Contractor Team Arrangement (Teaming Agreement)
Also known as: CTA, teaming agreement, contractor team arrangement
What you do here: Agree in advance who primes, who subs, and who does what — then bid as a team
At a Glance
- Who it's for
- Firms that want to combine capabilities to pursue a specific opportunity
- What it does
- Locks in roles (prime/sub) and scope split before proposal, without forming a new entity
- Governing authority
- FAR Subpart 9.6 (contractor team arrangements)
- Size / affiliation effect
- A prime-sub CTA does not, by itself, affiliate the firms (watch the ostensible-sub rule)
- Formed
- Before proposal submission; typically expires at award or non-award
What It Is
A contractor team arrangement (CTA), commonly called a teaming agreement, is an arrangement in which two or more companies agree to act as a team to pursue a specific government opportunity. FAR Subpart 9.6 recognizes two forms: (1) two or more firms form a partnership or joint venture to act as a potential prime, or (2) a potential prime agrees with one or more other firms to have them act as its subcontractors under a specified acquisition. In the common prime-subcontractor form, the parties sign a teaming agreement that fixes who will prime, who will subcontract, and how the work and price will be divided — so they can write one coordinated proposal. The teaming agreement is a private contract between the companies; the government contracts only with the prime. Because it is not a new legal entity and each firm keeps its independence, an ordinary prime-sub teaming agreement does not by itself make the firms affiliated — but if the sub ends up performing the primary and vital work, the ostensible subcontractor rule can still pull them together for size purposes. (Note the separate GSA Schedule "CTA," where each team member holds its own Schedule contract and is a prime to the government — a different animal from the FAR 9.6 arrangement.)
When You Use It
- When no single firm can cover the whole statement of work and firms want to combine past performance and capabilities.
- When an SDVOSB wants to prime but needs a partner's specialized capability, clearance, or capacity.
- When firms want certainty about roles and scope before investing in a proposal.
- As the practical alternative to a joint venture when the parties don't want to form and register a new entity.
Key Features
| Feature | What It Means |
|---|---|
| Two FAR forms | FAR 9.601 recognizes both a JV-as-prime and a prime-plus-subcontractors team. Most SDVOSB teaming uses the second, prime-sub, form. |
| Government recognizes, doesn't referee | FAR 9.603 says the government respects the integrity of a team arrangement but normally won't get involved in the parties' disputes among themselves. |
| No new entity | Unlike a joint venture, a prime-sub teaming agreement forms no separate company — each firm keeps its own identity, size, and status. |
| Set the split up front | The agreement typically defines exclusivity, the work-share, price build-up, and what happens at award — reducing disputes when the contract lands. |
| GSA Schedule CTA differs | Under a GSA Schedule Contractor Team Arrangement each member holds its own Schedule contract and bills the government directly — not a FAR 9.6 prime-sub team. |
The SDVOSB Angle
A teaming agreement is often the smartest first move for an SDVOSB: you keep your certification, prime the award, and bolt on a partner's capability as a subcontractor — with none of the formation overhead of a joint venture. Structure it so the SDVOSB prime performs the primary and vital work and enough of the cost to satisfy the limitations on subcontracting, and prefer similarly situated teammates so their work counts as your self-performance. Get exclusivity and the work-share in writing before proposal day, because a handshake team falls apart the moment the award is real.
How to Set It Up
- Pick the structure — usually SDVOSB primes, partners subcontract — and confirm it fits the set-aside's status rules.
- Put the teaming agreement in writing: scope split, exclusivity, price build-up, and post-award subcontract terms.
- Check the limitations on subcontracting so the SDVOSB prime self-performs enough of the work.
- Make sure the prime performs the primary and vital requirements to avoid the ostensible subcontractor rule.
- Convert the teaming agreement into a definitive subcontract promptly after award.
Watch Out For
- A teaming agreement is usually an agreement to agree — if it's vague about the post-award subcontract, it may be unenforceable when the deal sours.
- If the subcontractor teammate performs the primary and vital work, the ostensible subcontractor rule can affiliate you and cost the set-aside.
- Don't confuse a FAR 9.6 prime-sub team with a joint venture — the size, affiliation, and self-performance rules differ.
- The GSA Schedule CTA is a distinct construct; using the wrong one for the buy can invalidate the arrangement.
Run the Numbers
Frequently Asked
What is the difference between a teaming agreement and a joint venture?
A teaming agreement (FAR Subpart 9.6) is usually a prime-subcontractor arrangement: one firm primes, the others subcontract, and no new legal entity is created — each firm keeps its own size and status. A joint venture is a separate business arrangement (often a new entity) in which the partners jointly hold the prime contract and share its management, profits, and risk. Joint ventures have their own SBA rules on ownership, work share, and affiliation; teaming agreements generally do not create affiliation on their own.
Does a teaming agreement make the companies affiliated for size?
Not by itself. A normal prime-subcontractor teaming arrangement does not create affiliation. However, if the subcontractor performs the primary and vital requirements of the contract, or the prime is unusually reliant on the sub, the SBA's ostensible subcontractor rule (13 CFR § 121.103(h)) can treat them as affiliated for that procurement — which can disqualify a small-business prime.
When should an SDVOSB use a teaming agreement instead of a joint venture?
A teaming agreement is often better when the SDVOSB can prime the work and just needs a partner's specific capability as a subcontractor — it keeps your certification, avoids forming and registering a new entity, and sidesteps the joint-venture size and work-share rules. A joint venture makes more sense when the partners want to jointly hold the contract and share management and profit, or when using an SBA-approved mentor-protégé JV to reach a size or capability you can't hit alone.
Primary Sources
- FAR Subpart 9.6 — Contractor Team Arrangements
- FAR 9.601 — Definition (contractor team arrangement)
- FAR 9.603 — Policy
Plain-English reference, not legal advice. Teaming, joint-venture, affiliation, and subcontracting rules are fact-specific and the SBA regulations and FAR are amended from time to time — always read the current 13 CFR and FAR text, confirm the requirements with the contracting officer and your SBA resources, and consult qualified counsel before structuring a joint venture, teaming agreement, or subcontract you intend to rely on.
Change log (1)
- LaunchedPublished the federal teaming, joint venture & subcontracting arrangements reference covering how an SDVOSB works with other firms on a set-aside — the prime contractor and subcontractor roles, the FAR Subpart 9.6 contractor team arrangement (teaming agreement), the SDVOSB joint venture (13 CFR § 128.402), the SBA mentor-protégé joint venture (13 CFR § 125.9), the similarly situated entity that counts a sub's work as self-performance (13 CFR § 125.6), the ostensible subcontractor rule (13 CFR § 121.103(h)), general affiliation (13 CFR § 121.103), the small business subcontracting plan (FAR Subpart 19.7 / 52.219-9), and flow-down clauses (FAR 52.212-5 / Subpart 44.2) — each with an at-a-glance quick-facts card, a when-you-use-it list, a key-features table, an SDVOSB-specific angle, a how-to-set-it-up checklist, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source citations, and cross-links into the glossary, regulation explainers, how-to guides, set-aside comparisons, FAQ, clauses, forms, and the limitations-on-subcontracting, subcontracting-goal, set-aside eligibility, and size-standard calculators.