Used before a proposal is submitted, this agreement commits a prime and a proposed subcontractor to work together if the prime wins the award.
This Teaming Agreement is entered into between [Prime Company Name] ('Prime') and [Subcontractor Company Name] ('Subcontractor') for the purpose of jointly pursuing Solicitation No. [XXXXXX] issued by [Agency] for [brief description of requirement].
Upon award, Subcontractor shall perform the following scope: [e.g., cybersecurity monitoring services for approximately 30% of total contract value]. Prime shall retain overall program management and remaining scope.
During the term of this Agreement, each party agrees not to submit a competing proposal, either as prime or through another team, for this specific solicitation without the other party's written consent.
Each party agrees to protect the other's proprietary pricing, technical, and past performance information shared for purposes of this pursuit, and to use it solely for preparing the joint proposal.
If Prime is awarded the contract, Prime agrees to negotiate in good faith and execute a subcontract with Subcontractor consistent with the scope and value described in Section 2, within [30] days of contract award.
This Agreement remains in effect through contract award or until the solicitation is cancelled, and may be terminated earlier by mutual written consent.
A Teaming Agreement is NOT the actual subcontract — it's a promise to negotiate one if the team wins. Make sure the scope percentage and any minimum guaranteed value are as specific as possible; vague teaming agreements are a common source of disputes after award.