Strength in Partnership: Takeaways from our Latest Government Contracting and Teaming Workshop

By: Ambur C. Smith, Esq.

On Friday, I had the privilege of leading an interactive workshop with the Hutch Genesis Class of 2025, focusing on the advantages of teaming arrangements for both current and aspiring federal government contractors. This blog outlines the three main types of teaming arrangements and how they can assist you in securing your next federal government contract. 

Even as the federal government undergoes a "revolutionary overhaul," there are ample opportunities for small businesses to contract with the federal government; especially those providing tech solutions that will help American agencies compete on a global stage. Under Section 9.6 of the Federal Acquisition Regulation (FAR), contractors are encouraged to explore various types of teaming arrangements that can effectively combine their unique capabilities and resources in order to enhance their competitiveness for complex government contracts. This section of the FAR recognizes the increasing complexity and multifaceted nature of government procurement, which often requires a diverse set of skills, technologies, and experiences that may not be available within a single contractor. By fostering collaboration among different entities, the FAR aims to promote innovation and efficiency in the procurement process.

These collaborative arrangements can take several forms, including Joint Ventures, Partnerships, and Teaming Agreements, each with its own distinct characteristics and implications.

Joint Ventures 

Echoing the chart above, joint ventures involve the establishment of a new entity, allowing two or more existing entities to compete for contracts as a single prime contractor. By forming a Joint Venture, companies can leverage the strengths of larger firms, which may possess greater financial stability and established relationships with government agencies. Unlike partnerships and teaming agreements, joint ventures involve a more complex distribution of profits and losses.

Partnerships 

Partnerships allow two entities to join forces and compete as one prime contractor. Partnerships can be particularly advantageous in situations where contractors have complementary skills or resources that, when combined, create a more robust offering for the government. However, unlike joint ventures, partnerships require parties to share equally in the profits and losses of the new entity, increasing the risk assumed by both parties, and may extend beyond one contract award.

Teaming Agreements 

Alternatively, teaming agreements involve one prime contractor, ultimately responsible for the awarded contract, and one or more subcontractors entering into a written agreement defined by three main elements: an intent to collaborate, pre-award responsibilities, and post-award obligations. Teaming Agreements are particularly useful for managing the complexities of government contracts, as they provide a clear framework for cooperation and can help mitigate potential disputes. Pre-award agreements also signal to the government that the contractors are committed to working together effectively, enhancing their credibility in the eyes of contracting officers. Once a contract is awarded, the parties will typically enter into a superseding subcontract to solidify their post-award obligations once and for all. 

The Role of Legal Counsel 

Teaming arrangements enable contractors to utilize their distinct strengths to develop innovative solutions addressing the complex requirements of government projects, benefiting both the contractors and the agencies they serve. However, teaming also exposes contractors to risks associated with sharing their ideas and ultimately, their reputation. Given this, it is crucial to consult with legal counsel to safeguard your intellectual property and other contractual rights through carefully crafted confidentiality, exclusivity, and other contract clauses before finalizing one or more arrangements. This approach will allow you to capitalize on the advantages of government contracting while minimizing inherent risks.

For support choosing and structuring a winning government contracting team, book a consultation or 1-hour strategy session today!

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