What are the common pitfalls to avoid when drafting a 'teaming agreement' for a federal bid?

When drafting a teaming agreement, a common pitfall to avoid is failing to clearly define the scope of work and responsibilities for both the prime and the subcontractor, which can lead to disputes after award.

The agreement should precisely outline each party's tasks, deliverables, and commitment to the proposal effort. For federal bids, especially those that are full and open, the FAR does not specifically govern teaming agreements, but the principles of fair dealing and clear understanding are essential. A key element to include is a clause detailing how intellectual property developed during the proposal or contract performance will be handled. Another pitfall is not addressing how costs associated with proposal development will be shared or borne. The agreement should also specify the terms for converting the teaming agreement into a subcontract if the bid is successful, including the type of subcontract (e.g., firm fixed price or cost-reimbursement) and the process for negotiating its terms. Finally, ensure the agreement includes clear dispute resolution mechanisms to address disagreements that may arise during the proposal phase or contract performance.