XL EagleNDA (Non-Disclosure Agreement)
NDA stands for Non-Disclosure Agreement. A non-disclosure agreement is a contract in which one or both parties promise to keep certain shared information confidential. In government contracting, NDAs are common between primes and subs during teaming, so they can share pricing, technical approaches, and customer details.
The government also uses NDAs for contractor employees who get access to sensitive information. One limit to know: federal rules bar contractors from using internal confidentiality agreements that stop employees from reporting fraud, waste, or abuse to the government.
Why it matters to a small contractor
Sign an NDA before sharing your pricing or methods with a prime, and read what it covers and how long it lasts. Watch for non-solicit or exclusivity terms hidden inside, which can stop you from working with other primes.
Example
A small HVAC sub signs a mutual NDA with a prime before sharing its labor rates for a bid. The NDA also includes an exclusivity clause for that solicitation, which the sub accepts after confirming it only covers that one bid.
NDA: common questions
Do I need an NDA before teaming on a bid?
It is a good practice. It protects your pricing and methods if the prime decides not to use you.
Can an NDA stop an employee from reporting fraud?
No. Federal contract rules prohibit confidentiality agreements that restrict employees from lawfully reporting waste, fraud, or abuse.
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