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What Is a Teaming Agreement?

Definition: A teaming agreement is a written arrangement in which companies agree to pursue a government contract together. Under FAR 9.601, a contractor team arrangement is either two or more companies forming a partnership or joint venture to act as the prime, or a prime agreeing to use one or more companies as its subcontractors.

Término en español: acuerdo de colaboración (teaming agreement). Resumen: es un acuerdo escrito entre empresas para competir juntas por un contrato del gobierno, ya sea como empresa conjunta (joint venture) o como contratista principal con subcontratistas. Haga que un abogado lo revise antes de firmar.

Key facts - FAR Subpart 9.6 defines "contractor team arrangements" and their two types (FAR 9.601). - The government recognizes team arrangements when they are identified and the company relationships are fully disclosed in the offer (FAR 9.603). - The prime contractor remains fully responsible for contract performance, and nothing in the subpart authorizes arrangements that violate antitrust laws (FAR 9.604). - Teaming can raise SBA size and affiliation questions, including the ostensible subcontractor rule (13 CFR 121.103(h)). - The FAR is being rewritten (the "Revolutionary FAR Overhaul"). Section numbers above are from the current FAR; check the FAR overhaul page for your agency's version.

What are the two types of contractor team arrangements?

  1. Partnership or joint venture as the prime. Two or more companies form a partnership or joint venture that submits the offer and acts as the prime contractor.
  2. Prime with subcontractors. One company acts as the potential prime and agrees with one or more companies that they will be its subcontractors on a specific contract or program.

Most small trade businesses meet teaming through the second type: a prime contractor asks you to join its team for a janitorial, grounds, construction, or transportation requirement.

How is a teaming agreement different from a subcontract or a joint venture?

Teaming agreement Subcontract Joint venture
When Before and during the bid After the prime receives the award Formed before the offer
Purpose Agree to pursue a contract together Set the actual work, price, and terms A separate entity (or arrangement) that is the prime
Who signs with the government The prime only The prime only The joint venture
Typical content Workshare, roles, exclusivity, confidentiality, what happens after award Statement of work, price, flow-down clauses Ownership, management, profit sharing, SBA rules for some programs

A teaming agreement often says the parties will negotiate a subcontract if the prime receives the award. FAR 9.603 says the government will recognize disclosed team arrangements, and FAR 9.604(e) says the government holds the prime fully responsible for performance regardless of any team arrangement. Whether the agreement is enforceable between the companies is a matter of state contract law, which varies, so have an attorney review it.

What usually goes in a teaming agreement?

Have an attorney review any teaming agreement before you sign. This page is general education, not legal advice.

Before you sign: a trade owner's checklist

Why do prime contractors want small business teammates?

Large primes on contracts above the subcontracting plan threshold must set goals for small business subcontracting, and primes on set-asides need capable small partners. A credible small teammate with a clear capability statement, a current SAM record, and documented past performance is easier to bring onto a team. Subcontract work is also one of the most common ways small firms build a federal track record.

If you're a prime contractor

Disclose the team arrangement in your offer as FAR 9.603 expects, define workshare clearly, and check each teammate's SAM status and size under the solicitation's NAICS code. Remember that you remain fully responsible for performance.

Common mistakes

How F2M helps

F2M Consulting LLC, Alexandria, VA provides contract management and bid strategy for trade businesses in Virginia, Washington, DC, and Northern Virginia: landscaping, janitorial, construction, transportation, and restoration. We help owners get bid-ready, read solicitations, organize registrations and compliance documents (OSHA, licensing), and plan subcontracting with prime contractors, with your crew doing the work. English or Spanish. F2M helps trade businesses and new firms prepare to be credible teammates (capability statement, SAM record, documented job history, and a realistic workshare), and F2M Consulting LLC, Alexandria, VA itself teams as a program management subcontractor. Your business performs its own workshare; F2M does not broker teaming arrangements.

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FAQ

What is a teaming agreement in government contracting?

It is a written arrangement in which companies agree to pursue a government contract together. FAR 9.601 describes two types: companies forming a partnership or joint venture to act as the prime, or a prime agreeing to use other companies as subcontractors.

Is a teaming agreement legally binding?

It depends on the wording and the state law that applies, and courts have reached different results. FAR 9.603 says the government will recognize disclosed team arrangements, but the FAR does not decide whether the agreement is enforceable between the companies. Some courts treat a promise to sign a future subcontract as an unenforceable "agreement to agree," while terms such as exclusivity and confidentiality are often enforced. Have an attorney review any teaming agreement before you sign it.

What is the difference between a teaming agreement and a subcontract?

A teaming agreement is usually signed before the bid and sets how the companies will pursue the contract together. A subcontract is signed after the prime receives the award and sets the actual scope, price, and terms of the work.

What is the difference between teaming and a joint venture?

In a prime-subcontractor team, one company is the prime and signs with the government. In a joint venture, two or more companies form an arrangement that itself acts as the prime. Joint ventures under SBA programs have their own rules.

What should a small business check before signing a teaming agreement?

Check that your crew can perform the workshare, that your insurance, licensing, and bonding fit, and how wage determinations affect your pricing. Read exclusivity and exit terms, ask about size and affiliation questions, and have an attorney review it.

Related terms

Official sources


Educational information only, from F2M Consulting LLC, Alexandria, VA, not legal or tax advice. Rules change; confirm with the official source. Last reviewed: Oct 19, 2026 by Franklin F. Montano, PMP, CEO and Founder, F2M Consulting LLC, Alexandria, VA.

About the author: Franklin F. Montano, PMP, CEO and Founder, F2M Consulting LLC, Alexandria, VA. Retired Army Officer, Former Pentagon Senior Program Manager (DoD), and disabled veteran. Bilingual in English and Spanish.

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