Government contracts often combine a variety of products and services under a single bid or RFP. If your company can't provide all of what's required in a contract, you don't have to give up on participating in it. Instead, consider partnering or teaming with another company.
The Acquisition Central website is a great resource for definitions, limitations and policy on contractor teaming arrangements. Here are two excerpts:
"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."
(a) Contractor team arrangements may be desirable from both a government and an 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 teaming makes sense for your business, 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 that have the reputation and experience you'd like to be associated with. Most teaming relationships form before a response to an RFP is submitted, but it's also possible to team up after the contract award.
What Points Should be Covered When Forming a Teaming Agreement?
- Is the subcontractor exclusively working as a part of your team, or is it 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 that guarantees 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?