GovCon Concept Guide

What Is a Teaming Agreement
in Government Contracting?

Teaming is one of the most powerful strategies in federal business development — combining capabilities, past performance, and certifications to create competitive proposals that neither firm could submit alone. This guide explains how teaming works, when to use it, and how to structure effective team arrangements.

Understanding the Prime/Sub Relationship

Prime Contractor

  • Leads the proposal and signs the offer to the government
  • Is the "awardee" if the team wins
  • Manages the contract and is responsible to the contracting officer
  • Must perform a minimum percentage of work (typically 50% for services)
  • Owns the past performance record for the contract
  • Collects payment from the government and pays subcontractors

Subcontractor

  • Performs a defined scope of work under the prime's direction
  • Has a contractual relationship with the prime, not the government
  • Contributes capabilities, past performance, or certifications to the proposal
  • Receives payment from the prime contractor (not directly from the government)
  • Can build past performance for future prime pursuits
  • Lower risk but less contract control than prime role

Government Contracting Teaming — Common Questions

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