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Glossary / Business Development, Business

Teaming agreement

A teaming agreement is a contract between two or more companies that sets how they will pursue an opportunity: who primes, what share of the work each will perform, how proposal costs are handled, exclusivity, and what happens if the team wins. FAR 9.6 recognizes contractor team arrangements and lets the government evaluate the team's combined capability. The agreement usually says the subcontract will be negotiated after award, which is why its enforceability depends on how specific it is.

Why it matters to your pipeline

Teaming is how a small company competes for work bigger than itself and how a large one meets its small-business goals. The agreement decides the money and the past-performance credit before the proposal is written, so the terms matter more than the handshake. GovSmith's vCMs identify teaming partners from the award records and help the client decide its posture on each pursuit: prime, sub or partner.

When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.

Example

A cybersecurity firm and a staffing company sign a teaming agreement for a $12M set-aside: the cybersecurity firm primes, the staffing company takes 35 percent of the labor, and both contribute past performance to the proposal.

Find out what applies to you

Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.