick off 2008 with new and productive business relationships! Begin by exploring new opportunities through teaming, a process where two or more small businesses join forces to meet the procurement requirements of large contracts from major corporations or the federal government.
Also known as a strategic alliance or partnering, teaming is usually linked to a particular contract or project. It could be a short-term or long-term business relationship, a prime-subcontractor (Tier I or II) arrangement, and may be applied with specific suppliers/vendors who have a continuing relationship with the private sector or the government under various contracts.
Besides sharing risks and rewards, teaming also increases your company’s visibility in the industry, integrates different skill sets and allows you to focus on your core capabilities. Shortcomings are downplayed, especially in synergistic or complementary partnerships. Teaming could also offer a creative solution to buyers’ needs — a value-added component to building a longstanding relationship.
An overwhelming percentage of large businesses sell to the federal government. As part of the government procurement process, prime contractors are required to submit and negotiate a subcontracting plan that separately addresses subcontracting with small businesses. This is where you enter the picture.
In certain industries, teaming arrangements are strongly encouraged, such as among car and components manufacturers. Companies take advantage of the best complementary technologies available from different partners. Teaming also facilitates timely technology transfer to the private sector and, on a global scale, enhances U.S. competitiveness through innovation.
How do you vet your team partner? Some suppliers and contractors use a multi-criteria selection process, based on preset functional and performance-based specifications. Essentials include a proven track record of working on similar types of projects and capability for innovative technology. Select potential partners based on complementary fit, reputation, their understanding of the shared vision, mission, values and objectives, and their ability to control and improve business processes and become part of a team.
Where do you look for prospective business partners? Begin with your network contacts. Spread the word that you are open to the possibility of joining forces with other businesses. Participate in procurement connections events, such as those sponsored by the U.S. Pan Asian American Chamber of Commerce. Supplement this by running an announcement in trade journals.
Key to any successful teaming is mutual trust, commitment to the process, and a continuing recognition that this collaboration results in win-win outcomes for all parties.