What is a Teaming Agreement?
Also known as: Contractor Teaming Arrangement, CTA
A teaming agreement is a written arrangement in which two or more companies agree to pursue a specific opportunity together — typically one as prime and the others as subcontractors. It sets out roles, work share, and exclusivity for that pursuit.
What a teaming agreement covers
- Which firm will be the prime and which will be subcontractors.
- The scope and approximate work share for each teammate.
- Exclusivity — whether teammates may team with competitors on the same bid.
- Commitments to negotiate a subcontract in good faith if the team wins.
Teaming vs. joint venture
In a teaming agreement, each firm stays separate (prime/sub). In a joint venture, the firms form a new combined entity that bids as one offeror. The choice affects size status, liability, and how work and profits are shared.
Frequently asked questions
When should I sign a teaming agreement?
Sign before submitting the proposal, ideally during capture, so roles and work share are locked in. Many teaming agreements are exclusive, preventing teammates from joining competing bids.
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