Teaming Agreement

A contractual arrangement between two or more companies to collaborate on a government bid, defining their roles, responsibilities, and relationship as prime and subcontractors.

A teaming agreement is a written contract between companies that agree to collaborate on a specific government contract opportunity. One company typically serves as the prime contractor (with primary responsibility for contract performance) and the other(s) as subcontractors.

Why Teaming Matters in GovCon

Teaming allows companies to combine capabilities, past performance, and certifications to compete for contracts that neither could win alone. A large business might team with an 8(a) firm to access a set-aside. A company with strong technical skills might team with one that has relevant past performance.

What a Teaming Agreement Should Cover

At minimum, a teaming agreement should define the opportunity being pursued, each party's proposed work share and responsibilities, exclusivity provisions (preventing each party from teaming with competitors), intellectual property ownership, what happens if the team wins or loses, and how disputes will be resolved.

Legal Considerations

Teaming agreements are legally binding contracts. They should be reviewed by legal counsel to ensure compliance with competition and antitrust laws. Agreements that exclude all competition or allocate markets can run afoul of antitrust regulations.