XL EagleTeaming Agreement
Teaming Agreement. A teaming agreement is an agreement between two or more companies to pursue a government contract together. Usually one acts as the prime and the others agree to be subcontractors if the team wins.
Good teaming agreements cover the work share, pricing roles, exclusivity, confidentiality and what happens if the team loses. Federal rules recognize these arrangements, but they must not limit competition improperly.
Why it matters to a small contractor
Ask for a teaming agreement before you share detailed pricing with a prime. It sets expectations on how much work you get if they win.
Example
A prime and a local landscaping firm sign a teaming agreement promising the landscaper at least 30 percent of the grounds work. The team wins, and the subcontract follows within 30 days.
Teaming Agreement: common questions
Is a teaming agreement a binding promise of work?
It depends on how it is written. Some courts treat vague teaming agreements as unenforceable agreements to agree.
Should a teaming agreement be exclusive?
Many are, so each side cannot work with competitors on the same bid. Understand what you are giving up.
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