Back to Basics: Teaming Agreement Considerations

Virtually all small to moderate size businesses in the Government contracting arena will need to team with a larger entity on a not infrequent basis in order to obtain a place on many Federal IT contracts. More and more Government contract actions cover a larger slice of tasks in the information technology sector. So, to be included, presence on a team is a “must.”

Once you have made the connection with a large prime contractor and have essential agreement that your firm brings a portion of the required solution to the Government’s stated needs, you then need to carefully craft a teaming agreement that protects you and the work you intend to perform under a contract award. Too often, smaller firms simply join a team, hoping for the best once an award has been made to the prime contractor with whom you have teamed.

Specifically you must have some form of a work-share agreement as one of the provisions in you teaming agreement or subcontract. This means when requested tasks encompass those areas on which you have bid with the prime become available those tasks will either be awarded to you or you will have the right of “first refusal.”

The absence of these provisions is your teaming agreement relegates your firm to a position, on some occasions, of bidding against your prime contractor or other team members. The entire reason for your participation in a joint effort is for you to have “ownership” of those tasks that you were specifically asked to respond to and price.

Failure to obtain these “rights” has the potential to render your award as valueless. Do not forfeit these rights in the rush to simply be on a team with a major prime. Enter only into those agreements where is truly a “win-win” situation whereby both you and the prime contractor benefit from a task or delivery order that encompasses the solution set that your firm has bid.