Teaming Agreement

A teaming agreement is a formal arrangement between two or more companies to pursue a specific government contract together. One firm serves as the prime contractor while others are subcontractors or joint venture partners.

How It Works

Teaming is essential in government contracting, especially for large contracts requiring diverse capabilities. A good teaming arrangement combines the prime's contract management experience with subcontractors' specialized skills. Teaming agreements typically outline roles, work share percentages, intellectual property rights, and what happens if the team wins. Mentor-Protege arrangements can formalize teaming relationships with additional SBA benefits.

Example

A large systems integrator teams with a small cybersecurity firm to bid on a DoD IT contract. The large firm serves as prime (handling project management and infrastructure) while the small firm handles security architecture as a subcontractor with 30% of the work.

Related Terms

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