Home › GovCon Glossary › Teaming Agreement
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?
- 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.
- 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?
- The target opportunity (agency, notice number, title)
- Workshare: what each company will do, and roughly how much
- Proposal roles: who writes, prices, and submits what, and by when
- Exclusivity: whether you may join other teams for the same contract
- Confidentiality and handling of each company's proprietary information
- Term: when the agreement ends (for example, if no award is made, or after a set date)
- What happens after award: intent to sign a subcontract and on what basis
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
- Can your crew actually perform the workshare? Count people, equipment, and supervisors against the scope and schedule.
- Insurance and bonding: confirm the limits the prime and the solicitation require.
- Licensing: confirm your Virginia DPOR contractor license class covers the job size for construction work.
- Wage determination: service and construction work may carry Service Contract Act or Davis-Bacon wage rates. Price your share against them.
- Limitations on subcontracting: if you are the small business prime on a set-aside, you must meet the limitations on subcontracting and cannot pass most of the work to others.
- Affiliation: a large teammate doing most of the work can raise size questions for a small prime. Ask counsel.
- Exclusivity: know whether signing stops you from joining another team.
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
- Signing an exclusive agreement without reading the term and exit language.
- Agreeing to a workshare your crew cannot staff.
- Treating a teaming agreement as a guaranteed subcontract.
- A small prime that plans to do little of the work itself. That can break the limitations on subcontracting rules.
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.
Request a briefing · GovCon Launch for new and veteran-owned businesses · Contract management and bid strategy for trade businesses · Program management for federal and state agencies
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
- Limitations on subcontracting
- Small business subcontracting plan
- Past performance
- Sources sought notice
- Capability statement
- Recompete
Official sources
- FAR Subpart 9.6, Contractor Team Arrangements: https://www.acquisition.gov/far/subpart-9.6
- FAR 9.601, Definition: https://www.acquisition.gov/far/9.601
- FAR 9.603, Policy: https://www.acquisition.gov/far/9.603
- FAR 9.604, Limitations: https://www.acquisition.gov/far/9.604
- 13 CFR 121.103, affiliation (including joint ventures and ostensible subcontractors): https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/section-121.103
- SBA Mentor-Protégé Program: https://www.sba.gov/federal-contracting/contracting-assistance-programs/sba-mentor-protege-program
- FAR Overhaul: https://www.acquisition.gov/far-overhaul
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.