Partnering and Teaming to Win Government Business

Posted by Irv on July 18th, 2006

Government contracts now often include a variety of services under a single bid or RFP. If your company specializes in a particular product or service that will not cover the whole bid or RFP request, you don’t have to give up on the government contract in question. Instead, you might want to consider partnering or teaming as a way to increase your number of awarded government subcontracts.

In particular, if you are a small business or need to gain the experience to hold your own in the government market, teaming can be a strategic move to gain the credibility you need to be awarded more government subcontracts with a prime contractor.

How do I find out more about Contractor Teaming Arrangements and Regulations?

The Acquisition Central website is a great resource for definitions, limitations and policy on contractor teaming arrangements:

9.601 Definition – Contractor Teaming Arrangement.
“Contractor team arrangement,” as used in this subpart, means an arrangement in which:
(1) Two or more companies form a partnership or joint venture to act as a potential prime contractor; or
(2) A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program.

9.602 General.
(a) Contractor team arrangements may be desirable from both a Government and industry standpoint in order to enable the companies involved to:
(1) Complement each other’s unique capabilities; and
(2) Offer the Government the best combination of performance, cost, and delivery for the system or product being acquired.
(b) Contractor team arrangements may be particularly appropriate in complex research and development acquisitions, but may be used in other appropriate acquisitions, including production.
(c) The companies involved normally form a contractor team arrangement before submitting an offer. However, they may enter into an arrangement later in the acquisition process, including after contract award.

If you are considering teaming as a way to improve your number of awarded government subcontracts, visit the contractor team arrangements page on Acquisition Central for complete details on teaming. You may also want to contact prime contractors and other companies who have the reputation and experience you’d like associated with your company. Most teaming relationships form before submitting an offer in response to an RFP, but it’s also possible to work out a team arrangement after being awarded a government subcontract.

What Points Should be Covered When Forming a Teaming Agreement?

Is the subcontractor exclusively working as a part of your team, or are they working with the competition as well?
How will you resolve performance issues after you have been awarded a government subcontract?
Will you set a contract for the subcontractor, guaranteeing the scope of business?
What will be the subcontractor’s level of involvement with the government?
What are the subcontractor’s payment arrangements?
What are the clear deadlines for project completion? What is the role of the subcontractor in contract extensions?
What are the intellectual property rights of the subcontractor?