What are the key elements of a strong teaming agreement for a federal contract?

A strong teaming agreement for a federal contract outlines the relationship between the prime and its subcontractor, especially concerning the proposal effort and the work after award, and should address at least the scope of work, responsibilities, and how profits will be shared. For a services set-aside, the teaming agreement needs to clearly define how the prime contractor will perform at least 50 percent of the amount paid by the Government to subcontractors that are not similarly situated entities, as required by FAR 52.219-14(e)(1). The agreement should specify which entity leads the proposal effort, who is responsible for each section of the response, and how intellectual property developed during the proposal phase will be handled. After award, it needs to detail the specific tasks and deliverables each party is responsible for, the reporting structure, and the financial terms, including payment schedules and how costs will be managed. It is also important to include clauses addressing dispute resolution, termination of the agreement, and confidentiality. Since this is an SDVOSB set-aside, ensure both firms are SBA-certified SDVOSBs designated in SAM, as this is now required for sole-source awards and is a best practice for set-asides.