HANDYMAN 
Handyman Insurance, Exclusivity
Another important concept to keep in mind when you are a small business is exclusivity. Exclusivity clauses are provisions in teaming agreements that prohibit one or both parties from entering into other teaming arrangements. This is helpful from small businesses because it can keep larger businesses from “playing the field.”
Consider the following example. SmallBiz, Inc. and LargeCo are going to team for purposes of competing for Project X. Project X is a 100% small set-aside procurement. SmallBiz, therefore, would be the prime, with LargeCo as the subcontractor/teaming partner. Now, without an exclusivity provision, LargeCo could go around and enter into teaming agreements with SmallBiz, as well as all of SmallBiz’s competitors, who will also be competing for the Project X contract award. It is in LargeCo’s interest to pursue such a strategy. If they do, no matter which small business offeror gets the contract, LargeCo gets to perform as the teaming partner/subcontractor. In other words, LargeCo wins no matter what – but, SmallBiz does not.
Presumably, the reason SmallBiz was teaming with LargeCo was so that SmallBiz could get a leg up and be a stronger competitor, as compared to the other small businesses competing for the Project X award. Maybe SmallBiz was relying on LargeCo’s past performance and experience; maybe SmallBiz was relying on LargeCo’s extensive capital resources, or capabilities. But if LargeCo has entered into teaming agreements with all of the offerors (or even some) then all of those offerors are getting the same LargeCo “boost.” SmallCo isn’t gaining any competitive edge because all of its competitors are also relying on the same LargeCo teaming partner’s experience, resources, or capabilities. SmallBiz, therefore, does not get a leg up over its competitors. Which kind of defeats a major point of teaming.
So how do you avoid this? With an exclusivity provision. As a small business, it is critical that your teaming agreement prohibit your teaming partner from entering into multiple teaming agreements. Make sure that they are teaming with you, and you alone, and that you are the only competitor who be getting that “boost” from your teaming partner’s past experience or capabilities, etc. Sometimes, especially in cases of multiple-award contracts, exclusivity provisions are even boarder. They might prohibit the team members from entering into teaming agreements with regard to any task order issued under a MAC/MATOC. Either way, this is a vital provision that needs to be negotiated before entering into a teaming agreement.
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