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What is a teaming agreement, and what should it say so I do not get dropped after award?

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  • A teaming agreement is a written agreement between two or more companies to form a team to compete for a government contract.
  • To prevent being dropped after award, the agreement must clearly define your role, the scope of work you will perform, and include clauses that make your participation mandatory for the prime contractor.
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Last year, my small IT services firm responded to a federal RFP for cloud migration. We were a sub to a prime and wrote about a third of their technical volume. We had a handshake agreement with the prime, but after they won the award, they ended up hiring a different sub for our part of the work. It was a tough lesson learned.

Now, a new prime has approached us to team on a different federal opportunity, also for IT services, specifically 541519. It's a set-aside for small businesses. We are a small business too. This prime wants a teaming agreement. I need to make sure we don't get dropped again.

What exactly is a teaming agreement, and what specific clauses must it contain to ensure our role on the contract after award? What can prevent a prime from just replacing us?

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asked Priya S. Verified vendorCapture manager, IT services · Herndon, VA · 222 rep

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A teaming agreement is a written agreement between two or more companies to form a team to compete for a government contract. To prevent being dropped after award, the agreement must clearly define your role, the scope of work you will perform, and include clauses that make your participation mandatory for the prime contractor. This typically involves specifying that the prime's proposal relies on your company's unique capabilities or past performance, and that the prime commits to subcontracting a specific percentage or dollar value of the work to you. The agreement should also outline remedies if the prime breaches these terms. For federal contracts, the agreement should be consistent with FAR Part 9.6, Contractor Team Arrangements, which describes how the government generally views these arrangements. While the FAR does not mandate specific language for these agreements, it acknowledges their use and encourages teaming to achieve government objectives. State and local procurements would follow their respective state procurement codes and portal vendor guides, which may have different requirements for such agreements.

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answered Nadia F. Verified vendorWOSB owner, management consulting · Minneapolis, MN · 470 rep

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Sign up to answerCite the FAR clause or procurement code where you can.

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