What Is a Contractor Teaming Agreement? Find Out Today

There are many ways to do business with Uncle Sam. As a small business federal contractor, you may struggle to win bids or accomplish a large project for a federal agency or branch of the military. A contractor teaming agreement may be the best tool to help you become a successful U.S. government supplier.

What is a contractor teaming agreement? Learn more about this arrangement that the U.S. Small Business Administration (SBA) offers. Grow your contracting firm by leveraging this and other strategies with the help of Rafael Marrero & Company.

Contractor Teaming Agreement Definition

According to the SBA, many small business concerns (SBCs) are not capable of performing a significant percentage of the procurements set aside for small businesses by themselves. Similarly, many larger business concerns acting alone are ineligible to compete for small business set-asides because of their size.

A contractor teaming agreement (CTA) partners two or more government contractors to take on a specific project. This arrangement is ideal for contractors who may not cover the entire scope of a proposed project.

Benefits of Using a CTA

Consider working with another business-to-government firm to form a CTA to enjoy one or more of the following benefits:

• Improve your chances of qualifying for Schedule orders
• Provide a total solution for the U.S. government
• Reduce the risks and responsibilities of a major project
• Create a network of trusted contractors
• Win more contracts

Teaming Agreement vs. Subcontractor Agreement

This arrangement can seem very similar to a subcontractor agreement. There are, however, a few key differences between the two types of arrangements. Here are some features that make a CTA stand out:

• Joins two or more federal contractors, rather than one prime and one or more subcontractors who may or may not have a Prime contract.
• Offers privity of contract and direct communication with the government to all team members, not just the prime contractor.
• Offers more flexibility in invoicing at various prices or hourly rates.

This type of agreement isn’t for everyone. In some situations, it may be better to reach out to a prime contractor rather than attempt to form a CTA. The services you offer, your contracting experience, and the proposed project are all important factors to consider with the help of an expert management consultancy.

Create a Winning Team With Rafael Marrero & Company

Consider which agreement type works best for your situation and a project you wish to take on. At Rafael Marrero & Company, our professional team can help you navigate these and other important business-to-government decisions. Contact us today to schedule a consultation with Dr. Marrero to learn more about contractor teaming agreements.