If you’re a small business trying to land a federal contract and you feel like the competition is built like a tank while you’re riding a scooter, don’t panic. There’s a secret weapon you might be missing: teaming agreements and subcontracting.

These strategic partnerships are like forming a band. You don’t need to play every instrument; you just need to team up with the right people—and hit the right notes.

And with the latest industry trends showing increased federal spending and a shift toward more collaborative contracting models, there’s never been a better time to learn how to team up and move up.

Why Teaming and Subcontracting Are Game-Changers

In government contracting, size matters—but strategy matters more. Many small businesses lose out on large contracts not because they lack skills, but because they can’t meet all the requirements alone.

Teaming and subcontracting allow you to:

• Pursue larger, more complex contracts
• Share capabilities and past performance
• Reduce risk and increase credibility
• Learn from more experienced players

Industry trends show a significant rise in mentor-protégé programs, joint ventures, and subcontracting arrangements, especially as agencies look to meet small business participation goals.

Real Talk:

If you’ve ever said, “I can’t bid on that—it’s too big for us,” it’s time to change your mindset to: “Who can I team with to win this?”

Teaming Agreements vs. Subcontracting: What’s the Difference?

These two often get lumped together like cousins at a family reunion, but they serve different purposes.

Teaming Agreements

• Formed before a contract is awarded
• Usually between a prime contractor and one or more potential subcontractors
• Define roles, pricing structure, and responsibilities
• Are about the joint pursuit of a contract

Subcontracting

• Happens after the prime wins the contract
• The prime assigns part of the work to the subcontractor
• Must follow the rules outlined in the original solicitation

Industry trends show that teaming agreements are being used more often in competitive bids, especially for large federal contracts like GSA schedules or IDIQs.

Finding the Right Partner (Without Getting Ghosted)

Here’s where things get real. Not every teaming partner is a good match. And no, this isn’t Tinder—but there is a little matchmaking involved.

Look for:

• Complementary capabilities
• Solid past performance
• Aligned values and goals
• Strong compliance history
• Financial stability

Red Flags:

• “We’ve never worked with the government before, but we’re excited!”
• Vague answers about deliverables or compliance
• Bad reviews or known suspensions/debarments

Industry trends suggest that prime contractors are being held more accountable for subcontractor performance. So yes, who you partner with really does matter.

Writing a Solid Teaming Agreement (So No One Ends Up in Court)

A handshake is nice, but a teaming agreement in writing is better. Here’s what a solid agreement should include:

1. Scope of work – Who does what?
2. Proposal responsibilities – Who handles which sections?
3. Pricing and cost structure – How’s the money split?
4. Confidentiality clauses – No leaks, no headaches
5. Termination rules – What happens if someone backs out?

Humorous tip: Treat your teaming agreement like a prenup for your contract marriage—just in case things get messy later.

Industry trends show courts leaning in favor of written agreements and documented intent, especially if disputes arise over who owns what or who did what.

The Subcontracting Advantage (Even If You’re Not the Prime)

Some contractors avoid subcontracting because they think “prime or bust.” But here’s the thing—being a subcontractor:

• Gives you valuable past performance
• Helps you understand agency expectations
• Builds relationships with primes and federal buyers
• Generates revenue without the full administrative burden

Subcontracting is like getting your foot in the door without having to kick it open.

And according to the latest industry trends, many primes are actively seeking reliable small business partners to meet agency set-aside goals, particularly in:

• Cybersecurity
• Construction and infrastructure
• Healthcare and staffing
• Logistics and supply chain

Compliance Isn’t Optional—Even as a Sub

Whether you’re a prime or a sub, compliance is non-negotiable. You still have to follow the FAR, meet cybersecurity requirements, and properly track labor, costs, and invoicing.

Subs need to:

• Register in SAM.gov
• Follow DCAA timekeeping rules (if applicable)
• Protect government data (think CMMC requirements)
• Communicate regularly with the prime

Industry trends show increased scrutiny on subs for compliance violations, especially in high-risk contracts. Don’t be the reason a prime loses their contract.

The Proposal Process: How Teaming Impacts It

When your part of a team, your proposal responsibilities might include:

• Writing a technical section
• Providing past performance narratives
• Supplying pricing estimates
• Attending capture and strategy meetings

Tips for success:

• Start proposal planning early
• Communicate clearly and often
• Align messaging between all team members
• Don’t duplicate effort—assign leads and writers

And remember—industry trends now favor proposals that demonstrate synergy. Agencies want to see that your team isn’t just a patchwork—it’s a well-oiled machine.

Small Business Set-Asides: Where Teaming Is a Superpower

If you’re an 8(a), HUBZone, WOSB, or SDVOSB, you have a secret weapon. Agencies are actively seeking you out—but that doesn’t mean you have to go solo.

Teaming up with a larger business or other certified firms lets you:

• Share past performance
• Offer end-to-end solutions
• Meet the contract scope more efficiently
• Deliver better value to the agency

Industry trends show that mentor-protégé relationships under the SBA are one of the most effective ways for small businesses to grow, and they often lead to joint ventures that win bigger contracts together.

Building Long-Term Relationships (Not Just One-Time Flings)

One successful teaming agreement can lead to:

• Future contracts
• Long-term prime-sub relationships
• Co-branded marketing efforts
• Joint training and compliance programs

Think long-term. A good partner isn’t just for one bid—they’re someone you can win with repeatedly.

Industry trends increasingly highlight the importance of partnership networks, where trusted teams collaborate across contracts and agencies. Consider investing in your partnerships like you would any part of your business.

Final Thoughts: You Don’t Have to Win Alone

Federal contracting can feel like a solo mission—but it doesn’t have to be. Teaming agreements and subcontracting let you punch above your weight, expand your offerings, and win contracts you never could have alone.

Let’s recap:

✅ Teaming is about strategy before the win
✅ Subcontracting is about delivery after the win
✅ Choosing the right partner matters just as much as the opportunity
✅ Compliance and communication are key
✅ Industry trends are pointing toward more collaboration, not less

So the next time you see an opportunity that feels too big to chase alone, ask yourself:
“Who can I team up with to win this?”

Because in government contracting, going further often means going together.