Introduction: Why Go Solo When You Can Team Up?
Let’s face it — navigating government contracting alone is like trying to row a canoe upstream… with a spoon. Yes, you could make it eventually, but wouldn’t it be nicer to have someone help paddle?
Enter teaming agreements and subcontracting — powerful tools that allow small and mid-sized businesses to punch well above their weight. And thanks to recent industry trends, strategic partnerships are more than a nice-to-have — they’re a competitive edge.
This post breaks down what, why, and how of teaming in government contracting, using a practical lens (and yes, a splash of humor) to help you land those larger-than-life contracts.
What Are Teaming Agreements and Subcontracting?
Let’s keep it simple:
- A teaming agreement is a formal partnership between two or more companies that plan to bid together on a government opportunity. Think of it as a contract before the contract.
- Subcontracting, on the other hand, is when the prime contractor brings in another company (the subcontractor) to do part of the work after they win.
So in plain English:
Teaming is dating before marriage (proposal phase), and
Subcontracting is marriage after the deal is signed (execution phase).
And like all relationships, communication, boundaries, and expectations matter
Why Teaming Is Trending: The Power of Industry Trends
Thanks to shifting industry trends, agencies are placing higher expectations on contractors — expecting deep domain expertise, diverse capabilities, and a proven track record all in one package. That’s a tall order for a solo act.
Some major trends pushing teaming forward:
- Bundled contracts and IDIQs that require broad capabilities
- Set-aside requirements that open doors for small businesses — especially when paired with large primes
- Increased demand for innovation, tech integration, and cybersecurity (which smaller firms often lack alone)
- Mentor-Protégé Programs that make formal partnerships smoother and more strategic
Smart contractors are reading these industry trends like a GPS — and forming partnerships that help them go further, faster.
Building the Right Partnership: What to Look for
Before jumping into a teaming agreement or handing over work as a subcontractor, it’s critical to do your homework. You’re not just finding any partner — you’re finding the right one.
Here’s what to consider:
Shared Values and Vision
You don’t have to finish each other’s sentences, but at least agree on the contract goals, work ethic, and client experience.
Complementary Capabilities
If you’re great at technical implementation but weak in compliance reporting, partner with someone who thrives there.
Solid Past Performance
You don’t want your proposal weighed down by a partner who’s had more protests than awards.
Cultural Fit
Remember: You’ll be working closely under pressure. Choose people you’d want in the (metaphorical) foxhole.
And don’t forget the paperwork! Your teaming agreement should clearly outline:
- Roles and responsibilities
- Proposal contribution
- Decision-making rights
- NDAs and IP protection
- What happens if things go sideways (it’s not pessimistic — it’s smart)
Subcontracting Strategies: Be the Partner Everyone Wants
Want to be an all-star subcontractor? Here’s how:
- Know your niche: Specialize in something the prime doesn’t do well — make yourself indispensable.
- Stay compliant: FAR clauses, flow-down provisions, cyber standards — they matter. A lot.
- Be low maintenance: Deliver on time, communicate clearly, and don’t ghost your prime like it’s a bad Tinder date.
- Show your past work: Even if you’re small, case studies, certifications, and success stories build credibility.
With recent industry trends showing increasing reliance on subcontracting for niche deliverables (especially in IT, logistics, and environmental services), the time to position yourself is now.
Real-World Example: How a Small Business Landed a $3M Contract
Let’s take a page from reality:
A certified 8(a) small business offering cybersecurity audits partnered with a larger IT firm bidding on a Department of Energy contract. The small firm had limited past performance, but its technical skills were top-notch.
Thanks to a smart teaming agreement, the larger firm could meet set-aside requirements, and the small business gained instant credibility and access. They won. The subcontractor handled a $3M chunk — their biggest payday yet.
Moral of the story? Industry trends reward strategic partnerships — especially those that blend compliance, capability, and innovation.
Pro Tips for Making Your Partnership a Winner
- Start Early – Don’t wait until the RFP drops. Build relationships in the pre-solicitation phase.
- Attend Industry Events – Agency expos and small business outreach programs are goldmines for teaming leads.
- Use the SBA’s Mentor-Protégé Program – This isn’t just for mentorship. It can also lead to joint ventures.
- Watch Procurement Forecasts – Knowing what’s coming gives you time to build the right partnership ahead of time.
- Stay on Top of Industry Trends – Use GovWin, SAM.gov, and FPDS to track what agencies are buying — and with whom.
Final Thoughts: Team Smart, Win Big
Government contracting is competitive, but it doesn’t have to be cutthroat. With the right teaming agreements and subcontracting strategy — and an eye on evolving industry trends — your company can go from a small fish to a serious contender.
So don’t go it alone. Team up, power up, and win bigger contracts with smarter partnerships.And hey — if you find a partner who delivers reports on time and laughs at your compliance jokes? Never let them go.