Teaming Agreement
Business TermsDefinition
A written agreement between companies to work together in pursuit of a specific contract opportunity.
More Information
Teaming agreements outline roles, responsibilities, and work share for pursuing and performing a contract. They typically specify which company will be prime, subcontractor percentages, and terms for exclusivity. Unlike JVs, teaming arrangements don't create a new legal entity.
Example
Two companies sign a teaming agreement specifying that one will be prime (60%) and the other subcontractor (40%) on a proposal.